The Pentagon. (Flickr Photo / David B. Gleason cc2.0)
A federal judge has paused work on a hotly contested cloud contract that the Defense Department awarded to Microsoft in November. The decision issued Thursday is a victory for Amazon, which is asking the court to re-open bidding for JEDI, the $10 billion Joint Enterprise Defense Infrastructure project that the Seattle tech titans are warring over.
Amazon sued the federal government when Microsoft emerged as the surprise winner of the contest. Amazon claims President Donald Trump’s personal animus toward the company influenced the outcome of the JEDI competition.
It would have been much more difficult for Amazon to prevail in the case had Microsoft been allowed to get started on the contract while the matter was adjudicated. The judge would have to factor in the lost costs of restarting bidding on a contract that was already underway.
Amazon is on the hook for $42 million if “future proceedings prove that this injunction was issued wrongfully,” according to the court docket. The ruling itself is under seal.
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