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Oracle today lost its bid to be considered for the US Department of Defense's Joint Enterprise Defense Infrastructure (JEDI) cloud contract, leaving either Amazon Web Services or Microsoft Azure as the likely winner of the $10bn, decade-long deal.
JEDI aims to provide "enterprise-level, commercial cloud services" to the Pentagon and its partners – all US military branches and defense-related intelligence agencies – with appropriate security and operational requirements.
DoD - Requirements - Companies - Contract - Amazon
The DoD's requirements are so stringent that only four companies bid on the contract: Amazon, IBM, Microsoft and Oracle. And further DoD demands winnowed the field to just two, Amazon and Microsoft, prompting challenges from IBM and Oracle. IBM's was dismissed. Now, Oracle's objection, filed in a federal claims court, has been dispensed with as well.
Eric G. Bruggink, the judge hearing Big Red's plea to be considered, issued an order in the past few hours rejecting Oracle's arguments that Uncle Sam's procurement process violated the law.
Government - Selection - Criteria - Oracle - Requirements
Because the government's selection criteria have been deemed valid and because Oracle has conceded it cannot meet the requirements, the court said Oracle "cannot demonstrate prejudice as a result of other possible errors in the procurement process."
As to Oracle's claim that Amazon failed to notify the Department of Defense that it had offered jobs to two former DoD officials, Bruggink endorsed the government's contention that no organizational and individual conflict of interest influenced the outcome of the procurement process.
Decision - Dip - Cent - Oracle - Stock
The decision coincided with a dip of about 1 per cent in Oracle's stock price, which is up more than 30 per cent in the year to date.
In a statement, Oracle reiterated...
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