Amazon blames Trump for losing $10 billion JEDI cloud contract to Microsoft

Amazon blames Trump for losing $10 billion JEDI cloud contract to Microsoft
By: WNG CNBC Posted On: December 09, 2019 View: 29

Amazon blames Trump for losing $10 billion JEDI cloud contract to Microsoft

Jeff Bezos, founder and chief executive officer of Amazon.com Inc., listens during an Economic Club of Washington discussion in Washington, D.C., U.S., on Thursday, Sept. 13, 2018.

Bloomberg | Bloomberg | Getty Images

Amazon says President Donald Trump launched "behind-the-scenes attacks" against the company, which led to it losing out on a major contract for cloud services.

In a heavily redacted, 103-page document made public on Monday, Amazon Web Services lays out why it's protesting the Department of Defense's decision to award Microsoft the JEDI (Joint Enterprise Defense Infrastructure) contract. AWS claims it didn't win the JEDI contract, which could be worth as much as $10 billion, as a result of repeated public and private attacks against Amazon and, specifically, its CEO Jeff Bezos.

"The question is whether the President of the United States should be allowed to use the budget of DoD to pursue his own personal and political ends," the filing states. "DoD's substantial and pervasive errors are hard to understand and impossible to assess separate and apart from the President's repeatedly expressed determination to, in the words of the President himself, 'screw Amazon.' Basic justice requires re-evaluation of proposals and a new award decision."

AWS argues President Trump's intervention was a "fundamental defect" in the procurement process that made it impossible for the agency to judge a winner  "reasonably, consistently, and in a fair and equal manner."

Amazon and the Department of Defense were not immediately available for comment. The White House declined to comment. 

Last month, Amazon confirmed it would protest the JEDI decision when it filed a lawsuit in the U.S. Court of Federal Claims. The Pentagon announced Oct. 25 that Microsoft had won the contract. The deal drew immediate scrutiny because President Trump became involved and Trump often criticizes Amazon and Bezos, who also owns The Washington Post.

This story is developing.

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