The Pentagon cancels JEDI deal with Microsoft, announces new JWCC contract

Aerial view of the Pentagon, Washington, D. C.” by Boston Public Library is licensed under CC BY 2.0
SaaS News -Pentagon-Cancels-a-Disputed-$10-Billion-Technology-Contract(source: SaaS Industry)
At a Glance

The US Department of Defense (DoD) has announced the cancellation of the ten-year JEDI contract with Microsoft. The move comes after US Federal Judge Patricia Campbell-Smith rejects the DoD and Microsoft’s motions to dismiss Amazon’s challenge of awarding the contract to Microsoft. Alongside the termination of JEDI, The Pentagon has announced a new JWCC contract, considering evolving cloud requirements

The US Department of Defense (DoD) on Tuesday announced the cancellation of Joint Enterprise Defense Infrastructure (JEDI), citing evolving requirements, industry advances, and increased cloud conservancy as reasons behind the contract being unable to meet its needs.

Initiating cloud termination procedures, the DoD stated that the idea of JEDI was developed when its needs were different and the Cloud Service Providers’ (CSP) technology and cloud conservancy was less mature. John Sherman, acting DoD Chief Information Officer, elucidated the need for the move in a statement,

In light of new initiatives, the evolution of the cloud ecosystem within DoD, and changes in user requirements to leverage multiple cloud environments to execute the mission, our landscape has advanced, and a new way-ahead is warranted to achieve dominance in both traditional and non-traditional warfighting domains.

John Sherman, acting DoD Chief Information Officer

The JEDI contract, which was the DoD’s cloud computing contract, meant to be a commercial-off-the-shelf (COTS) implementation of existing technology, was awarded to Microsoft in October 2019, beating top bidders like Amazon and Oracle. 

The deal was a significant setback for Amazon, which contended in a bid protest, stating that the Pentagon unfairly evaluated the JEDI deal. The project, which began with a $1 million contract award in a ten-year deal, was worth $10 billion in value.

We understand the DoD’s rationale, and we support them and every military member who needs the mission-critical 21st-century technology,” Microsoft’s response to the Pentagon’s announcement

quoted by reports.

New contract, new deals

Alongside the termination of JEDI, the DoD has announced a new contract – The Joint Warfighter Cloud Capability (JWCC), a multi-cloud and multi-vendor indefinite-delivery, Indefinite quantity contract (IDIQ). It said that it would seek fresh proposals and new rounds of bids from limited sources, Microsoft and Amazon, namely as they are the most capable of fulfilling its requirements.
Reports quoting Mr. Sherman also stated that the JWCC project would replace JEDI and that IBM, Oracle and Google would also qualify under the new project.

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