Pentagon watchdog investigating JEDI cloud contract

|About: Microsoft Corporation (MSFT)|By:, SA News Editor

The Pentagon Inspector General has opened an official review into the $10B JEDI cloud contract, including allegations of potential misconduct in the selection process.

The review was previously reported, but the official statements from the internal watchdog offer context into the investigation.

Spokeswoman Dwrena Allen: "We are reviewing the DoD’s handing of the JEDI cloud acquisition, including the development of requirements and the request for proposal process."

More: "In addition, we are investigating whether current or former DoD officials committed misconduct relating to the JEDI acquisition, such as whether any had any conflicts of interest related to their involvement in the acquisition process."

Earlier this year, the Pentagon revealed Microsoft (MSFT +1.6%) and Amazon (AMZN +1.9%) as the JEDI finalists. The final decision was supposed to happen in August, but is now delayed indefinitely.

Competitor Oracle (ORCL +1.1%) has gone to President Trump and the courts to argue that the JEDI process unfairly favors Amazon due to its market size, and to accuse JEDI workers of having ties to AMZN.

The JEDI contract starts with a two-year contract period but can stretch over 10 years and $10B if all options are exercised.

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