Joint Enterprise Defense Infrastructure (JEDI), the project potentially worth $10 billion, was awarded to Microsoft Corp. over Amazon Web Service by the Pentagon in October 2019.  On 2 September, The U.S. Court of Appeals for the Federal Circuit upheld a 2019 lower-court ruling that Oracle Corp. wasn’t harmed by any faults the Pentagon made in developing the proposal for the contract of the cloud-computing which is designed to help the Pentagon combine its technology programs and promptly transfer data to soldiers fighting around the world. Even though The Defense Department has said picking one vendor for the project will reduce its technical complexity and security risks, according to Oracle, the Pentagon violated its own rules by doing so. Oracle argued that the Defense Department unfairly and unnecessarily adopted the minimum contract requirements specially fitted to Amazon and Microsoft’s conditions so that only they would qualify for bidding, and it caused Oracle's exclusion from seeking the cloud-computing deal. 

Another important issue raised by Oracle was the allegation of conflicts of interest involving Inc. since the former Pentagon employees who helped to craft the bid went on to work for Amazon later on. The Federal Circuit rejected Oracle’s arguments and ruled that the Defense Department “used competitive procedures,”. The panel also found the conflict of interest allegations “troubling” but ultimately “had no effect on the JEDI Cloud solicitation.” by stating that Oracle wouldn’t have qualified for the contract anyway.


Şafak Herdem, Nisanur Özden