{"id":17257,"date":"2020-04-15T19:19:41","date_gmt":"2020-04-15T19:19:41","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2020\/04\/15\/pentagon-ig-finds-jedi-contract-didnt-violate-law-but-ethical-questions-remain\/"},"modified":"2026-08-08T04:49:44","modified_gmt":"2026-08-08T04:49:44","slug":"pentagon-ig-finds-jedi-contract-didnt-violate-law-but-ethical-questions-remain","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/home\/2020\/04\/15\/pentagon-ig-finds-jedi-contract-didnt-violate-law-but-ethical-questions-remain\/","title":{"rendered":"Pentagon IG finds JEDI contract didn\u2019t violate law, but ethical questions remain"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The Department of Defense\u2019s inspector general found that the procurement of its controversial multi-billion dollar enterprise cloud contract was \u201cconsistent with applicable law and acquisition standards,\u201d according to a final report released April 15.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The long-anticipated report on the Joint Enterprise Defense Infrastructure (JEDI) cloud contract, which was <a href=\"https:\/\/www.federaltimes.com\/home\/2019\/10\/26\/amazon-or-microsoft-dod-picks-a-winner-for-its-controversial-jedi-contract\/\" target=\"_blank\">awarded to Microsoft over Amazon Web Services in October<\/a>, found that while the Pentagon didn\u2019t violate the law with the contract structure, it did make several mistakes along the way, including ethical violations by employees and sharing Microsoft\u2019s proprietary information with Amazon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In its investigation, the IG reviewed whether the DoD\u2019s decision to award the JEDI cloud to a single vendor was appropriate, whether the solicitations were \u201cconsistent\u201d with applicable standards, if the source selection process was fair, whether the DoD violated the regulation by disclosing proprietary Microsoft information to Amazon, if the White Hose improperly influenced the final decision and whether the DoD employees engaged in ethical misconduct.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The inspector general\u2019s investigation didn\u2019t evaluate whether the award of the JEDI cloud contract should\u2019ve gone to Microsoft or Amazon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Improper influence investigation<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Central to the JEDI conflict were allegations that President Donald Trump interfered in the contracting process, trying to sway the decision away from Amazon. In its investigation, the inspector general was unable to \u201cdefinitively\u201d determine both the extent to which the White House communicated with senior Defense Department officials and the nature of communications about the procurement, because of assertions of executive privilege.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The assertion \u201cresulted in several DoD witnesses being instructed by the DoD Office of General Counsel not to answer our questions about potential communications between White House and DoD officials about JEDI,\u201d the IG wrote in a news release.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While it\u2019s unclear what the White House\u2019s communication with senior DoD\u2019s officials was, the IG determined that DoD officials that ultimately made the decision award didn\u2019t communicate with the White House.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMost of their identities and involvement in the procurement award were unknown to White House staff and even to the senior DoD officials. None of them told us they felt any outside influence or pressure as they made their decisions on the award of the contract,\u201d the IG wrote.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No members of the source selection team told the inspector general that they were influenced to choose Microsoft or Amazon, the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is consistent with statements from Pentagon chief information officer Dana Deasy, who said at <a href=\"https:\/\/www.federaltimes.com\/it-networks\/cloud\/2019\/10\/29\/how-the-pentagon-still-struggles-to-explain-its-massive-cloud-contract\/\" target=_blank>his confirmation hearing<\/a> in October that the source selection committee was anonymous and insulated from external pressure. At the time, however, Deasy didn\u2019t deny any allegations of pressure from the White House.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In several interviews with Defense Department officials, the DoD lawyers prevented witnesses from answering inspector general questions about communication with the White House.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite numerous reports detailing President Donald Trump\u2019s anti-Amazon statements, including a book that says Trump directed former Defense Secretary Jim Mattis to \u201cscrew\u201d Amazon, the inspector general did not find any evidence that \u201cany DoD official based any action or decision related to the JEDI Cloud procurement\u201d on Trump\u2019s statements or communication with the White House or president. Mattis told the IG that he \u201cdid not recall\u201d the president give him such direction. The IG wrote that it could not confirm or contradict the claim.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a statement, Lt. Col. Robert Carver, a Pentagon spokesperson, praised the results from the IG report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe Inspector\u2019s General final report on the JEDI Cloud procurement confirms that the Department of Defense conducted the JEDI Cloud procurement process fairly and in accordance with law,&#8221; Carver said. \u201cThe IG\u2019s team found that there was no influence by the White House or DoD leadership on the career source selection boards who made the ultimate vendor selection. This report should finally close the door on the media and corporate-driven attacks on the career procurement officials who have been working tirelessly to get the much needed JEDI Cloud computing environment into the hands of our frontline warfighters while continuing to protect American taxpayers.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Amazon Web Services, which <a href=\"https:\/\/www.federaltimes.com\/it-networks\/cloud\/2019\/11\/14\/amazon-will-protest-pentagons-jedi-to-dod\/\" target=_blank>challenged the DoD\u2019s decision to award the contract to Microsoft<\/a> in the Court of Federal Claims, has made improper political influence <a href=\"https:\/\/www.federaltimes.com\/it-networks\/cloud\/2019\/11\/25\/here-are-the-trump-statements-amazon-cites-in-its-jedi-protest\/\" target=_blank>central to its allegations<\/a> in its suit. The company requested it be allowed to <a href=\"https:\/\/www.federaltimes.com\/it-networks\/2020\/02\/10\/amazon-web-services-wants-to-depose-president-trump\/\" target=_blank>depose the president<\/a> and several senior DoD officials involved in the JEDI process. A federal judge has <a href=\"https:\/\/www.federaltimes.com\/it-networks\/cloud\/2020\/02\/13\/pentagon-and-microsoft-must-halt-work-on-jedi-cloud-for-now\/\" target=_blank>temporarily halted<\/a> the DoD\u2019s work on the cloud after the court found it was likely that the DoD erred on some technical evaluations of Amazon\u2019s offerings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a statement, an AWS spokesperson said the IG report lacks important information pertaining to the White House\u2019s role in the award decision and doesn\u2019t address the merits of the award decision to Microsoft. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis report doesn\u2019t tell us much. It says nothing about the merits of the award, which we know are highly questionable based on the Judge\u2019s recent statements and the government\u2019s request to go back and take corrective action,&#8221; the spokesperson said. &#8220;And, it\u2019s clear that this report couldn\u2019t assess political interference because several DoD witnesses were instructed by the White House not to answer the IG\u2019s questions about communications between the White House and DoD officials. The White House\u2019s refusal to cooperate with the IG\u2019s investigation is yet another blatant attempt to avoid a meaningful and transparent review of the JEDI contract award.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Esper\u2019s JEDI review, recusal and contract award<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After his confirmation in late July, Secretary of Defense Mark Esper announced <a href=\"https:\/\/www.federaltimes.com\/it-networks\/cloud\/2019\/08\/02\/does-dods-big-money-cloud-contract-really-need-a-new-new-review\/\" target=_blank>a review of the JEDI cloud contract<\/a>, which led to allegations that the review was politically motivated following a Washington Post report that the White House instructed Esper to review the contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the Post story, Esper said that his review was in response to several complaints from members of Congress about the award and correspondence with \u201cadministration officials.\u201d Esper told the IG in an interview that the administration members were Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin. Pompeo, the former CIA director, and Esper discussed the CIA\u2019s cloud computing experiences, while Mnuchin offered to discuss his experience with cloud computing in the private sector. Esper said he didn\u2019t recall ever discussing the issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Esper told the inspector general that the decision to initiate the review was entirely his own decision. The Defense Department lawyer present for the interview with Esper wouldn\u2019t allow him to answer questions about his correspondence with the White House about JEDI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Esper\u2019s review consisted of five briefings, attended each time by Esper, Deputy Secretary David Norquist, Deasy and Ranks. All witnesses interviewed told the IG that the meetings were informational, not contractor-specific. Ranks told the investigators that the \u201cquestion of which competitor would win the eventual contract award was never a topic of Secretary Esper\u2019s review.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOur review of the read-aheads and other materials used to brief Secretary Esper in the sessions described above indicated that they were informational in nature,\u201d the IG wrote. \u201cThey did not contain any recommendations, or ask for any decisions or directions from Secretary Esper. None of the materials discussed specific capabilities of the JEDI contract competitors, or provided any confidential DoD source selection information.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Deasy told investigators that the White House never asked for, nor did he share, any information about the review with the White House.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The secretary <a href=\"https:\/\/www.federaltimes.com\/it-networks\/cloud\/2019\/10\/22\/secretary-of-defense-recuses-himself-from-troubled-pentagon-contract\/\" target=_blank>recused himself from the decision<\/a> Oct. 25, 2019, citing his son\u2019s employment at IBM, which was an early bidder for the contract. The contract was awarded days later.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Esper, Norquist briefed the White House before the public announcement but after the DoD made the award decision internally. According to Ranks, the DoD told the White House it was making an award but didn\u2019t disclose what contractor won.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Ethics violations<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The inspector general also investigated allegations of ethical misconduct against seven DoD employees involved in the JEDI procurement, including Mattis. The IG only substantiated claims against two employees, Deap Ubhi and Stacy Cummings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The inspector general found that Ubhi, a former Amazon employee who worked on the JEDI procurement for the department until leaving for Amazon again, failed to disclose that he had started negotiating a return to Amazon while working on the beginning stages of the JEDI procurement in 2017. He lied to Amazon and DoD officials about his negotiations with Amazon three times, the IG found, but his work in the early stages of the cloud was \u201cnot substantial\u201d and \u201cdid not provide any advantage\u201d to Amazon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IG also found that Stacy Cummings, principal deputy assistant secretary of defense for acquisition and deputy assistant secretary of defense for acquisition enablers, held between $15,001 and $50,000 worth of stock in Microsoft while working on JEDI-related issues. The IG found that Cummings role did not influence the award to Microsoft.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because of Cummings\u2019 stock holdings, the IG recommends that the DoD CIO\u2019s office review its Cloud Computing Program Office\u2019s procedures for uncovering and mitigating conflicts of interest. The IG wrote that the recommendations remain unresolved after the DoD didn\u2019t respond to the recommendations provided in a draft report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Disclosure of proprietary information<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IG report also found that the Defense Department improperly disclosed proprietary information about Microsoft\u2019s offering to AWS during the post-award debriefing, in which the DoD explained its award decision. The de-briefing occurred before Amazon sued in the Court of Federal Claims.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBy disclosing Microsoft\u2019s proprietary information, the DoD also potentially provided AWS an unfair advantage in the cloud services marketplace,\u201d the inspector general wrote.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a statement, Microsoft spokesperson Frank Shaw said that its clear the Pentagon awarded JEDI properly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s now apparent that Amazon bid too high a price and is seeking a do-over so it can bid again,\u201d Shaw said. \u201cAs the IG\u2019s report indicates, Amazon has proprietary information about Microsoft\u2019s bid that it should never have had. At this stage, Amazon is both delaying critical work for the nation\u2019s military and trying to undo the mistake it made when it bid too high a price.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><i>Update: This story was updated with a statement from Amazon.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While a long-awaited inspector general report on the Pentagon&#8217;s JEDI cloud found that the procurement followed the law, the IG did find ethical violations and post-award 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that the procurement followed the law, the IG did find ethical violations and post-award mistakes.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/one.sightlinemg.com\/c4isrnet\/home\/2020\/04\/15\/pentagon-ig-finds-jedi-contract-didnt-violate-law-but-ethical-questions-remain\/\" \/>\n<meta property=\"og:site_name\" content=\"C4ISRNet\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-15T19:19:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-08T04:49:44+00:00\" \/>\n<meta name=\"author\" content=\"Andrew Eversden\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrew Eversden\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": 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