{"id":21290,"date":"2019-08-02T21:05:23","date_gmt":"2019-08-02T21:05:23","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2019\/08\/02\/does-dods-big-money-cloud-contract-really-need-a-new-new-review\/"},"modified":"2026-08-08T04:44:45","modified_gmt":"2026-08-08T04:44:45","slug":"does-dods-big-money-cloud-contract-really-need-a-new-new-review","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/it-networks\/cloud\/2019\/08\/02\/does-dods-big-money-cloud-contract-really-need-a-new-new-review\/","title":{"rendered":"Does DoD\u2019s big-money cloud contract really need a new new review?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The decision by newly installed Secretary of Defense Mark Esper to review the Pentagon\u2019s controversial Joint Enterprise Defense Infrastructure (JEDI) cloud contract has received a mixed reaction from Capitol Hill. There has been an accusation another review is politically motivated, but there are those that say that he needs to review the contract anyway given his new position.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHe would be remiss if he just takes office and there\u2019s a $10 billion procurement that\u2019s gotten a lot of heat on the Hill and now in the White House, and he didn\u2019t step in and at least do his due diligence and take a look at it,\u201d said Alex Rossino, senior principal research analyst at Deltek, an enterprise cloud software provider. \u201cIt wouldn\u2019t be a smart move on his part.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract, which is potentially worth $10 billion over 10 years, will serve as the Pentagon\u2019s general services cloud. Amazon Web Services (AWS) and Microsoft are the final two contenders left in the running. But Oracle, which was eliminated earlier this year, has continuously challenged the JEDI contract throughout the process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Back in June, DoD Chief Information Officer Dana Deasy said that the Pentagon was looking to make the award by the end of August. But as that date has approached, lawmakers and President Donald Trump have expressed concern over the Pentagon\u2019s handling of the contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTo not review it would have been misfeasance; not just stupid, but misfeasance,\u201d said Daniel Goure, senior vice president of the Lexington Institute, a public policy think tank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a statement Aug. 1, DoD spokesperson Elissa Smith noted that secretary was doing what he said he\u2019d do all along.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cKeeping his promise to Members of Congress and the American public, Secretary Esper is looking at the Joint Enterprise Defense Infrastructure (JEDI) program. No decision will be made on the program until he has completed his examination,\u201d Smith stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Sen. Mark Warner, D-Va., wrote in a tweet Aug. 1 that the decision didn\u2019t &#8220;pass the smell test.\u201d Trump has a longstanding feud with Amazon founder Jeff Bezos, who also owns the Washington Post.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s important that we maintain a fair &amp; competitive process for DoD contracts, but for the president to use the power of his office to punish critics in the media would be a complete abuse of power,\u201d Warner tweeted. \u201cThis does not pass the smell test &amp; we need some answers.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The JEDI cloud procurement process was initially hampered by allegations from Oracle of conflicts of interest between several Amazon Web Services officials who worked at the Pentagon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The result won\u2019t change \u201cunless there\u2019s something none of us have heard about yet, a real glitch in the system, a pothole,\u201d Goure said. \u201cThis has been looked at a number of times.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There has also been confusion around how the JEDI cloud fit into the DoD\u2019s cloud strategy, which states it wants a \u201cmulti-cloud, multi-vendor strategy that incorporates a general-purpose cloud and fit for purpose clouds.\u201d The Pentagon has said that the JEDI cloud will host 80 percent of its systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI don\u2019t think that Esper\u2019s review effort &#8230; has to do with actually making a change to the strategy,\u201d Rossino said. \u201cI think it has to do with him &#8230; catching up and maybe him just making sure he does his due diligence to make sure that he can say when they award the contract that he took a look at it and didn\u2019t find anything out of order.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There have been numerous calls from Capitol Hill to delay the award of the contract. Sen. Marco Rubio, R-Fla., sent a letter to National Security Advisor John Bolton asking him to delay the award earlier this month. According to a Rubio spokesperson, his staff worked with Esper\u2019s office to ensure a review of the contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI am pleased Secretary Esper is taking immediate action to review the JEDI Cloud contract after I voiced concerns that the Department of Defense might award the contract before the Inspector General has finished its investigation into this matter,\u201d Rubio said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Others on Capitol Hill also cheered the secretary\u2019s decision. Rep. Steve Womack, R-Ark., said he was glad that the secretary was going to review the \u201cmany shortcomings of the JEDI procurement process.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s the right move, and one I have been calling for since JEDI\u2019s advancement,\u201d Womack said in a statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Back in June, Womack reportedly wrote a letter to President Donald Trump urging him to get involved in the contract proceedings. Sen. Ron Johnson, R-Wisc., also reportedly sent a letter to the president.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNeeded modernization should never come at the expense of effectiveness. Our war fighters require the most secure and innovative tools, and American taxpayers deserve a transparent and accountable procurement process,\u201d Womack said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">President Trump reportedly has concerns about the JEDI contract and, according to <a href=\"https:\/\/www.cnn.com\/2019\/07\/26\/politics\/oracle-trump-amazon-defense-contract-conspiracy\/index.html?no-st=1564177550\">CNN<\/a>, wants to \u201cscuttle\u201d the contract and reopen it. Last month, a group of four Republican lawmakers on the House Armed Services Committee, including the ranking member Rep. Mac Thornberry, R-Texas, wrote to the president asking him to not get involved in the process. Thornberry\u2019s office declined to comment on Esper\u2019s review.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe president has complained about a number of programs. You\u2019ve got situations from a dollar perspective or he thought that steam catapults were better than electromagnetic launch and guess what? Nothing\u2019s changed,\u201d Goure said. \u201cI mean, you just have a little bit of response on cost and pricing and people have sort of pulled up their boots.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The JEDI cloud procurement has survived numerous challenges, with the Government Accountability Office ruling against Oracle\u2019s pre-award protest and a federal judge ruling against Oracle in the U.S. Court of Federal Claims in July.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The claims court ruled that there is no merit to Oracle\u2019s assertion that it was wronged in the award process because it never met the minimum cybersecurity requirements in the contract. The court said that the decision to make a single award had no impact on the security requirements that Oracle didn\u2019t meet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe only logical conclusion is that, if multiple awards were made, the security concerns would ratchet up, not down,\u201d wrote U.S. Court of Federal Claims Judge Eric Bruggink wrote.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, \u201cunder any scenario, Oracle would be out of the competition,\u201d said Bruggink.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lots of government contracts receive contract protests, but the JEDI procurement is different because of the amount of attention it has received, said Alan Chvotkin, executive vice president and counsel of the Professional Services Council.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis one takes it one level higher because the folks haven\u2019t let go,\u201d said Chvotkin. \u201cSome advocates are continuing to raise the conflict of interest questions as [they\u2019re] not being satisfied by the department\u2019s analysis or the judge\u2019s conclusion.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So what does this mean going forward?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cNow the question is going to be, if [Esper] finds nothing wrong, and there\u2019s no reason to find anything wrong \u2014 I mean we\u2019ve been through this four or five times \u2014 is he going to tell the president \u2018we got this Mr. President and it\u2019s all okay?\u2019\u201d Goure said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid cheers and controversy, there are experts that say it does make sense for newly installed Secretary of Defense Mark Esper to review the Pentagon\u2019s Joint Enterprise Defense Infrastructure (JEDI) 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