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There is a battle afoot, one you might not have heard about yet, but it involves a high-stakes winner-take-all contract for the Department of Defense’s cloud contract. It could involve billions of dollars and when a humongous sum of money meets a set of powerful tech companies, intrigue can’t be far behind.

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with the Pentagon dubbing the project the Joint Enterprise Defense Infrastructure (or JEDI for short). Who says the Pentagon is staid?

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worth up to $950 million in February to help the DoD with cloud procurement and pricing, likely a first step ahead of the cloud contract itself.

It didn’t take long for the big guys to start howling and Oracle (you will hear that name more than once in this story), filed a formal complaint over the deal with Government Accountability Office. Not long after, the DoD announced that the deal was being scaled back from $950 million to $65 million, still a substantial contract for a systems integrator you probably never heard of, but a fraction of the original deal.

A couple of days later, the Pentagon announced it was starting a bidding process for the cloud contract itself. That would be a winner-take-all affair for a contract that could stretch for a decade and involve many billions of dollars. The exact number isn’t clear, but suffice to say it’s a humongous sum and every enterprise cloud company wants this deal.

Photo” Bill Clark/CQ Roll Call

As you might expect with a huge deal in Washington, DC, it didn’t take long for politics to enter into the fray. For starters, the Congress began to question the single winner component. They included language in the $1.3 trillion omnibus spending bill directing the DoD to explain within 60 days how it plans to acquire cloud services in light of the parameters of its cloud bidding process. In particular, Congress was concerned about the Pentagon being locked into a single vendor for a decade with no real way to back out and no competition after the initial bidding process.

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, not necessarily related to the cloud or the Pentagon contract, but Amazon is the biggest cloud company bidding for a major contract. It’s worth noting that White House spokesperson Sarah Huckabee Sanders denied the president’s anti-Amazon stance would play a role in the contract award .


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