IN A FEDERAL lawsuit, the tech giant Oracle has provided new details to support its accusation that Amazon secretly negotiated a job offer with a then-Department of Defense official who helped shape the procurement process for a massive federal contract for which Amazon was a key bidder.
Amazon Web Services and Microsoft are now the two finalists to win the highly contested $10 billion contract for what is known as the Joint Enterprise Defense Infrastructure, or JEDI. The deal, one of the largest federal contracts in U.S. history, would pay one company to provide cloud computing services in support of Defense Department operations around the world.
But the contract has been hotly contested since the department began soliciting proposals last year. Two of Amazon’s competitors, IBM and Oracle, filed complaints with the Government Accountability Office saying that the winner-take-all process unfairly favored Amazon, which is seen as an industry leader in cloud computing. When its claim was rejected, Oracle sued the government in the U.S. Court of Federal Claims.
Since the court battle began in 2018, Oracle has aggressively lodged conflict-of-interest accusations involving a former DOD official named Deap Ubhi, who left the department in 2017 to take a job at Amazon. In a court motion filed on Friday, Oracle alleged that while Ubhi worked on the preliminary research for the JEDI program in the late summer and fall of 2017, he was also engaged in a secret job negotiation with Amazon for months, complete with salary discussions, offers of signing bonuses, and lucrative stock options.
The motion further alleges that Ubhi did not recuse himself from the JEDI program until weeks after verbally accepting a job offer from Amazon and that he continued to receive information about Amazon’s competitors and participate in meetings about technical requirements, despite a government regulation that forbids such conflicts of interest.
“Neither Ubhi nor [Amazon Web Services] disclosed the employment discussions or job offer to DOD — not when the employment discussions started, not when the informal job offer occurred, not when the formal offer occurred, and not even when Ubhi accepted the offer,” Oracle’s motion reads.
theintercept.com/2019/06/03/amazon-defense-department-jedi-contract/