[HN Gopher] Judge Halts Work on Microsoft's JEDI Contract in Vic...
       ___________________________________________________________________
        
       Judge Halts Work on Microsoft's JEDI Contract in Victory for Amazon
        
       Author : jbegley
       Score  : 114 points
       Date   : 2020-02-13 19:46 UTC (3 hours ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | HenryKissinger wrote:
       | I think Amazon will lose this case. It will be impossible to
       | prove that Donald Trump's public attacks on Jeff Bezos influenced
       | the decision of the Department of Defense to award the JEDI
       | contract to Microsoft. Amazon wants to depose Donald Trump,
       | SecDef Mark Esper, and former SecDef James Mattis. I don't see
       | Donald Trump willingly testifying to a court under oath. If Esper
       | and Mattis have to testify, they will say that the contract was
       | awarded fairly and based on a neutral and thorough review of both
       | proposals, and that Microsoft's offer fulfilled the needs of the
       | DoD better. The SecDef, being the most important individual in
       | the DoD, is in the best position to determine the department's
       | needs. While this doesn't mean that corruption of the decision
       | making process is impossible, these contracts have a paper trail
       | and review/counter-review processes by a multitude of procurement
       | officers and committees, and a federal judge unilaterally
       | deciding the winners of military contracts would set a terrible
       | precedent. At worst the contract could be voided and the
       | competition restarted, but the final decision would most likely
       | be the same.
        
         | eganist wrote:
         | > At worst the contract could be voided and the competition
         | restarted, but the final decision would most likely be the
         | same.
         | 
         | Assuming Trump interfered, a rebid is the best possible
         | outcome. It took well over a year for that bid to be completed,
         | meaning by the time this matter is adjudicated, we'll know
         | whether or not Trump is on his way to a second term.
         | 
         | And if not, then there's no way the JEDI contract re-bid will
         | be completed before he's out on Jan 20, 2021.
        
           | fooey wrote:
           | There's no assumption needed, he directly and publically
           | interfered.
           | 
           | Trump specifically ordered DoD to review the fundamental deal
           | to make sure it didn't favor Amazon.
        
             | eganist wrote:
             | Well since you're drawing out my personal politics: I
             | agree, personally. I'm also among a population his team
             | have indicated are unwelcome, but I'm trying to give some
             | amount of respect to the justice system even if I feel he
             | doesn't.
             | 
             | Now with that aside, please keep the absolutist politics
             | off of Hackernews. It's the last good sanctuary we have
             | from what the rest of the internet has devolved into. There
             | are plenty of people drawn into the administration's orbit
             | who still have good ideas about product development which
             | I'd like to learn.
        
           | [deleted]
        
         | wyxuan wrote:
         | Agreed. They might be able to turn up some emails discussing
         | Trump's pressure but I think those emails (unless truly
         | damning)won't be able to meet the bar.
        
           | DannyB2 wrote:
           | Nothing, no matter how bad, can overcome the Barr.
        
         | m0zg wrote:
         | >> Microsoft's offer fulfilled the needs of the DoD better
         | 
         | Which it's not even up for debate that it did. The Pentagon
         | already runs a ton of Microsoft software - something Amazon has
         | no ability to properly support at this scale.
        
           | fooey wrote:
           | It's a cloud computing contract, not for desktop services.
           | 
           | If anything, the terms of the contract were specifically
           | written with features only Amazon can provide, and it was
           | assume it would go to them until Trump cronies at Oracle got
           | his ear.
        
           | ineedasername wrote:
           | Why would Amazon need to support Microsoft software? The
           | contract is to build out cloud infrastructure, not every
           | single product and service and application that might run on
           | it. _No_ vendor could do that.
           | 
           | If the DoD currently has MS systems on traditional
           | infrastructure that they'd like to migrate to the JEDI cloud,
           | there's no reason those couldn't continue to be supported by
           | MS, just as the many other systems that run on the new cloud
           | infrastructure will be supported by their own vendors. I no
           | more expect Amazon to support every piece of software I run
           | on their services than I would expect my appliance repairman
           | to assist with my Hello Fresh cooking (if I had a
           | subscription) just because they "support" my oven.
        
           | lern_too_spel wrote:
           | The various government agencies already have contracts for
           | Microsoft software support. The JEDI contract is for cloud
           | infrastructure.
        
           | mrgordon wrote:
           | Of course it's up for debate. Everyone thought Amazon would
           | win the contract because they had such a lead in cloud
           | services until Trump got involved as part of his personal
           | vendetta with Bezos for the Washington Post
        
             | notyourday wrote:
             | It was up for debate only among people who think "cloud" is
             | web apps written in NodeJS, Go and Python rather than the
             | old boring applications that used to be ran locally.
             | Microsoft and Oracle are gigantic specialized vendors in
             | that space. "Cloud" part is a commodity.
        
             | m0zg wrote:
             | >> Everyone thought
             | 
             | Citation needed. I didn't think that for a minute. If
             | anything MS was the only sane choice here, for reasons I
             | wrote of above.
             | 
             | >> Trump got involved
             | 
             | Citation needed.
        
               | fooey wrote:
               | > when JEDI was issued, on the day Congress recessed for
               | the summer, the deal appeared to be rigged in favor of a
               | single provider: Amazon. According to insiders familiar
               | with the 1,375-page request for proposal, the language
               | contains a host of technical stipulations that only
               | Amazon can meet
               | 
               | https://www.vanityfair.com/news/2018/08/has-bezos-become-
               | mor...
        
               | ineedasername wrote:
               | >>Citation Needed (Everyone Thought) [0][1][2]
               | 
               | Oracle certainly thought Amazon was the front runner,
               | unfairly so, to the point that they began a lawsuit prior
               | to all this current mess.
               | 
               | >>Citation Needed (Trump Got involved) [3][4]
               | 
               | When the President expresses a desire to "screw" over a
               | potential vendor, that's getting involved.
               | 
               | [0] https://apnews.com/3f36de42be3d45b7bee0d2c5febd2557
               | 
               | [1] https://www.bizjournals.com/sanjose/news/2019/04/11/o
               | racle-p...
               | 
               | [2] https://www.businessinsider.com/heres-why-amazon-is-
               | heavily-...
               | 
               | [3]https://www.cnbc.com/2019/12/09/amazon-blames-trump-
               | for-losi...
               | 
               | [4] https://www.fiercetelecom.com/telecom/trump-mulls-
               | stepping-i...
        
               | zaroth wrote:
               | Your [3] is just a story reporting this story, citing
               | nothing but Amazon's complaint. Your [4] quotes Trump
               | saying lots of companies are complaining, and an internal
               | ethics investigation at the DoD which turned up someone
               | working on the contract who worked at AWS;
               | 
               | > _The Pentagon found potential ethical violations by a
               | former Amazon Web Services employee who had worked on
               | JEDI during a stint at the Defense Department, according
               | to a New York Times story. Those potential violations
               | were referred to Office of Inspector General for further
               | investigation._
        
         | tssva wrote:
         | The judge would not decide who would win the contract. The
         | judge would determine if the contract needs to be re-competed.
         | This has happened many times with DoD contracts and nothing
         | about the judge deciding it needs to be would be precedent
         | setting.
         | 
         | Asking for Trump to be deposed is the smartest thing Amazon has
         | done in this case. Of course he will refuse which will lead to
         | an extended court battle to try to force him to be. This will
         | extend the case passed the election and at that point a
         | different administration may decide themselves to scrap the
         | contract award and re-compete it.
        
           | ticmasta wrote:
           | Which itself will likely cause a payout to MS. Not $10B but
           | I'd bet substantial...
        
         | ineedasername wrote:
         | I think it will hinge on what, if any, communications took
         | place between the administration and the DoD. If there were
         | written communications, those will be discoverable during the
         | lead up to a trial. Conversations that took below the SecDef
         | level where (if) personnel felt pressured to skew things a
         | certain way could also come out.
         | 
         | I don't think people watching this case would tend to thing the
         | courts would award the contract to Amazon though. That is very
         | much outside the scope of this case, and does not appear to be
         | what Amazon is seeking. The case hinged on the more narrow
         | question of whether the process followed was proper. Even apart
         | from first-hand testimony on pressure, this can be determined
         | in part from the timing and changes to requirements. If the
         | requirements were changed at the last minute to include things
         | that only Microsoft, by definition, could provide, then it's a
         | problem for the DoD. For example, an 11th hour change to
         | stipulate "selected contractor must currently offer per-minute
         | billing on services" could easily be interpreted as unduly
         | biased towards MS. A stipulation saying "Vendor branding of
         | products must reference a shade of blue" (Azure) then that
         | would be a bit of a smoking gun. I mean sure, a ridiculous
         | example, but you see what I mean. And, being a civil case, the
         | burden of proof is not "reasonable doubt", but the much lesser
         | "preponderance of evidence" threshold.
        
           | m0zg wrote:
           | How about: "Vendor must be able to quicky fix bugs in
           | Microsoft software"? Would that be "undue" or not? Seems like
           | a desirable capability for a government entity that runs on
           | Microsoft software.
        
             | AdamJacobMuller wrote:
             | That's not inherently disqualifying AMZN, they can contract
             | MSFT for that.
        
             | ineedasername wrote:
             | Why would Microsoft have to stop providing any such support
             | they currently give to the DoD? Do you think Dell or HP or
             | whoever they get servers from does this sort of thing
             | instead of MS?
             | 
             | And why do you seem to think that the infrastructure vendor
             | would be required to support the code base of any & all
             | software that runs on it? This isn't a contract for
             | everything that will run in their cloud. _This is an
             | infrastructure contract_.
        
       | williesleg wrote:
       | Activist judge again.
        
       | ineedasername wrote:
       | Well there's at least one positive outcome from this whole
       | debacle so far with Oracle's lawsuit being heavily undercut by
       | the award to MS.
        
       | sergiotapia wrote:
       | short MS
        
         | kevas wrote:
         | Stop. Full stop...
         | 
         | This contract would add about $250m in additional each quarter.
         | Their last Q's revenue was somewhere in the neighborhood of
         | $33b.
         | 
         | Just stop with your nonsense.
        
           | sergiotapia wrote:
           | I guess I should have put in an /s forgot this isn't wsb
        
           | orf wrote:
           | Obviously getting the JEDI contract has implications for
           | Azure/Microsoft far, far beyond the monetary value of the
           | contract itself.
        
             | kerng wrote:
             | Agreed, and the majority of the positive press and Azure
             | being seen as being a more then viable alternative has
             | already been done.
             | 
             | AWS won't be able to revert that change in public
             | perception that Azure has grown up.
             | 
             | That's also the reason I don't understand Amazon fighting
             | the decision, because it just makes them look immature now.
             | Better to move on and focus on providing customer value,
             | keep innovating and build better tech.
             | 
             | And its very likely MS will win this and get another ego
             | boost over AWS.
        
       | vkaku wrote:
       | Microsoft will win this, is what my gut feeling says. And Amazon
       | may be forced to pay compensation by the people in the process.
       | 
       | How about they actually prove they can focus on privacy and be a
       | good implementor for the government? I doubt if they will ever do
       | that. That's the concern.
        
       | keanzu wrote:
       | "In December, Amazon filed a challenge to the deal in federal
       | court, saying that Mr. Trump used "improper pressure" on the
       | Pentagon at its expense."
       | 
       | "Microsoft said Amazon "only provided the speculation of bias,
       | with nothing approaching the 'hard facts' necessary" to demand
       | them."
       | 
       | He may have applied improper pressure but I wasn't able to find
       | where they presented any evidence to support this accusation. Was
       | there any evidence or is the point of the court process to get
       | some?
        
         | [deleted]
        
         | jdm2212 wrote:
         | This lawsuit is an effort to get hard evidence. This is just an
         | injunction while they sort out how to go forward and what
         | paperwork/depositions to grant Amazon.
        
       | threeseed wrote:
       | Seems a bit pointless.
       | 
       | Even if Amazon wins there will likely be a re-bid process. At
       | which point they will simply select Microsoft again. As we've
       | seen with the DOJ Trump can exert significant influence without
       | having to actually tell them what to do.
        
         | fooey wrote:
         | The original reporting on JEDI was pretty much that it was
         | written specifically with Amazon in mind, and that the RFP was
         | a formality.
         | 
         | Someone at Oracle with access with Trump brought it to his
         | attention, and Trump personally intervened, ordering DoD to
         | ensure Amazon was not favored for the contract.
        
         | RobRivera wrote:
         | Sometimes all a competitor needs is to impact competitor
         | schedules to overtake market share.
        
         | mayneack wrote:
         | If Trump is really the only thing giving the contract to
         | Microsoft, rebidding might land in 2021 at which point there's
         | some chance Trump isn't in a position to exert influence.
        
         | jahlove wrote:
         | These large proposals can take many years to award. There could
         | very likely be a new administration by that time.
         | 
         | See the KC-X tanker program as an example:
         | 
         | 01/2007 - RFP comes out
         | 
         | 02/2008 - Northrop Grumman wins
         | 
         | 03/2008 - Boeing successfully protests
         | 
         | 08/2008 - Revised RFP comes out, then cancelled
         | 
         | 09/2009 - Third RFP comes out
         | 
         | 02/2011 - Boeing wins
         | 
         | https://en.wikipedia.org/wiki/KC-X#Initial_competition
        
       | clSTophEjUdRanu wrote:
       | My hunch is that Amazon is desperate for this because of looming
       | regulations. We regularly see companies that cozy up to the
       | government get special treatment.
        
       | jimbob45 wrote:
       | "On Thursday, Judge Campbell-Smith also required that Amazon pay
       | a $42 million deposit that will be held by the court in case it
       | later determines that the injunction was wrongfully issued and
       | that Microsoft is owed damages."
       | 
       | I know $42MM is pocket change to these companies but this goes a
       | long ways toward removing my perception of the judge being
       | biased.
        
         | tomohawk wrote:
         | It's a fig leaf.
         | 
         | It's not about the judge being biased, but about amazon really
         | having nothing to lose compared to what they could gain, and
         | swinging for the fences. It's also about the _next_ contract.
         | 
         | They're unlikely to prevail, and have already, through their
         | past actions, turned a lot of DoD people against them. If they
         | had performed better with their previous contracts, they would
         | likely have won this.
        
         | MaupitiBlue wrote:
         | Not sure where the 42 came from, but requiring the party
         | seeking an injunction to post a bond is pretty standard on a
         | case like this. I would read absolutely nothing into it.
        
         | LiquidSky wrote:
         | Why would you have that perception at all?
        
         | keanzu wrote:
         | > my perception of the judge being biased.
         | 
         | That perception was possibly influenced by the HN title "Siding
         | with Amazon" vs the title the NY Times used "Judge Halts Work
         | on Microsoft's JEDI Contract in Victory for Amazon". At no
         | point in the article do the words "sides" or "siding" appear.
         | 
         | Edit: The HN title has been changed since I wrote this.
        
           | XMPPwocky wrote:
           | https://twitter.com/nyt_diff/status/1228059729391476736
           | 
           | The NYT changed their headline after publication.
        
             | mugwort13 wrote:
             | Typical
        
       | crmrc114 wrote:
       | The pissing contest between Jeff and Larry (AWS and Oracle) has
       | only resulted in MS getting Oracle + Azure. That may not seem
       | like much, but to most enterprise and government bodies that is a
       | huge + on the MS side is it not?
       | 
       | Also not mentioned here AWS already has GovCloud- there are a
       | number of agencies both federal and state that use AWS. Its not
       | like this contract is the _only_ contract there is to win. Its
       | just a big one. Jeff is a pretty damn sore loser.
        
         | fooey wrote:
         | Oracle is a McGuffin, they're only mentioned at all in this
         | drama as an excuse for Trump to interfere. They were never any
         | kind of contender for the contract.
        
         | throwaway5752 wrote:
         | The president told the secretary of defense to "screw" one
         | vendor in a competition for a $10B contract because of personal
         | biases unrelated to the contract. In any normal time, that
         | would be an administration ending scandal. Right now, it hardly
         | rates, but on an absolute scale it's still a big deal and
         | completely justifies this lawsuit.
        
           | balls187 wrote:
           | > Right now, it hardly rates
           | 
           | This is an underrated commentary.
           | 
           | I'm continually amazed at what transpires in the public
           | forum, leading me to believe that the US Government has been
           | corrupt for quite some time, but never out in the open.
           | 
           | Or, it could be like this https://youtu.be/aI0euMFAWF8
        
           | unlinked_dll wrote:
           | Not to be too cynical, but if we started investigating every
           | DoD contract where personal biases decided who won and who
           | lost... the military industrial complex would probably
           | crumble overnight.
        
             | throwaway5752 wrote:
             | Perhaps, but they should meet some minimal bar of effort to
             | avoid the appearance of impropriety. And on contracts of
             | this size, I would expect the standard of fairness to be
             | higher.
        
               | dnautics wrote:
               | > they should meet some minimal bar of effort to avoid
               | the appearance of impropriety
               | 
               | why not just call a spade a spade?
        
             | lostcolony wrote:
             | This isn't that though. This isn't every individual's
             | personal bias; this is a publicly declared bias by the
             | commander in chief. A little different.
        
               | balls187 wrote:
               | It's not even bias.
               | 
               | It's a __vendetta __
        
           | outside1234 wrote:
           | There is no evidence that he actually did this. People have
           | speculated that he might have and he clearly doesn't like
           | Bezos, but that is not proof.
        
             | throwaway5752 wrote:
             | https://www.cnn.com/2019/10/26/politics/amazon-donald-
             | trump-...
             | 
             | Was sourced in Mattis's biography, written by a _" former
             | Mattis speechwriter and communications director"_. That is
             | absolutely evidence. Now, proving it simply involves this
             | lawsuit and then deposing Mattis to confirm the claim.
        
           | awb wrote:
           | > The president told the secretary of defense to "screw" one
           | vendor in a competition for a $10B contract because of
           | personal biases unrelated to the contract.
           | 
           | On Twitter it sounds like Trump has animosity for Bezos, but
           | is there evidence Trump was involved in the process or the
           | process was biased?
        
             | ticmasta wrote:
             | Based on character it would seem the last thing Trump would
             | have the attention span for would be messing with
             | government IT contracts. He would quickly loose interest
             | and flip the TV to Fox News...
        
       | dude3 wrote:
       | Should be a factor. Guy involved in the JEDI decision was
       | pursuing a job at Amazon.
       | 
       | https://theintercept.com/2019/06/03/amazon-defense-departmen...
        
       ___________________________________________________________________
       (page generated 2020-02-13 23:00 UTC)