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The JEDI Contract: Here's the Major Players, Why Pentagon Pulled the Plug

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The JEDI, or  Joint Enterprise Defense Infrastructure, contract was meant to modernize the Pentagon’s IT operations for services rendered for up to ten years.

Companies interested in the contract included Amazon  (AMZN) , Google  (GOOGL) , Microsoft  (MSFT)  and Oracle  (ORCL) .

Microsoft was awarded the contract in 2019, but work stalled as Amazon Web Services filed a lawsuit protesting the decision.

Amazon argued that President Donald Trump’s bias against Amazon and former CEO, Jeff Bezos, influenced decision to award the contract to Microsoft.

"There are people who feel that he put his finger on the scales in favor of Microsoft because he hated Amazon," said TheStreet founder Jim Cramer. 

Toni Townes-Whitley, president of U.S. regulated industries at Microsoft, released a statement in a Microsoft blog post.

“We understand and agree with the DoD’s decision. Unfortunately, the contract award was not based on the merits of the proposals and instead was the result of outside influence that has no place in government procurement,” said an AWS spokesperson.

Watch the video above or read more about the JEDI contract from TheStreet's Katherine Ross: GameStop, Nextdoor, and JEDI: 3 Things to Watch Into Happy Hour

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