Oracle Loses Protest of Pentagon Cloud Bid Seen Favoring Amazon

GAO decision deals setback to Oracle’s federal contracts push
Rejection frees Pentagon to pursue single-source solution

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By Naomi Nix and Anthony Capaccio

November 14, 2018 at 5:51 PM UTC

Updated on

November 15, 2018 at 1:22 AM UTC

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Oracle Corp. lost a challenge to the Pentagon’s $10 billion cloud contract, as the Government Accountability Office dismissed its argument that the winner-take-all contest violates federal procurement standards and unfairly favors Amazon.com Inc.

The GAO decision issued Wednesday deals a blow to Oracle’s push to expand its federal defense contracts, leaving the tech company with fewer options to improve its chances of winning the award. It also frees the Pentagon to pursue the single-source solution it has opted for all along.