Amazon Says Bid for Pentagon Cloud Deal Was Cheaper, Better

  • AWS’s Oct. 23 amended complaint was unsealed on Tuesday
  • Pentagon re-affirmed its award to Microsoft in September
The Pentagon building in Washington, D.C.

Source: AFP/Getty Images

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Amazon.com Inc. said the Defense Department wrongfully awarded a highly lucrative cloud computing contract to Microsoft Corp. even after it proposed a cheaper and technically superior bid for the deal.

In an amended complaint that was filed Oct. 23 and unsealed on Tuesday, the e-commerce giant claimed that during a re-evaluation of revised bids from both companies, the Pentagon underrated Amazon’s advantages and ignored key contract requirements. Amazon spokesman Drew Herdener said in a statement that it offered “the lowest-priced bid by tens of millions of dollars.”