Microsoft’s $10 Billion Pentagon Deal at Risk Amid Amazon Fight
- Legal challenge alleges Trump bias cost Amazon the contract
- Defense Department may scrap plan and seek multiple vendors
Photographer: Bill Clark/Getty Images
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Microsoft Corp. is in danger of losing a contract to provide $10 billion of cloud computing services to the Pentagon, a deal the government has threatened to scrap altogether after years of legal squabbling.
The U.S. Defense Department said it will reconsider the controversial procurement if a federal judge declines to dismiss Amazon.com Inc.’s allegations that former President Donald Trump’s meddling cost the company the winner-take-all contract. That means the fate of a cloud project the Pentagon considers critical for its war fighters may rest in the hands of the U.S. Court of Federal Claims, which could soon issue a ruling on Amazon’s accusations.