U.S. Supreme Court rebuffs Oracle challenge to Pentagon cloud contract

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WASHINGTON, Oct 4 (Businesshala) – The US Supreme Court on Monday ended Oracle Corp’s (ORCL.N) challenge on how the Pentagon awarded the government’s now-cancelled $10 billion JEDI cloud computing contract.

The judges declined to hear an appeal of Oracle’s lower court ruling, which found that the Pentagon’s error in awarding the contract to the Austin, Texas-based business software maker did not result in damages that the company previously qualified for. Won’t happen. Place.

The US Department of Defense awarded a Sole Source cloud computing purchase contract to Microsoft Corp (MSFT.O) in 2019, but canceled that deal in July, announcing a new contract that included Amazon.com (AMZN.O). ) is expected to be included, which was also excluded from the earlier one.

Oracle wanted the JEDI contract to be rescinded, despite the fact that it was an appeal hearing, as it said that loopholes in that contract could reoccur as the government screens bidders for a new one. Is.

The now-cancelled joint venture Defense Infrastructure Cloud (JEDI) contract was part of the Pentagon’s broader digital modernization aimed at making it more technologically agile.

Oracle sued in 2018 to oppose the structure of the purchase and the conflicts of interest of some Pentagon employees, including Amazon, which ultimately lost the JEDI award to Microsoft.

The Washington-based US Court of Appeals for the Federal Circuit, which hears appeals related to government contracts, ruled against Oracle last year that the company would not have a substantial chance of securing the contract.

Like Oracle, Amazon sued opposing the JEDI sole-source deal, arguing that then-President Donald Trump had put undue pressure on military officials to take away the contract from Amazon. That suit has now been dismissed.

Reporting by Andrew Chung in New York; Editing by Will Dunham

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