U.S. Supreme Court dismisses Oracle’s challenge to Pentagon cloud contract

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WASHINGTON, Oct.4 (Reuters) – The United States Supreme Court on Monday ended Oracle Corp’s (ORCL.N) challenge on how the Pentagon awarded the government the $ 10 billion JEDI cloud computing contract of dollars, now canceled.

Judges declined to hear Oracle’s appeal of a lower court ruling that found the Austin, Texas-based enterprise software maker not harmed by any mistakes made by the Pentagon when the contract was awarded because the company would not have qualified in the first place.

The U.S. Department of Defense awarded the single-vendor cloud computing supply contract to Microsoft Corp (MSFT.O) in 2019, but canceled that deal in July, announcing a new contract that is expected to include Amazon.com (AMZN .O), which had also been excluded from the previous one.

Oracle wanted the judges to hear the appeal despite the fact that the JEDI contract had been canceled because it indicated that the flaws in that contract could recur as the government selects bidders for a new one.

The now canceled Joint Enterprise Defense Infrastructure Cloud (JEDI) contract was part of a larger digital modernization by the Pentagon to make it more technologically agile.

Oracle filed a lawsuit in 2018 to protest the procurement structure and conflicts of interest of some Pentagon employees involving Amazon, which ultimately lost the JEDI award to Microsoft.

The Washington-based Federal Circuit Court of Appeals for the United States, which hears appeals over government contracts, ruled against Oracle last year, saying the company would not have had a substantial chance of get the contract.

Like Oracle, Amazon had filed a lawsuit protesting the JEDI single-source deal, arguing that then-President Donald Trump had put inappropriate pressure on military officials to hijack Amazon’s contract. This litigation has now been dismissed.

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


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