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Judge sides with Amazon on $600M CIA cloud contract

Oct. 8, 2013 - 04:05PM   |  
By NICOLE BLAKE JOHNSON   |   Comments
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A federal judge on Monday ruled that Amazon Web Services could resume work on a $600 million CIA cloud computing contract.

Judge Thomas Wheeler sided with Amazon that IBM has no grounds to protest the company’s CIA award and that Amazon’s cloud contract should be restored, according to court records. A written opinion will be posted.

“CIA is pleased that it can now move forward with procuring critical cloud services for the Intelligence Community,” CIA spokesman Todd Ebitz said in a statement.

IBM protested the contract with the Government Accountability Office, and, in June, the GAO recommended the CIA reopen the competition and amend the solicitation to ensure bid proposals are evaluated fairly.

However, in its court case, Amazon called IBM’s protest “untimely in its entirety” and asked that the court allow the CIA to move forward with the contract award to Amazon.

“We are disappointed with the ruling from the U.S. Court of Federal Claims, reversing the GAO’s recommendation to reopen the competition and correct flaws in the bidding process,” IBM spokesman Clint Roswell said in a statement. “IBM plans to appeal this decision. This court decision seems especially inappropriate in light of the current times, since IBM’s bid was superior in many ways, including being substantially more cost-effective.”

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