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Is Amazon Rigging the Bidding For Massive Government Contracts? (vanityfair.com)

SpzToid quotes Vanity Fair: The controversy involves a plan to move all of the Defense Department's data -- classified and unclassified -- on to the cloud. The information is currently strewn across some 400 centers, and the Pentagon's top brass believes that consolidating it into one cloud-based system, the way the CIA did in 2013, will make it more secure and accessible. That's why, on July 26, the Defense Department issued a request for proposals called JEDI, short for Joint Enterprise Defense Infrastructure. Whoever winds up landing the winner-take-all contract will be awarded $10 billion -- instantly becoming one of America's biggest federal contractors.

But when JEDI was issued, on the day Congress recessed for the summer, the deal appeared to be rigged in favor of a single provider: Amazon. According to insiders familiar with the 1,375-page request for proposal, the language contains a host of technical stipulations that only Amazon can meet, making it hard for other leading cloud-services providers to win -- or even apply for -- the contract. One provision, for instance, stipulates that bidders must already generate more than $2 billion a year in commercial cloud revenues -- a "bigger is better" requirement that rules out all but a few of Amazon's rivals... Much of the language of JEDI, in fact, seems specifically tailored for Jeff Bezos. "Everybody immediately knew that it was for Amazon," says a rival bidder who asked not to be named. To even make a bid, a provider must maintain a distance of at least 150 miles between its data centers and provide "32 GB of RAM" -- specifications that few providers other than Amazon can meet.

The article also cites last year's "so-called Amazon amendment, a provision buried in a defense authorization bill that will establish Amazon as the go-to portal for every online purchase the government makes -- some $53 billion every year." And it also notes that Amazon employs more than 100 lobbyists in Washington, and "has spent $67 million on lobbying since 2000 -- including more this year than Citigroup, JP Morgan Chase, and Wells Fargo combined."

The article says this controversy may be "a sign of how tech giants and Silicon Valley tycoons will dominate Washington for generations to come."

4 of 128 comments (clear)

  1. Er, Open Stack, anyone? by davecb · · Score: 4, Informative

    The existing defense-oriented government data centres can easily support a really large open stack instance, which provides a more secure option that trusting a single vendor.

    (In previous lives, I've worked with both Open Stack and with the Solaris side of the U.S. Defense Department's server farms: what I propose is child's play for them. Other departments? Maybe so, maybe not.)

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  2. Someone's conducting "info ops" on this contract by david.emery · · Score: 4, Informative

    Here's a different view:

    In the past several months, a private investigative firm has been shopping around to Washington reporters a 100-plus-page dossier raising the specter of corruption on the part of senior Defense Department and private company officials in the competition for the JEDI cloud contract. But at least some of the dossier's conclusions do not stand up to close scrutiny.

    https://www.defenseone.com/tec...

  3. Re:Amazon is cheaper than the alternative by chill · · Score: 4, Informative

    Amazon was the *first* to pass the FedRAMP High test, and first to get approved on all 5 non-classified DISA Impact Levels back in 2014, but is by no means still the only.

    Amazon, Microsoft, Oracle, and CSRA are all approved at FedRAMP High levels. For DISA Impact Level 5, the above list is also joined by IBM and possibly others.

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  4. Requirements by Spazmania · · Score: 4, Informative

    The "must already have $2B in revenues" is a little sketchy.

    These two don't seem particularly discriminatory: Data centers 150 miles or more apart is something every cloud provider of any significance already has. Maybe not every data center is 150 miles from every other, but Amazon doesn't have that either. 32gb ram virtual servers is trivially added for anyone who didn't have it -- the physical servers backing the VMs often have 1TB ram or more.

    Here's what really cuts out almost everybody: Amazon has a virtual networking system (VPCs) with their cloud product that allows for complex security infrastructures with VMs behind multiple layers of protection devices. Most cloud providers offer VMs plugged directly in to the Internet. Period.

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