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Amazon files lawsuit over $600 million cloud contract

Jul. 25, 2013 - 06:00AM   |  
By NICOLE BLAKE JOHNSON   |   Comments

A month after the Government Accountability Office ruled the CIA should reopen negotiations on a $600 million cloud computing contract awarded to Amazon Web Services, the company has decided to sue.

Amazon on Wednesday filed a claim with the U.S. Court of Federal Claims, but details on the lawsuit are not publicly available. Judge Thomas Wheeler granted Amazonís request to place the lawsuit under protective order at an initial hearing Thursday.

Under the indefinite-delivery, indefinite-quantity contract with a four-year base period, Amazon was to provide a modified version of its public cloud, or cloud services available to the general public. However, the cloud hardware and software was required to be installed in a government facility and operated by Amazon.

IBM protested the contract with the GAO. In June, GAO released a public version of its decision that agreed with some of IBMís complaints, including the CIAís failure to evaluate pricing for both vendors fairly. In its decision, GAO recommended that the CIA reopen the competition and amend the solicitation to ensure bid proposals are evaluated fairly.

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