US defense chief addresses a review of a $ 10 billion cloud computing contract on conflicts of interest t

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PHOTO FILE: US Defense Secretary Mark Esper addresses reporters during a media information session at the Pentagon in Arlington, Virginia, USA, October 11, 2019. REUTERS / Erin Scott

WASHINGTON (Reuters) – US Defense Secretary Mark Esper has himself removed a review of $ 10 billion computer cloud due to a potential conflict of interest, a move that could delay further contract award process. t

Esper has decided on the Cloud program (JEDI) for Enterprise Protection Infrastructure for Deputy Secretary David Norquist, who said the Pentagon Tuesday.

“Although he is not legally bound (he has Esper) to take part in any decision-making… because of his adult's employment with one of the original contract applicants,” said Pentagon chief spokesman Jonathan Rath Hoffman in a statement. .

Esper's son's current employment status was not immediately clear.

The JEDI contract is part of a broad modernization of the Pentagon's information technology systems and is addressing conflicts of interest allegations involving former Pentagon employee who worked on the contract and for Amazon.com Inc..

The Pentagon set up the contract in August after President Donald Trump said his administration was at Amazon's tender examination after complaints from other technology companies.

For example, Oracle Corp conducted aggressive lobbying and expressed concern about the contract award process. Oracle has since been discontinued from the competition, leaving Amazon and Microsoft Corp as competitors.

Some technology companies were also concerned that one award would give the winner an unfair advantage in follow-up. Patagon has stated that he intends to deal with multiple contractors in a cloud.

The Pentagon spent about $ 38 billion on information technology projects in fiscal year 2019, and while only $ 6.5 billion was earmarked for cloud projects, the segment is growing at around 30% per year, according to analysts at Jefferies Group LLC.

Reporting by Nandita Bose in Washington; Edited by David Gregorio and Tom Brown

Our Standards:The principles of Thomson Reuters Trust.

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