U.S. Supreme Court rebuffs Oracle problem to Pentagon cloud contract

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WASHINGTON, Oct 4 (Reuters) – The U.S. Supreme Court on Monday put an finish to Oracle Corp’s (ORCL.N) problem to how the Pentagon awarded the federal government’s now-canceled $10 billion JEDI cloud computing contract.

The justices declined to listen to Oracle’s enchantment of a decrease court docket ruling that discovered that the Austin, Texas-based enterprise software program maker was not harmed by any errors made by the Pentagon in awarding the contract as a result of the corporate wouldn’t have certified for it within the first place.

The U.S. Defense Department awarded the sole-source cloud computing procurement contract to Microsoft Corp(MSFT.O) in 2019, however scrapped that deal in July, saying a brand new contract that’s anticipated to incorporate Amazon.com (AMZN.O), which additionally had been excluded from the prior one.

Oracle wished the justices to listen to the enchantment although the JEDI contract had been canceled as a result of it mentioned the issues in that contract may recur as the federal government screens bidders for a brand new one.

The now-canceled Joint Enterprise Defense Infrastructure Cloud (JEDI) contract was a part of a broader digital modernization of the Pentagon geared toward making it extra technologically agile.

Oracle sued in 2018 to protest the construction of the procurement and sure Pentagon staff’ conflicts of curiosity involving Amazon, which finally misplaced the JEDI award to Microsoft.

The Washington-based U.S. Court of Appeals for the Federal Circuit, which hears appeals involving authorities contracts, dominated in opposition to Oracle final 12 months, saying that the corporate wouldn’t have had a considerable probability of securing the contract.

Like Oracle, Amazon had filed swimsuit protesting the JEDI sole-source deal, arguing that then-President Donald Trump exerted improper stress on navy officers to steer the contract away from Amazon. That litigation has now been dismissed.

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

The company logo for Oracle Corp. is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid/File Photo

The Oracle offices in Irvine, California. REUTERS/Mike Blake

The company logo for Oracle Corp. is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid/File Photo