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Pentagon awards JEDI cloud contract to Microsoft for the second time

The decision follows a months-long legal challenge filed by Amazon Web Services.

The Pentagon awarded its Joint Enterprise Defense Infrastructure cloud computing contract Friday to Microsoft.

The decision follows a 10-month legal battle initiated by Amazon Web Services after the Pentagon selected Microsoft in October 2019 for the contract, worth up to $10 billion over the next 10 years if all options are exercised.

The award comes after numerous controversies and delays for JEDI — in addition to four legal protests filed by companies once in the running for it — that has the contract two years behind schedule.

“The Department has completed its comprehensive re-evaluation of the JEDI Cloud proposals and determined that Microsoft’s proposal continues to represent the best value to the government,” the department said in a statement Friday.

Keep reading this article at: https://www.nextgov.com/it-modernization/2020/09/pentagon-awards-jedi-cloud-contract-microsoft-second-time/168259/

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Pentagon requests more time to review JEDI cloud contract bids

The Defense Department says it wants to further discuss Microsoft’s and Amazon Web Services’ pricing.

In a court filing on Aug. 10th, the Defense Department requested a 30-day extension to issue an award decision in its multibillion-dollar Joint Enterprise Defense Infrastructure (JEDI) cloud contract.

The Defense Department had planned to award JEDI by Aug. 17 after numerous delays, including a 120-day remand sought by the agency in March to take corrective action on issues identified in a legal protest by Amazon Web Services after the Pentagon initially awarded Microsoft the contract in October.

“During the remand, DoD has identified areas of concern with respect to the revised proposals received from both offerors, resulting in multiple solicitation amendments, rounds of proposal revisions, and exchanges with the offerors,” the filing states. “In evaluating each offeror’s final proposal revisions, however, DoD has recently identified the need to reopen limited discussions related to certain aspects of the offerors’ pricing proposals.”

The filing indicates both companies would have another chance to submit questions and a revised bid.

Keep reading this article at: https://www.nextgov.com/it-modernization/2020/08/pentagon-requests-more-time-review-jedi-cloud-contract-bids/167599/

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Contractor to pay $1 million to settle claims of fraudulently representing airport work by small disadvantaged business

Williams Brothers Construction Inc. (WBCI) has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by misrepresenting its use of a small disadvantaged business to obtain a federally-funded construction contract, the Department of Justice (DOJ) has announced.

“The Disadvantaged Business Enterprise (DBE) Program of the Department of Transportation creates important opportunities for small businesses to participate in construction projects paid for with federal funds,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will hold accountable those who misrepresent their compliance with program requirements to obtain taxpayer funds to which they are not entitled, and thereby undermine the program’s goal of supporting small businesses.”

The settlement resolves claims arising from WBCI’s construction of a new terminal building at the Peoria International Airport using Federal Aviation Administration (FAA) grant funds, and is based on the following factors:

  • The FAA grant required the use of disadvantaged business enterprises for part of the construction.
  • DOJ contends that WBCI knowingly made false representations regarding its plans to use a disadvantaged small firm on the project and then falsified documents to make it appear that an eligible business did window, glazing, and curtain wall work.
  • Instead, WBCI allegedly used that business only as a pass-through and had the work done by an ineligible company.

The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Central District of Illinois, and U.S. DOT’s Office of Inspector General.

Readers are reminded that the claims resolved by the settlement are allegations only, and there has been no determination of liability.

Source: https://www.justice.gov/opa/pr/government-contractor-pay-1-million-settle-claims-fraudulently-representing-work-small

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Pentagon says it needs ‘more time’ fixing JEDI contract

The JEDI contract will not be awarded until at least August.

In updated legal filings, the Defense Department said it will not be in a position to award its Joint Enterprise Defense Infrastructure cloud contract to either Microsoft or Amazon Web Services until at least August 17.

The June 16 filing comes more than six months after AWS first challenged the Pentagon’s October award of the $10 billion contract to Microsoft in the U.S. Court of Federal Claims, which resulted in the Pentagon pulling the contract to take corrective action on identified flaws.

According to the filing, both companies submitted revised JEDI proposals in May, but they’ll have to revise and submit bids once more because the Pentagon intends to issue another amendment to the JEDI solicitation by June 22.

“DoD continues to evaluate the offerors’ revised proposals, and more time is required to complete this process,” attorneys for the Defense Department said in the filing. “DoD now anticipates that another solicitation amendment will be necessary, and additional limited proposal revisions will be permitted.”

Keep reading this article at: https://www.nextgov.com/cio-briefing/2020/06/pentagon-says-it-needs-more-time-fixing-jedi-contract/166292/

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Contractors to pay $2.8 million to settle False Claims Act allegations of fraudulently obtained small business contracts

Tulsa, Oklahoma-based contractor Ross Group Construction Corporation (Ross Group), and its corporate affiliates, have agreed to pay over $2.8 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts reserved for disadvantaged small businesses, the Justice Department announced this week.   

To qualify as a small business for purposes of U.S. Small Business Administration (SBA) programs, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control.  The settlement with Ross Group resolves allegations that the company fraudulently induced the government to award certain small business set-aside contracts to several affiliated entities that did not meet eligibility requirements.

The government alleged that Ross Group created two companies, PentaCon LLC and C3 LLC, to obtain small business set-aside contracts for which Ross Group itself was ineligible.  Also alleged was that Ross Group maintained operational control over the day-to-day and long-term management decisions of the two purported small businesses, including controlling their financial affairs and business operations, and that, as a result, neither PentaCon nor C3 satisfied the size and eligibility requirements to participate in the set-aside programs.  Ross Group, PentaCon, and C3 allegedly concealed their affiliation from the government and knowingly misrepresented the eligibility of PentaCon and C3 for the set-aside contracts.

The settlement with Ross Group and its corporate affiliates resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The civil lawsuit was filed in federal district court in the Western District of Oklahoma and is captioned United States ex rel. Southwind Construction Services, LLC v. The Ross Group Construction Corporation, et al., Case No. 15-0102-R (W.D. Okla.).  As part of the resolution of this matter, the whistleblower will receive approximately $520,000.

The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Oklahoma, DCIS, the Inspector General Offices of the SBA, General Services Administration, and the Department of Veterans Affairs, and the Army Criminal Investigation Division Major Procurement Fraud Unit.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Source: https://www.justice.gov/opa/pr/oklahoma-contractors-pay-28-million-settle-false-claims-act-allegations-concerning

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