IBM Loses Challenge of Pentagon Cloud Bid Seen Favoring Amazon

International Business Machines Corp. lost a challenge over the Pentagon’s $10 billion cloud contract on Dec. 11 when the U.S. Government Accountability Office rejected the case, saying the matter is currently pending in court.

IBM had asserted that the winner-take-all competition violated procurement statutes and regulations and that the Pentagon had failed to consider potential conflicts of interest.

IBM is the second technology company to lose its protest of the Pentagon’s Joint Enterprise Defense Infrastructure, or JEDI, contract, which is widely seen as favoring Amazon.com Inc., the dominant cloud-services provider.

Oracle Corp. lost its case last month after the GAO ...