The U.S. Defense Department’s internal oversight body is investigating potential conflicts of interest around the JEDI cloud computing contract, a spokesperson said today.

The Joint Enterprise Defense Infrastructure program will see the Pentagon spend up to $10 billion over 10 years on procuring cloud infrastructure and services. Amazon Web Services Inc. is seen as the front runner to win the deal, which is being tendered through a winner-takes-all bidding process that has attracted controversy in some quarters, notably among competitors that didn’t make the cut.

The DOD Inspector started looking into JEDI after members of Congress called for an investigation last October. Today’s disclosure that the watchdog is probing claims of misconduct marks the first official announcement about the investigation, though some details emerged months ago. Given a review ordered last week by recently appointed Defense Secretary Mark Esper, it appears the DOD aims to get related investigations moving to avoid further delays in awarding the contract.

“We are reviewing the DoD’s handing of the JEDI cloud acquisition, including the development of requirements and the request for proposal process,” DOD spokeswoman Dwrena Allen said in a statement. “In addition, we are investigating whether current or former DOD officials committed misconduct relating to the JEDI acquisition, such as whether any had any conflicts of interest related to their involvement in the acquisition process.”

It’s not the first time claims of ethical violations have surfaced in regards to JEDI. In a lawsuit last year, Oracle Corp. charged that two former Pentagon employees involved in the contract had ties to AWS that compromised their integrity. The former employees, Deap Ubhi and Victor Gavin, later both left the project to take roles at the Amazon Inc. subsidiary, where Ubhu also worked before being hired by the Pentagon. 

A federal judge dismissed Oracle’s suit in July after finding no evidence that Ubhu and Gavin’s AWS ties compromised the integration of the JEDI program. However, the matter raised concerns within the Pentagon. The JEDI contracting officer found that the two former staffers may have violated regulations barring government officials from using their positions for personal financial gain and referred the issue to the DOD Inspector General.

The watchdog disclosed in the statement today that it has assembled a multidisciplinary team to handle the JEDI probe. It’s comprised of auditors, investigators and attorneys who are set to present a report about their findings to relevant officials.

The report will be shared with lawmakers and internal DOD stakeholders, including Esper. Earlier this month, Esper ordered a separate review of JEDI that is expected to push the announcement of the contract winner beyond the original late August deadline. IG’s probe could potentially delay the bidding process even further.

At the same time, the fact that some details of the probe are becoming public may also indicate an intention by DOD brass to move things along. Last week, DOD officials held a press briefing and released several documents explaining the need for speed in awarding the contract.

“We recognize the importance and time sensitive nature of the issues, and we intend to complete our review as expeditiously as possible,” DOD spokeswoman Dwrena Allen said. 

Photo: gregwest98/Flickr