Lodi News-Sentinel

Trump mulls $10B Pentagon contract

- By Jennifer Jacobs, Naomi Nix and Steven T. Dennis

WASHINGTON — President Donald Trump recently demanded more informatio­n about how the Pentagon crafted a massive cloud-computing contract it’s poised to award to Amazon.com Inc. or Microsoft Corp., in order to decide whether he should intervene.

The Defense Department is set to give the contract, worth as much as $10 billion over ten years, to one of the two companies next month. Amazon, whose cloud-computing technology leads the market, is seen as the favorite.

But Trump recently was made aware of letters Republican members of Congress have written to the White House and military leaders complainin­g that the contract’s terms froze some companies — including Oracle Corp. — out of the competitio­n, according to two people familiar with the matter. Trump expressed frustratio­n he wasn’t aware of the concerns and asked aides to show him the correspond­ence, the people said.

Trump said he’s interested in looking into the circumstan­ces of the bid but didn’t indicate he’ll try to block the contract from being awarded to one of the two finalists, they said.

Senate Homeland Security Chairman Ron Johnson, a Wisconsin Republican who recently wrote to the Pentagon to express concerns about the contract, said in an interview that he discussed it with the president aboard Air Force One last week.

“He wanted to understand what the issues were, what our concerns were,” Johnson said in an interview.

Senator Marco Rubio, a Florida Republican, sent a letter to National Security Adviser John Bolton on Thursday asking him to delay the contract award, saying the bid “suffers from a lack of competitio­n.” Trump and Rubio spoke about the contract by phone the next day, a Rubio spokesman said.

A person familiar with the call said that it sounded as if Trump was thinking about canceling the contract.

All of the people asked not to be identified discussing a sensitive procuremen­t issue. Spokesmen for the White House and Pentagon didn’t immediatel­y respond to requests for comment.

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