Pentagon, Amazon ties focus of scrutiny

An Amazon package sits at a distribution center in Washington, D.C.
An Amazon package sits at a distribution center in Washington, D.C.

A Silicon Valley startup founder helped guide the U.S. military's cloud computing efforts as a Pentagon employee for more than a year, even though he had previously worked for Amazon's cloud computing division, widely seen as a front-runner for a pending $10 billion cloud contract coveted by four of America's biggest technology companies, the computing giant Oracle alleged in a recent lawsuit.

Oracle alleged in the suit that the startup founder, a man named Deap Ubhi, had been engaged in business discussions with Amazon while he was still employed at the Pentagon. He left the government late last year and rejoined Amazon.

The possibility that Ubhi was biased toward Amazon as he helped plan high-stakes military procurements has put him at the center of a protracted legal battle involving the Defense Department, Amazon and Oracle. According to court documents, he had been engaged in early planning and market research for what is known as the Joint Enterprise Defense Infrastructure, or "JEDI," which is designed as a departmentwide cloud computing infrastructure for the U.S. military. Oracle, the Redwood, Calif.-based software giant, has filed a lawsuit to block the contract award pending further investigation, arguing Ubhi's involvement has skewed the process in Amazon's favor. (Amazon founder Jeff Bezos also owns The Washington Post.)

While Ubhi worked for the Defense Department, he openly praised Amazon on Twitter. He also cheered the growth of TableHero, the Silicon Valley-based reservation-booking startup he founded in 2015.

"Once an Amazonian, always an Amazonian. Proud today. Thank you, JeffBezos," he tweeted on Jan. 30, 2017, referencing a news article noting that Bezos had pledged to fight President Donald Trump's immigration policies.

Ubhi did not respond to calls and emails. In response to a list of questions, an Amazon Web Services spokesman said that "in both his previous and current capacity, Deap has worked on the AWS Commercial team and has never supported the AWS Public Sector organization," while also noting that the company does not comment on pending litigation. An Amazon Web Services spokesman did not respond to multiple requests to make Ubhi available for an interview.

Heather Babb, a Defense Department spokesman, declined to comment on personnel matters because of pending litigation but defended the Defense Department's handling of the cloud procurement.

"From the beginning, the enterprise cloud initiative has been open, transparent and full," Babb wrote in an email. "The JEDI Cloud final request for proposals reflects the unique and critical needs of DOD, employing the best practices of competitive pricing and security and is not designed around any particular cloud service."

The contract has a ceiling of $10 billion over a decade and is expected to confer upon the winner a strong foothold for other opportunities as military agencies use it as a springboard for new artificial intelligence applications. The broader cloud adoption and AI capabilities it is meant to support are seen as important to the Pentagon's ability to compete with Russia and China for military dominance.

Representatives from IBM, Microsoft, Amazon Web Services and Oracle confirmed that their respective companies submitted bids by the Oct. 12 deadline. An award is expected in April.

From the moment of its public unveiling, the procurement process has been dogged by assertions that it is biased in favor of Amazon Web Services. The online retail company's cloud computing unit is widely viewed as a front-runner because it has years of experience handling classified data for the CIA, part of an earlier $600 million contract.

Defense Department officials have emphasized that the department's broader mission requires it to turn to multiple providers. Even so, officials have been firm in their intention to turn to a single provider for the contract.

Dana Deasy, the Pentagon chief information officer overseeing the process, said in a recent interview that going to more than one provider for the contract would "double or triple" the complexity of building an enterprisewide cloud computing capability.

Next, Oracle has taken its case to the Court of Federal Claims, where it has filed a lawsuit against the government. This time the company is pointing a finger specifically at Amazon and the Defense Department for what it called "conflicts of interest" that allegedly weren't properly vetted during the early planning phases of the procurement process. Amazon later filed a motion to make itself a defendant, arguing that Oracle's allegations give it an economic interest in the case.

Oracle's lawsuit focuses on Ubhi's role, as well as that of Timothy DeMartino, a former chief of staff to the deputy secretary of defense.

According to his LinkedIn page, Ubhi worked as a business development professional for Amazon Web Services for two years starting in January 2014, where he coordinated startup outreach in the San Francisco area. He had previously founded a company called Burrp!, a restaurant app that became widely used in India.

From August 2016 to November 2017, he worked for the Pentagon's Defense Digital Service, a relatively new Pentagon agency set up to build commercial tech practices into military operations. Then, according to Ubhi's LinkedIn profile, he rejoined Amazon as "technical product lead for a yet-to-launch AWS service." Oracle's lawsuit also alleged that Amazon Web Services had engaged in discussions with Ubhi about a potential acquisition of TableHero, the startup he founded, citing internal Defense Department memos that have been placed under seal.

Business on 12/19/2018

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