For those who don't live in Brisbane. The brisbane times is a free paper put in peoples letter boxes, best known for it's local restaurant reviews and fashion. I wouldn't take it's views on overseas IT procurement very seriously :-)
If the price is the primary sticking point in this, I don't see why it's an issue. Clearly there are several more factors involved in this project, otherwise I could step in and quote $1m less than IBM and be considered equally viable.
The GAO upheld two portions of the IBM protest. One claim was that the CIA failed to evaluate prices for a possible task provided for in the contract. The second sustained protest was that a software-security requirement in the contract was waived by the CIA only for Amazon during negotiations.
The GAO denied IBM's argument that the CIA didn't properly evaluate Amazon's past performance given certain service outages that occurred with Amazon's cloud service in 2012.
Actually, I believe this is how many public entities award contracts. My friend worked for the parks department in a major US city and when they needed to build something, the lowest bidder got the contract automatically as long as they were qualified/approved regardless of whether or not they were as competent as other vendors.
Right, and the procurers write the contract to require features that are oddly specific to the preferred vendor's operation, to avoid undercuts by competitors.
Even if the Amazon service was more expensive, there is more to choosing a service than price. Assuming Amazon's service is a carbon copy clone of their AWS services, then the decision is a no brain so long as the prices are at least in the same ballpark. AFAICT IBM is going to create a custom solution for the USG, which carries much greater operational risk relative to a clone of AWS. Furthermore, all the community, tutorials and open source software that already exists in the AWS ecosystem is a massive asset that is very difficult to price a a major contributor to the value Amazon will provide the USG.
This has nothing to do with prices or wrongful chosen clouds. This has everything to do with Amazon encroaching on IBMs old business with the government.
Boeing did the same thing and used the same excuse when they didn't want Airbus coming into the United States and encroaching on its territory.
Mark my works. IBM will win because they have deep pockets with the politicians. That's who will decide this fate, not the CIA.
Humble ex employee of Northrop Grumman on the front line of the Airbus situation.
Edit: Sorry, couldn't resist. Here's a little more meat for the comment: http://corporatevisions.com/blog/2007/06/11/no-one-ever-got-...