article-aa

The Trump administration is set to move federal procurement away from government-run purchasing websites in 2020, instead contracting with e-commerce platforms. (The Wall Street Journal)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: Amazon, Walmart and eBay have all placed bids to become the go-to virtual spot for federal purchases, which could amount to up to US$50 billion a year. U.S. government officials expect e-commerce to save time, create more competition for government procurement and give more information about how taxpayer money is spent. Federal workers already use government-issued purchase cards on sites like Amazon, with legal purchase set at anything lower than US$10,000. Amazon—frequently criticized by President Donald Trump over its business practices and economic impact, and for CEO Jeff Bezos’s ownership of the Washington Post—already sells to many states and local American governments, ships via the U.S. Postal Service and provides cloud computing for dozens of federal agencies.

article-aa

The company, which has close ties to the Chinese government, is wooing Japanese industries and universities with an anticipated US$11 billion in spending this year—the equivalent of what it spent on procurement in the U.S. last year. (Nikkei Asian Review)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The move comes in the wake of Washington’s blacklisting of Huawei, which has faced accusations of espionage. Imposed in May, the blacklist has hamstrung Huawei’s attempts to penetrate the cell phone and 5G infrastructure markets in the country—as well as its ability to recruit the suppliers and R&D muscle needed to make those very products. In Japan, Huawei has a partner in manufacturing, physics and chemistry, along with an extensive university network. Due to a ban announced last December, Japan’s government and defence forces cannot use Huawei or ZTE computers, servers or telecommunications equipment. Meanwhile, the company has begun striking back at its critics in court, filing defamation suits against critics including a French journalist who said the company has ties to the Chinese government.

article-aa

Amazon Web Services (AWS) said there were “clear deficiencies, errors, and unmistakable bias” in the U.S. defence department’s evaluation process for the Joint Enterprise Defense Infrastructure, and said procurement should be “free from political influence.” Microsoft won the contract in October. (The Wall Street Journal, New York Times)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The procurement has already been reviewed—and that’s part of the problem. In July, U.S. President Donald Trump publicly called for an internal Pentagon investigation, suggesting the process was unfair—but skewed in Amazon’s favour. He claimed he’d received “tremendous complaints” about the contract from unnamed people “saying it wasn’t competitively bid.” Defense Secretary Mark Esper dismissed Amazon’s bias claim on Friday. But Trump’s criticisms of Amazon and CEO Jeff Bezos made it difficult for the defence department to be objective, AWS CEO Andy Jassy told employees this week, saying the company’s cloud technology was two years ahead of Microsoft’s.