"The Department has completed its comprehensive re-evaluation of the JEDI Cloud proposals and determined that Microsoft's proposal continues to represent the best value to the government”, the release said.
In February, a US judge issued a preliminary injunction temporarily halting the $10 billion JEDI contract awarded to Microsoft in October 2019 in light of a pending Amazon lawsuit.
"While contract performance will not begin immediately due to the Preliminary Injunction Order issued by the Court of Federal Claims on 13 February 2020, [the Defence Department] is eager to begin delivering this capability to our men and women in uniform", the release said.
JEDI stands for the Joint Enterprise Defence Infrastructure project to store and process vast amounts of classified data.
The system is projected to allow the US military to improve communications with soldiers on the battlefield and use artificial intelligence to speed up its war planning and fighting capabilities. Amazon argued that the bidding process was unfair because of President Donald Trump's bias against the company and its CEO Jeff Bezos.