SAP loses its appeal on US Air Force deal

Award to Oracle was above board, US regulator finds

The US government has denied an appeal filed by SAP that protested about an US$88.5 million (NZ$132 million) million contract awarded to rival Oracle.

Last northern autumn, Oracle won the contract for the Air Force Expeditionary Combat Support System (ECSS) project, which is intended to retire hundreds of aging systems in favour of a single supply chain management application. SAP also competed for the contract and filed a complaint with the US Government Accountability Office (GAO) when the contract was awarded to Oracle.

SAP claimed that Oracle’s proposal did not reflect the best value or the lowest-risk option. Last week SAP was notified by the GAO that its appeal had been denied. “Obviously we’re disappointed,” says a SAP spokeswoman. “Our team felt we had strong grounds for the appeal and we still feel we’re the best option for the Air Force.”

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