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Bezos cashes in on lobbying Washington with Amazon’s $53 billion deal to supply Pentagon

The National Defense Authorization Act (NDAA) for fiscal year 2018, in addition to including passages involving regime change in Venezuela and exorbitant expenditures on the maintenance and expansion of American empire, continues to surprise: its latest draft includes a measure that will cement a multi-billion dollar deal between the Department of Defense (DOD) and the U.S. mega-corporation Amazon, run by the world’s richest man, Jeff Bezos.

If the NDAA is approved in its current form, which is highly likely according to experts, Bezos’ Amazon sets to gain $53 billion in revenue by becoming the chief supplier of an array of goods to the Department of Defense. The deal is laid out in a section titled “Procurement Through Commercial E-Commerce Portals,” in which the DOD would be required to purchase commercial off-the-shelf (COTS) products — such as office supplies — from “e-commerce portals” dominated by Amazon.

Though congressmen — including the NDAA’s author, Rep. Mac Thornberry (R-TX) — have asserted that there will be healthy “competition” among such portals, Amazon’s massive advantages in these markets are clear, particularly given how Amazon often overtakes markets on its own “free market” platform by edging out third-party vendors.

In addition, the Coalition for Government Procurement (CGP) stated in a memo issued last month that only one or two companies would be able to participate, given the parameters put forth by the current version of the bill. Several industry sources cited by Bloomberg stated that Amazon tops that very short list. The memo further argues that the current proposal is likely to “result in monopoly or duopoly control over access to the Federal market for commercial items.” Given that Amazon accounted for 43% of all online retail sales made in the U.S. last year, it is clear who stands to benefit most from this new, proposed federal acquisition model.

Indeed, Thornberry’s own words make it clear that the proposal is set up to disproportionately benefit Amazon. In June, Thornberry introduced this aspect by the NDAA by stating that “if you’re buying office supplies, you ought to be able to go on Amazon and do it.

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