Re: "failing to run a fair procurement contest"
"If I were the DoD, I'd want to support the competition to make sure some still exists."
This is the argument I am making - the DoD strategy was for two primary vendors (AWS and Azure) and a number of specialist providers for state/special projects DC's.
With AWS losing JEDI, the bids already awarded to Microsoft/Azure for office productivity tools now look short-sighted as they tied the DoD into a lot of Azure GovCloud services.
As for other vendors, once they stop playing stupid games (i.e. make the DoD pay for everything we can think of) they may stop winning stupid prizes (losing lawsuits in new ways). The DoD has tried to get vendors to change their behaviour, the vendors haven't changed and so they have been left out.