I think Amazon know they are not getting this because their security sucked. They just trying to muddy the waters to conceal they lost. There were multiple articles voice deep concerns about Amazons security.
Yes there were and I think I've either read them all, or pretty darn close to them all. I'm in I.T. Leadership at the large multi-national bank I work for and we had AWS representatives in to talk to us about what they're doing to fix their security issues. I don't think any of us were impressed.
I have quite a few contacts in Financial Services in the big firms and I'll tell you flat-out that Amazon's security has many in financial services re-evaluating their workloads on AWS and either moving, or preparing to move them to Azure.
Amazon is right to be concerned about their losing a contract with DoD ... it's going to be one of many losses they're going to suffer and rightfully so.