Earlier quoted context omitted.
People keep saying this and I really don't follow. Why does the DoD care where the headquarters of the parent company of their contractor is located? Are they gonna pop in and ask questions about the Amazon retail site? Sure AWS needs a sales office in the region. And a datacenter. And a lobbying shop too. Pretty sure they got all that covered already.
Or: Amazon is going to heavily recruit former-DoD and government workers, luring them from low pay rates to high paying jobs. Reduce hiring friction: you don't need to convince them to uproot their families to move. They already live in the area, hell, their commute doesn't even change. Are you more likely to award contracts to AWS if you work at the DoD knowing that in two years you can move over and suddenly quintu…
Edit: The strategy you outline re: government employees is already employed by all of the large government consulting firms. Amazon is late to the game and behind the ball with their lack of awarded contracts. They might be able to catch up, but contracting is one field that has repeatedly shown itself to be resistant to disruption.