DOW awards Oracle a contract worth nearly $7 billion to accelerate the arsenal of freedom

The Department of War announced an up to 10-year Enterprise Software Agreement with Oracle valued near $7 billion, consolidating on-premises licensing across the enterprise in a move projected to save at least $441 million for U.S. taxpayers over the contract’s lifecycle. Framed as furthering the department’s Arsenal of Freedom, the deal is intended to eliminate fragmented, one-off technology purchases and improve visibility into software usage and spending to better optimize technology budgets.

Negotiated by the Department of the Navy, the agreement is described as the first direct award with Oracle for the department’s on-premises Oracle usage, unifying previously dispersed procurements under a single award to reduce redundancies and accelerate modernization.

“By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters,” said Honorable Kirsten A. Davies, Chief Information Officer for the Department of War. “This nearly $7 billion agreement with Oracle strengthens our digital ecosystem, supporting our warfighters with secure, scalable technology to dominate current and future missions.”

“For the Department of the Navy, this agreement supports faster delivery of secure, scalable software from the shore enterprise to the tactical edge for our Navy and Marine Corps teams,” said Barry Tanner, Performing the Duties of the Department of the Navy Chief Information Officer. “Reducing fragmented procurement and advancing enterprise standardization will strengthen interoperability, reduce cybersecurity risk, and help us focus resources on resilient capabilities that can scale, integrate, and endure in contested conditions.”

Structured with a five-year base period and a five-year option period, the ESA covers the entire Department of War and extends to the Coast Guard and the Intelligence Community.