Pentagon signs nearly $7 billion Oracle software deal with 10-year term

The Pentagon announced a nearly $7 billion Enterprise Software Agreement with Oracle that can run for up to 10 years, combining on-premises compute software licenses into a single contract across the department. Negotiated by the Department of the Navy, the deal lasts five years with a further five-year option and extends beyond the Pentagon to the U.S. Coast Guard and the intelligence community. Pentagon Chief Information Officer Kirsten Davies said the new procurement structure will generate at least $441 million in taxpayer savings by replacing fragmented software buying with an enterprise-wide arrangement. The Oracle agreement follows a similar Microsoft contract struck in May, when Davies' office signed a five-year, $9.69 billion deal to consolidate Microsoft and other enterprise software licenses spread across the military services, the intelligence community and the Coast Guard. Together, the agreements reflect a broader Pentagon effort to reduce duplicative software spending by moving away from piecemeal contracts negotiated service by service.