WASHINGTON, D.C. — The Department of War awarded Oracle a software agreement valued at nearly $7 billion over as many as 10 years, consolidating on-premises licensing across defense and intelligence agencies in a move projected to save taxpayers at least $441 million.
The Department of the Navy negotiated the enterprise software agreement, the department’s first direct-award contract with Oracle covering on-premises use across the organization.
The contract replaces fragmented, individual technology purchases with a single licensing arrangement intended to give the department greater visibility into software use and spending.
The agreement includes a five-year base period and an additional five-year option. It covers the entire Department of War as well as the Coast Guard and the Intelligence Community.
Chief Information Officer Kirsten A. Davies stated that the procurement overhaul would generate “at least $441 million in taxpayer savings” while supporting the department’s technology requirements.
The consolidated contract is also intended to standardize Oracle software procurement, improve interoperability and reduce cybersecurity risks associated with disconnected purchasing and licensing practices.
Barry Tanner, performing the duties of the Department of the Navy’s chief information officer, stated that the agreement would support faster delivery of software to the Navy and Marine Corps while allowing resources to be redirected toward systems that can operate in contested environments.
The department did not provide a detailed breakdown of the contract’s spending schedule or explain how the projected savings were calculated.
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