Consolidating software procurement eliminates costly redundancies, accelerates modernization, and is projected to save American taxpayers at least $441 million.
Today, the Department of War (DoW) announced a historic up to 10-year, near $7 billion Enterprise Software Agreement (ESA) with Oracle, further advancing the Arsenal of Freedom. Negotiated by the Department of the Navy, this first-ever, direct award contract with Oracle for the Department's on-premises Oracle usage serves to consolidate licensing and will improve visibility of enterprise usage and spend in support of optimizing the Department's technology budgets. By consolidating fragmented, one-off information technology purchases into a unified, single award contract, the agreement is projected to deliver at least $441 million in savings to U.S. taxpayers over its lifecycle.
"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, this ESA supports the entire DoW, as well as the Coast Guard and the Intelligence Community.
