WASHINGTON — The Department of Defense announced the award of a five-year, $9.7 billion enterprise software agreement to Dell Federal Systems of Round Rock, Texas, covering Microsoft productivity, cloud, and communications technology across the entire U.S. military and defense enterprise.
The Microsoft Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement, structured as a Blanket Purchase Agreement, gives the Defense Department enterprise-wide access to Microsoft 365, advanced cloud subscriptions, and on-premises licensing capabilities. Officials said the agreement is designed to eliminate fragmented procurement processes, reduce costs, and standardize digital infrastructure across all military services and defense agencies.
The agreement is intended to support Combined Joint All-Domain Command and Control, the Pentagon’s framework for connecting warfighters, commanders, and civilian personnel from headquarters to the battlefield. Officials said the unified platform would accelerate the deployment of artificial intelligence, data analytics, and secure communications across both connected and low-bandwidth operational environments.
Kirsten A. Davies, Chief Information Officer for the Department of Defense, said the agreement represented a foundational investment in decision advantage, describing it as a restructuring of the department’s Microsoft environment aimed at eliminating communication silos and improving collaboration across the force.
Barry Tanner, performing the duties of Chief Information Officer for the Department of the Navy, said the contract would allow the Navy and Marine Corps to bypass fragmented procurement cycles and equip sailors and marines with zero-trust cloud infrastructure needed to operate in the digital battlespace.
The five-year structure of the agreement allows the department to rapidly acquire and deploy software and cloud capabilities while achieving greater cost efficiency and improved interoperability across military branches and defense agencies.