Department of War Awards Oracle $6.99 Billion Software Deal to Save $441 Million
Updated
Updated · Fox Business · Jul 23
Department of War Awards Oracle $6.99 Billion Software Deal to Save $441 Million
3 articles · Updated · Fox Business · Jul 23
Summary
$3.31 billion is guaranteed over the first five years, with the contract rising to $6.99 billion if a second five-year option is exercised.
The Department of War said the deal should save at least $441 million by consolidating fragmented Oracle software purchases and licenses into one department-wide framework.
Negotiated by the U.S. Navy, the agreement is the department’s first direct contract with Oracle for on-premises software and covers the Department of War, Coast Guard and intelligence community.
Oracle said military organizations will begin shifting to the new contract framework this summer, with pricing and deliverables set through task and delivery orders.
The award fits a broader Pentagon push into AI and advanced technology after its January AI acceleration strategy and a February partnership with OpenAI for GenAI.mil.