Pentagon signs $7 billion 10-year Oracle software contract

The U.S. Department of Defense has signed a nearly $7 billion, 10-year enterprise software agreement with Oracle, consolidating fragmented software purchases across the military into a single contract projected to save taxpayers at least $441 million. The deal, announced on July 23, 2026, was negotiated by the Department of the Navy and covers the entire Defense Department, the U.S. Coast Guard, and the intelligence community.

The contract establishes a unified framework for purchasing Oracle's on-premises software, licenses, maintenance, and professional services. It has a five-year base period valued at approximately $3.31 billion, with an option to extend for another five years, bringing the total potential value to $6.99 billion. Officials said the agreement replaces years of separate, service-by-service licensing deals, which often led to overlapping purchases and inconsistent spending.

Defense Department Chief Information Officer Kirsten Davies stated that the consolidation fundamentally improves how the department procures Oracle capabilities, driving significant savings while serving military personnel. She said the agreement strengthens the Pentagon's digital ecosystem...