The agreement carries a base value of $3.31 billion over its first five years and could reach $6.99 billion if the government exercises an additional five-year option, according to Oracle.<\/p>\n
The department said the contract is projected to save taxpayers<\/a> at least $441 million by consolidating fragmented Oracle software purchases and licenses under a single department-wide framework.<\/p>\n Negotiated by the U.S. Navy<\/a>, the deal marks the department\u2019s “first-ever” direct contract with Oracle covering its on-premises software use.<\/p>\n ANDURIL, ARCHER AVIATION UNVEIL HYBRID-ELECTRIC VTOL FOR DEFENSE AND COMMERCIAL USE<\/a><\/p>\n An aerial view of the Pentagon, headquarters of the U.S. Department of War, in Arlington, Va., May 31, 2026. The Department of War announced Thursday it had awarded Oracle a software contract worth up to nearly $7 billion. (Daniel Slim\/AFP via Getty Images)<\/p>\n “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,” Department of War Chief Information Officer Kirsten Davies said in a statement.\u00a0<\/p>\n “This nearly $7 billion agreement with Oracle strengthens our digital ecosystem, supporting our warfighters with<\/a> secure, scalable technology to dominate current and future missions.”\u00a0<\/p>\n The agreement will support the Department of War, the Coast Guard and the intelligence community.<\/p>\n The indefinite-delivery, indefinite-quantity contract will allow Department of War organizations to “purchase Oracle commercial offerings, including on-premises software and support, software-as-a-service (SaaS) applications and professional services through task and delivery orders tailored to specific mission and operational requirements,” according to Oracle.<\/p>\n Stocks In This Article: <\/p>\n TRUMP SAYS US REBUILDING MILITARY AS IRAN’S IRGC LOSES 90% OF WEAPONS CAPABILITY<\/a><\/p>\n Negotiated by the U.S. Navy, the deal marks the department\u2019s first direct contract with Oracle covering its on-premises software use. (Jakub Porzycki\/NurPhoto via Getty Images)<\/p>\n Pricing, deliverables and performance criteria will be “defined at the order level,” Oracle said.<\/p>\n “For the Department of War, the challenge is not just finding the right technology, it\u2019s doing so quickly, compliantly and at scale without getting bogged down by complex procurement processes,” Kim Lynch, executive vice president of government, defense and intelligence at Oracle, said in a statement.\u00a0<\/p>\n Oracle has supplied technology to the department since the 1990s and said military organizations will begin transitioning to the new contract framework this summer.<\/p>\n “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<\/a> teams,” said Barry Tanner, who is performing the duties of the Navy\u2019s chief information officer.<\/p>\n![\"An](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/pentagon-building-arlington-va.jpg\")
<\/p>\n![\"Oracle](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/oracle-logo-building.jpg\"){kind=logo}
<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/department-of-war-logo-.jpg\"){kind=logo}
<\/p>\n