Oracle Secures $7 Billion Software Contract With Pentagon
WHO:
Reuters - The Pentagon and Oracle are involved in the contract.
Fox Business - Kirsten Davies is the Chief Information Officer of the Department of War.
Fox Business - Kim Lynch is the executive vice president of government, defense, and intelligence at Oracle.
Fox Business - Barry Tanner is performing the duties of the Navy’s chief information officer.
WHAT:
Fox Business - The Department of War's contract with Oracle is described as the department’s "first-ever" direct contract with Oracle covering its on-premises software use.
Fox Business - Pricing, deliverables, and performance criteria for the contract will be "defined at the order level," according to Oracle.
CNBC - The contract includes perpetual and subscription-based software licenses, maintenance, and consulting.
Reuters - The Pentagon signed a contract with Oracle worth up to $7 billion.
Fox Business - The contract has a base value of $3.31 billion over its first five years and could reach $6.99 billion if an additional five-year option is exercised.
Fox Business - The contract is projected to save taxpayers at least $441 million.
Fox Business - The agreement will support the Department of War, the Coast Guard, and the intelligence community.
Fox Business - The contract allows for the purchase of Oracle commercial offerings, including on-premises software and support, software-as-a-service applications, and professional services.
WHERE:
Fox Business - The contract is with the Department of War, which includes military organizations.
WHEN:
Fox Business - The military organizations will begin transitioning to the new contract framework this summer.
Fox Business - The contract is described as an up-to-10-year agreement.
WHY:
Fox Business - Kirsten Davies stated that the agreement is aimed at "driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters."
Fox Business - The contract aims to cut costs and modernize technology across the military.
Fox Business - The consolidation of fragmented Oracle software purchases and licenses is intended to drive taxpayer savings.
HOW:
Fox Business - The contract allows Department of War organizations to purchase Oracle commercial offerings through task and delivery orders tailored to specific mission and operational requirements.
Fox Business - The contract is an indefinite-delivery, indefinite-quantity agreement, allowing for tailored task and delivery orders.
Fox Business - The Department of War is ramping up its adoption of AI and other advanced technologies as part of its modernization efforts.
(UPDATED July 24, 2026 05:52 UTC)
The Department of War has entered into its first-ever direct contract with Oracle, which will cover the use of its on-premises software. This agreement is designed to drive at least $441 million in taxpayer savings while effectively serving our warfighters, and it includes both perpetual and subscription-based software licenses, maintenance, and consulting. Additionally, the contract allows Department of War organizations to purchase Oracle's commercial offerings through tailored task and delivery orders that meet specific mission and operational needs.
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(UPDATED July 24, 2026 01:28 UTC)
The Pentagon has signed a significant contract with Oracle worth up to $7 billion, which will support the Department of War, the Coast Guard, and the intelligence community. This agreement, with a base value of $3.31 billion over the first five years, aims to modernize military technology and is projected to save taxpayers at least $441 million. Military organizations will begin transitioning to this new contract framework this summer, which is designed to consolidate Oracle software purchases and drive further savings.