Department of War taps Oracle for software deal worth nearly $7B - Fox Business

What the report says

Fox Business reported that the Department of War announced Thursday it had awarded Oracle a major software contract valued at up to nearly $7 billion, part of an effort to lower costs and update technology used across the military. According to Oracle figures cited in the report, the deal has an initial five-year value of $3.31 billion and could rise to $6.99 billion if a second five-year option is exercised.

The department said the arrangement is expected to save taxpayers at least $441 million by bringing scattered Oracle software buying and licensing into one department-wide structure. The contract was negotiated by the U.S. Navy and is described in the report as the department’s first direct Oracle agreement covering on-premises software use. Fox Business reported that it will also support the Coast Guard and the intelligence community.

Under the indefinite-delivery, indefinite-quantity contract, department organizations will be able to place task and delivery orders for Oracle offerings including on-premises software and support, software-as-a-service applications and professional services. Oracle said pricing, deliverables and performance standards will be set for individual orders. The company also said military organizations are expected to begin moving to the new framework this summer.

Fox Business placed the agreement in the context of a broader push by the department to adopt advanced technologies, including artificial intelligence. The report noted earlier department initiatives involving AI deployment and a partnership to integrate ChatGPT into GenAI.mil, a platform for military service members.