Oracle has been awarded a 10-year Indefinite Delivery/Indefinite Quantity contract under the U.S. Department of War’s Enterprise Software Initiative (ESI), with a base value of $3.31 billion over the first five years and a total potential value of $6.99 billion if all option years are exercised.
The contract establishes a centralized framework to simplify procurement across the DoW, officials said, and will allow authorized DoW organizations and contractors to expedite the procurement of Oracle products and services.
“For the Department of War, the challenge is not just finding the right technology, it’s doing so quickly, compliantly, and at scale, without getting bogged down by complex procurement processes,” Kim Lynch, executive vice president, Government, Defense & Intelligence at Oracle, said. “ESI is designed to address those challenges by creating a more standardized and efficient path to Oracle cloud and AI technology tuned to support mission-critical scenarios.”
With more than 3.4 million civilians and military personnel working across dozens of agencies and armed forces branches, the DoW is one of the largest employers in the United States. Securely procuring mission-critical technology for a department the size of the DoW can be an arduous process. That scale makes the standardized contract vehicle like ESI essential, officials said.
As part of the ESI contract vehicle, DoW organizations can purchase Oracle products and services through task and delivery orders tailored to specific mission and operational requirements. The initiative defines pricing, deliverables and performance criteria at the order level, officials said, providing organizations within the department a streamlined contracting structure.
“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,” Kirsten A. Davies, CIO for the DoW, said. “This nearly $7 billion agreement with Oracle strengthens our digital ecosystem, supporting our warfighters with secure, scalable technology to dominate current and future missions.”
Oracle has been a DoW supplier since the 1990s, and will continue to provide DoW organizations with dedicated program operations throughout the transition to ESI, expected to take place over the summer of 2026.