The Department of Defense announced an agreement with Oracle on Thursday. The Enterprise Software Agreement is worth nearly $7 billion.

The agreement consolidates Oracle software, services, and licenses used across the Pentagon, Coast Guard, and Intelligence Community under a single contract vehicle. The contract covers the use of Oracle software in on-premises data centers. The Department of the Navy negotiated the contract.

The agreement includes a five-year base period and a five-year option period. It combines multiple existing contracts into a single vehicle rather than providing new funding. The 2026 contract mandates centralized procurement of Oracle software through the DON Enterprise Software Licensing Agreement, consolidating 35 plus prior contracts into a single vehicle to standardize licensing across the Pentagon, Coast Guard, and Intelligence Community.

DLT Solutions, the reseller coordinating the 2026 Oracle agreement, holds Oracle Platinum Partner status, granting it exclusive rights to deploy Oracle software under U.S. government contracts. "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 Davies, DOD chief information officer, said.

Davies added that the deal supports broader modernization goals. "This nearly $7 billion agreement with Oracle strengthens our digital ecosystem, supporting our warfighters with secure, scalable technology to dominate current and future missions," she said.

Barry Tanner, Navy CIO, said the consolidation addresses technical and security challenges. "Reducing fragmented procurement and advancing enterprise standardization will strengthen interoperability, reduce cybersecurity risk, and help us focus resources on resilient capabilities that can scale, integrate, and endure in contested conditions," Tanner said.

The agreement shifts the Pentagon, Coast Guard, and Intelligence Community from dozens of separate licenses to one contract vehicle. This consolidation follows a 2025 directive to audit software usage and negotiate better rates, aiming to reduce fragmented procurement and lower costs.