WASHINGTON — The Pentagon awarded Dell Federal Systems a $9.7 billion Core Enterprise Technology Agreement to consolidate Microsoft software, services, and licenses across the Department of Defense. The five-year blanket purchase agreement is part of the second iteration of the Enterprise Software Agreement.
The agreement aims to streamline services provided to the Department of Defense, Intelligence Community, and Coast Guard. It allows the DoD to rapidly acquire and deploy software and cloud capabilities while reducing delays from fragmented procurement processes. The contract is not new funding but consolidates existing IT budgets from the services and agencies into a single contract vehicle managed by the Navy. The blanket purchase agreement is expected to save $422 million annually, with anticipated increases as IT services are fully consolidated.
Department of Defense chief information officer Kirsten Davies said the agreement supports the military’s digital transformation priorities. "By providing enterprise access to Microsoft 365 advanced cloud subscriptions and critical on premises licensing, this CETA acts as part of the digital connective tissue essential for Combined Joint All-Domain Command and Control, CJADC2." She added that the deal "ensures our war fighters have the tools for just in time data sharing, supports our pivot to AI and data analytics, and undergirds uninterrupted operational continuity for our most sensitive and disconnected environments."
Barry Tanner, who is performing the duties of the chief information officer for the Department of the Navy, called the agreement a milestone in defense IT modernization. "This really is a game changer. It’s the culmination of lessons we’ve learned over the last five years, the successes that have been built for all of the services." He added, "It improves capability while driving efficiency across the department."