Pentagon awards Oracle up to $7B in software consolidation deal
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ByEdward Graham,
Managing Editor, Nextgov/FCW
July 24, 2026 11:25 AM ET
The agreement merges Oracle's product and licensing services into one contract, which the Defense Department estimates will result in at least $441 million in savings.
The Pentagon announced on Thursday that it awarded Oracle an almost $7 billion Enterprise Software Agreement to consolidate all of the tech giant’s on-premises products and services into one contract vehicle.
The five-year agreement, which includes an additional five-year option period, has an initial base value of $3.31 billion. The cumulative total can increase to $6.99 billion if all ten years of the deal are exercised.
Contract details releasedby the Pentagon said the agreement was negotiated by the Department of the Navy and “will enable customers to procure Oracle software licenses (perpetual and subscription), software maintenance and support renewals, software as a service, customer...
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