The Department of War has announced a landmark enterprise software agreement with Oracle, valued at nearly $7 billion over a potential ten-year term, as part of the Department's broader Arsenal of Freedom modernization push. Negotiated by the Department of the Navy, the deal marks the first-ever direct award contract between the Department and Oracle covering its on-premises software usage, consolidating what had previously been a fragmented collection of individual licensing purchases into a single unified agreement.
Officials say the primary goal behind the consolidation is improved visibility into how the Department uses and spends money on enterprise software, allowing for better long-term budget optimization. By replacing scattered, one-off IT purchases with a single centralized contract, the agreement is projected to save American taxpayers at least $441 million over its full lifecycle.
Kirsten Davies, Chief Information Officer for the Department of War, framed the deal as a direct improvement in how the Department procures essential software capabilities, saying the restructured approach delivers meaningful taxpayer savings while still rapidly equipping the force with the technology it needs.
She characterized the agreement as a way to strengthen the Department's broader digital ecosystem, providing secure and scalable technology infrastructure intended to support current and future military operations.
Barry Tanner, currently performing the duties of Department of the Navy Chief Information Officer, added that the agreement will help deliver secure, scalable software more quickly — extending from shore-based enterprise systems all the way to the tactical edge for Navy and Marine Corps units.
He said reducing fragmented procurement practices and pushing toward greater standardization across the enterprise should also strengthen interoperability between systems, lower cybersecurity risk, and free up resources to focus on building resilient technology capable of functioning reliably even in contested operational environments.
The agreement is structured with a five-year base period followed by an optional five-year extension, and its scope extends well beyond the Department of War itself — the contract also covers technology usage for the Coast Guard and the broader U.S. Intelligence Community, reflecting how central shared enterprise software infrastructure has become across national security agencies more broadly.