Oracle wins $6.99B DoW software contract under ESI program

Oracle (NYSE: ORCL) has been awarded a 10-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract under the U.S. Department of War (DoW) Enterprise Software Initiative (ESI), according to a press release from the company.

The contract carries a base value of $3.31 billion for the first five years, with a total potential value of $6.99 billion if all option years are exercised.

The ESI contract establishes a centralized framework allowing authorized DoW organizations and contractors to procure Oracle commercial products and services, including on-premises software, Software-as-a-Service (SaaS) applications, and professional services. Pricing, deliverables, and performance criteria are defined at the individual order level.

The DoW employs more than 3.4 million civilians and military personnel across dozens of agencies and branches of the armed forces.

"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," said Kim Lynch, executive vice president, Government, Defense & Intelligence, Oracle.

Oracle has supplied technology to the DoW since the 1990s. The department is scheduled to transition to the ESI contract vehicle in the summer of 2026. Oracle said it will provide dedicated program operations and standardized intake processes during the transition period.

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