Pentagon awards $9.7 billion in contracts to Dell, Microsoft to provide software, stop license sprawl, and cut costs across military and intelligence networks

Date:
Thu, 28 May 2026 19:05:00 +0000

Description:
Dell has been awarded a contract to supply Microsoft 365 software and other services for the Department of Defense, the intelligence community, and the
US Coast Guard.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Dell has won a Pentagon
contract worth $9.7 billion The technology services company will act as a single procurement point The Pentagon, intelligence community, and Coast
Guard will jointly procure software The Pentagon is looking to cut costs and stop software license sprawl in its latest contracts with Dell and Microsoft
.

A $9.69 billion contract has been awarded to Dell to act as a single procurement point for Microsoft licenses across the US Defense Department,
the intelligence community and the Coast Guard. The contract will move the Pentagon and other military departments away from duplicative spending on Microsoft licensing. Defense Department Chief Information Officer Kirsten Davies said the contract would allow the Pentagon to save $422 million annually by consolidating existing IT budgets from across the services and
the agencies into a single efficient vehicle. Latest Videos From You may like Dell CEO says companies can't dictate how technology is used by governments Skydio just landed a record $52 million drones order from the US military
Dell launches record-shattering server with 9.8PB of flash storage in just 2U Annual savings of $422 million The contract awarded to Dell - known as the Microsoft Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement - allows Dell to provide Microsoft 365, advanced cloud subscriptions and on-premises licensing. The contract continues the Pentagons existing Enterprise Technology Agreement with Dell and Microsoft.

However, the $9.7 billion is not new funding, but a consolidation of budgets from contracts that have come up for renewal at the same time.

This second-generation blanket purchase agreement will streamline and consolidate critical Microsoft software and services across the Department of War, the intelligence community and the U.S. Coast Guard, Davies said.

Acting Navy Chief Information Officer Barry Tanner said, The vendors were all evaluated based on competition, comparison to GSA schedule pricing and
overall chain of value to the department. Going through the process of evaluation, they came out on top. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news
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Michael Dell, the founder and CEO of Dell Technologies, has recently courted favor with President Donald Trump by pledging $6.25 billion to fund
investment accounts for children, called Trump accounts in the Presidents honor.

The Department of Defense has been under increasing scrutiny from across the political divide as it seeks approval for a $1.5 trillion budget for 2027.
The Pentagon has failed every audit it has undertaken since they were legally required in 2018, with the Pentagon targeting to pass its first audit by
2028.

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Link to news story: https://www.techradar.com/pro/security/pentagon-awards-usd9-7-billion-in-contr acts-to-dell-microsoft-to-provide-software-stop-license-sprawl-and-cut-costs-a cross-military-and-intelligence-networks


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