Oracle has secured a new enterprise software contract with the US Department of Defense (DoD) under the Enterprise Software Initiative (ESI), a centralized procurement program designed to simplify and accelerate the purchase of commercial technology across the department.
The agreement has a base value of $3.3 billion over its first five years and could reach $6.9 billion over 10 years.
Under ESI, the contract establishes a procurement framework that allows eligible DoD organizations and authorized contractors to acquire Oracle products and services through a standardized contracting process.
The approach is intended to reduce administrative delays and speed up access to software needed for military and government operations.
Under the agreement, defense organizations will be able to order a range of Oracle offerings, including on-premises software, software-as-a-service applications, and technical support.
Individual tasks and delivery orders will define the specific products, pricing, and performance requirements based on each organization’s operational needs.
Enterprise Software Initiative
ESI is a long-standing program that centralizes the acquisition of commercial off-the-shelf information technology across the US military, the Coast Guard, and parts of the intelligence community.
Rather than requiring each military service or agency to negotiate software contracts independently, ESI aggregates demand and establishes enterprise-wide agreements with technology vendors.
It is designed to reduce procurement costs, standardize licensing, and simplify the acquisition of commercial software and IT services while giving organizations flexibility to choose the products that best meet their operational needs.
Earlier this month, the program launched an updated online portal with new support tools for procurement personnel, including an “Ask an Expert” service and improved access to software agreement resources.
It also announced a quarterly training program for acquisition professionals, beginning in October 2026, to strengthen expertise in enterprise software procurement across the DoD.