DoW’s $9.7 Billion Award Strengthens Digital Infrastructure

The U.S. Department of War (DoW) announced the award of the Microsoft Department of War Enterprise Software Agreement (ESA) II Core Enterprise Technology Agreement (CETA) to Dell Federal Systems, L.P. (Round Rock, Texas). Valued at approximately $9.7 billion, the five-year Blanket Purchase Agreement (BPA) strengthens the DoW’s digital infrastructure by helping field a highly connected, agile, and secure joint force. 

As the Chief Information Officer for the DoW, Kirsten A. Davies, explains, “This $9.7 billion agreement is a foundational investment in decision advantage and to operate at the speed of relevance. We are fundamentally restructuring our Microsoft environment — shattering communication silos, aggressively driving efficiency, and employing a unified, collaboration environment required to defend, outmaneuver, and defeat any cyber threats.”

The five-year BPA allows the DoW to rapidly deploy critical software and cloud capabilities while reducing acquisition delays. 

Davies added, “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.”

The agreement equips the joint forces with Microsoft 365 for instantaneous, cross-domain intelligence sharing, while cloud subscriptions accelerate deployment of combat-critical artificial intelligence (AI) and data analytics. At the same time, targeted on-premises licensing ensures unbroken operational continuity at the tactical edge.

The DoW expects the agreement to save the department $422 million annually. Previously, many separate contracts provided Microsoft services and software. The new agreement, for which funding doesn't change, began on June 1.