The Pentagon announced on May 27 a roughly $9.7 billion deal with Dell Federal Systems, a unit of Dell Technologies, to streamline and consolidate software acquisition.
In a contract announcement, the Department of Defense (DOD) said the single-award, firm-fixed-price blanket purchase agreement (BPA) will allow customers to procure Microsoft software licenses, cloud subscriptions, and software assurance. The Trump administration rebranded the DOD to the Department of War (DOW).
The department said the deal is a follow-on BPA that will improve software acquisition across all DOD organizations, the intelligence community, and the U.S. Coast Guard.
“The [contract] is scoped to accommodate the DOW’s existing reliance on Microsoft products (Windows Enterprise Operating System, Office Professional Plus) and the growing need for cloud and hybrid capabilities through tiered Microsoft 365 licenses and specialized bundles, such as the ‘Disconnected No Cloud Access’ license,” the announcement said.
“The limited scope for Microsoft Azure is included to support the transition of specific workloads to the Joint Warfighting Cloud Capability [JWCC] contract,” it added.
JWCC, a $9 billion multi-vendor contract established in 2022, provides the DOD with streamlined access to commercial cloud services from Amazon Web Services, Google Support Services, Microsoft, and Oracle.
The JWCC Next initiative, which follows the original JWCC contract, is expected to launch in the second quarter of fiscal year 2026.