U.S. Secretary of Defense Pete Hegseth speaks during a press conference at the Pentagon on May 5, 2026, in Arlington, Virginia.
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The Pentagon on Wednesday announced a five-year agreement worth about $9.7 billion. Dell Provides a suite of software to the US military.
This award, known as microsoft The Department of the Army Enterprise Software Contract II Core Enterprise Technology Contract requires Dell to provide Microsoft 365, advanced cloud subscriptions, and on-premises licensing capabilities.
The company’s government services division, Dell Federal Systems, won the contract after a competitive process, Pentagon Chief Information Officer Kirsten Davis and acting Navy Chief Information Officer Barry Tanner told reporters during a Wednesday briefing at the Pentagon. This comes after Michael Dell, founder and CEO of Dell Technologies, pledged $6.25 billion last year to fund investment accounts for children known as “Trump Accounts.”
Dell is a major purchaser of Windows PC licenses and has a long-standing partnership with Microsoft.
“Vendors were all evaluated based on competition, comparison to GSA schedule prices, and overall value chain to the department,” Tanner said, referring to the General Services Administration, which oversees government purchasing. “After the evaluation process, they came out on top.”
This agreement allows the Department of Defense to obtain the licenses it needs to run enterprise Microsoft systems in one place. Officials said the contract eliminates duplication of technology licenses across the Department of Defense and related government agencies.
“This second-generation blanket purchase agreement will streamline and integrate critical Microsoft software and services across the Department of the Army, the intelligence community, and the U.S. Coast Guard,” said Davies.
Davis said the agreement is expected to save the Defense Department about $422 million annually by “consolidating existing IT budgets from across the services and agencies into a single, efficient vehicle.”
The Pentagon is under immense pressure from Congress to conduct a clean audit, especially since it is requesting a massive $1.5 trillion budget for fiscal year 2027 from Congress.
President Donald Trump has particularly praised Dell.
At a Mother’s Day event at the White House earlier this month, Trump praised the Dell family for donating to Trump’s account, then said, “I’m going to go out and buy a Dell.”
And Dell returned the favor. He congratulated President Trump on his victory in the 2024 presidential election and said, “I look forward to continued progress and opportunity under President Trump’s leadership and to working together toward a strong, unified future for all.”
Mr. Dell also served on President Trump’s Science and Technology Advisory Council.
