The Department of War (DOW) has announced a five-year, $9.7 billion enterprise agreement with Dell Federal Systems to streamline the purchase and management of Microsoft software and services across the department. The deal will modernize digital infrastructure while saving an estimated $422 million annually.

“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,” said Kirsten A. Davies, DOW chief information officer.

The agreement, the department’s largest to date, will provide access to Microsoft 365, cloud subscriptions, on-premises licensing, and hybrid capabilities, including products such as Windows Enterprise Operating System and Office Professional Plus.

The contract will also strengthen the digital foundation for Combined Joint All-Domain Command and Control, enabling faster data sharing across military branches and coalition partners.

“This CETA acts as part of the digital connective tissue essential for Combined Joint All-Domain Command and Control … This ensures our warfighters have the tools for just-in-time data sharing, supports our pivot to [artificial intelligence] and data analytics, and undergirds uninterrupted operational continuity for our most sensitive and disconnected environments,” Davies added.

The agreement consolidates dozens of existing contracts into a single enterprise arrangement, which officials say will reduce costs without requiring additional funding.