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WASHINGTON — The Pentagon awarded Dell Federal Systems a $9.7 billion Core Enterprise Technology Agreement (CETA) to consolidate Microsoft software, services and licenses across the Department of Defense, top officials told reporters today.

The five-year blanket purchase agreement, which is part of the second iteration of the Enterprise Software Agreement, aims to streamline the services provided to all the department, Intelligence Community and Coast Guard.

“By providing enterprise access to Microsoft 365 advanced cloud subscriptions and critical on premises licensing, this CETA acts as part of the digital connective tissue essential for Combined Joint All-Domain Command and Control, CJADC2,” Kirsten Davies, DoD chief information officer, told reporters at the Pentagon today. “This ensures our war fighters have the tools for just in time data sharing, supports our pivot to AI and data analytics, and undergirds uninterrupted operational continuity for our most sensitive and disconnected environments.”

The agreement is not new funding, but rather consolidates existing IT budgets from the services and agencies into a single contract vehicle that is managed by the Navy and can be accessed by all organizations within the DoD.