The five-year deal consolidates scattered Microsoft 365 and cloud subscriptions for the Defense Department, intelligence community and Coast Guard. Dell, not Microsoft, is the prime contractor.
The US Department of Defense has awarded Dell a five-year, roughly $9.7bn contract to consolidate Microsoft software licensing across the entire US military, the intelligence community and the Coast Guard, according to a Reuters report on Wednesday.
The deal is formally titled the Microsoft Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement; Dell Federal Systems is the prime contractor, with Microsoft as the underlying software vendor.
The contract itself, however, is between the Pentagon and Dell Federal Systems, the company’s government-focused unit.
Dell will resell Microsoft 365 subscriptions, advanced cloud capabilities and on-premises licensing to the relevant military and intelligence buyers under a single consolidated framework, replacing the patchwork of separately negotiated contracts that have accumulated across the services over the past decade.
