WASHINGTON — The Pentagon announced that Dell Federal Systems has secured a $9.7 billion Core Enterprise Technology Agreement (CETA) to unify Microsoft software, services and licenses across the Department of Defense, the Intelligence Community and the Coast Guard.
The five‑year blanket purchase agreement, part of the second iteration of the Enterprise Software Agreement, is designed to simplify service delivery for all participating agencies.
“By providing enterprise access to Microsoft 365 advanced cloud subscriptions and critical on‑premises licensing, this CETA serves as essential digital connective tissue for Combined Joint All‑Domain Command and Control (CJADC2),” DoD Chief Information Officer Kirsten Davies told reporters. “It ensures our warfighters have just‑in‑time data sharing tools, supports our pivot to AI and data analytics, and maintains uninterrupted operational continuity in our most sensitive and disconnected environments.”
The contract does not represent new funding; instead, it consolidates existing IT budgets from various services and agencies into a single vehicle managed by the Navy, accessible to all DoD components.
The CETA enables rapid acquisition and deployment of software and cloud capabilities while reducing delays caused by fragmented procurement processes.
“We’re bringing everything together in one place so we can renegotiate at scale, driving greater optimization and efficiency,” Davies said.
Davies added that the agreement is projected to save $422 million annually, with savings expected to increase as the department fully consolidates its IT services.
“This is a game changer—the culmination of lessons learned over the past five years and the successes built across the services,” Barry Tanner, acting CIO of the Department of the Navy, told reporters. “It enhances capability while improving efficiency department‑wide.”
As part of her transformation agenda, Davies emphasized an increased focus on enterprise‑wide cybersecurity standards.