The ESI contract vehicle streamlines acquisition and standardizes access to Oracle commercial products and services for the DoW
AUSTIN, Texas, July 23, 2026 /PRNewswire/ — Oracle has been awarded a 10-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract under the U.S. Department of War (DoW) Enterprise Software Initiative (ESI), with a base value of $3.31 billion for the first five years of the agreement and a total value of $6.99 billion if option years are exercised.
The new contract vehicle establishes a centralized framework to simplify procurement across the department. As a result, authorized DoW organizations and contractors can expedite the procurement of Oracle commercial products and services.
The DoW is one of the largest employers in the United States, with more than 3.4 million civilians and military personnel working across dozens of specialized agencies and branches of the armed forces. Given the DoW’s scale, securely procuring mission-critical technology is often an arduous and time-consuming process, making standardized contract vehicles like ESI essential.
“For the Department of War, the challenge is not just finding the right technology, it’s doing so quickly, compliantly, and at scale, without getting bogged down by complex procurement processes,” said Kim Lynch, executive vice president, Government, Defense & Intelligence, Oracle. “ESI is designed to address those challenges by creating a more standardized and efficient path to Oracle cloud and AI technology tuned to support mission-critical scenarios.”
Through this ESI contract vehicle, DoW organizations can purchase Oracle commercial offerings, including on-premises software and support, Software-as-a-Service (SaaS) applications, and professional services through task and delivery orders tailored to specific mission and operational requirements. Pricing, deliverables, and performance criteria are defined at the order level, giving organizations flexibility while preserving a streamlined contracting structure.
Oracle has been a supplier to the DoW since the 1990s. As a long-time Oracle customer, the DoW will transition to the ESI contract vehicle in the Summer of 2026. Oracle will provide DoW organizations with dedicated program operations and standardized intake processes throughout the transition to ESI. This support will help route requests efficiently and ensure consistent engagement across Oracle teams.
Looking forward, the DoW is expected to increase its use of standardized procurement processes like ESI, and support evolving mission needs with flexible access to commercial technology.
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SOURCE Oracle
