Washington, July 23 (Reuters) – The Pentagon announced a nearly $7 billion, up‑to‑10‑year contract with Oracle to consolidate its on‑premises software licenses into a single agreement. The deal covers the Department of the Navy and extends to the entire Pentagon, the U.S. Coast Guard and the intelligence community. It is structured as a five‑year term with a five‑year option.

Pentagon Chief Information Officer Kirsten Davies said the contract would drive at least $441 million in taxpayer savings and improve procurement efficiency for warfighters.

The agreement follows a similar five‑year, $9.69 billion contract with Microsoft signed in May, which consolidated enterprise software licenses across the military services, the intelligence community and the Coast Guard.

Oracle founder Larry Ellison has a close relationship with U.S. President Donald Trump, according to public reports.

The contract is part of a broader effort by Davies to reduce duplicative software spending across the department by replacing service‑by‑service agreements with enterprise‑wide contracts.