Dell Wins $2.5B Software License Deal With Navy

Dell Marketing has secured a $2.5 billion single-award, firm-fixed-price blanket purchase agreement with the Navy for enterprise software licenses.

The five-year BPA requires Dell to provide commercially available perpetual licenses, software assurance and user-based subscription licenses for products such as Microsoft 365 and Microsoft Azure.

Software licenses procured under the contract will be used by the Department of Defense and U.S. Coast Guard, FedScoop reported.

Insight Public Sector, a Herndon, Virginia-based company, was initially awarded a similar software license deal valued at approximately $2.6 billion in late May.

Both awards were issued by the Naval Information Warfare Center Pacific in San Diego under the DOD Enterprise Software Initiative, which seeks to streamline the process of software licensing acquisition and provide IT platforms that are compliant with DOD’s technical standards.

The ordering period began on June 1 and will extend through May 31, 2026. The Navy will obligate funds for the contract via delivery orders.

Dell has provided software licenses for defense customers in the past.

In 2019, the company secured a four-year, $231 million information technology contract with the Navy for the provision of VMware software licenses, software maintenance and data center and cloud infrastructure services.

The Defense Health Agency also awarded Dell an $83 million firm-fixed contract in 2019 to renew Microsoft licenses for products including VISIO Professional, Windows Server Standard, Project Standard and SQL Server Enterprise.