- Dell has received the potential $9.7 billion DOW ESA II BPA
- The agreement covers the procurement of Microsoft software licenses and cloud subscriptions
- The 2026 Navy Summit will explore AI, enterprise modernization and autonomous systems
The federal arm of Dell Technologies has secured from the U.S. Navy a potential $9.69 billion follow-on blanket purchase agreement under the Department of War’s Enterprise Software Initiative, or ESI.
DOW said Wednesday the Naval Information Warfare Center Pacific is the contracting activity for the single-award, firm-fixed-price Enterprise Software Agreement II BPA.
As DOW advances enterprise modernization efforts through initiatives like the ESA II BPA, defense leaders continue to focus on the technologies, networks and digital capabilities shaping the future fleet. These priorities will be explored at the Potomac Officers Club’s 2026 Navy Summit through panel discussions covering AI-enabled shipbuilding, digital engineering, enterprise network modernization, autonomy at scale and network-centric warfighting. Register now for the Aug. 27 event!
What Is the Scope of the DOW ESA II BPA?
The agreement with Dell Federal Systems will enable customers across DOW, the intelligence community and the Coast Guard to purchase Microsoft software licenses, software assurance and cloud subscriptions.
According to the DOW, the ESA II BPA is structured to support the department’s continued reliance on Microsoft products, including Windows Enterprise Operating System and Office Professional Plus, while addressing increasing demand for cloud and hybrid capabilities through tiered Microsoft 365 licenses and specialized bundles, including the “Disconnected No Cloud Access” license.
The agreement also includes a limited scope for Microsoft Azure to support the transition of specific workloads to the Joint Warfighting Cloud Capability contract.
What Did DOW CIO Kirsten Davies Say About the BPA?
Breaking Defense reported that DOW Chief Information Officer Kirsten Davies commented on the BPA or core enterprise technology agreement, or CETA, during a press briefing at the Pentagon on Wednesday.
“By providing enterprise access to Microsoft 365 advanced cloud subscriptions and critical on premises licensing, this CETA acts as part of the digital connective tissue essential for Combined Joint All-Domain Command and Control, CJADC2,” Davies, a 2026 Wash100 awardee, told reporters.
“This ensures our war fighters have the tools for just in time data sharing, supports our pivot to artificial intelligence and data analytics, and undergirds uninterrupted operational continuity for our most sensitive and disconnected environments,” Davies added.
Davies said the department consolidated the agreement into a single vehicle to support renegotiation at enterprise scale and improve optimization and efficiency, adding that the BPA is expected to generate approximately $422 million in annual savings, with projected savings expected to increase as DOW further consolidates IT services, according to Breaking Defense.
What Is the DOW Enterprise Software Initiative?
The DOW Enterprise Software Initiative is a joint enterprise acquisition program designed to consolidate commercial software agreements across the department and provide standardized software purchasing and license management capabilities.
The initiative supports enterprisewide procurement of commercial-off-the-shelf IT products and services intended to improve cost efficiency and streamline acquisition processes across defense organizations.
In 2021, the Navy awarded Dell a five-year, $2.5 billion BPA under the DOW ESI to facilitate the procurement of software licenses and IT products and services.
