- The U.S. Air Force awarded Dell Federal Systems $1.4 billion to renew licenses for Microsoft products
- The contracting activity is the Air Force Life Cycle Management Center in Montgomery, Alabama
- The project is expected to be completed in April 2029
The U.S. Air Force has awarded Dell Federal Systems a $1.44 billion contract to renew the agency’s Microsoft Enterprise License Agreement, the Department of War announced Monday.
What Is Covered in the Air Force-Dell Agreement?
The fixed-price call order is part of a blanket purchase agreement that aims to extend the software licenses for Microsoft 365 E3/E5 and F-series enterprise until the end of April 2029. The renewal will also extend coverage for relevant subscription services and software assurance. 
The Air Force Life Cycle Management Center in Montgomery, Alabama, is the contracting activity for the sole source acquisition, which obligates $208 million from the agency’s fiscal 2026 operations and maintenance budget at the time of award.
The Dell contract coincides with the ongoing efforts of the U.S. the U.S. Air Force, to adopt advanced technologies to address new challenges. The Potomac Officers Club’s 2026 Air and Space Summit on July 30 will feature sessions discussing these trends and challenges. Book your seats here!
What Are Dell’s Other Recent Air Force Contracts?
On May 28, the department revealed that it selected Dell’s federal systems business for a five-year, $9.7 billion agreement to access Microsoft cloud and other services. The core enterprise technology agreement “ensures our warfighters 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,” according to DOW chief information officer and 2026 Wash100 Award winner Kirsten Davies.
In August 2024, the company secured an Air Force BPA to supply servers and sensors to multiple military bases, valued at up to $109.9 million. It also involved providing support services for rack-mounted server, mobile server, mobile lightweight sensor and common hardware switch for both rack-mounted and mobile servers.
