Stock Markets June 15, 2026 05:18 PM

Dell Federal awarded $1.44 billion Air Force contract for Microsoft enterprise licenses

Firm-fixed-price order covers Microsoft 365 E3/E5 and F-series licenses, software assurance and subscriptions through 2029

By Derek Hwang
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MSFT DELL

Dell Federal Systems L.P. won a $1,437,934,084 firm-fixed-price call order from the U.S. Air Force to renew the Microsoft Enterprise License Agreement. The sole-source award covers Microsoft 365 E3/E5 and F-series enterprise licenses, software assurance and related subscription services, with work to be carried out in Round Rock, Texas and other locations through April 30, 2029. The Air Force obligated $208,823,908 in fiscal 2026 operations and maintenance funds at the time of award; the contracting activity is the Air Force Life Cycle Management Center at Maxwell AFB Gunter Annex.

Dell Federal awarded $1.44 billion Air Force contract for Microsoft enterprise licenses
MSFT DELL
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Key Points

  • Dell Federal Systems L.P. was awarded a firm-fixed-price call order totaling $1,437,934,084 to renew the Microsoft Enterprise License Agreement.
  • The contract includes Microsoft 365 E3/E5 and F-series enterprise licenses, software assurance, and related subscription services, with work to be completed by April 30, 2029.
  • The award was made as a sole source acquisition and had $208,823,908 in fiscal 2026 operations and maintenance funds obligated at the time of award; the contracting activity is the Air Force Life Cycle Management Center at Maxwell AFB Gunter Annex.

Dell Federal Systems L.P., headquartered in Round Rock, Texas, has been granted a firm-fixed-price call order worth $1,437,934,084 by the U.S. Air Force to support the renewal of the Microsoft Enterprise License Agreement, the Department of War announced Monday.

The award, issued under blanket purchase agreement N66001-26-A-0051, covers a package of Microsoft 365 E3 and E5 licenses as well as F-series enterprise software licenses. Included in the order are software assurance provisions and associated subscription services tied to those licenses.

Work related to the contract will take place in Round Rock and at various other sites, with an expected completion date of April 30, 2029. The procurement was handled as a sole source acquisition, according to the announcement.

At the time the order was placed, the Air Force obligated fiscal 2026 operations and maintenance funds totaling $208,823,908. The contracting activity listed for the award is the Air Force Life Cycle Management Center located at Maxwell Air Force Base Gunter Annex in Montgomery, Alabama, under designation FA8772-26-F-0025.

The contract is identified as a firm-fixed-price call order and sits beneath the broader blanket purchase agreement referenced in the award notice.


Summary of the award

  • Dell Federal Systems L.P. receives $1,437,934,084 call order to renew Microsoft Enterprise License Agreement.
  • Scope includes Microsoft 365 E3/E5 and F-series enterprise licenses, software assurance and subscription services.
  • Work locations include Round Rock, Texas, and other unspecified sites; expected completion by April 30, 2029.
  • Procurement executed as a sole source acquisition; $208,823,908 in fiscal 2026 O&M funds obligated at award.
  • Contracting activity: Air Force Life Cycle Management Center, Maxwell AFB Gunter Annex, designation FA8772-26-F-0025.

Context and implications

The award formalizes a multi-year contract vehicle to provide enterprise software licensing and related services to the Air Force. It designates a single supplier under the blanket purchase agreement and sets out a multi-year performance window extending to 2029. The notice identifies the portion of funds obligated at award and the specific Air Force contracting office managing the order.

Risks

  • Sole source acquisition - the contract was awarded without competitive bidding, concentrating delivery responsibility with a single supplier, which may pose procurement and delivery risks for defense IT services.
  • Funding obligation scope - only fiscal 2026 operations and maintenance funds totaling $208,823,908 were obligated at the time of award, leaving the timing and obligation of remaining funds through the contract term as an unresolved factor.
  • Multi-location execution and long performance window - work will be carried out in Round Rock and various other locations through an expected completion date of April 30, 2029, creating execution and coordination challenges over a multi-year timeframe.

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