Dell Technologies Inc. has been awarded a $9.69 billion contract by the U.S. Department of Defense.

The contract is a firm-fixed-price blanket purchase agreement designed to streamline and consolidate software procurement for the Pentagon, the intelligence community, and the U.S. Coast Guard.

This agreement will enable clients to acquire Microsoft software licenses, cloud subscriptions, and software assurance services.

The Department of Defense noted that it already utilizes Microsoft products and that its demand for cloud and hybrid capabilities is increasing through tiered Microsoft 365 licenses.