Oracle Wins $88M US Air Force Cloud Contract

Oracle Awarded $88.1M for Air Force Cloud One Program

Oracle America Inc. has secured a firm-fixed-price task order valued at $88,112,197 from the U.S. Air Force. The contract is designated for Oracle's cloud service offerings to support the Air Force's Cloud One program and is expected to conclude by December 7, 2028.

Contract Overview and Details

Announced by the U.S. Department of War, this contract was awarded through a sole source acquisition. The Air Force Life Cycle Management Center at Hanscom Air Force Base, Massachusetts, is the contracting authority. Work will be conducted at Oracle's facilities across the contiguous United States. Initial funding of $280,000 has been allocated from fiscal 2026 operations and maintenance funds.

Impact on Oracle and the Tech Sector

This significant government contract reinforces Oracle's position as a key cloud infrastructure provider for the public sector, particularly in defense. The deal could positively influence investor confidence and Oracle's stock performance by highlighting its competitiveness against other major cloud players in the lucrative government contracting space.

Conclusion

The $88.1 million award underscores the U.S. military's ongoing commitment to modernizing its IT infrastructure through cloud adoption. For Oracle, this contract represents a stable, long-term revenue stream and strengthens its portfolio of high-profile government clients. Market watchers will observe how this partnership progresses and its impact on future defense technology contracts.

FAQ

Q: What is the total value of the Oracle contract?
A: The contract is valued at $88,112,197.

Q: Which U.S. military branch awarded the contract?
A: The U.S. Air Force awarded the contract for its Cloud One program.

Q: When is the project expected to be completed?
A: The work is scheduled to be completed by December 7, 2028.

Source: Investing.com