The Department of Defense’s Enterprise Software Initiative (DoD ESI) is a key project led by the DoD Chief Information Officer (CIO) to reduce costs and streamline the procurement of commercial software, IT equipment, and services. The initiative ensures a standardized approach to contracting and vendor management across the department by consolidating requirements and negotiating with IT vendors. So far, DoD ESI has achieved savings exceeding $7 billion through pricing agreements established on the GSA Federal Supply Schedule.

To lower ownership costs across the DoD, Coast Guard, and Intelligence Communities, the DoD ESI focuses on creating and managing enterprise agreements for Commercial-off-the-Shelf (COTS) Information Technology (IT) products, assets, and policies. The initiative covers the entire lifecycle of commercial IT, leveraging the collective purchasing power of the DoD to negotiate favorable terms with software publishers, hardware manufacturers, and service providers.

Through Enterprise Software Agreements, DoD ESI has proven that centralized procurement of commercial software can lead to significant cost savings. The initiative facilitates the aggregation of software requirements and promotes the use of these agreements to capitalize on the DoD’s buying power. DoD ESI does not dictate specific items or services to be purchased.