Navy Awards Oracle $7.13 Billion Sole-Source Contract Following Lobbying Surge
The U.S. Navy bypassed competitive bidding to grant Oracle America, Inc. a ten-year deal worth up to $7.13 billion by utilizing technical specifications only Oracle could meet. This procurement follows a 22% increase in Oracle's political contributions to the specific House committees responsible for overseeing defense spending.
Oracle secured a $7.13 billion non-competitive Navy contract by embedding its own proprietary software requirements into the bid while simultaneously increasing donations to defense overseers by 22%.
On December 5, 2025, the Navy’s NIWC Pacific procurement office issued Notice of Intent N66001-S-7D0A2, a filing that paves the way for a $7.13 billion sole-source contract for Oracle America, Inc. By citing 'only one responsible source,' the Navy bypassed the Competition in Contracting Act of 1984. This effectively locks the Department of Defense into Oracle’s proprietary ecosystem for the next decade, contradicting the Pentagon’s stated goal of moving toward a diversified 'Multi-Cloud' strategy.
The technical requirements within the filing were meticulously tailored to favor Oracle's specific product suite. The document mandates 'native OCI-based autonomous database functionality' and 'proprietary PL/SQL architectural compatibility.' According to industry analysis, these specific software requirements made it legally and technically impossible for competitors like Amazon Web Services (AWS), Google, or Microsoft to submit a bid. This practice, known as 'tailored specs,' allows agencies to create a de facto monopoly under the guise of technical necessity.
Financial records suggest this contract was preceded by a heavy influence campaign. Oracle’s January 30, 2026, LD-203 filings reveal a 22% increase in contributions to members of the House Armed Services and Appropriations Committees compared to the previous cycle. Oracle CEO Safra Catz directed $12 million into lobbying efforts targeting DoD procurement officials throughout 2025. Furthermore, the language in the Navy's notice was facilitated by a 'revolving door' of former Navy procurement officers who now serve in Oracle’s government affairs division.
While mainstream outlets frame the deal as a necessary modernization of defense data infrastructure, the move ensures that Larry Ellison’s 'Red Cloud' strategy remains the backbone of the U.S. military. This dependency grants a private corporation significant leverage over national security data. For the American taxpayer, this means paying premium prices for legacy database architectures that lack the price-lowering pressure of a competitive market. When technical requirements are written by the vendor rather than the state, the public loses both its money and its oversight.
Summary
The U.S. Navy bypassed competitive bidding to grant Oracle America, Inc. a ten-year deal worth up to $7.13 billion by utilizing technical specifications only Oracle could meet. This procurement follows a 22% increase in Oracle's political contributions to the specific House committees responsible for overseeing defense spending.
⚡ Key Facts
- Navy Notice of Intent N66001-S-7D0A2 awards Oracle up to $7.13 billion over 10 years without competitive bidding.
- Technical specs specifically required 'proprietary PL/SQL architectural compatibility,' effectively disqualifying all other cloud providers.
- Oracle's LD-203 filings show a 22% surge in donations to key defense oversight committee members following the notice.
- CEO Safra Catz directed $12 million in 2025 lobbying specifically targeting DoD procurement and executive liaisons.
- The deal contradicts the DoD’s official 'Multi-Cloud' strategy, creating a single-vendor dependency through 2035.
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