“The contract is worth $617 million, DOD says. The Air Force estimates a cost avoidance of $50 million per year with the contract, and the Army says it will save $70 million per year. DISA says the overall savings will total more than 10% over the life of the agreement.”
see DOD saves $100M a year with new Microsoft licensing deal | ITworld.
The way I see it, DOD plans to waste $617 million of the taxpayers’ money that they could use to cut the deficit (~$1000million annually…) significantly. They could have licences for GNU/Linux and Android/Linux and LibreOffice for $0 and likely have better performance. I recommend Debian GNU/Linux to anyone who will listen. DOD is one of the heaviest users of GNU/Linux. They should know better.

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This runs afoul of the need to avoid single-supplier technologies. It also seems to fly in the face of policy, at least for the Navy:
http://fcw.com/articles/2008/03/06/navy-to-focus-only-on-open-systems.aspx
Maybe they’re looking forward to towing more ships back to port for Windows repairs like with the Yorktown.