Leidos wins $95M contract to automate Pentagon logistics with AI
Leidos secured a $95 million, five-year contract from the Defense Logistics Agency to integrate AI and cloud tools into the Enterprise Logistics Management System. The system tracks over 80 million government assets valued at $140 billion across 50 agencies. This move supports the Pentagon's broader push for AI-driven military readiness, following recent partnerships with CoreWeave and Scale AI to enhance logistical and intelligence capabilities.
Key points
- Leidos, a Virginia-based defense contractor with $17.2 billion in annual revenue, won a $95 million contract from the Defense Logistics Agency.
- The agreement covers one year plus four optional years, extending through August 2031, to modernize the Enterprise Logistics Management System (ELMS).
- ELMS currently tracks more than 80 million government property items worth over $140 billion for more than 50 federal agencies.
- Leidos will implement AI and cloud infrastructure to accelerate software updates and improve system security and uptime.
- This contract follows Leidos's July partnership with CoreWeave for a classified AI cloud and a collaboration with Rune Technologies for supply prediction.
- The deal aligns with the Pentagon's increased AI spending, including a separate $500 million contract awarded to Scale AI in May.
Leidos has secured a $95 million contract from the Defense Logistics Agency to integrate artificial intelligence and cloud computing tools into the Enterprise Logistics Management System. The agreement, which runs for one year with four optional extensions through August 2031, aims to modernize the platform that tracks more than 80 million government assets valued at over $140 billion. Leidos, which has supported the system and its predecessors for more than 21 years, will use AI to streamline operations and enhance security for the 50-plus agencies relying on the system.
The contract reflects the Pentagon's broader strategic shift toward AI-driven logistics. Jason McCarthy, a senior vice president at Leidos, stated that accurate asset visibility is critical to military readiness. This move follows recent initiatives by the Virginia-based contractor, including a July partnership with CoreWeave to build a classified AI cloud for intelligence agencies and a collaboration with Rune Technologies to predict supply needs in the Indo-Pacific region.
The award places Leidos alongside other major AI integrators in the defense sector. In May, the Department of Defense awarded Scale AI a $500 million contract to deploy AI capabilities, signaling a significant increase in federal spending on automated systems. As the Pentagon seeks to improve operational efficiency, Leidos’s role in maintaining and upgrading ELMS underscores the growing importance of digital infrastructure in modern military logistics.
Sources
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