Leidos has won a $95M, five-year contract from the Defense Logistics Agency to add AI automation and cloud tools to ELMS, the Pentagon system that tracks more than 80 million items of government property worth over $140B. Leidos has supported the system for more than 21 years.
Leidos will use AI to speed up the system the Pentagon uses to track more than 80 million items of government property, the company said on Thursday. The work comes under a $95M contract from the Defense Logistics Agency.
The Enterprise Logistics Management System, known as ELMS, helps more than 50 agencies keep track of property worth more than $140B. Leidos has supported the system, and the one that came before it, for more than 21 years.
The new contract runs for one year plus four optional years, through August 2031. Leidos will add AI and cloud tools so it can ship updates faster and keep the system safe and running, the company said.
“Logistics wins wars and accurate, reliable asset visibility is a cornerstone of military readiness,” said Jason McCarthy, a senior vice president at Leidos.
The Virginia-based contractor, which reported about $17.2B in annual revenue, is pushing deeper into military AI. In July, it teamed up with CoreWeave on a classified AI cloud for US spy agencies and the Pentagon. It also partnered with Rune Technologies on AI that predicts military supply needs in the Indo-Pacific.
The Pentagon has spent more on AI this year. In May, Scale AI won a $500M contract to bring AI into military decision-making. That same week, the Pentagon signed classified AI deals with Nvidia, Microsoft and Amazon Web Services.
In June, President Donald Trump ordered the military to adopt AI faster. By then, about 1.5 million Pentagon staff, nearly half its workforce, were using its in-house AI platform, mostly for admin work.
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