Leidos has won a $95 million, five-year contract from the Defense Logistics Agency to add artificial intelligence and cloud tools to a Pentagon system that tracks government property. The company said Thursday that the AI will speed up the work of the system, which follows more than 80 million items worth more than $140 billion.
The system is the Enterprise Logistics Management System, known as ELMS. It helps more than 50 agencies keep track of their property. Leidos has supported ELMS, and the system that came before it, for more than 21 years.
The new contract runs one year, with four optional years that extend it through August 2031. Leidos will add AI and cloud tools so it can ship updates faster and keep the system secure 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 reported about $17.2 billion in annual revenue, and it is moving further into military AI. In July, Leidos teamed up with CoreWeave on a classified AI cloud for U.S. 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 also increased its AI spending this year. In May, Scale AI won a $500 million contract to bring AI into military decision-making. The same week, the Pentagon signed classified AI deals with Nvidia, Microsoft and Amazon Web Services.
The push has come from the top. In June, President Donald Trump ordered the military to adopt AI faster. By then, about 1.5 million Pentagon staff, nearly half the department's workforce, were using its in-house AI platform, mostly for administrative work.
This article was written with the assistance of AI.
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