Leidos wins Pentagon logistics modernization contract using AI
Leidos announced on October 22, 2026 that the Defense Logistics Agency awarded it a potential $95 million contract lasting five years to upgrade the Pentagon’s Enterprise Logistics Management System with AI automation, cloud technology and newer software methods. The system serves more than 50 agencies and accounts for over 80 million government-property assets valued at more than $140 billion. The arrangement extends Leidos’ support for ELMS and its predecessor beyond 21 years, with work scheduled through August 2031.
Why it matters
The award creates a potential five-year revenue opportunity for Leidos, although the full amount depends on four option years being exercised. Leidos expects the system upgrades to improve logistics processes and directly support military readiness.
Key facts
- 1The Defense Logistics Agency awarded Leidos a potential $95 million contract with a five-year term. prnewswire.com
- 2ELMS supports more than 50 agencies and tracks over 80 million government-property items valued at more than $140 billion. prnewswire.com
- 3The contract consists of one base year and four option years and runs through August 2031. prnewswire.com
- 4Leidos’ support of ELMS and its predecessor system will exceed 21 years under the award. prnewswire.com
Open questions
- The $95 million total is contingent on the exercise of four option years, so the amount ultimately realized is unknown.
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.