Leidos bringing AI advances to Pentagon logistics system

The award extends Leidos’ logistics support, with a base year and four option years through August 2031.

Rhea-AI Summary

Leidos (LDOS) has secured a Defense Logistics Agency contract with a total potential value of $95 million to modernize Pentagon logistics.

The award covers a base year plus four option years, through August 2031, extending support for the Enterprise Logistics Management System (ELMS). Leidos will apply artificial intelligence automation, cloud technology and modern software development practices to accelerate software delivery and streamline operations. More than 50 agencies use the system to manage over 80 million government property items valued at more than $140 billion.

Positive

• Minor point$95 million total potential contract value awarded by the Defense Logistics Agency extends Leidos’ ELMS support.

Negative

• Minor pointFour option years account for part of the five-year contract term; $95 million is the total potential value.

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RESTON, Va., Oct. 22, 2026 /PRNewswire/ -- Leidos (NYSE: LDOS) will deploy artificial intelligence automation to streamline and accelerate the Pentagon asset management system that more than 50 agencies use to manage over 80 million items of government property valued at more than $140 billion.

Under a new, $95 million five-year contract from the Defense Logistics Agency, Leidos will extend its two decades of support for the Enterprise Logistics Management System (ELMS). Improving that system's performance is expected to have direct benefits for military readiness.

The big picture: ELMS helps the Department of War manage and account for assets throughout their lifecycle, supporting the logistics enterprise that keeps warfighters equipped and ready. Through this award, Leidos is advancing its NorthStar 2030 strategy by bringing mission-ready defense technology to a critical logistics system.

What Leidos will do: Leidos will apply AI-driven automation, cloud, and modern software development practices to accelerate software delivery, streamline processes, and support secure, reliable ELMS operations.

By the numbers:

• $95 million: Total potential contract value
• 5 years: Base year plus four option years, through August 2031
• 21+ years: Leidos' support to ELMS and its predecessor, the Defense Property Accountability System

Expert perspective: "Logistics wins wars and accurate, reliable asset visibility is a cornerstone of military readiness," said Jason McCarthy, Leidos senior vice president, Airborne & Mission Solutions. "This is Leidos defense tech in action, applying modern tools to help DLA strengthen the digital backbone of defense logistics."

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media contact:

Philip Carder
(571) 926-6698
Philip.Carder@leidos.com 

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SOURCE Leidos Holdings, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Leidos’ new Pentagon logistics contract worth?

Leidos’ Defense Logistics Agency contract has a total potential value of $95 million. It supports modernization of the Enterprise Logistics Management System, including planned artificial intelligence automation.

How long does Leidos’ new ELMS contract run?

The contract covers a base year plus four option years, through August 2031. The award extends Leidos’ support for ELMS and its predecessor, the Defense Property Accountability System, which spans more than 21 years.