Friday, October 23, 2026

Leidos Brings AI Automation to Modernize Pentagon Logistics System

Leidos has secured a potential $95 million, five-year contract from the Defense Logistics Agency (DLA) to enhance the Pentagon’s Enterprise Logistics Management System (ELMS) using artificial intelligence (AI) automation, cloud technology, and modern software development practices. The system supports more than 50 agencies in managing over 80 million government property items valued at more than $140 billion. In terms of the contract, which features a base period and four options that last until August 2031, Leidos will draw from over 21 years of experience working with the ELMS system and its earlier iteration, the Defense Property Accountability System. The effort is intended to facilitate faster development of software, streamline asset management practices, and ensure system functionality.

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The ELMS system is an important tool for asset management and tracking that ensures soldiers have access to necessary equipment and supplies. The modernization effort also aligns with Leidos’ NorthStar 2030 strategy to advance mission-ready defense technologies. “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.” The contract highlights the growing role of AI-driven automation in modernizing defense infrastructure, improving operational efficiency, and strengthening the digital systems that support military logistics and readiness.

Read More: Leidos bringing AI advances to Pentagon logistics system

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