Reston, Virginia, October 22 (Reuters/ PRNewswire ) – Leidos (New York Stock Exchange ticker: LDOS ) will deploy artificial intelligence automation to simplify and speed up the operation of the Pentagon's asset management system. This system is used by more than 50 agencies to manage over 80 million items of government property worth over $140 billion.
Under a new five-year contract worth $95 million from the Defense Logistics Agency, Leidos will continue its support for the enterprise logistics management system (ELMS) for over twenty years. The company stated that improving the performance of this system is expected to have a direct benefit on military readiness.
Leidos indicates that ELMS assists the U.S. Department of War in managing and accounting for assets throughout their lifecycle, supporting a logistics system that ensures combat personnel are fully equipped and ready at any time. Through this contract award, Leidos is advancing its NorthStar 2030 strategy by introducing defense technologies that can be utilized for tasks into key logistics systems.
Leidos will do the following: The company will apply AI-powered automation, cloud technology, and modern software development practices to accelerate software delivery, simplify processes, and support the secure and reliable operation of ELMS.
Looking at the numbers:
- $95 million: Potential total value of the contract
- 5 years: a base year plus four optional years, up to August 2031.
- Over 21 years: Leidos's support time for ELMS and its predecessor, the National Defense Property Accountability System
Expert Opinion: Leidos, the Senior Vice President of Air and Mission Solutions, stated, "Logistics determines the outcome of wars, and accurate, reliable asset visibility is the cornerstone of military readiness. The defense technology of Leidos is playing a role, and we are using modern tools to help DLA strengthen the digital backbone of national defense logistics."
About Leidos
Leidos is a leader in the industry and technology sector, serving both government and commercial clients by providing smarter and more efficient digital solutions and innovative services. The company is headquartered in Reston, Virginia, and employs approximately 50,000 people worldwide. Leidos reports that for the fiscal year ending January 2, 2026, the company's annual revenue was around 17.2 billion US dollars. For more information, please visit www.leidos.com.
Certain statements in this announcement are considered “forward-looking statements” as defined by 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 involve significant risks and uncertainties. They do not constitute any guarantee of future results or events. Various factors could cause actual results, performance, achievements, or industry outcomes to differ from those explicitly or implicitly stated in such forward-looking statements. These factors include, but are not limited to, the “Risk Factors” listed in Leidos’s 10-K annual report for the fiscal year ending January 2, 2026, as well as other documents occasionally submitted to SEC. Readers are advised not to rely excessively on such forward-looking statements, which are only valid as of the date of this announcement. Leidos assumes no obligation to update these forward-looking statements to reflect circumstances or events that occur after their issuance.
Media contact:
Philip Carder
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