The U.S. Army wants to modernize and has turned to notable tech ally Salesforce for support.
Salesforce has been awarded a $5.6 billion, 10-year Indefinite Delivery Indefinite Quantity (IDIQ) contract aimed at accelerating digital modernization and operational readiness across the Department of War (DOW).
The agreement positions Salesforce as a long-term technology partner supporting data integration, AI, and cloud-based operations for one of the federal government’s largest and most complex organizations.
“From recruiting to the tactical edge, Salesforce is equipping our forces with technology built for today’s dynamic environments—streamlining operations, increasing readiness, and enabling those who serve to stay focused on the mission,” said Kendall Collins, CEO, Missionforce and Government Cloud.
While the $5.6 billion figure represents a ceiling rather than a guaranteed spend, the award signals a significant shift in how the Army intends to procure and deploy digital capabilities over the next decade.
Shifting toward speed and flexibility
IDIQ contracts allow federal agencies to place task orders as needs arise rather than committing to a fixed purchase upfront. For the Army, this approach is intended to reduce procurement timelines and allow faster access to new technologies as mission requirements evolve.
According to Salesforce, the new contract enables the Army to expand technology capacity on demand, shortening acquisition cycles from months to days. This model reflects a broader Defense Department effort to adopt commercial-style procurement practices in response to rapidly changing operational environments and emerging threats.
The Army and DOW will use Salesforce’s cloud and data platforms to consolidate fragmented systems into a single, interoperable environment. Officials say this integration is critical for improving situational awareness and enabling faster, more informed decisions at both strategic and tactical levels.
AI-enabled military enterprise
A central component of the contract is the creation of what Salesforce describes as an “agent-ready” foundation. By unifying data and standardizing workflows, the Army aims to prepare its systems for broader use of AI agents that can automate tasks, surface insights, and act as force multipliers.
The Army plans to apply these capabilities across personnel management, logistics, training, readiness tracking, and case management. Officials say this could free up service members and civilian employees from administrative work, allowing them to focus on operational priorities.
Salesforce also emphasized “hire to retire” support, which encompasses recruitment, onboarding, training, deployment, benefits administration, and veteran transition. By eliminating data silos across these processes, the DOW expects to improve service delivery for millions of soldiers, civilian employees, contractors, veterans, and family members.
Prior programs
The new contract builds on existing Salesforce deployments within the Army and other branches of the U.S. military. One example is the modernization of the Army Human Resource Command service center, where Salesforce technology was used to overhaul a legacy call center system.
The project was completed four months ahead of schedule and more than $1 million under budget, according to the company. The Army is now expanding that system into a command-wide AI-powered CRM environment for approximately 3,000 personnel. The platform is expected to provide AI support agents for internal users while offering self-service tools to 9.2 million soldiers, veterans, and family members.
Broader implications
Financial details related to the contract’s impact on Salesforce will be disclosed during the company’s upcoming earnings call. Because IDIQ contracts generate revenue as orders are placed, the financial benefits will be realized incrementally over time rather than upfront.
The award underscores the growing role of commercial cloud and AI vendors in national defense modernization, as the Army seeks to balance security requirements with the speed and innovation of the private sector.
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