The U.S. military is looking to modernize and has turned to major technology ally Salesforce for support.
Salesforce has been awarded a $5.6 billion, 10-year, Indefinite Delivery Indefinite Quantity (IDIQ) contract to accelerate digital modernization and operational readiness across the Department of War (DOW).
The deal positions Salesforce as a long-term technology partner supporting data integration, AI and cloud operations for one of the federal government’s largest and most complex organizations.
“From recruiting to tactical excellence, Salesforce equips 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 of Missionforce and Government Cloud.
While the $5.6 billion figure is more of a cap than a guaranteed spend, it signals a significant shift in how the military intends to acquire and deploy digital capabilities over the next decade.
A shift towards speed and flexibility
IDIQ contracts allow federal agencies to award contracts as needed, rather than committing to a firm purchase in advance. For the military, 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 allows the military to expand on-demand technology capacity and shorten acquisition cycles from months to days. This model reflects a broader DoD effort to adopt business procurement practices in response to a rapidly changing operational environment 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 to improving situational awareness and enabling faster, more informed decisions at both the strategic and tactical levels.
Military enterprise with AI support
Central to the contract is the creation of what Salesforce describes as an “agent-ready” foundation. By unifying data and standardizing workflows, the military is trying to prepare its systems for wider use of AI agents that can automate tasks, surface insights and act as force multipliers.
The Army plans to apply these capabilities to personnel management, logistics, training, readiness monitoring and case management. Officials say it could free service members and civilian employees from administrative work, allowing them to focus on operational priorities.
Salesforce also emphasized “hire to retirement” support, which includes recruiting, onboarding, training, deployment, benefits management and veteran transition. By eliminating data silos across these processes, DOW expects to improve service delivery for millions of military personnel, civilian employees, contractors, veterans and family members.
Previous programs
The new contract builds on Salesforce’s existing deployment within the Army and other branches of the US military. One example is the modernization of the Army Human Resource Command’s service center, where Salesforce technology was used to redesign an older 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 this 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.
Wider implications
Financial details related to the deal’s impact on Salesforce will be disclosed during the company’s upcoming earnings call. Since IDIQ contracts generate revenue when orders are placed, financial benefits will be realized incrementally rather than up front.
The award underscores the growing role of commercial cloud and AI vendors in modernizing the national defense as the military seeks to balance security requirements with the speed and innovation of the private sector.
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