In a massive push to strip away decades of bureaucratic inertia, the U.S. Army has awarded Salesforce Inc. a $5.6 billion, 10-year contract to overhaul its digital infrastructure.
The deal marks the largest defense award in Salesforce’s history and signals a decisive shift toward adopting commercial-grade artificial intelligence (AI) and cloud software within the Pentagon. The Wall Street Journal first reported the agreement.
The contract, structured as an Indefinite Delivery, Indefinite Quantity (IDIQ) agreement, was awarded via Computable Insights, a subsidiary of Salesforce’s recently formed national security unit, Missionforce. The agreement is split into a five-year base period with an optional five-year extension.
While the $5.6 billion figure represents a spending ceiling rather than guaranteed upfront revenue, the contract cements Salesforce is a cornerstone of the Department of War’s digital future.
The primary objective of the partnership is to modernize “antiquated and outdated” military practices. Kendall Collins, Salesforce CEO of Missionforce, said the platform will support the force “from recruiting to the tactical edge.”
Key improvements include procurement speed that truncates acquisition timelines from months to days; operational readiness that consolidates fragmented data into a single, interoperable environment for better situational awareness; AI integration establishing an “agent-ready” foundation where AI agents automate administrative tasks and logistics; and a defense-grade version of Slack to Army recruiters and personnel.
The deal aligns with a March mandate from Defense Secretary Pete Hegseth, who prioritized the acquisition of modern commercial software to maintain a competitive advantage. The move follows similar Pentagon collaborations with OpenAI, Anthropic, and Elon Musk’s xAI.
Salesforce has already demonstrated proof-of-concept within the branch. A recent modernization of the Army Human Resource Command’s service center was completed four months ahead of schedule and $1 million under budget. The Army now plans to scale this into an AI-powered environment serving over 9 million soldiers, veterans, and family members.
Despite the technical milestone, the deal arrives amid heightened scrutiny of the relationship between Big Tech and the federal government. Salesforce CEO Marc Benioff, once known for progressive activism, has recently faced criticism for aligning with the administration’s agenda, including pitching services to Immigration and Customs Enforcement (ICE).
