Salesforce Inc (NYSE:CRM, XETRA:FOO) announced today that it has been awarded a $5.6 billion, 10-year Indefinite Delivery Indefinite Quantity (IDIQ) contract by the US Army.
The agreement, executed through Salesforce’s national security subsidiary, Computable Insights, is intended to support the Department of War’s technology and data needs.
The contract will be administered through Salesforce’s Missionforce National Security program, which the company said is designed to bring private-sector innovation to the military. Salesforce’s cloud-based customer relationship management (CRM) tools and data management technologies will be used as a foundation for the Army’s technology infrastructure, the company said.
Salesforce said the contract is intended to help the Army and the Department of War (DOW) accelerate decision-making, optimize operations, and improve support for military personnel, civilian employees, industrial partners and dependents. The company highlighted several intended benefits, including faster procurement timelines, reduced costs, and improved mission readiness.
Under the agreement, Salesforce said the Army and Department of War will be able to scale its technology “on demand,” potentially shortening procurement timelines from months to days. Salesforce also said the contract would allow for more predictable pricing and streamlined contracting.
The company said its technology will be used to integrate disparate data sources into a single interoperable platform, which it said could help improve decision-making for warfighters and other personnel.
"This new contract, which builds on more than a decade-long relationship between Salesforce and the US Armed Forces, will operationalize Missionforce across the Army and DOW, delivering trusted data and seamless interoperability, and supporting the DOW’s transformation into an agentic enterprise,” Missionforce and Government Cloud CEO Kendall Collins said in a statement.
“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."
The IDIQ structure allows the Army to issue task orders under the contract as needed over the 10-year period, rather than committing to a fixed set of services or a single project.
Shares of Salesforce traded 0.4% lower following the announcement at about $228.