Leidos Wins $142M DISA CESO Modernization Contract to Deliver AI-Driven, Zero Trust IT Services

Leidos secures $142 million CESO modernisation award

RESTON, Virginia, Feb 9 (Reuters) - Leidos wins a $142 million contract to modernize IT operations for the Compartmented Enterprise Services Office (CESO) within the Defense Information Systems Agency (DISA), the company announces. The work centers on delivering integrated engineering, software development, operations and cybersecurity services to optimize secure web applications that support information sharing across the Department of War (DoW) and the intelligence community.

Modernizing CESO to unify classified access

Leidos frames the effort as a push to provide scalable, AI-driven capabilities that streamline operations and improve secure information access. The programme prioritizes automation, analytics and advanced threat detection to accelerate secure workflows while implementing Zero Trust authentication and continuous monitoring across CESO’s environment. Paul Welch, senior vice president of digital modernization at Leidos, says the modernization “strengthens the digital backbone” that supports defense and intelligence operations by providing secure, unified access to classified information for faster decisions and more resilient mission superiority.

The firm emphasizes that outcomes include improved decision making, user experience and mission readiness through integrated engineering and sustained operations support. The award highlights Leidos’ role in operating, sustaining and defending DoW networks worldwide and aligns with the company’s NorthStar 2030 strategy to drive mission-focused modernization for government customers. Leidos also stresses ongoing customer collaboration and measurable performance improvements as central to delivery under the award.

Technical scope and delivery uncertainties

Leidos says the AI-driven suite will support automation, analytics and advanced threat detection to enhance Zero Trust compliance and continuous monitoring, but the firm does not disclose contract period, implementation phases, staffing levels or timelines in the announcement. The company highlights operational scalability and measurable performance metrics as targets, leaving specific delivery milestones and metrics to be defined with the government customer.

Company profile and disclosure warning

Headquartered in Reston, Virginia, Leidos reports roughly $16.7 billion in revenue for the fiscal year ended Jan. 3, 2025 and employs about 47,000 people globally. The announcement includes customary forward-looking statements subject to SEC rules and risk factors in the company’s Form 10‑K, and cautions readers not to place undue reliance on predictions that speak only as of the release date.