Leidos Wins $10B ‘Evolve’ Deal to Overhaul State Department’s Global IT Backbone
The U.S. Department of State has selected Leidos Holdings Inc. (NYSE: LDOS) to lead a sweeping modernization of its global information technology systems under the newly awarded ‘Evolve’ contract. The multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) agreement carries a total ceiling of $10 billion and positions Leidos as a key partner in strengthening the department’s digital foundation for the next decade.
Under the contract, which was announced on May 21, Leidos will provide support across four main functional areas: cloud and data center services, application development, network and telecommunications, and end-user support. The company plans to deploy zero-trust security architectures, AI-driven operations, and automated monitoring tools to improve information sharing and bolster cyber defenses across the State Department’s far-flung network of embassies and consulates.
The award aligns closely with Leidos’ ‘NorthStar 2030’ strategy, which emphasizes digital transformation and customer-centric innovation. By upgrading legacy systems and ensuring reliable, secure connectivity for diplomatic personnel worldwide, Leidos aims to help the State Department maintain uninterrupted access to the critical data and applications that underpin U.S. diplomacy and consular operations.
Analysts view the contract as a significant revenue driver for Leidos over the long term, though the company did not disclose an immediate revenue impact. The deal also reinforces Leidos’ position as a leading government IT contractor, as federal agencies increasingly prioritize cybersecurity and cloud migration in response to evolving threats. Beyond the State Department, Leidos serves a broad range of U.S. government and commercial clients through segments including National Security & Digital, Health & Civil, Commercial & International, and Defense Systems.
The ‘Evolve’ contract replaces earlier IT support agreements and is expected to streamline procurement for the State Department while giving Leidos a steady pipeline of task orders. While the full $10 billion ceiling may not be fully obligated, the contract marks one of the largest IT modernization awards in the agency’s history.