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Two Contracts Awarded To Modernize Decision-Making for DoW’s Joint Logistics Enterprise

DIU · DIU CSO · DIU

AI-Readiness Score
18/25
Pathway Speed
5/5
Timeline Realism
3/5
Problem Framing
4/5
AI / ML Fit
4/5
Award + Transition
2/5
Posted February 19, 2026

Description

Mountain View, CA (February 19, 2026)— As the U.S. enters a new era of strategic competition and Large-Scale Combat Operations (LSCO), the Department of War’s global network of logistics providers requires new tools to manage supply chains, sustain military power, and make decisions at speed and in challenging circumstances. To maintain operational tempo and freedom of action in contested environments, the Joint Logistics Enterprise (JLEnt) must shift from reactive processes to a predictive and proactive posture. In pursuit of this objective, the Defense Innovation Unit (DIU) – alongside partners USINDOPACOM, USNORTHCOM, and the Defense Logistics Agency (DLA) – has awarded two prototype contracts under its Joint Sustainment Decision Tool (JSDT) program. Launched in August 2025, JSDT aims to leverage advanced commercial artificial intelligence (AI) tools to anticipate logistics requirements and proactively manage distribution weeks in advance. The JSDT team sought AI-enabled or machine learning-based solutions that could, at a minimum: Generate realistic courses of action across different modalities for commanders in dynamic, contested, and degraded environments; Synchronize sustainment operations while also identifying risks and recommending adaptive solutions to prevent disruptions or shortfalls; and Allow users to direct the system, including by reverting to previous historical states (i.e., branch planning), or by conducting sensitivity and/or what-if analysis. “Existing logistics and sustainment planning processes are complex and time-consuming. Logisticians do not have the resources they need to generate and analyze multiple courses of action to meet sustainment requirements, leading to suboptimal results,” said Masha Danilova, DIU’s AI/ML Deputy Portfolio Director. “The goal of this project is to substantially reduce the amount of time logisticians spend managing conflicting logistics priorities and requirements. In doing so, and with the help of AI, we can exponentially improve logisticians’ ability to proactively and dynamically plan ahead.” U.S. Marines with Combat Logistics Battalion 31, 31st Marine Expeditionary Unit, prepare to load joint modular intermodal containers onto an autonomous low-profile vessel during unmanned surface vessel training operations as part of MEU Exercise at White Beach Naval Facility, Okinawa, Japan on Dec. 2, 2025. (U.S. Marine Corps photo by Sgt. Alora Finigan) After a competitive commercial solutions opening assessment, the JSDT team awarded two prototype contracts toAir Space Intelligence (ASI)andWatchtower Labs, Inc.in January 2026. The vendors will deliver next-generation logistics planning tools that allow the Department to actively monitor and forecast critical materiel needs – specifically munitions, fuel, medical materiel, and spare parts – overcoming disrupted logistics to ensure operational continuity “The Joint Sustainment Decision Tool will be a critical enabler for our forces to prevail in the most challenging operational scenarios,” said Major General Martine Kidd, the Director for Logistics and Engineering at USINDOPACOM, which will be the lead mission partner for the JSDT program. “By harnessing advanced technology, we’re equipping our warfighters with the tools they need to adapt, overcome, and succeed in the face of evolving threats. This effort directly supports our shared mission to sustain readiness and resilience at the tactical edge.” To ensure their tools meet operational needs, both vendors will prioritize integrating within the Combatant Commands in the early phases of the prototype period. This approach will ensure that both tools are practical and intuitive from the outset.

Score Rationale

Pathway scores highest — DIU CSO is among the most AI-startup-friendly acquisition instruments available, and awards have already been made under a competitive CSO process launched August 2025 with contracts in January 2026, a reasonable ~5-month cycle. Problem framing is strong: logistics COA generation, predictive sustainment, what-if analysis, and branch planning are concrete, operationally grounded tasks with named end-users (USINDOPACOM, DLA) and specific materiel categories (munitions, fuel, medical, spares), though some ambiguity remains around data access and classification constraints. Award transition scores lowest because no ceiling figure is disclosed and, as an announcement of already-awarded prototype contracts, there is no visible follow-on production pathway or scaling mechanism articulated for the broader market.

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