The U.S. Army awarded Leidos Holdings Inc. an $869 million, five-year contract on May 1, 2026, under the Mission Awareness Capabilities Ramp-up and Optimization II — also known as MACRO II or INVICTA — to design, develop, and integrate AI-powered systems that help warfighters process multidomain data and generate operational insights faster than adversaries can act. The award, competed under the GSA Astro IDIQ vehicle, represents one of the largest Army AI contracts of FY2026 and cements Leidos's position at the center of the Pentagon's push for algorithmic decision superiority.

What MACRO II Does

MACRO II is the Army's program for building the digital backbone of multidomain operations — the concept that future warfare will require simultaneous and coordinated action across ground, maritime, air, space, and cyber domains faster than any human staff can manually process. The core problem is data volume: modern sensors, satellites, electronic warfare systems, and cyber tools generate more information than any commander's staff can meaningfully analyze in real time. MACRO II uses AI and machine learning to ingest that sensor data, fuse it into an operational picture, identify courses of action, and present commanders with prioritized recommendations.

Leidos will build the MACRO II system on a modular open architecture, meaning the AI models, data pipelines, and decision-support applications are designed as interchangeable components rather than a monolithic system. This is critical for a program that will need to incorporate new AI capabilities — commercial large language models, specialized military intelligence analysis tools, new sensor integrations — over a five-year performance period in which AI technology will change dramatically.

The contract covers the full development lifecycle: systems engineering, software development, integration testing, fielding, and training. Advanced networking capabilities will connect the MACRO II system to Army tactical networks at echelon — from division headquarters down to brigade and battalion command posts — and to joint and coalition networks where interoperability is required.

GSA Astro: The Vehicle Behind the Award

MACRO II was competed through the General Services Administration's Astro IDIQ — a relatively new vehicle established in 2023 specifically for autonomous and AI-enabled systems work across the federal government. Astro is significant because it was designed with a streamlined task order competition process intended to reduce the time from requirement to award from the typical 18-24 months of a standalone procurement to under six months. The fact that the Army used Astro for an $869M requirement signals that acquisition speed is a strategic priority for this program.

Astro has attracted controversy among firms that were not selected for the vehicle, some of whom have argued that its evaluation criteria favored large established defense IT firms over newer AI-native companies. Leidos's win — the company has deep Army IT integration experience but is not typically seen as an AI-first firm — will likely reinforce those concerns while also demonstrating that the Army values proven integration capability alongside AI functionality.

Leidos's AI Posture

Leidos has invested significantly in AI and machine learning capabilities over the past three years, acquiring smaller AI firms and building internal data science teams. Its AI work spans defense intelligence analysis (under classified programs), healthcare data analytics for VA and DoD, and supply chain optimization for logistics commands. MACRO II represents the company's largest public AI contract to date and validates its argument that enterprise systems integration expertise is more valuable on large government AI programs than cutting-edge model development.

The company competed against at least two other Astro-approved vendors, according to acquisition officials who declined to identify the losing offerors. The evaluation placed significant weight on past performance in Army tactical network integration — a criterion that favored firms with existing presence in programs like the Integrated Tactical Network and the Integrated Visual Augmentation System.

What It Means for Contractors

  • Leidos will need significant subcontracting support for specialized AI model development, data engineering, and cybersecurity — firms with Army network clearances and ML expertise should contact Leidos's subcontracting office immediately.
  • The GSA Astro vehicle is the fastest path to large Army AI work; firms not currently on Astro should evaluate their eligibility and the vehicle's next on-ramp opportunities.
  • MACRO II will produce open architecture interfaces — companies developing specialized AI applications for Army missions (logistics, intelligence, fires, maneuver) should engage with the program office to understand how third-party tools can integrate with the MACRO II platform as it matures.
  • The Army's use of Astro for a program of this size signals that GWAC-based AI acquisitions will become the norm — firms focused on standalone Army AI work should plan to compete on GWAC vehicles rather than through traditional standalone solicitations.

Sources