The US Defense Logistics Agency (DLA) has signed a contract with Google Public Sector to use Google Cloud services.

Valued at $48 million, the DLA, which handles the end-to-end supply chain for all five US military services, military commands, and a host of federal and international partners, will use Google's AI-ready cloud platform for its operations.

This is hoped to result in cost savings for the DLA, and will see it migrating away from legacy government clouds onto a Department of Defense-accredited environment.

Prior to now, the DLA was limited to GovCloud environments, which are isolated versions of commercial clouds.

Under the agreement, the DLA aims to deploy a "DLA Enterprise Platform" on Google Cloud under a multi-phased approach. The first phase has involved migrating key infrastructure and data to Google Cloud, which will enable the DLA to use AI and data analytics tools.

The latest contract builds on a previous $200m deal Google secured with the Department of Defense's Chief Digital and Intelligence Office (CDAO) to provide infrastructure for AI, signed in July of this year.

Prior to that, Google was one of the winners of the Joint Warfighting Capability Contract in late 2022, worked with the US Navy, Air Force, and Defense Innovation Unit, and its Google Distributed Cloud (GDC) and air-gapped version received DoD Impact Level 6 authorization this year.

Additionally, Google agreed to provide discounts to US federal agencies in July. Previous estimates have suggested that the US government's cloud spend currently exceeds $20 billion annually.