Navy Awards CGI Federal Data Center Consolidation Contract

CGI Federal has won more of the U.S. Navy budget with a new $50.3 million contract to provide IT support services for the ongoing data center consolidation program of Space and Naval Warfare Systems Command (SPAWAR).

The Navy is consolidating its main legacy data centers under a program called the Navy Data Center and Application Optimization (DCAO). It is attempting to consolidate and modernize 61 legacy Navy sites and approximately 5,614 servers. CGI will deliver overall project management and IT support services for the effort.

CGI Federal is somewhat of a household name, as it was the company behind the botched launch of HealthCare.gov.

CGI has provided support services to SPAWAR commands for more than 19 years, and the latest contract will increase the amount of the vendor's revenue that will come out of the Navy budget. The contract includes systems engineering, integration, test and evaluation, information assurance, configuration management, logistics, training and production and integration services.

“With the help of CGI, the Navy will work to eliminate duplicative systems, potentially saving taxpayers billions of dollars,” said Timothy Hurlebaus, CGI Federal senior vice president and National Security and Defense Programs business unit leader.

“CGI is proud to support the Space and Naval Warfare Systems Command in its effort to reduce cost through consolidation,” said James Peake president of CGI Federal and a retired lieutenant general. “By leveraging our existing corporate frameworks and capabilities, CGI will play a valuable role in helping the Space and Naval Warfare Systems Command achieve its goal of increasing IT efficiencies.”

Data centers continue to be a priority issue for the federal government, which has been consolidating its sprawling critical facilities infrastructure.

The Government Accountability Office reported on the ongoing Federal Data Center Consolidation Initiative (FDCCI) last Thursday, estimating that agencies would save as much as $3.1 billion through next year by consolidating. The amount of savings they reported for the same period was $876 million, however, according to the report, which charged that there were big problems with reporting savings.

A bill that would make compliance with consolidation deliverables under FDCCI law passed in the Senate last week.