Terremark Wins $135M Federal Contract

Terremark Worldwide (TMRK) has recorded a big win in its push for business from the federal government. Terremark Federal Group said Friday it was awarded a "multi-year contract with a ceiling of $135 million." No additional details on the contract were provided.

"Our ability to provide the federal sector with top-quality services and excellent customer care was a major factor in the awarding of this contract," said Jamie Dos Santos, President and Chief Executive Officer of Terremark Federal Group, Inc.

A floor of Terremark's NAP of the Americas is customized for high-security hosting for government agencies, and federal business is a key driver in Terremark's decision to build the NAP of the Capital Region in Culpeper, Va. The new facility is expected to open in June 2008.

Terremark Federal Group's clients include the Department of Defense, State Departments and the USDA, along with systems integrators like Northrop Grumman, Blackbird Technologies and MITRE. In November, the unit was awarded a United States General Services Administration (GSA) schedule contract, meaning Terremark would be effectively pre-approved to offer secure colocation services to federal agencies.

"The significance from our perspective is that Terremark Federal Group is the only provider of colocation services that meets the government's stringent SCIF standards for secure facilities," said Terremark spokesman Xavier Gonzalez at the time. SCIF - short for Sensitive Compartmented Information Facility - is a National Security Agency standard for buildings that handle sensitive government data or intelligence. A key emphasis of the guidelines is the ability to impose extraordinary controls on building access.