CSC wins $109M FAA cloud contract

CSC bested several competitors as it captured a $109 million FAA cloud contract that could grow to be much more valuable.

Computer Sciences Corp. has captured a $109 million FAA contract to provide cloud computing services to the Federal Aviation Administration.

The FAA will use the contract to consolidate its data center environment that serves over 47,000 employees and the agencies contractors. While the value is pegged at $109 million, options could push it much higher.

CSC bested several competitors including IBM, Lockheed Martin and Hewlett-Packard, according to a source.

CSC’s team includes Amazon Web Services, Microsoft, EMC and Equinix.

CSC’s North American Public Sector business is on the verge of splitting off from the rest of the company, and this win reaffirms the strategy that the government sector can shine on its own.

The contract is a single award task order contract that stretches over 10 years. It covers FAA’s headquarters and the agency’s nine regions.

Some of the services include program management, configuration management, services and capacity planning, test and evaluation, implementation, systems integration, cloud computing management, security management and collocated infrastructure support services.

The contract is a new award, so there is no incumbent.

CSC has been building its cloud offerings in recent years. Earlier this year, it acquired Autonomic Resources in a deal so small the value wasn’t disclosed, but the company was the first to complete FedRAMP certification more than two years ago.

CSC also launched an Agile IT as a service offering to make the transition to the cloud and managing cloud services easier for the customer.

The FAA officially announced the award to CSC this morning, so the losing bidders have yet to be debriefed.

With it being a new award and an important valuable customer, my expectation is that we’ll likely see some protests, so this competition may not be over yet.