Peraton wins $2.7B DHS cloud and data center award

cloud in data center (sdecoret/ 

The Department of Homeland Security tapped Peraton for a $2.7 billion contract to manage the agency's shift from an on-premises computing environment to the cloud in an award announced Oct. 4.

The award named Perspecta as the winner of the Data Center and Cloud Optimization (DCCO) contract – but that firm was acquired by Peraton in a $7.1 billion deal that closed in May, a few months after offers were due on the DHS cloud procurement. The combined firm is doing business as Peraton.

According to contracting documents, six other firms bid on the business and protests are a possibility.

Peraton will take over management of the DHS hybrid computing environment (HCE), which includes a combination of data centers and cloud components. A big piece of the business is management some operations in a leased facility at the NASA Stennis Space Center in Mississippi called DHS Data Center 1. DC1 features hardware infrastructure, storage and monitoring and support for an infrastructure-as-a-service private cloud inside DC1 that DHS components use for development and production.

The 10-year, indefinite-delivery indefinite-quantity contract is broken up into a five-year base, plus one three-year option and one two-year option.

The contract involves helping DHS, "expedite the transformation of IT capabilities from an asset‐based model to a service‐based, customer‐centric IT business model," according to documents. That means integrating new cloud offerings into the HCE to support DHS components that want to move their computing infrastructure to cloud environments. Contracting documents call for the winning bidder to be able to support access to at least two IaaS providers.

DHS's efforts to manage data center consolidation, including the closure of the Virginia-based Data Center 2 (DC2) facility, have hit some bumps in recent years.

This July, DHS awarded a $395.5 million stopgap contract to General Dynamics IT to manage DC1 for up to 18 months to give it more time to field the DCCO request for proposals.

In 2019, DHS instituted plans to shutter DC2 – then managed by Perspecta – and consolidate at DC1. But many of the applications housed at DC1 weren't ready for a shift to the cloud at the time the DC1 contract expired. That contract was extended in July 2020.

About the Author

Adam Mazmanian is executive editor of FCW.

Before joining the editing team, Mazmanian was an FCW staff writer covering Congress, government-wide technology policy and the Department of Veterans Affairs. Prior to joining FCW, Mazmanian was technology correspondent for National Journal and served in a variety of editorial roles at B2B news service SmartBrief. Mazmanian has contributed reviews and articles to the Washington Post, the Washington City Paper, Newsday, New York Press, Architect Magazine and other publications.

Click here for previous articles by Mazmanian. Connect with him on Twitter at @thisismaz.


  • Acquisition
    Shutterstock ID 169474442 By Maxx-Studio

    The growing importance of GWACs

    One of the government's most popular methods for buying emerging technologies and critical IT services faces significant challenges in an ever-changing marketplace

  • Workforce
    Shutterstock image 1658927440 By Deliris masks in office coronavirus covid19

    White House orders federal contractors vaccinated by Dec. 8

    New COVID-19 guidance directs federal contractors and subcontractors to make sure their employees are vaccinated — the latest in a series of new vaccine requirements the White House has been rolling out in recent weeks.

Stay Connected