Congratulations to our long-time client, General Dynamics on their recent acquisition of CSRA Inc. After months of due diligence, analysis and evaluation, on April 3 they announced its completion, valued at approximately $9.7 billion (composed of an all-cash bid of $6.9 billion and assumption of CSRA’s $2.8 billion debt).
With CSRA’s cybersecurity and data-analytics business and information technology contracts, this acquisition makes General Dynamics one of the largest providers of high-tech IT solutions to the government IT market. “We are excited for the opportunities that this presents GDIT,” says Aaron Heffron, president of Market Connections, “The GDIT brand is often touted by the government IT decision makers we survey, and we look forward to seeing how this new acquisition will strengthen their position in the market.”
“The combined CSRA and GDIT offers innovative, competitive and compelling solutions to our customers, and provides attractive free cash flow coupled with good incremental return on capital for investors,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics. “GDIT is positioned to deliver cost-effective, next-generation IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies as they modernize their information systems.”
The U.S. Department of Defense’s (DoD) Defense Information Systems Agency (DISA) is taking the next step in its IT transformation by awarding CSRA a $498 million ceiling contract to support milCloud 2.0 Phase 1. Under the contract, CSRA will provide DoD with a private cloud infrastructure and leverage existing economies of scale with the company’s FedRAMP High offering ARC-P.
The indefinite-delivery/indefinite-quantity contract contains a three-year base period that will run through June 8, 2020, followed by five one-year options. CSRA was one of several companies to submit proposals for the contract.
The milCloud 2.0 Platform will allow DoD customers to deploy CSRA’s next-generation technology and services to complete their missions more efficiently and more securely. The milCloud 2.0 Phase 1 contract will also open new opportunities for CSRA’s Alliance Partners to expand their services to DoD. CSRA has partnered with the world’s leading technology companies and developed a strong reputation within the military for quickly and affordably providing solutions. This stems from the company’s “customer zero” approach, which allows it to adapt products for use in the government.
CSRA’s drive toward innovation has allowed the government to utilize private sector tools through these alliance partnerships. The milCloud 2.0 Phase 1 contract will expand alliance partner offerings to include cloud, storage, service providers, database, and more.
CSRA’s winning cloud solution will also provide a much lower total cost of ownership and allow DoD to consolidate their computer infrastructure through the “as a service model.” This will engender greater efficiencies for on-boarding DoD consumers, reduce cost, increase the efficiency of computing platforms, and increase the overall IT security posture of the U.S. government.
The contract will also utilize talent and capabilities out of CSRA’s Integrated Technology Center (ITC) in Bossier City, Louisiana. The ITC, which recently celebrated the hiring of its 600th employee, will provide an additional level of support across the cloud network.
Under the milCloud 2.0 Phase 1 contract, CSRA will:
- Provide robust and resilient infrastructure services to DoD consumers and DoD partners for a variety of highly-protected workloads
- Improve availability, performance, and flexibility of datacenter services
- Reduce DoD’s Total Cost of Ownership (TCO) for delivering infrastructure services
- Prepare essential business processes for later, broader use in the DoD IT cloud portfolio, including: infrastructure service contracting, billing, metering, and automated provisioning
- Provide inter-operable solutions to enable portability across hosting models and service contractors
- Ensure cybersecurity and privacy regulations are maintained and adhered to
- Promote the use of “Green IT” by reducing the overall energy and real estate footprint of DoD data centers
For winning this innovative contract, CSRA has earned a Marketing Connections Winning Contractor commendation.