CGI Federal has won a $50 million contract to consolidate the US Navy’s 61 legacy data centers.

The government contractor has worked with the Navy for nearly 20 years, and now has the management and support duties for more than 5600 servers, in a contract  with the Space and Naval Warfare Systems Command (SPAWAR), designed to slim down and modernize the Service’s data centers under the Navy’s Data Center and Application Optimization (DCAO) program.

“CGI is proud to support the Space and Naval Warfare Systems Command in its effort to reduce cost through consolidation,” said Dr. James Peake, president of CGI Federal and a retired general.

CGI’s work includes systems engineering, integration, test and evaluation, information assurance, configuration management, logistics, training and production, and integration services.

Government watchers will be keeping an eye on the contract, given CGI’s role in the clumsy introduction of Healthcare.gov, the co-called “Obamacare”.

The contract is a cost-plus-fixed-fee order, which starts with a one-year and has four one-year option periods. The work will mostly be done San Diego, CA, Charleston, SC and New Orleans, LA with additional work taking place at various Navy sites.