The NATO Communications and Information Agency (NCI) awarded General Dynamics [GD] a large information technology (IT) modernization contract worth up to $150 million, the alliance said March 30.

This contract project is the beginning of NATO’s largest IT infrastructure modernization in recent years and is meant to improve the resilience of NATO networks, the agency said. GD was awarded $85 million for delivery of the first phase of this IT modernization program. The total $150 million cost includes three future phases.

NATO characterized this contract as a step in wide-scale adoption of cloud computing technologies in NATO. The agency expects the modernization to increase the availability of services, strengthen NATO-wide resilience capability, enhance information security, and increase the mobility and agility of the workforce.

Under the contract GD’s Information Technology business unit will help the NATO agency implement private cloud-based infrastructure to improve IT enterprise operational efficiency and effectiveness. GD said the modernization phases generally include updating obsolete IT infrastructure, implementing NATO-wide continuity and disaster recovery capabilities, clarifying service levels in cloud computing terms, enhancing information security measures, increasing operational agility by enabling the dynamics reallocation of resources, and reducing O&M costs by streamlining management and operations.

In the project’s first phase GD will deliver two data centers in Mons, Belgium and Lago Patria, Italy as well as two geographically separated Service Operations Centers. The data centers will be based on a Dell Hyper Converged solution that uses VxRail technology as a foundation.

GD will also be responsible for the implementation of Enhanced Nodes in Norfolk, Va; Northwood, U.K.; Izmir, Turkey; and Sigonella, Italy as well as all of the associated integration and transition activity.

The enhanced nodes will host computer capabilities that support applications not deemed to be centralized, which will increase resilience and improve user experience, the NCI Agency said.

“This contract will fundamentally reshape NATO’s nervous system and allow us to reduce costs,” Koen Gijsbers, NCI Agency general manager, said in a statement.

In later phases of the program GD will integrate NATO Headquarters in Brussels, Belgium as a third data center and also implement further enhanced and standard nodes across Europe. The overall modernization program is expected to deliver seven sites in the first phase and 44 sites across the total program, NATO said.

The first phase has “a very aggressive schedule” and is expected to be finished by Sept. 2018, NATO said.

“In light of its importance to the Alliance’s cyber posture, it is paramount that the work is executed on time, in scope and in budget.  I look forward to our journey to the cloud with General Dynamics IT,” Gijsbers added.

“General Dynamics is honored to have been selected to deliver this mission-critical project for NATO. This IT modernization program comes at a critical juncture for the Alliance, and will be a significant contributor to delivering resilient and cutting-edge support to NATO at a time of unprecedented challenges on both the northern and southern flanks of the Alliance,” Bernie Guerry, senior vice president of General Dynamics Information Technology’s intelligence solutions division, said in a statement.