The Department of Homeland Security on Monday awarded Peraton a potential $2.7 billion, 10-year contract to provide information technology services to manage the department’s Hybrid Computing Environment (HCE).

The award, which has a five-year base period, a three-year option and a two-year option, was made under the Data Center and Cloud Optimization (DCCO) Support Services program managed by the Office of the Chief Information Officer.

The HCE includes a data center, colocation sites, and commercial and private cloud services.

DHS in January released the request for proposals for DCCO, saying the objective of the “support service is to expedite the transformation of IT capabilities from an asset-based model to a service-based, customer-centric IT business model; provide transparent operational expenditures; and reduce both capital expenditures and time-to-delivery for new capabilities. To accelerate this transformation, DHS will continue existing initiatives associated with cloud optimization efforts as well as leverage new approaches.”

The data center within the HCE is Data Center 1 (DC1), which is currently managed by General Dynamics’ [GD] Information Technology segment. DHS this summer awarded GD a potential $395.5 million contract to continue providing support services to DC1 until the DCCO contract is awarded and a new contractor in place.

GD’s award has a one-year base period and a six-month option.

DHS through DCCO is eliminating its second data center, which was managed by Hewlett Packard Enterprise [HPE].

The award was made to Perspecta, which was acquired by Peraton this spring.