Verizon’s IT-services unit announced Wednesday that it was part of the team led by General Dynamics that is competing for IT outsourcing contracts for the US Army under the defense agency’s tech-infrastructure overhaul program called Army Private Cloud (APC2).

The program has been given a US$249.8m budget to modernize the Army’s infrastructure through data center consolidation and a variety of outsourcing models, including private and public cloud, according to the Army’s description of the program.

Select vendors were chosen to bid competitively on specific APC2 contracts the Army is expected to provide. General Dynamics team is competing with HP, Northrop Grumman and others.

Verizon will be participating in the projects through its IT services unit Terremark – formerly a stand-alone company, which Verizon bought early last year.

Susan Zeleniak, senior VP for public sector at Verizon, said US government agencies’ infrastructure has been becoming increasingly virtualized.

“By moving to the cloud, the Army will have more flexibility in how IT resources are consumed while providing better economics, greater agility and broader access to information for civilian and military personnel,” she said.