CACI International Inc
) recently announced its selection as one of the primary
contractors for providing communications and network services to
the Space and Terrestrial Communications Directorate (S&TCD)
division of the U.S. Army's Communications-Electronics Research,
Development and Engineering Center (CERDEC). The news was greeted
with positive response from investors as share prices were up
2.4% to close at $78.16 on Feb 25.
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Capped at a value of $497 million, this indefinite
delivery/indefinite quantity (IDIQ) contract has a of 5-year term
(three-year base period plus two one-year options). The contract
is expected to enhance the company's presence in the key sector
of command, control, communications, computers, intelligence,
surveillance, and reconnaissance (C4ISR).
The S&TCD division of CERDEC primarily focuses on providing
secure wireless communications and networking technologies over
long ranges and dynamic terrains. Leveraging its selection as one
of the prime contractors, CACI International will provide
technical solutions and program management methodology to the
U.S. Army and help in securing wireless military communications
and networking technologies.
The contract focuses on five key technology areas of the
S&TCD - antennas, system engineering, satellite
communication, cybersecurity and communications networks. CACI
International will be involved in research, development and
evaluation of these systems. Over the years, the company has
successfully delivered support services to the U.S. forces and is
considered to be an expert in providing mission-critical training
solutions. CACI International's relationship with U.S. Army is
also likely to raise the productivity and efficacy of the latter.
Based in Arlington, VA, CACI International delivers IT
applications and infrastructure to improve communications and
secure the integrity of information systems and networks; enhance
data collection and analysis; and increase efficiency and mission
Going forward, CACI International is expected to augment its
revenues from the current contract. CACI International has a huge
pipeline of projects and continues to win deals at regular
intervals. These contract wins are key growth catalysts for the
company. In addition, as the U.S. government is one of the
company's biggest clients, it lends stability to the business
with a steady revenue stream.
CACI International currently carries a Zacks Rank #3 (Hold).
Other stocks worth considering in the industry include
Lionbridge Technologies Inc
Computer Science Corp.
), each holding a Zacks Rank #2 (Buy).