CACI International Inc.
) announced securing a prime position in the Global Tactical
Advanced Communications Systems (GTACS) contract worth $10
billion. Awarded by the U.S. Army, this contract pertains to
providing various services including building up, promotion and
maintenance of turnkey telecommunications support solutions to
the Army's Program Executive Office Command, Control and
Communications-Tactical (PEO C3T).
The company has been chosen by U.S. Army as one of the key
service providers under the five-year agreement, which pertains
to indefinite delivery and indefinite quantity stipulations. With
the agreement, the company will be able to strengthen its
foothold in the command, control, communications, computers,
intelligence, surveillance, and reconnaissance (C4ISR)
Per this contract, the company will be engaged in creating and
integrating a wide range of mobile and fixed-site communications
processes, networks and ancillary equipment services. Services in
the contract also entail training and sustainment supports to
fulfill the need of Department of Defense (DoD) and civilian
Additionally, the company will also focus on quick-reaction
prototyping and integrating commercial as well as government
procedures through diversified delivery portals. Under the
contract, CACI will be distributing telecommunications solutions
in the United States as well as abroad.
Management stated that CACI International's expert services
are likely to minimize any kind of external risk for the
government through providing mission-critical support solutions
to its clients. With the contract, the company will be able to
extend its coverage in the government's communications
Contract wins have forever been the niche strength for CACI
International. Very recently, the company was awarded a follow-on
contract worth $53 million. Awarded by the Naval Sea Systems
Command (NAVSEA), this contract pertains to providing various
services including acquisition and lifecycle, data management,
financial management, and technical support to the Expeditionary
Warfare and Maritime Surveillance Program Offices (PMS408 and
PMS485). The steady flow of contracts helps the company retain
its formidable position in the industry.
However, the company needs to be wary of its formidable
competitors who include big names such as,
CGI Group, Inc.
ManTech International Corporation
). CGI Group's operating unit CGI Federal Inc. (CGI), recently
entered into a partnership agreement with Centers for Medicare
& Medicaid Services (CMS). Per the contract, CGI Group will
be involved in recreating and introducing the official U.S.
Government website, namely, Medicare.gov, under the Medicare
program. Hence, the company should not become complacent with its
contract win spree.
The current Zacks Consensus Estimates for CACI International
Inc. are $1.64 and $6.60 per share for the second quarter of
fiscal 2013 and fiscal 2013 (ending June 30, 2013), respectively.
The estimates represent a year-over-year growth of 8.70% for the
second quarter and 11.07% for fiscal 2013. At present, we have a
'Neutral' recommendation on CACI International Inc. The stock
currently carries a Zacks #3 Rank, which translates into a
short-term 'Hold' rating.
CACI INTL A (CACI): Free Stock Analysis
CGI GRP INC -A (GIB): Free Stock Analysis
MANTECH INTL -A (MANT): Free Stock Analysis
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