Winning new contracts continues to further enhance
CACI International Inc.
) business as it recently announced the receipt of a three-year
task order contract (base period of one year and option period of
two years) worth $31 million. Awarded by the U.S. Army Reserve
Command, this contract pertains to providing various simulation
and training support solutions to the Mission Command Training
Support (MCTS) program.
The contract is awarded against the OPTARSS II (Operations,
Planning, Training and Resource Support Services) contract
vehicle. With the agreement, the company will be able to extend
its coverage in the training and operations platform and
strengthen its foothold in the command, control, communications,
computers, intelligence, surveillance, and reconnaissance (C4ISR)
Under the program, the company along with the Army Mission
Command systems will be engaged in integrating live, virtual, and
constructive simulations and providing its commanders effective
situational control. Services in the contract also entail pre-
and post-mobilization training support services and combining
CACI's services with U.S. Army Reserve Command's digital
processes, networks and infrastructure to further enhance its
Management stated that, CACI has successfully delivered
modeling and simulation support services to the Department of
Defense and U.S. forces during the past 50 years and it is
considered as an expert in providing mission-oriented training
solutions. CACI International's relationship with U.S. Army
Reserve Command is expected to prove extremely effective for the
company's training solutions and it is also likely to raise the
productivity and efficacy for U.S. Army Reserve Command.
CACI International has a large project pipeline of new deals
and continues to win more deals at regular intervals. Very
recently, CACI International 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
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 recently received a seven-year contract worth $142
million from John Hancock Financial Services. Per the contract,
CGI Group will be supporting John Hancock's data centers for
improving its functionality and it will be also providing
Infrastructure as a service (IaaS) to enhance John Hancock's
business. 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 8.7% for the
second quarter and 11.1% 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
To read this article on Zacks.com click here.