CACI International Inc.
) declared that it has won a $53 million Program and Mission
Support Services (PAMSS) contract from Federal Emergency Management
Agency (FEMA). The company has been chosen by FEMA as one of the
four key service providers under the contract, which pertains to
indefinite delivery and indefinite quantity stipulations with one
base year followed by four option years.
As per the agreement, CACI International shall be providing its
specialized professional and mission support services to FEMA's
National Continuity Programs (NCP) Directorate for improving its
entire policy approach, operating procedures and test, training and
exercise processes. In addition, the company will also offer its
expert solutions in the field of software, systems,
telecommunications engineering; audit support, financial and
internal controls. With the contract, the company will be able to
extend its coverage in the business systems and enterprise IT
Previously, CACI International provided its support solutions to
manage FEMA's Integrated Public Alert and Warning System for more
than four years. Now, with this contract the company will further
strengthen its existing association with FEMA.
Management stated that CACI International's expert services
along with its latest technological processes and concepts are
expected to be highly beneficial for FEMA. The company's support
solutions are likely to minimize any kind of external risk for the
government through augmenting its efficiency.
Contract wins have forever been the niche strength for CACI
International. Recently, the company received a $247 million
contract from U.S. Army's Communications-Electronics Research,
Development and Engineering Center (CERDEC) for controlling its
Command, Power, and Integration Directorate's (CP&ID) rapid
prototyping and technology insertion programs. The contract is
expected to strengthen the company's presence in the command,
control, communications, computers, intelligence, surveillance and
reconnaissance (C4ISR) market.
The company, however, should not become complacent with its
contract win spree as it faces stiff competition largely from
proactive companies. The company competes primarily in the
government IT services arena, which, include:
CGI Group, Inc.
ManTech International Corporation
The current Zacks Consensus Estimates for CACI International
Inc. are $1.50 and $6.63 per share for the first quarter of fiscal
2013 and fiscal 2013 (ending June 30, 2013), respectively. The
estimates represent a year-over-year growth of 6.79% for the first
quarter and 11.67% 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'
CACI INTL A (CACI): Free Stock Analysis Report
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