OPS Contract for CACI International - Analyst Blog


Earlier this week, The Wexford Group International, a fully owned subsidiary company of CACI International Inc. ( CACI ), declared that it has been awarded one of the five prime contractor positions by the U.S. General Services Administration (GSA) Federal Systems Integration and Management Center (FEDSIM). The contract of $900 million is of a total term period of five years and is in accordance with the Joint Improvised Explosive Device Defeat Organization's (JIEDDO) Operations Support (OPS) Services contract. 

For CACI International the acceptance of the deal would mean facing a challenge to battle improvised explosive device (IED) threats by providing advanced integrated security solutions to the Department of Defense (DoD) under the OPS contract. This has become a burning problem today as terrorists are using these IEDs to pervasively attack global networks.

The relationship between JIEDDO and the Wexford Group started since 2003 and CACI International has been providing other important functional solutions to JIEDDO under the Comprehensive Support Services contract of around $494 million since August 2009. The OPS contract will be another feather in the cap for CACI International to directly serve the U.S. while it combats terrorism and war tactics strategically.

CACI International's ongoing services for the Department of Defense have been substantially profitable, and consistently sustaining its own revenue growth. On May 2, 2012, the company declared its financial results for the third quarter of its fiscal 2012, whereby the DoD contributed around 77.5% to total revenue earned by CACI International during the quarter.

However, there are a few players in the industry the company should forever guard against.  These include Perficient, Inc. ( PRFT ), Syntel, Inc. ( SYNT ) and The KEYW Holding Corporation ( KEYW ).

The current Zacks Consensus Estimate for the fourth quarter of fiscal 2012 and for fiscal 2012 is $1.47 per share and $5.83 per share, respectively. The company currently retains a Zacks #3 Rank, which translates into a short-term 'Hold' rating. We also have a 'Neutral' recommendation on the company's stock.

CACI INTL A (CACI): Free Stock Analysis Report
KEYW HOLDING CP (KEYW): Free Stock Analysis Report

PERFICIENT INC (PRFT): Free Stock Analysis Report
SYNTEL INC (SYNT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CACI , KEYW , PRFT , SYNT



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