Earlier this week, The Wexford Group International, a fully
owned subsidiary company of
CACI International Inc.
), 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)
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
The KEYW Holding Corporation
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
PERFICIENT INC (PRFT): Free Stock Analysis
SYNTEL INC (SYNT): Free Stock Analysis Report
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