Series of contract wins continue to boost
CACI International Inc.
) spirits as it recently announced winning of two more strategic
contracts. One of the contracts involves an agreement with U.S.
Army Communications-Electronics Command (CECOM) and the other is
derived from Naval Air Warfare Center Training Systems Division
Per the first contract, CECOM has chosen CACI International as
one of several key service providers to control U.S. Army's
Software Engineering Center (SEC). With the contract, the company
will be now engaged in supporting CECOM's $7 billion Software and
Systems Engineering Services Next Generation (SSES NexGen)
program through providing software and prototyping solutions. The
contract pertains to indefinite delivery and indefinite quantity
stipulations with a tenure of five-years.
With the agreement, the company will be able to strengthen its
foothold in the command, control, communications, computers,
intelligence, surveillance and reconnaissance (C4ISR) market.
Services entailed in the contract include software and
acquisition services, software support solutions and field
support services. CACI International shall also be providing its
specialized technological services in the field of cloud
technology, cyber security, service-oriented architecture and
Management averred that CACI International through its
enhanced cloud techniques will be assisting CECOM to ramp up its
entire operational process. CACI International's state-of-the-art
technological support and the urge to continuously re-innovate
its field of expertise are attributes that make CACI
International the best option for the contract.
On the other hand, CACI International won a $780 million
Training Data Products Contract (TDPC) from NAWCTSD for providing
various types of support solutions including traditional training
services, technology as well as web-based training, job aids and
performance support services. The company has been chosen by
NAWCTSD as one of several key service providers under the
contract, which pertains to indefinite delivery and indefinite
quantity stipulations with five base year followed by three
According to management, CACI's expert training services along
with the latest processes and concepts are expected to be highly
profitable for NAWCTSD. Moreover, with this contract, the company
will be able to extend its operations in the field of training
Back-to-back contract wins are the key catalysts driving
success perennially for CACI International. Contract funding
orders in the fourth quarter of fiscal 2012 came in at $901.1
million, increasing 3.4% year over year and 12.6% sequentially.
Such laudatory advances make the company retain its formidable
position in the industry even at times when fiscal scenario
appears grim in the global economy.
CACI International competes primarily in the government IT
services arena, which, like other government sectors, consists of
many competitors of various sizes. Its main competitors include:
CGI Group, Inc.
ManTech International Corporation
), all of whom are strong rivals with their own particular
The current Zacks Consensus Estimates for CACI International
Inc. are $1.49 and $6.62 for the first quarter of fiscal 2013 and
for the full year of fiscal 2013, respectively. 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 rating of 'Hold'.
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