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CACI International Inc. (CACI - Analyst Report) recently received one of the 15 prime contracts from the Department of Veterans Affairs (VA) for a ceiling value of $12 billion. The contract is an indefinite delivery/indefinite quantity contract, with a tenure of five-years.

Under the contract, the company will support VA’s Transformation Twenty-One Total Technology (T4) program, technology and telecommunications program. T4 will deliver a more efficient healthcare delivery system by developing services needed to integrate systems, networks, software, and other IT products spanning the entire life-cycle of a system.

With the help of CACI’s information technology services, VA and its employees will provide veterans with quick access to the department for their specific healthcare needs, expedite service delivery, and pace up the processing of claims.

Management stated that the company is trying to accomplish its mission of helping the VA in the transformation of its healthcare delivery system, and consequently, making healthcare IT a major component of CACI’s support offerings to government customers.

CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and thereby, increase efficiency and mission effectiveness. The company’s solutions enhance both defense and intelligence capabilities and ensure homeland security.

We believe that CACI is set for stronger growth in 2011; and its growth will be driven both organically and through acquisitions. The company’s aggressive acquisition strategy and new contract wins will expand its scale of operations immensely. Furthermore, CACI has stepped up its share repurchase program, which will boost the bottom line.

Thus, we maintain our long-term Outperform recommendation on the stock. In the short-term (1 to 3 months) we have a Zacks #2 Rank on the stock, which translates into a Buy rating.

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