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Series of contract wins continue to boost CACI International Inc.’s (CACI - Analyst Report) 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 (NAWCTSD).

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 virtualization.

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 option years.

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 product development.

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. (GIB - Snapshot Report), ManTech International Corporation (MANT - Snapshot Report) and Sapient Corp. (SAPE - Snapshot Report), all of whom are strong rivals with their own particular strengths.

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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