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CACI Wins $48M Contract From Federal Emergency Management Agency

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CACI International Inc. (CACI - Free Report) recently won a $48-million, single-award Indefinite Delivery/Indefinite Quantity (ID/IQ) contract from the Federal Emergency Management Agency (FEMA). The contract has a tenure of five years, under which CACI will modernize FEMA’s National Public Warning System (NPWS) by equipping it with new resilient communication technologies.

The NPWS is an alert-and-warning system, which is used by FEMA to issue national emergency messages to all Americans in the event of a national crisis through satellite, broadcast, cable, and wireline radio and television channels.

The company in its press release stated, “Under the contract, CACI will continue to provide enterprise technology to FEMA to improve the resiliency and survivability of the 77 stations nationwide with an all-hazards shelter system, including protections against High-Altitude Electromagnetic Pulses (HEMP). CACI will also provide sustainment support for the stations, to include training for emergency managers, as well as operations and maintenance, project management, and logistical support.”

Contracts Keep Flowing for CACI

CACI has been winning a record level of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction. The company’s reliability with contracts makes it a preferred choice among contractors.

Markedly, in the last reported quarter, CACI secured a number of notable contracts. These included a five-year, $447-million task order to provide acquisition mission technology. It also won a seven-year task order worth $376 million to provide mission technology to modernize a federal customer’s web-based supply chain system.

These back-to-back wins are the key catalysts driving success perennially for the company. The company’s wins as a prime contractor in most of its deals are a positive. In the last reported quarter, revenues generated as a prime contractor accounted for 90.4% of the total revenues.

CACI has a large pipeline of new projects and continues to win deals at regular intervals. Notably, as of Dec 31, 2020, its total backlog was $22.4 billion.

Bright Prospects Despite Competition

Competition from Science Applications (SAIC - Free Report) in the IT services space has been steady. Science Applications continues to win high-value contracts and received contracts worth $2.1 billion in second-quarter fiscal 2021.

In the IT services industry, the company also competes with International Business Machines (IBM - Free Report) and Accenture (ACN - Free Report) , which are among the top IT service providers in the world.

Nonetheless, we believe CACI is comfortably positioned in this space, given its favorable relationship with the Department of Defense. Moreover, cyberattacks are creating increased awareness, leading to more demand for cybersecurity solutions.

CACI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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