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CACI to Provide Tech Support to NGA Under $376M Contract

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CACI International Inc (CACI - Free Report) has recently secured a $376-million single-award indefinite delivery/indefinite quantity (IDIQ) contract from the National Geospatial-Intelligence Agency (NGA). The five-year contract requires CACI to improve the NGA’s critical geospatial intelligence missions with its artificial intelligence and machine learning tools.

With CACI’s technological assistance, NGA will be able to analyze, train and field algorithms into the production framework, strengthening its data management capabilities.

In its press release, the company stated, "CACI is proud to bring our strength in artificial intelligence and proven mission technology to NGA to enable actionable intelligence for their critical national security missions."

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, the company secured several 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 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 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 remains 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 that 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 (Strong Buy) stocks here.

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