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CACI Wins $82M Army Contract to Support Electronic Warfare Mission

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CACI International Inc. (CACI - Free Report) recently won an $82-million, four-year contract by the U.S. Army’s C5ISR Center Electronic Warfare Air/Ground Survivability Division (EWAGS). Under the contract, CACI will continue to support the Army in cyber and ground electronic warfare missions.

As part of the deal, CACI’s engineers and technicians in collaboration with the U.S. Army, will monitor, analyze and develop complex technology systems and tools to counter evolving threats.

Continued Flow of Contracts

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, $700-million multiple-award Blanket Purchase Agreementby the U.S. Department of Homeland Security to provide enterprise technology in support of the department’s national security investigations.

It was also awarded a five-year task order worth $376 million by the National Geospatial-Intelligence Agency. Additionally, it grabbed a 10-year, multiple-award Blanket Purchase Agreement worth $1 billion under the federal program to provide enterprise expertise and financial system integration support services.

Most recently, last month CACI won a $373-million, single-award, eight-year contract from the U.S. Special Operations Command (SOCOM). Under the contract, CACI will provide SOCOM with mission expertise, particularly geospatial intelligence analytic support.

Prior to that, in April, CACI was awarded a five-year single award contract worth $447 million by the National Security Agency (NSA).

These back-to-back wins are the key catalysts driving success perennially for the company. CACI has a large pipeline of new projects and continues to win deals at regular intervals. Notably, as of Mar 31, 2021, its total backlog was $22.3 billion.

Intensifying 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 in the first quarter of fiscal 2022, the company had net bookings of $4.2 billion. It ended the fiscal first quarter with an estimated backlog of signed business deals worth $24 billion, of which $3.3 billion was funded.

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.

Currently, CACI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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