CACI International Inc. (CACI - Free Report) recently received a multiple-award contract from the FBI for a ceiling value of $30 billion.
The company is among the 46 winners of the FBI’s Information Technology Supplies and Support Services (IT Triple S) contract.
IT Triple S is an indefinite delivery/indefinite quantity contract, allowing the FBI's business and program units to accomplish their mission objectives. IT Triple S is an eight-year contract with one base year and seven option years.
Under the contract, CACI International will compete for orders to provide IT services in cybersecurity, biometrics, systems engineering, software development, secure communications, counter-terrorism analytics, and systems operations and maintenance.
Earlier, CACI International had received a $20 million contract from the Joint Improvised Explosive Device Defeat Organization (JIEDDO). The company will provide support services for JIEDDO’s Strategic Plans and Policy Division (J5) and Command, Control Communications and Computer Systems Division (J6).
The tenure for the task order is four years, with one base year and three option years. The contract is included in the $494 million indefinite delivery/indefinite quantity Comprehensive Support Services contract won by the company.
CACI International will aid policy and strategy development in the J5 Division. The company will also provide complex IT support services in specialty areas in the J6 Division. CACI International’s services will strengthen JIEDDO‘s critical decision making, accountability and innovative ability by implementing an information technology and knowledge management strategy, which rapidly deploys critical information on improvised explosive devices threats.
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 increase efficiency and mission effectiveness. The company’s solutions enhance defense and intelligence capabilities and ensure homeland security.
We expect that CACI International will capitalize on its contract wins and the recent acquisitions will expand its scale of operations. Thus, we maintain our long-term Outperform recommendation on the stock, with a short-term (1 to 3 months) Zacks #2 Rank (“Buy”) on the stock.