CACI International Inc. (CACI - Analyst Report) recently announced that it has received a $78 million contract to provide infrastructure reformation services at the U.S. Air Force Office of the Civil Engineer’s NexGen IT program. The contract pertains to a one-year base period and four option years.
The U.S. General Services Administration (GSA) Federal Systems Integration and Management Center (FEDSIM) awarded the contract to CACI International under the GSA Alliant acquisition vehicle. This was done with the intent of replacing its existing legacy systems with advanced and more proficient IT infrastructure technologies.
The Civil Engineer’s Air Force Office caters to providing a range of support services such as leadership, policies, resources and oversight, thereby ensuring that the Air Force buildings and utilities are always ready to engage in battle. This contract shall ameliorate productivity, accuracy and data transfer for better management of the Air Force resources.
CACI International shall be providing integration, sustainment and deployment services, according to the contract. In addition, this venture shall not only proliferate CACI International’s expertise in IT enterprise solutions but also ossify its existing relationship with the U.S. Government.
The company, however, should not become complacent with its contract win spree as it faces stiff competition largely from proactive companies. Recently, Edgewater Technology, Inc. reported approximately 18% annual increase in service revenues to reach $20.8 million in its fourth quarter financial results of 2011. Other formidable players in the industry include iGate Corp. and Ebix, Inc. (EBIX - Snapshot Report) .
At present we have a Neutral recommendation on CACI International Inc. The stock currently carries a Zacks #2 Rank, which translates into a short-term rating of Buy.