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CACI International Wins $249M Task Order to Support AFRICOM

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CACI International Inc (CACI - Free Report) recently won a six-year single-award task order to support U.S. Africa Command (AFRICOM) with its advanced mission expertise. The contract value is capped at $249 million and represents new work for CACI.

The deal will help AFRICOM improve communication and mission execution at lower costs and minimize operational risks.

CACI’s various successful stints on similar military programs make it a suitable choice for providing operations, planning and training support to AFRICOM and its component commands and partners. The company’s experts will be present both at AFRICOM headquarters in Germany and Africa.

Contracts Keep Flowing

CACI has been winning 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.

Notably, in the last reported quarter, CACI secured several notable contracts. These included a five-year, $1.1-billion task order to provide advanced and full lifecycle information technology support to enterprise and mission technology.

Contracts in the last reported quarter were worth $2.7 billion, up a whopping 108% year over year, of which approximately 60% came from new businesses.

In December last year, CACI won a $438-million, five-year, single-award task order to develop and support the Air Force Research Laboratory’s Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) programs and other technologies.

CACI has a large pipeline of new projects and continues to win deals at regular intervals. Notably, as of Dec 31, 2019, its total backlog was $20.3 billion. These back-to-back wins are the key catalysts driving success perennially for the company.

Bright Prospects Despite Competition

Competition from Science Applications (SAIC - Free Report) in the IT services space remains steady. CACI continues to win high-value contracts and received contracts worth $2.2billion in its October quarter.

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

Nonetheless, we believe that the company is comfortably positioned in this space, given its favored relationship with the DoD. Moreover, cyberattacks are creating increased awareness, leading to more demand for cybersecurity solutions.

Per Mordor Intelligence, the global IT Services market is expected to witness a CAGR of 26% over the next five years. This forecast bodes well for CACI, which is a key supplier in the global IT services market.

CACI currently has 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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