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CACI Wins Prime Contractor Position in Naval IDIQ Contract

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CACI International Inc. (CACI - Free Report) was recently chosen as a prime contractor in a $249-million, multiple-award, indefinite delivery/indefinite quantity (IDIQ) contract, by the Naval Sea Systems Command (NAVSEA).

The contract requires CACI to deliver cost savings and other improvements in ship design, manufacturing and lifecycle support, leveraging its analyses, production models, and other programs and solutions. This will enhance the Navy’s ability to respond to emerging threats.

Besides, CACI will help with the modernization of the Navy’s data management and acquisition forecasting system.

Contracts Keep Flowing for CACI

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 technologies

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. The company’s wins as a prime contractor in most of its deals are a positive. In its last reported quarter, revenues generated as a prime contractor accounted for 90.9% of total revenues.

Recently, the company won a single-award task, $83-million order for one base year and four option-years from the U.S. Navy to provide mission expertise, including planning maintenance and repair of submarines, to the Portsmouth Naval Shipyard in Kittery, Maine.

In March, CACI won a $249-million, six-year, single-award task order to support U.S. Africa Command (AFRICOM) with its advanced mission expertise.

Moreover, 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.

Although competition from Science Applications (SAIC - Free Report) , Jacobs Engineering Group (J - Free Report) and KBR (KBR - Free Report) in the federal marketplace remains steady, we believe that CACI is comfortably positioned in this space, given its favored relationship with the DoD.

CACI currently has 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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