CACI International Inc (CACI - Free Report) recently won a 5-year indefinite delivery/indefinite quantity (IDIQ) contract worth $140 million from the Pension Benefit Guaranty Corporation (PBGC) to upgrade the Information Technology (IT) infrastructure on the IT Infrastructure Operations Services and Support (ITIOSS) contract.
IDIQ contracts provide for an indefinite period of services for a fixed time and help streamline the contract process. PBGC is a federal agency that looks after the pensions of millions of American workers. Leveraging its position in the IT infrastructure, CACI International aims to modernize the Infrastructure for PBGC and help the company to safeguard the pension plans of millions of Americans.
The upgrade and modifications made by CACI International is expected to improve performance, trim down costs, increase transparency, and address security deficiencies as per PBGC’s business requirements.
Moving forward, CACI International is expected to strengthen its presence in the Enterprise IT market with the current contract with PBGC and thereby further augment its revenues. CACI International has a huge pipeline of new projects and continues to win deals at regular intervals.
These contract wins are key catalysts driving success for the company. In addition, as the U.S. government is one of the company’s biggest clients, it lends stability to the business with a steady revenue stream.
Based in Arlington, VA, 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 faces tough competition from established players in the industry, which include formidable names such as Lionbridge Technologies Inc and Computer Sciences Corporation .
CACI International currently has a Zacks Rank #3 (Hold). One of its competitors Syntel Inc (SYNT - Free Report) carries a Zacks Rank #2 (Buy).