Last week, CACI International Inc. (CACI) declared the winning of two task orders from the U.S. Department of Justice (DOJ) worth $72 million. Awarded by the Justice Management Division and the Criminal Division under DOJ’s $1.1 billion ITSS-4 contract vehicle, these contracts pertain to providing operations support services to the two divisions of the DOJ.
As per the first task order of $59 million, CACI International shall provide service desk, engineering, IT infrastructure and data center innovation and support services to the Justice Management Division for a total period of five months (excluding five option years). These solutions shall ameliorate efficiencies at an inexpensive price for the DOJ.
The second task order of $13 million came from the Criminal Division for deploying the company’s office automation operations support solutions for the same period as mentioned before. Specific services that CACI International is required to provide under the deal are service desk, operations and maintenance, and asset management solutions.
CACI International’s ongoing relationship with DOJ is of around 30 years and the present two awards mark the fourth and fifth, respectively, under the ITSS-4 contract vehicle. The company’s increased expertise in providing technologically advanced solutions at a cheaper cost has been the reason for such panegyrics over time. Even though the current two task orders are new for the company, its constant desire to innovate and rise above standards expected is enough for DOJ to retain its confidence in CACI International’s state-of-the-art solutions.
The company seems to be fit enough to compete with its peers in the industry for the time being. However, big players to remain wary of include Syntel, Inc. (SYNT), The KEYW Holding Corporation (KEYW) and Forrester Research Inc. (FORR).
The Zacks Consensus Estimates for the fourth quarter and fiscal 2012 stand at $1.46 per share and $5.83 per share, respectively. At present we have a ‘Neutral’ recommendation on CACI International. The stock carries a Zacks #3 Rank, which translates into a short-term rating of ‘Hold’.
CACI INTL A (CACI): Free Stock Analysis Report
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KEYW HOLDING CP (KEYW): Free Stock Analysis Report
SYNTEL INC (SYNT): Free Stock Analysis Report
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