CACI Grabs $5.7B Air Force Contract for Enterprise IT Services
CACI International CACI recently won its largest-ever contract in its more than 60-year history. The company has won a contract worth $5.7 billion from the U.S. Air Force for the agency’s Enterprise Information Technology as a Service (EITaaS) Wave 1 program.
EITaaS is a Department of the Air Force initiative with a vision to modernize the IT infrastructure of the U.S. Air Force and Space Force departments. Under the contract, CACI will transform the Air Force’s IT services from an in-house, base-centric delivery model to an advanced enterprise service delivery model. The contract includes an enhanced IT management system, enterprise help desk, IT storefront, local field services and life cycle support for end-user devices.
CACI has been winning a record number of deals for a while, reflecting its disciplined business development actions, consistent operational excellence and high customer satisfaction. The reliability provided by CACI’s services makes it a preferred choice among contractors.
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Last week, CACI secured a single-award contract from the U.S. Navy. The indefinite delivery/indefinite quantity contract, which is called Spectral, will run over the next seven years and is worth up to $1.2 billion.
Per the mission technology contract, CACI will work with the U.S. Navy for developing and deploying the next generation of shipboard signal intelligence, electronic warfare and information operation weapon systems. The company has planned to adopt the open-architecture approach to provide the U.S. Navy with cutting-edge technologies and support for continuous software enhancement work.
In the first three quarters of fiscal 2023, CACI secured several notable deals, including a $5.71 billion blanket purchase agreement from the U.S. Air Force to provide enterprise IT services under the Enterprise Information Technology as a Service Wave 1 contract. CACI clinched a $174 million contract to offer mission expertise and innovative solutions to the U.S. Navy Military Sealift Command for the advancement of naval ship machinery, systems, equipment and structural performance while reducing costs.
These back-to-back wins are the key catalysts for the company, which boasts a large pipeline of new projects and wins deals at regular intervals. In the third quarter of fiscal 2023, CACI won contracts worth $1.1 billion and ended the quarter with a total backlog of $25.3 billion.
Zacks Rank & Stocks to Consider
CACI currently carries a Zacks Rank #3 (Hold). The stock has rallied 12% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Salesforce CRM, Blackbaud BLKB and Meta Platforms META. Salesforce and Blackbaud each sport a Zacks Rank #1 (Strong Buy), while Meta carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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