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CACI International Inc CACI has recently secured a $376-million task order under the GSA Alliant II contract vehicle, to continue supporting the U.S. Department of Agriculture’s (USDA) Web-Based Supply Chain Management (WBSCM) system, with cloud migration, modernization to SAP S/4HANA and deployment of additional Salesforce capabilities. Through the task order, the company will modernize and automate software functions to help USDA reduce sustainment costs of food and nutrition assistance programs and increase productivity.
The WBSCM program supports USDA and USAID-administered food and nutrition assistance programs. Notably, the WBSCM has powered the Farmers to Families Food Box program, which bought and distributed food boxes containing American agricultural products to families facing food shortages during the pandemic last year.
In its press release, the company stated, “This award combines CACI’s high-performance cloud computing and secure, reliable supply chain technologies, which our company provides to the USDA and other federal civilian enterprise customers.”
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Contracts Keep Flowing for CACI
CACI has been winning a 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.
Markedly, in the last reported quarter, CACI secured a number of notable contracts. These included a five-year, $447-million task order to provide acquisition mission technology. It also won a seven-year task order worth $376 million to provide mission technology to modernize a federal customer’s web-based supply chain system.
These back-to-back wins are the key catalysts driving success perennially for the company. The company’s wins as a prime contractor in most of its deals are a positive. In the last reported quarter, revenues generated as a prime contractor accounted for 90.4% of total revenues.
CACI has a large pipeline of new projects and continues to win deals at regular intervals. Notably, as of Dec 31, 2020, its total backlog was $22.4 billion.
Bright Prospects Despite Competition
Competition from Science Applications SAIC in the IT services space remains steady. Science Applications continues to win high-value contracts and received contracts worth $2.1 billion in second-quarter fiscal 2021.
In the IT services industry, the company also competes with International Business Machines IBM and Accenture ACN, which are among the top IT service providers in the world.
Nonetheless, we believe CACI is comfortably positioned in this space, given its favorable relationship with the Department of Defense. Moreover, cyberattacks are creating increased awareness, leading to more demand for cybersecurity solutions.
CACI currently carries 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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