CACI Awarded $414 Million Task Order to Provide Global Operational Support for Unmanned Systems to the U.S. Army

Rhea-AI Summary

CACI International Inc (NYSE: CACI) has been awarded a five-year task order valued at up to $414 million to provide expertise and unmanned systems support to the U.S. Army Combat Capabilities Development Command (DEVCOM) C5ISR Center. The Global Operational Support task order aims to enable rapid response to current and emerging threats.

CACI will deliver in-depth assessments on available technology and inform countermeasure effectiveness at national, tactical, and operational levels. This includes providing technical subject matter expertise, training, and insight into emerging global threats to the U.S. Army and joint force. The company will also conduct research and analysis of technological trends to develop mitigation strategies supporting force protection efforts and increasing overall force survivability.

Positive

• Secured a $414 million task order from the U.S. Army
• Five-year contract duration provides stable revenue stream
• Strengthens CACI's position in the counter-unmanned systems (C-UxS) mission
• Expands CACI's role in providing critical support to U.S. military operations

Negative

• None.

Insights

Financial Analyst

CACI International's recent $414 million task order from the U.S. Army is a significant win that underscores the company's strong position in the defense sector. This five-year contract represents approximately 3.8% of CACI's annual revenue, based on their fiscal year 2022 revenue of $6.2 billion. While not a game-changer, it's a substantial addition to their order backlog.

The contract's focus on unmanned systems support aligns well with the growing trend of autonomous and remote-controlled technologies in modern warfare. This positions CACI at the forefront of a critical and expanding market segment. The emphasis on counter-unmanned systems (C-UxS) is particularly noteworthy, as it addresses an increasingly important aspect of military operations.

From an investor's perspective, this contract offers several positive implications:

• Revenue Stability: The five-year duration provides a steady revenue stream, enhancing CACI's financial predictability.
• Margin Potential: Given the specialized nature of the work, involving subject matter expertise and advanced technological assessments, this contract likely carries favorable profit margins.
• Strategic Positioning: It strengthens CACI's relationship with the U.S. Army and positions the company for potential follow-on contracts in the rapidly evolving field of unmanned systems.

However, investors should also consider the broader context of defense spending and potential budget constraints that could impact future contract awards. Overall, this contract reinforces CACI's strong market position and should be viewed positively by investors.

Defense Technology Expert

The $414 million task order awarded to CACI International highlights the critical importance of unmanned systems and counter-unmanned systems (C-UxS) capabilities in modern warfare. This contract signifies the U.S. Army's commitment to staying ahead in the rapidly evolving landscape of autonomous technologies and emerging threats.

Key technological aspects of this contract include:

• Multi-domain Integration: The mention of numerous platforms and domains suggests a focus on integrating C-UxS capabilities across air, land, sea and potentially space and cyber domains.
• Rapid Response Systems: The emphasis on "warfighter rapid response" indicates a push for agile, adaptable systems that can quickly counter emerging unmanned threats.
• Advanced Threat Assessment: CACI's role in providing "in-depth assessments on available technology" suggests a focus on cutting-edge threat analysis and countermeasure development.

The contract's scope, encompassing research, analysis and training, underscores the complexity of the C-UxS challenge. It's not just about developing new technologies, but also about understanding global technological trends and their implications for force protection.

For investors, this contract signals CACI's strong positioning in a critical and growing niche within the defense sector. The company's ability to combine operational support with technical engineering expertise gives it a competitive edge in addressing complex, multifaceted defense challenges. This could lead to further opportunities in the burgeoning field of autonomous systems and counter-autonomous technologies.

RESTON, Va.--(BUSINESS WIRE)-- CACI International Inc (NYSE: CACI) announced today that it has been awarded a five-year task order valued at up to $414 million to provide expertise and unmanned systems support to the U.S. Army Combat Capabilities Development Command (DEVCOM) – Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) Center to enable warfighter rapid response to current and emerging threats.

“CACI’s extensive, specialized operational support expertise is complemented and enhanced by our technical engineering know-how,” said John Mengucci, CACI President and Chief Executive Officer. “We deliver the unique ability to assess threats across numerous platforms and domains, placing us at the forefront of the counter-unmanned systems (C-UxS) mission. Our forward deployed personnel are in position and ready to react at a moment’s notice to meet operational demands or emerging threats facing our troops.”

Under the Global Operational Support task order, CACI will deliver in-depth assessments on available technology and inform countermeasure effectiveness in response to critical requirements at the national, tactical, and operational levels. This includes providing technical subject matter expertise, training, and insight into emerging global threats to the U.S. Army and joint force. It will also include providing customer organizations with in-depth research and analysis of technological trends to develop mitigation strategies that support force protection efforts and increase the overall survivability of the force.

About CACI

At CACI International Inc (NYSE: CACI), our 24,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and differentiated technology to meet our customers’ greatest challenges in national security. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit us at www.caci.com.

There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the risk factors set forth in CACI’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023, and other such filings that CACI makes with the Securities and Exchange Commission from time to time. Any forward-looking statements should not be unduly relied upon and only speak as of the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729710469/en/

Corporate Communications and Media:

Lorraine Corcoran

Executive Vice President, Corporate Communications

(703) 434-4165, lorraine.corcoran@caci.com

Investor Relations:

George Price

Senior Vice President, Investor Relations

(703) 841-7818, george.price@caci.com

Source: CACI International Inc

FAQ

What is the value and duration of CACI's new task order with the U.S. Army?

CACI has been awarded a five-year task order valued at up to $414 million to provide unmanned systems support to the U.S. Army Combat Capabilities Development Command C5ISR Center.

What services will CACI provide under the Global Operational Support task order?

CACI will provide expertise and unmanned systems support, deliver in-depth assessments on available technology, inform countermeasure effectiveness, offer technical subject matter expertise, training, and insight into emerging global threats to the U.S. Army and joint force.

How does this task order align with CACI's expertise?

The task order aligns with CACI's extensive operational support expertise and technical engineering know-how, particularly in assessing threats across numerous platforms and domains, positioning them at the forefront of the counter-unmanned systems (C-UxS) mission.

What is the expected impact of this task order on CACI's business?

This task order strengthens CACI's position in the counter-unmanned systems mission and expands its role in providing critical support to U.S. military operations, potentially leading to increased revenue and market presence in the defense sector.