CACI Awarded $450 Million Contract to Provide Support to U.S. Space Command’s Joint Navigation Warfare Center (JNWC)

Rhea-AI Summary

CACI International Inc (NYSE: CACI) has been awarded a ten-year contract worth up to $450 million to support the Joint Navigation Warfare Center (JNWC), an operational center of U.S. Space Forces – Space and the Department of Defense's center of excellence for navigation warfare (NAVWAR). The contract involves providing 24/7 operations support, joint and operational planning, and assessment of adversary positioning, navigation, and timing (PNT) capabilities.

CACI's experts will assist in enhancing the ability to operate in PNT-disrupted, denied, and degraded areas by conducting operational field assessments, war gaming scenarios, and modeling threats. This new work for CACI underscores the critical importance of PNT superiority in U.S. national security and the growing significance of NAVWAR in multi-domain operations.

Positive

• Secured a new 10-year contract worth up to $450 million
• Contract supports critical U.S. Space Forces and DoD operations
• Expands CACI's presence in the growing NAVWAR sector
• Provides 24/7 operational support and strategic planning services

Negative

• None.

Insights

Financial Analyst

CACI International's recent $450 million contract win with the U.S. Space Command's Joint Navigation Warfare Center (JNWC) is a significant development for the company and the defense sector. This ten-year expertise contract underscores CACI's strong position in the rapidly evolving field of navigation warfare (NAVWAR).

From a financial perspective, this contract represents a substantial revenue stream for CACI. With an average annual value of $45 million, it will contribute approximately 1.5% to CACI's annual revenue, based on their fiscal year 2022 revenue of $6.2 billion. While not transformative, this steady income over a decade provides valuable visibility into future earnings and cash flow.

The contract's focus on positioning, navigation and timing (PNT) capabilities aligns well with the growing importance of space-based technologies in national defense. This positions CACI favorably in a niche but critical market segment, potentially leading to further contract opportunities in the future.

Investors should note that this contract represents new work for CACI, indicating the company's ability to expand its customer base and service offerings. This growth in capabilities and client relationships could lead to improved margins and market share in the long term.

However, it's important to consider the competitive landscape and potential geopolitical risks that could impact the execution of this contract. The defense sector is known for its intense competition and budget sensitivities, which could affect CACI's ability to fully realize the contract's value over its duration.

Defense Technology Expert

The awarding of this contract to CACI International highlights the critical importance of Navigation Warfare (NAVWAR) in modern military operations. As adversaries continue to develop sophisticated capabilities to disrupt positioning, navigation and timing (PNT) systems, the need for robust countermeasures and strategic planning becomes increasingly vital.

CACI's role in providing 24/7 operations support and joint operational planning for the Joint Navigation Warfare Center (JNWC) puts them at the forefront of addressing these evolving threats. The company's expertise in assessing adversary PNT capabilities and order of battle will be important in maintaining the U.S. military's technological edge in multi-domain operations.

The contract's emphasis on conducting operational field assessments, war gaming scenarios and threat modeling demonstrates a proactive approach to NAVWAR. These activities are essential for developing effective strategies to operate in PNT-disrupted, denied and degraded environments – a capability that is becoming increasingly important in modern warfare.

The establishment of the Joint NAVWAR Operations Center (JNOC) for global reach back operations is a significant development. This centralized hub will likely enhance the military's ability to respond swiftly to NAVWAR threats across different theaters of operation, improving overall operational efficiency and effectiveness.

However, the rapidly evolving nature of PNT threats means that CACI will need to continuously innovate and adapt their solutions over the ten-year contract period. Their success in this endeavor will be critical not only for the contract's execution but also for maintaining the U.S. military's superiority in NAVWAR capabilities.

RESTON, Va.--(BUSINESS WIRE)-- CACI International Inc (NYSE: CACI) announced today that it was awarded a ten-year expertise contract valued at up to $450 million to support the Joint Navigation Warfare Center (JNWC), an operational center of U.S. Space Forces – Space and the Department of Defense’s (DoD’s) center of excellence for navigation warfare (NAVWAR). CACI will provide 24/7 operations support, joint and operational planning, adversary positioning, navigation, and timing (PNT) capability and order of battle assessment, and other tasks that inform and enhance joint force, DoD combatant commander, interagency, and allied NAVWAR requirements.

"Adversary PNT capabilities rapidly evolve, putting our warfighters and national security operations at risk around the world,” said John Mengucci, CACI President and Chief Executive Officer. “CACI's experts comprehensively understand multi-domain PNT threats and advise combatant and joint force commanders on how to swiftly respond to NAVWAR threats and operational requirements.”

PNT superiority is vital to U.S. national security, and NAVWAR – the deliberate defensive and offensive action to assure and prevent PNT use through space, cyber, and electronic warfare – serves as an enduring mission in a world defined by multi-domain operations.

This contract represents new work for CACI. Under this award, CACI mission experts support global NAVWAR reach back operations via the Joint NAVWAR Operations Center (JNOC). These experts also assist combatant commanders in enhancing their ability to operate in PNT-disrupted, denied, and degraded areas by conducting operational field assessments, war gaming scenarios, modeling and simulating threats, and other tasks.

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/20240730810892/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 contract with the Joint Navigation Warfare Center?

CACI has been awarded a ten-year contract valued at up to $450 million to support the Joint Navigation Warfare Center (JNWC).

What services will CACI provide under the JNWC contract?

CACI will provide 24/7 operations support, joint and operational planning, assessment of adversary PNT capabilities, and tasks to enhance NAVWAR requirements for joint forces, DoD combatant commanders, interagencies, and allies.

How does this contract impact CACI's business (NYSE: CACI)?

This contract represents new work for CACI, expanding its presence in the navigation warfare sector and potentially boosting its revenue in the coming years.

What is the significance of NAVWAR in the context of CACI's new contract?

NAVWAR (Navigation Warfare) is important for U.S. national security, involving defensive and offensive actions to assure and prevent PNT use through space, cyber, and electronic warfare. CACI's contract supports this vital mission in multi-domain operations.