While tensions have been heating up around the globe, CACI International Inc. has benefited from a surge in demand for intelligence technology.
Intelligence gathering “is going to be an increasing focus and emphasis of our government,” said Chairman and CEO J.P. “Jack” London. “The work we do will be supporting those national priorities as they continue to emerge.”
The company’s success has landed it at No. 13 on this year’s Top 100, with nearly $1.1 billion in prime contracts.
The idea that weapons of mass destruction could get into the United States is “the big elephant in the living room,” London said. Although worrisome, he said, “from a business perspective, it’s something we want to be able to participate in.”
CACI’s intelligence work is the company’s fastest growing segment, accounting for 28 percent to 30 percent of overall business, London said. The company’s advantage over competitors is its long history of working with the government, he said. “We have a legacy built up in the corporation, an understanding of the missions and challenges of our client organizations,” he said.
CACI has been growing at a solid pace over the years through a combination of acquisitions and organic expansion. The company has made more than 30 acquisitions over the last 15 years and become one of the nation’s largest defense contractors.
CACI’s revenue hit $1.6 billion in fiscal 2005, up 41.7 percent from a year earlier.
“It’s been a very successful year,” London said. “As we move into this last quarter, we will be operating at close to a $2 billion annualized operating rate.”
The company can’t afford to rest on its laurels, he said. “There’s no such thing as a permanent advantage,” he said.
CACI was one of seven companies recently awarded a 10-year, $19.3 billion contract to support the Army’s Strategic Services Sourcing program at Fort Monmouth, N.J. It’s not certain how much of the work will go to CACI, or any of the other contractors, or even how much of the $19.3 billion the Army will spend. Still, “it’s a significant build-up opportunity for us,” London said.
The award, CACI said, was the largest in its history and puts it in position to “significantly increase its size and strength as a top-tier IT pro-vider” to the U.S. government.”
That award came on the heels of a January contract to help the Army modernize its intelligence and information systems and capabilities. The two contracts show the high priority that government places on its intelligence systems and “anticipate a significant amount of complex and high-value work being performed under those jobs,” London said.
CACI could use its defense expertise to expand beyond Defense Department work, said Ray Bjorklund, senior vice president at McLean, Va., market research firm Federal Sources Inc.
“Information security is a very important functional area not only for defense, where it’s always been important, but increasingly for the civilian agencies,” he said.
There were some disappointments for CACI last year, such as the company’s failure to win continuing work on a contract in Iraq, London said, but he added, “I’m comfortable we’re past that.”
In addition to its Army work, CACI also holds some Navy contracts. “Our business base with the Department of Defense is firm, strong and growing,” he said.
That’s largely because of “the growing world of threat out there,” London said. “It’s a changing landscape.”
Additional 2006 Top 100 Profiles
