CACI Awarded Prime Contract on $19.25 Billion, Multiple-Award Services Program With U.S. Army
Strategic Services Sourcing (S3) Award to Support Defense C4ISR Community Largest Contract Award in CACI History
Arlington, VA, March 15, 2006 - CACI International Inc (NYSE:CAI) announced today that it has been awarded a prime contract to support the multiple-award Strategic Services Sourcing (S3) program with the U.S. Army Communications-Electronics Lifecycle Management Command (C-E LCMC), headquartered at Fort Monmouth, New Jersey. CACI received one of seven prime awards, which were given to four large and three small businesses. The S3 program has a total estimated ceiling value of $19.25 billion. The 10-year indefinite delivery/indefinite quantity (ID/IQ) task order contract was awarded to CACI for a five-year base and a five-year option period. This represents the largest contract award in CACI's 44-year history and positions the company to significantly increase its size and strength as a top-tier information technology provider to the Department of Defense and the federal government.
Under the terms of the award, CACI and its team will provide a broad array of engineering, logistics, and business operations support services for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. This ranges from research and technology development to design, demonstration, production, fielding, and maintenance for software and systems. The contract will support all DoD organizations throughout the C4ISR community.
CACI has proven C4ISR expertise, as well as a demonstrated track record of successfully supporting large ID/IQ contracts, both for DoD clients in general as well as the Army in particular. CACI also was recently awarded the large, multiple-award Engineering, Technical and Operations Support Services ID/IQ contract to support the Army's Communications-Electronics Research, Development and Engineering Center (CERDEC) Intelligence and Information Warfare Directorate (I2WD), which is also based at Fort Monmouth. That award continues more than 18 years of support for the I2WD.
According to President of U.S. Operations Paul Cofoni, "CACI offers the U.S. Army a skilled and diverse team with a comprehensive solution set that reduces performance risk and enables us to support every requirement, from general to surge and quick-reaction activities. Our unique expertise ensures the best technical approach and the right people for the job, and our ongoing partnership with the Army will help us advance C4ISR technologies for maximum support for the warfighter."
Dr. J.P. (Jack) London, CACI Chairman, President, and CEO, said, "CACI's award as prime contractor for the Strategic Services Sourcing program propels us into the top tier of C4ISR providers for the federal government. Along with our Engineering, Technical and Operations Support Services contract, S3 enables us to serve a full range of U.S. Army needs, assuring continuity and an integrated approach that will help the Army meet its requirements for a twenty-first century fighting force. We will also be able to leverage our growth from this contract into expanded solutions for our clients, continued opportunities for our employees, and exceptional returns for our shareholders."
CACI International Inc provides the IT and network solutions needed to prevail in today's new era of defense, intelligence, and e-government. From systems integration and managed network solutions to knowledge management, engineering, simulation, and information assurance, we deliver the IT applications and infrastructures our federal customers use to improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. Our solutions lead the transformation of defense and intelligence, assure homeland security, enhance decision-making, and help government to work smarter, faster, and more responsively. CACI, a member of the Russell 1000 and S&P SmallCap 600 indices, provides dynamic careers for approximately 10,100 employees working in over 130 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web 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 following: regional and national economic conditions in the United States and the United Kingdom, including conditions that result from terrorist activities or war; failure to achieve contract awards in connection with recompetes for present business and/or competition for new business; the risks and uncertainties associated with client interest in and purchases of new products and/or services; continued funding of U.S. government or other public sector projects in the event of a priority need for funds, such as homeland security, the war on terrorism or rebuilding Iraq; government contract procurement (such as bid protest, small business set asides, etc.) and termination risks; the results of government investigations into allegations of improper actions related to the provision of services in support of U.S. military operations in Iraq; the results of the appeal of CACI International Inc ASBCA No. 53058; individual business decisions of our clients; paradigm shifts in technology; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); material changes in laws or regulations applicable to our businesses, particularly in connection with (i) government contracts for services, (ii) outsourcing of activities that have been performed by the government, and (iii) competition for task orders under Government Wide Acquisition Contracts ("GWACs") and/or schedule contracts with the General Services Administration; our own ability to achieve the objectives of near term or long range business plans; changes that could result from accounting adjustments requested in connection with finalizing our Report on Form 10-K; and other risks described in the company's Securities and Exchange Commission filings.
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