CACI International (NYSE:CACI) won a significant contract Thursday, when the U.S. Pension Benefit Guaranty Corporation -- the quasi-governmental agency that takes over and runs corporate pension funds when a company goes bankrupt -- awarded the company a potential five-year contract that could be worth $140 million.
The contract in question, which is CACI's first opportunity to work for PBGC, consists of a one-year base term plus for succeeding one-year-long "options." It's the sort of contract referred to as an "indefinite delivery/indefinite quantity" (IDIQ) contract, meaning that there's no guarantee PBGC will actually order $140 million worth of services from CACI. But it may.
If it does, PBGC will be asking CACI to modernize its information technology systems as part of the IT Infrastructure Operations Services and Support (ITIOSS) contract. Ideally, the modifications requested will result in improved performance, lower costs, increased transparency of costs and service levels, and improved IT security at the agency.
Despite the contract win, CACI shares fell along with the rest of the market Thursday, declining 0.7%, to close at $56.12.