CACI Wins $140 Million PBGC Contract
CACI International 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.
The article CACI Wins $140 Million PBGC Contract originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.