{"id":33816,"date":"2021-08-12T17:15:31","date_gmt":"2021-08-12T17:15:31","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2021\/08\/12\/caci-military-modernization-sales-will-eclipse-afghanistan-pullout-losses\/"},"modified":"2026-08-07T22:45:18","modified_gmt":"2026-08-07T22:45:18","slug":"caci-military-modernization-sales-will-eclipse-afghanistan-pullout-losses","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2021\/08\/12\/caci-military-modernization-sales-will-eclipse-afghanistan-pullout-losses\/","title":{"rendered":"CACI: Military modernization sales will eclipse Afghanistan pullout losses"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2015 Defense contractor <a href=\"https:\/\/www.c4isrnet.com\/industry\/2021\/08\/09\/former-army-tactical-network-director-joins-caci\/\" target=\"_blank\">CACI International<\/a> on Thursday forecast that its future losses from <a href=\"https:\/\/www.militarytimes.com\/news\/your-military\/2021\/08\/12\/us-keeping-distance-as-afghan-forces-face-taliban-rout\/\" target=\"_blank\">the U.S. pullout from Afghanistan<\/a> would be more than offset by the U.S. military\u2019s <a href=\"https:\/\/www.defensenews.com\/congress\/2021\/05\/28\/eyeing-china-biden-defense-budget-boosts-research-and-cuts-procurement\/\" target=\"_blank\">growing investments in forward-leaning technologies<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company projected 4 percent sales growth despite a 2 percent headwind linked to Afghanistan, where CACI has supported the U.S. Army with intelligence analysis. The Virginia-based company sees its agile software development business as a key driver and touted its April award worth $376 million from the National Geospatial-Intelligence Agency for an AI-driven intel processing platform.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During CACI\u2019s fourth-quarter earnings call Thursday, CEO John Mengucci told analysts some of its Afghanistan-based employees are continuing work from different locations, while others remain at work in Africa, Korea and throughout the Middle East, including Iraq.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019ve watched the administration make the decision to completely exit Afghanistan by 9\/11, and all I can say is they\u2019re executing on that decision,\u201d Mengucci said, adding that CACI\u2019s ongoing analytical services are \u201cmuch broader counter-terrorism\u201d to include \u201cnear-peer threats.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the military modernizes with an eye toward competition with Russia and China, CACI sees bipartisan support for information technology modernization, offensive and defensive cyber capabilities, border security, electronic and space \u2015 all a potential boon to its bottom line.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company\u2019s comments come just days after the Democrat-led Senate Armed Services Committee <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2021\/07\/22\/dod-would-see-a-big-budget-boost-military-justice-overhaul-under-senate-proposal\/\" target=\"_blank\">unveiled its draft 2022 defense authorization bill<\/a>, with $25 billion more for defense than President Joe Biden proposed.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/c4isrnet\/intel-geoint\/2021\/05\/25\/special-operations-command-issues-373-million-contract-for-geospatial-intelligence-support\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/USA-from-space.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Special Operations Command issues $373 million contract for geospatial intelligence support<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">CACI will continue providing personnel to analyze geospatial and imagery intelligence for USSOCOM under the new contract.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">But while CACI is betting on persistent demand for agile software development, Mengucci acknowledged it does upend the traditional contracting cycle. Meant to help the government update continuously, the contracts are not as predictable as cost-plus or a firm-fixed-price methods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re all still working through the challenges of contracting for agile. By the nature of the word, it\u2019s agile, which means it\u2019s fluid, it\u2019s going to change,\u201d he said. \u201cThat\u2019s tough coming from the contracting world.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To win future work, the company hopes to leverage its contract worth up to $1.9 billion with Customs and Border Protection to modernize back-office systems. The contract, dubbed BEAGLE, includes more than 100 applications, according to the company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re delivering on agile software development with about 300 people,\u201d Mengucci said. \u201cWhat it does is it allows us to deliver programs and agile applications at a lower price to our customer and a lower cost. If we do that right, the margins will be higher for us, because we\u2019re taking on some of that risk.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, CACI disclosed on the call that Ascent Vision Technologies, which it acquired a year ago, has felt the impact of the global semiconductor shortage. AVT specializes in intelligence, surveillance and reconnaissance technologies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To manage broader pandemic-related supply chain slowdowns, the company has made bulk buys of certain long-lead items.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe have had supply chain issues,\u201d Mengucci said. \u201cWe\u2019ve also had customer delivery delays because our customers were not there to receive those items.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Defense contractor CACI International on Thursday forecast its future losses from the U.S. pullout from Afghanistan would be more than offset by the military\u2019s growing investments in forward-leaning technologies.<\/p>\n","protected":false},"author":7,"featured_media":72936,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"9":{"categories":["industry"],"primary_category":"industry"}}},"categories":[160,12,36],"tags":[],"coauthors":[3446],"class_list":["post-33816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-industry","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"N5OZ4J5T4VCVBHDDQTRUNUBE7Q","arc_canonical_url":"\/industry\/2021\/08\/12\/caci-military-modernization-sales-will-eclipse-afghanistan-pullout-losses\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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