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Defense contractor not fazed by proposed defense cuts

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Who’s worried about the impact of Defense Secretary Robert Gates’ proposed Pentagon belt-tightening?

Not, apparently, CACI International, Inc., the Arlington Va.,-based defense contractor that has a stake in some of the programs and offices to be axed.

In a recent statement on CACI’s 4th quarter and full fiscal year 2010 results, President and CEO Paul Cofoni said the company expects only “negligible impact” from Gates’ decision to eliminate Joint Forces Command, the Office for Network and Information Integration and the J-6.  CACI has also been informed, he added, “that the work we do for the Business Transformation Agency will continue following its transition to other organizations.”

Gates announced the cuts Aug 9 as part of an economy drive to steer more money to force structure and modernization. CACI’s work is oriented toward professional services and information technology; in 2008, it was one of six companies to share in a BTA contract for support “in the area of thought leadership and change management” worth up to $260 million over five years.

CACI’s relatively optimistic outlook raises the question, however, of exactly how much the Defense Department stands to save from Gates’ proposals. As far as we at Fedline know, the Pentagon has yet to supply a dollar figure. A Defense Department spokeswoman did not reply to e-mail and voicemail messages Friday.

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Comments

  1. Luisa David Says:
    December 12th, 2010 at 2:40 pm

    Maybe CACI knows something we don’t, an impending war somewhere perhaps. Gates might not be telling us all there is to it. What must be done to keep us secured on a shoestring budget?