How OneGov is changing CACI's contractor role

CACI International counts as business partners many of the same brand name technology companies that the U.S. government wants to have more direct relationships with, especially licenses for enterprise software platforms.

During CACI’s fiscal fourth quarter and year-end earnings call with investors Thursday, chief executive John Mengucci described that shift as having a “small revenue impact” and one resulting in “more positive margins.”

The General Services Administration’s OneGov initiative for unified technology procurements is the highest-profile example of how the government is seeking more direct relationships with commercial providers, including contracts for the product itself and associated licenses.

GSA is looking to obtain savings through volume discounts of tech products it believes can essentially be purchased in bulk and in a more consolidated manner and wants to do so on behalf of other agencies.

“Customers traditionally repurpose those savings right back to CACI, that gives us an ability to deliver additional capabilities,” Mengucci said.

Mengucci said that under the traditional model of integrators like CACI as primes, revenue was often reduced by the value of the licenses from the enterprise software providers. That revenue often provided CACI with “little-to-no margin,” he added.

CACI is experiencing the shift of who the prime contractor is firsthand in Federal HR 2.0 – the Office of Personnel Management’s effort to overhaul the government’s human resource systems by consolidating them into a single platform.

Oracle won the 10-year, $395.8 million contract over the summer and has enlisted CACI as a key teammate for the program alongside Baker Tilly and Deloitte. The core implementation will be based off of Oracle Fusion Cloud HCM.

In talking with analysts, Mengucci described the partial role-reversal of who the prime is as one of merely changing the order of things.

“What the OEMs (original equipment manufacturers) don't want, and generally aren't able to deliver, is the full implementation,” Mengucci said. “The government is going to them for the licensing first and then we are partnering with those folks.

“We've been in partnerships with them over the last eight-to-10 for a lot of those large enterprise tech jobs that we've put out there,” Mengucci added.

Fourth quarter revenue of $2.7 billion was 17% higher than the prior year period with an organic growth rate of 11%, while profit of $353.1 million showed a 33% year-over-year increase in EBITDA (earnings before interest, taxes, depreciation and amortization).

Full fiscal year 2026 revenue of $9.6 billion was 10.9% higher than the prior year period with an organic growth rate of 7.2%, while EBITDA of $1.2 billion showed a 21% year-over-year increase from FY 2025. CACI ended fiscal 2026 with an EBITDA margin of 12.3%, up from the prior year’s 11.2%.

CACI’s initial guidance for its 2027 fiscal year, which started July 1, pegs revenue in the range of $10.65 billion-to-$10.85 billion on an EBITDA margin in the high-12% range.