In a shocking revelation, CACI International's CEO John Mengucci announced that government shutdowns are still a thing, but somehow don't affect his company's bottom line too much.
Mengucci explained during the fiscal first quarter earnings call with investors that the difference between the 2018-2019 partial shutdown and the current one is that CACI now has more "truly commercial" business, which means they get to sell their products on a price list approved by the General Services Administration. Because who needs actual funding when you have a price list?
According to Mengucci, this shift in focus towards tech contracts has allowed CACI to avoid the dreaded "down-select" process, where government agencies actually have to choose between competing bids. Instead, they just buy what they want on a purchase order, because commercial practices.
The company's revenue profile is still somehow affected by the shutdown, but only in a minor way - about $10 million that will probably be made up for later. As Mengucci noted, "it doesn't take folks to sit around and do a down-select" when you have a price list.
CACI's new Merlin system, which detects and defeats drones at a distance of up to 46 miles away (or roughly the length of a really long road trip), is being touted as a key cog in their longer-term strategy. Because what could possibly go wrong with relying on technology that can detect enemy drones?
Mengucci also highlighted the importance of counter-unmanned aerial systems, because apparently defending against drones is now a thing, especially since they're "multiples of billions" cheaper than building actual missiles. And who needs radar when you have Merlin?