Ready? So first, welcome. Thank you all for coming. Appreciate the interest, both in the room and on the webcast, the interest in CACI and our 2019 Investor Day. I have a lot of exciting things to talk about today, some great folks briefing. Just some house cleaning stuff. If everybody doesn't mind turning your cell phone to silent, you'll notice there's no power at the tables. It's a crowded spectrum, which you'll hear more about in the presentation. So with that, we're going to quick talk about the agenda, just set some expectations for the day. John is going to kick off the brief and turn it over to four of our presidents, our operating unit presidents, to run you through their respective areas of the business. We'll have a break before we get through all that. Two breaks during the day.
We're going to have a technology showcase, which should be pretty interesting, before we turn it over to Tom Mutryn for financial review. And then we're going to spend as much time as everyone wants, both in the room and on the webcast, for a Q&A where you'll be able to pose questions to the entire management team. We'll have the presidents as well as John and Tom up here in front of the room. And it is not a complete Investor Day without our Safe Harbor statement. Obviously, statements we make today could be construed as forward-looking statements under current law. So please refer to the Safe Harbor and incorporate that into any transcript or replay of the event. So again, appreciate everyone coming. It should be an exciting day. And with that, I'm going to turn it over to John Mengucci, Chief Executive Officer of CACI.
I got to talk to more than one slide. Well, good morning. As Dan mentioned, thank you. Thank you all for being here today. We didn't want to have power at the table so you could keep your phones charged. And then I was told that the devices that are outside are actually listening to all of your phones. So we figured we'd just make it easy. It was a joke. Thank you for being here today. Thank you for the analysts, bankers, investors, the thousands of people who are out on the webcast. Thank you all for being here today. We're very excited to tell you what the CACI story is going forward. My job is to talk a little bit about vision and about strategy. Strategy, to me, as I've always said, is the place where you come from.
It's what actually sets the tone of how we grow, where we invest, and why we invest the way that we do. Strategy. Some of the strategy going forward going to look exactly alike. Why is that? Because it's working. Just because there's a new CEO here does not mean we're going to peel back and say, well, now we have a new vision and a new strategy going forward. I don't like talking about myself, but I've been here for eight years. Most importantly, without fanfare, we executed a CEO transition in this company over the last 90 days that was not written about, which is the way we had planned it, to make absolutely certain that we had the right talent and the right people and the right long-term strategy to carry this company forward.
So today is a lot about it's more of the same, but there's some different there. And our goal today is to really focus on both. One, to set the foundation to make certain that what you're not going to hear is a new CEO having to learn this company. It's just starting my eighth year here. A new CEO vision and strategy, or we weren't quite happy with the one we had, so let's try to talk about the one we have going forward. It's the same thing going forward. I've been with the company for eight years. Came in as the President of U.S. Operations, gave me a good five-year period of time to understand exactly what makes this business tick, some areas that we wanted to exit, which we have over the last eight years.
And I spent the last three years as the COO, really focused on transformations and those types of acquisitions that we wanted to bring in so that we could build a larger total addressable market. So I've had the last three years working on those things like L-3 NSS, things like Mastodon and LGS acquisitions you'll hear about today. Yes, it's true. I spent the first 27 years of my career at GE, Martin Marietta and Lockheed Martin. Spent a lot of time there driving growth, driving delivery, and ended my career there on my choice with IS&GS, having most recently run both their defense and their civil lines of business before they were acquired by Leidos. What's most important is the leadership team we have here today.
The first four folks, four of the five sector presidents that we have within this company, the fifth being Greg Bradford, who runs our U.K. business and has for many, many years. But the first four people, DeEtte Gray, John DeFreitas, Kevin Kelly, David Nack, four of the best people the industry has to offer, four people who have been with this company, four people who understand exactly where we want to go, where we're coming from, exactly how we drive growth. DeEtte Gray, in the enterprise space, the best individual out there, bar none. She's done an outstanding job, well-known, most importantly, understands our customers, understands the customer sets as a whole, understands what it takes to deliver within this marketplace.
John DeFreitas, 30 years U.S. Army experience and a bunch of years understanding business acumen and how do we transition and how do we build capabilities that our customers need and understanding what those needs are and being in a unique position to make certain that what we're delivering addresses the outcomes that those operational customers need. Kevin Kelly, most recently CEO of LGS, technology-minded, great business acumen, great business sense, CEO of LGS, proud to have him with this company, proud to have him as part of our executive team and making certain he's driving where we're going to go in the mission space as we move forward. David Nack, been with the company for many, many years. We're just letting David out.
David's worked in a lot of very highly classified areas for us over the last 10-12 years, brings a great entrepreneurial spirit and understands where we want to head when we talk about products. Tom Mutryn, longtime Chief Financial Officer, transparent, understands this business, the driver of our M&A program, done an exceptional job here. Along the bottom, Mike Gaffney, CSC veteran, at least 30 years in this industry, understands how to grow, has built a business development machine. Many of you who cover us know, $10.3 billion worth of awards last year. You'll always hear me say awards are lumpy. So we're always cautious as to how much credit we actually take for the last four quarters because some of you in the room will say, so what are you guys going to do next quarter? We hope to do better than that.
We actually plan to do better than that as well. Angie Casper, Lockheed Martin, PAE, Cobham, services businesses, technology businesses, product business. How do you build a human capital workforce, 22,000 strong, that understands where the company's going and makes certain that we have the right talent at the absolute right time? Mike Lewis, previous analyst, investor grade, understands this market very, very well, has picked up our M&A program, looking at those gaps that we have across the markets that we serve, making certain that he's able to find companies that are out there that fill those gaps. We love reading books. We get tons of them. We're a highly acquisitive company. But at the same time, we wanted a chief development officer out there looking at what are those preeminent companies on the tech side that are going to drive this company forward.
Jody Brown, been with the company over 35 years, has communicated what this company does, what it's going to do, and how it does it for many years, responsible for everything that you see here today. Last but not least, Dan Leckburg. And if you all don't know Dan, you got to come up to me during the break and sort of, let's have that chat because you should all know Dan. Today's objectives, first and foremost, describe who we are and what we do. It's very foundational. It's very fundamental. But in my time with this company, I've heard CACI talked about in many venues, in many ways. This is a great opportunity for us to talk about exactly what we do, who we do it for, and who we are. We want to share the alignment with the market demand and how we differentiate.
It is true that part of our business is in the government services space. Absolutely true statement. The unfortunate piece is we're missing the rest of what this company has become. And that's another reason why we're here today to talk about the rest of our total addressable market, those portions of the market that maybe not so readily we're associated with, but we have been associated with since the beginnings of doing the Six3 acquisition almost six years back. We did the Six3 acquisition. We had tons of advice, got tons of emails. Everything ranged from great acquisition to not quite sure how that one fit. Fair point. We're here today to talk about now, foundationally, where this company's going and why companies like that fit well, why LGS and Mastodon fit so very well as to how we're going to continue to grow this company.
Provide our plan for revenue growth, margin expansion, cash generation, and those two golden words, cash flow. All of the presenters today will touch on how we're going to grow in each of the market areas that we discussed today and also talk about how we continue to drive this cash machine. And my end goal is to drive so that we all agree that CACI is a compelling investment going forward. So I'd like to start with vision. Vision really sets that tone as to where this company's going. First and foremost, I want us to be the company and partner the enterprise and mission customers depend upon to provide for their most critical needs. Not just words. This is the vision statement that all 22,000 people are getting very familiar with as we're all sitting here today. And the two key words are depend upon.
Depend upon our customers who get the final say every time they come and have to select who they're going to work with. And our vision is that customers depend upon us. We've talked for many, many years about a greater than 90% recompete win rate. We get fired not very often. It's a focus and a penchant drive in our company to not get fired. We talk about recompete rates.
Frankly, our recompete goal in the company is 100%. Because if you lose a recompete or recompete differently is to walk up to a PM and say, you just got fired, because that's what losing a recompete does. But when you have customers who depend on you, who make certain that you are the best and the brightest and you're staffing their programs with the right expertise and delivering the right technology, that's the kind of company we want to be.
And we are going to extend and grow. Extend and grow, two words that are connected to on-contract growth and make certain that while we're performing near flawlessly for customer sets, how do we take the single award IDIQs? Not the multiple-award ones, not the $19 billion ones that 145 companies get to bid on task orders. But when this company has moved more towards a mission technology space, single award IDIQs with well-funded ceilings, making certain that we're coming up with the right solutions and the right expertise, we're going to be that company that continues to expand and grow where we're coming from. Be the place where talent comes to drive the future of national security for a national security company. And this is more about people who want to work at CACI.
And the only way we force people and want people and show people they want to work with us is to make certain we have the right employee environment for them to be successful in. Are they going to work on interesting projects? Are they going to support phenomenal customers? We're going to make certain that the benefits that we provide to those customers draw and attract the best and the brightest. You're going to always hear us talk about building capabilities. We're a strategy-based company that looks for gaps. And based on those gaps, we've said this for many, many years, we're going to fill those gaps with investments that are internally focused. We're going to fill those with partnerships, and we're going to fill those with acquisitions.
We're going to consistently look for ways to fill gaps because our belief is spending our capital to continually fill our chest with solutions and capabilities, intellectual property is the way to provide long-term growth for this company. Grow faster than our addressable market and ever-increasing margins. We talked a long time about growing 1%-4% above the compound annual growth rate of the 12 markets that we're in divided by seven, and we all talk about, well, is that based on 2% or 3%? We're going to still continue to do that. We've done that in the past. We're going to continue to do that. But we're going to talk about this about I want to be the company with a vision that grows better than the market's growing, and we're always growing bottom line all the time.
Not over a three-year period, not over a seven-year period when averaged back over the previous seven years. This is about growing top and bottom line at the same time. Often talked about, rarely done. We're on almost 13 quarters straight of delivering on that mission and on that goal that we mentioned. Our strategy, the part to stay in exactly the same. It's simple. Win new business, drive operational excellence, deploy capital for growth. Winning new business, $10.3 billion worth of awards. But what's more important than the number and the book-to-bill ratios and all the other numbers that we share is that I want awards that drive enduring revenue. That's long-term growth. That's not a 200-person job that the L3 has been performing on. If we rush and we go higher than that, we badge up those people, that's some great top line.
That's not great top line because some of that work recompetes every other year. When you recompete every other year, you're taking my bidding proposal and my IR&D spend, and you're forcing us to use that money to recompete on work that clearly is so enduring to a customer that they've decided to recompete it every other year. When we're only differentiating on price gain, that's the kind of work that over time will bid less of that work because we can't differentiate. And you sure can't deliver customer value. If you're not delivering customer value, it's really, really hard to drive margins. Driving operational excellence. When we win business and it's enduring revenue, we want to drive operational excellence. This means deliver every time. Not when we have the staff to deliver it, but every single time.
And the four presidents you're going to hear from today are going to talk about how we grow. We grow by delivering. Winning the job, we have great win parties. The next three to four to five to six to seven years is period performance and the jobs we've won has gotten larger. It's about delivering every single day. When you deliver every single day, customers take care of shareholders, bar none. And then deploy capital for growth. The nice thing about deploying capital for growth is it feeds capabilities and customer sets, of which this federal government is a large customer set. You're going to hear me talk about our total addressable market of being $220 billion. We're a $5.5 billion company. So when people ask me at times, you're going to take some of the stuff? You're going to go to the commercial side? Absolutely not.
We're a national security company. Our core customer is the federal government. We know how to do that work very, very well. There's plenty of places for us to go out there and move this company towards, and that's where we're going to focus on. The other part of talking about today is not so much of a strategy shift. It's how we talk about who we are. So I'm going to spend a little bit of time talking about four words: enterprise, mission, expertise, and technology. Those four words are what we're looking to define who we are going forward. We've always talked about being in 12 markets. Markets haven't gone away. But we quickly finally talked about markets as we quickly got to this discussion point where we were so finite of a point in the markets that we serve that we started getting into those fair-to-ask questions.
How much work do you do in that market? How would the pricing pressures look? And you quickly found that we were sharing a lot of marketing, business development type information. So we were consistently almost handicapped ourselves by saying, we'd love to share that, but we're not going to share that kind of information because it's just too close to home. Then we got to think about how we talk about this company going forward so that we can share more information, be more transparent, and make sure that we have everybody watching how this company is going to grow. So our desire to specialize on four words is around that goal: enterprise, mission, expertise, technology.
When we say enterprise, regardless of what Webster says, what we're defining enterprise, those types of customers are everything an agency needs to be an agency in the federal government before you talk about their mission. Enterprise to us is an agency needs an IT infrastructure. They need cloud-based solutions. They need human capital systems. They need financial systems. They need a cleared workforce. They need back-office systems. They need front-office systems. They need everything that they need to have to run what that agency does. Very IT-focused, $130 billion total addressable market growing at 2%. I like to call this this is the gerbil on the big wheel. That wheel consistently turns. It's growing at 2%. Yep, small compound annual growth rate, but over the last 40 years, it grows. And it's a very large market. The other customers that we serve are talking about mission.
This is where processing tax returns is the mission of IRS. Providing a world-class ground force is the mission of the U.S. Army. Now it's I've got to get into that customer's mission and the outlooks that they need to prosecute what they're being told to prosecute within their own agency. That's a $90 billion addressable market growing at 6%. This is where you get a little stickier. This is not just about making sure an agency can operate. This is about them delivering mission. And this is where we believe we start to differentiate who we are going forward. If I take enterprise to mission, I add those other two words to expertise and technology. This is where we focus on the expertise piece. How many people in the room have heard of time and material? Fixed price level of effort, direct labor, DL, butts and seats.
I mean, how many times can we redescribe what it is that someone who delivers people to the federal government? How many ways can we call it that? We are choosing to call that expertise because that's what it is. We're not consulting. We're providing expertise. Providing people and their know-how and their knowledge to make certain that both on the agency side, on the mission side, the federal government customers that we serve have the best and the brightest supporting what their missions and what their agency operations are. That's what we do, and the government services part of our company. We deliver expertise. If I'm looking at enterprise expertise, I'm delivering talent with technical and functional knowledge of how that agency needs to be an agency, making certain they have the right IT support, the right financial system support, making sure that help desks are covered and serviced.
The other piece of expertise is mission expertise. This is where we start talking about the customer's mission in the domain and having to have domain knowledge to help that customer prosecute what it is they're being told to push out there. Expertise. Not a discussion all the time about DL, but very much a discussion about the individuals we're able to hire and retain who deliver their expertise and their knowledge to both enterprise and mission customers. I like to call the line. Talk about north of the equator and south of the equator. That's where my mind goes. South of the equator on the technology side, if you look at enterprise tech, these are things like IPPS-A, the largest human capital system delivered, the largest PeopleSoft implementation in the world. You'll hear about those types of programs when DeEtte Gray comes up.
You would have read about the Navy award of their human capital system being awarded to CACI. It's those types of systems that allow business systems and enterprise operations to run smoothly. So when you hear about enterprise tech, that's what we're talking about. Last but not least, on the bottom right-hand quadrant is mission technology. It's where you hear us talk about electronic warfare, SIGINT, cyber, and the blending of those INTs and those technologies that this government so dearly needs. The last two-year budget touched a little bit on it. This next two-year budget has a lot of spend in electronic warfare. A lot of people have talked on it. Just like 15 years ago, the federal government talked about cyber, and it took a while to see funding show up. Okay? It's why you'll hear me talk and answer questions around AI and machine learning.
A lot of people dropping those words today. Phenomenal words to be able to drop. I do AI. I do machine learning. I used to do cyber. But what's absolutely certain is that the United States military needs to re-up their game on electronic warfare, and we've been talking about that for the last five years. We're going to continue to talk about that. And mission tech is so much about making sure that we're delivering technology to support our customers' missions. Why do we take time talking about those four quadrants? Because to us, there's four different areas that this company can address and four different areas where we can grow. The top left one barriers to entry investments and margins. I started off by talking about that we're a strategy-based company. We're very passionate about the areas that we're in.
There is not one quadrant that's better or worse than another, but there are market dynamics that are very, very different to those four. In an effort to continue to be more transparent and talk about where we're going to grow and how we're out there growing, to take a look at this marketplace and really talk about it in a new light and say, here's the four areas that this company is in. Those dynamics of investments, barriers, and margins expected are very, very different. And rightly so. The top left-hand side, if I could show you all the competitors on the top left-hand side, we'd be here until a week from Tuesday. A lot of competitors. And the federal government has moved just as the commercial world goes.
When things become more commodity-like and there's thousands of competitors and the government has changed the regulations in some of the RFPs so that even things like past performance don't matter, then we're getting a government who's buying enterprise expertise where the only thing you can differentiate on is price. We've talked about this for a long time as we built the strategy of this company moving forward since 2013. There are parts of our business that do have lower margin. It doesn't say zero. It says low, and the beauty of having enterprise expertise contracts that we deliver to get to understand how the agency thinks. If we understand how the agency thinks, we understand what they need, then we're more capable of moving them to an enterprise technology kind of solution. Don't tell me how many experts you need. Tell me what you need done.
Let us deliver a system that does that. The top right-hand side, mission expertise. This is where the only word that changes is the word domain. Now I've got to understand what that customer's mission is. And you would admit the differentiation there is a little bit more. It's more than what I can learn or teach new hires in school. I've now got to have an understanding or a taste of what that customer's mission is. What do they do? What do they deliver? What outcomes do they need? If I look across both enterprise and mission expertise, we've just talked about what typical government service provider provides. I get told all the time, I'm a government service provider. And you'll hear me say all the time, and. We do far more than that.
That, to me, is what differentiates CACI from other folks who we are compared against on a consistent basis. Enterprise technology barriers to entry investment and margins. Barriers to entry medium. Investment requirements low to medium because now barriers to entry is I got to deliver program management. I have to repeatedly deliver systems that the agencies can count on. Software, program management, earned value, larger dimension programs, multi-year, requirements changing, tracking requirements, tracking budgets. Very different than providing expertise. Last but not least, mission tech barriers to entry or higher. Got to understand if you're going to work on the technology side of the mission space of the federal government that we serve. On the mission tech side, you just can't talk about AI and machine learning if they've done it for years. You just can't talk about cyber. You have to be able to deliver it.
You've got to get system engineering skills, mechanical engineers, E Es, digital signal processing engineers. They're really tough to find who also understand the customer's mission, who understand the customer's mission, and that's what drives investment requirements medium, and it drives higher margins. We'll talk a lot about today how we're going to go after those bottom two areas. I like to call this chart a victims chart, but my general counsel says I have to call them competitors. It's okay to laugh. And the thousands who are out on the webcast. Seven of ten times in fiscal year 2019, this company was successful in every bit of new business we went out there and chased. Seven out of ten times. It means the total sum total of all the competitors on this chart won three out of every ten times.
Not bad, not enough to drive a growing company. What we chose to put on these charts was not just names that would bend your thinking. It's pretty much those companies we see the most in this space over the last couple of years' period. It's probably not a gap measurable item, but it's pretty darn close to making sure that we're being very thorough because part of being a strategy-based company is to not only know the four areas that we deliver in, but who our competitors are and where those competitive pressures are, so it is true that north of the equator, there are companies who we see in delivering expertise, what most will call a government services side, and some companies are either even part of that triangle, the top two and the bottom left. I said our strategy would be simple.
I said we're trying to make this as transparent and to understand how we think. This is how we look at this marketplace we're in. What we're doing and we have done over the last five years what has been added has added a bunch of landscape in that bottom right-hand side. So it took this company from a triangle to a square. I don't know. Maybe by the time I'm done, we'll be a pentagon or something. But it's more about making certain that we're taking this company forward so we've got a better total addressable market to make certain if we're going to tell our investors and tell others that we're the kind of company that's going to go top and bottom line, then you can't convince me I'm going to go top line by just working the top left-hand quadrant of this box.
That's not going to happen because the dynamics of driving margins and differentiating have changed. And we're a company that's strategy foundational, strategy-based to understand where we're going to go next. This is what we use. These are competitors that we go out there and face. And absolutely so, there are some big names on the bottom right-hand side. And that's okay. These are the companies that we compete against who are looking at a mission technology domain that's changing. Some of it's changing as fast as sand underneath people's feet on the beach. And you're going to hear a lot about that today to talk about why we're differentiated in the mission technology space and where we want to take that market going forward. And not as a vision. We're already there.
It's how much we can grow and how much we can drive value and work in that bottom right-hand quadrant. So who are we and what do we do? We deliver enterprise and mission outcomes to government clients by leveraging expertise, innovation, and technology. We talked about enterprise and mission. We talked about expertise and technology. We've been an innovative company for 57 years. We don't plan on stopping now. I want to take a minute on our mission statement because this is something everybody in the company is very familiar with. And to me, the best mission statement not only says who we deliver to, but it talks about what we deliver and how we go about delivering it. First off, we're going to talk about enterprise and mission, who we deliver it to.
We're going to talk about our distinctive expertise in tech, delivering innovation and doing it excellently. That means when a customer selects us for an expertise job, it means we're the company who fills those roles. Winning expertise work where we don't staff damages the brand. Winning expertise work so we can talk about a great top-line growth plan and we don't staff it ruins the brand. This company is going to be about long-term growth, top and bottom line, to ensure that we have the best value investment an investor can choose to make in our space. The next section is probably the most important, not probably, actually is the most important. It talks about who we are and how we deliver. Good character, ethics, and integrity. It's what the company's based on.
When I made my decision to move forward, Lockheed Martin to me, I'm a proud alumnus of that company. Ethics, mission, national security, making certain you deliver, and what your word is your agreement. Your word is your contract. It's the same exact company. The same level of good character, ethics, and integrity. This is about who we are when we deliver. Last but not least, employees, customers, and shareholders in that order for a reason. I've been principled for over 35 years around focusing on employees. It may sound cliché, but it actually works. When you focus on your employees, they take great care of your customers. And when your customers are being well taken care of, you don't need 100 management books to figure this out. Great customers come back and continue to buy. They continue to drive value within your company. They continue to delight your employees.
They continue to grasp your employees to make certain they understand the mission. And when you do that, you drive shareholder value. Because shareholder value comes with growth. It also comes with both top and bottom line focus. We're an acquisitive company. We're strategically driven. We're going to fill gaps with capabilities, customers, past performance. We look for companies that provide that to us and make certain that we can fill those gaps so we can continue to grow. We'll invest. We'll partner, and we'll acquire. Our investment model is slightly different going forward. If we're going to play in the mission tech area and the way we want to address that market, and Kevin Kelly and David Nack will spend quite a bit of time today explaining that, for us to do that, investment takes on a little different model.
It's customer reimbursable investment, which is built into our rates, and it's self-investment. Those areas that come from our profits, from our earnings. Why are we going to do that? We're going to do that in the mission tech area because intellectual property is critical to growing in the mission tech area the way we want to grow. It's great to have customer investment, and we'll make use of that. But there are certain areas, if we're going to be a software-defined mission tech company, that we need to own the intellectual property. Because by doing that, we get to control what it is we're out there delivering. And if people have no issue that Apple owns a lot of their intellectual property, then customers and investors shouldn't have a problem with us owning it as well. You'd expect us to.
And that's what the LGS acquisition was focused on, was making certain that in certain domains, we had intellectual property we needed to go drive this mission tech vision. Strategies are great. People make them happen. Leadership and talent, to me, as a CEO of this company and having the honor and the privilege to drive where the company goes, leadership is extremely important. I want leaders, strong business acumen, make good, sound business decisions. Sometimes that means not what to bid on. Sometimes that means how not to grow, making certain we have that rigor across this entire company. The vision and the agility. Our July leadership meeting we have every year. I asked this past year. Everybody who came from an acquisition raised their hand. Over 75% of the people, in room of 200 people, raised their hands. What does that mean?
Let's tie back to being a highly acquisitive company. We're not buying companies to say, we just bought your house. Clean your management team out. Give us all that smart intellectual property. We're 77 and zero on closing on acquisitions, and what was the most proudest moment of the off-site, as I'm talking about where the company is going to go, is to see over 75% of people in the room raised their hand saying, I came from an acquisition, and I have a say in leading where this company goes. Talent, we benchmark every other year. Our employees answer a survey, 64% response rate. That's above world-class. We can compare ourselves against three workforces, government services, aerospace, and defense, high-tech. We compare ourselves starting six years ago against high-tech. Why is that?
Because the vision of this company was to move ourselves more towards a technology-delivering company on top of the expertise that we're out there delivering. So we did move funds to make certain that we could drive employee benefits higher. You want that. You need that. We need that to continue to attract the best and the brightest. The government customer does enough to push people out of the national security space. Frankly, government clearance process, you've all heard that. Love our customer to death. We could just get them to, when you want me to bring the best and the brightest in, you got to help me bring the best and the brightest in. I get to hire them. We get to train them. We get to provide them with outstanding perks. So I don't have to hear that question, Amazon's coming to town.
What's going to happen? I'm enthused Amazon's coming to town. My son lives on the West Coast. He continually laughs every time he hears that question get asked. He said, dad, we have Amazon startup every other day out here. We actually enjoy that. It brings an even more engaged workforce in. So the fact that we can differentiate how we hire is going to be very important going forward. The answer's coming. You can hear me talk about it. You can hear Ken Asbury before me stand up here talk on it. You can hear Ken, I, and Tom talk on it. At the end of the day, we're a company about, here's where we're going to head. We're going to measure ourselves. We're going to be very transparent.
We're going to deliver. I couldn't be happier with the fact that since 2016, we are delivering revenue, net income, cash from our operations. But we boast a great book-to-bill number, pushed forward by an even better funded backlog number, an overall backlog number, portends the fact that as the period of performance of our jobs get longer, that top-line revenue growth will start to come. 5.5% to us is organic growth. We're already delivering organic growth, almost two times what we delivered last year. So it says it's working. The strategy is working. It's why a lot of our strategy is staying exactly as it's been. We're successful in winning business, delivering with high quality, customer sat. On top of that, we're accelerating our organic growth. We're driving investments in different areas. We got great past performance, doing a great job of bringing on talent.
This has compounded shareholder value. Since 1999, you'll see this chart going back to 1990 if you'd like. If you can't see that chart, we're comparing ourselves against aerospace and defense and the S&P 500, and I would put to you all that investment in CACI is a sound, strong, positive investment going forward, and we are looking to be the management team that continues to drive growth, both top and bottom line, year- over- year in the years to come. With that, as a kickoff and setting the tone around framework, the next individual coming up will be DeEtte Gray. She'll talk about enterprise expertise and enterprise tech. Following that, with John DeFreitas, who will talk about mission expertise and where we're going there, and yeah, not one, but two individuals talking about mission technology. Why is that? Because the way we're going to mission technology is two-pronged.
I wanted a leadership team at my level that was five-wide that made certain that we put the best individual that industry had to offer to make certain we drive growth in each of these areas. Mission tech is a focus. It's not the sole focus of this company. But admittedly, so it's going to be driving some of those bottom-line margins because if we do $5 billion to the top left-hand quadrant, we're not going to grow bottom line. We'll have a great discussion about how much top-line growth we have. But last I checked, top-line doesn't pay the bills. Bottom line does. You want us to be able to grow both. These are the four potentials we'll have going forward. With that, I'll turn it over to Ms. DeEtte Gray. Thank you all very much.
Good morning. I'm DeEtte Gray, and I'm the President of our Enterprise business. What I'm going to do is talk to you about what discriminate us in enterprise business, both in the technology area and the expertise area over the next few minutes. Oops, that was the quickie. I bring 25 years of experience in this industry. I've been doing services, business, and the technology area for most of my career. I joined CACI 27 years ago. Two years ago. I wasn't born yet. I joined CACI two years ago as the President of U.S. Operations. I was previously the President at BAE Systems Intelligence and Security Sector, a business very similar to this business for five years. I started my career in this industry as a software developer at Lockheed Martin.
I was part of the IS&GS business, and I moved up into running some of their portfolios across my career. I'm a very recognized and active member of this industry. I'm actually the chairwoman of AFCEA International, which is a nonprofit organization. It has 32,000 members, which brings together both government and industry to collaborate on advancing information technology. So it's a great organization to be part of, and most of our members of our industry are part of this organization. So as John said, in enterprise, we're delivering expertise and technology that enables an agency's operations. So these are things like their IT networks, their networks, their hosting support, their end-user support, so their mobile devices, their help desk, and things like that. In addition to that, we also keep up their enterprise applications. So we manage their business systems. Think about their human resource.
Every agency has a human resource application of some sort. They have a finance system. They have contractual contracts applications, and they have supply chain applications. So we do the whole breadth of that for customers, and we keep them up and running. In addition to that, we also provide analytic solutions to them. It doesn't do any good if you have all these applications if you can't actually make decisions out of those. So in our human capital systems, in addition to actually building the system, we're also providing the analytics for customers to understand where their talent is and what they need to do. Same thing with our financial systems. We help them keep up with the analytics in their financial systems and know where they are from a budgeting standpoint and things like that.
Analytics is a big part of what we do across all of these areas. For the next 20 minutes, I'm going to talk to you both about the enterprise technology, enterprise expertise, and enterprise technology. I'm going to talk to you about what differentiates us, but I'm also going to talk to you and give you some examples of how we are growing, how we're growing revenue and margins at the same time on some specific programs. Enterprise expertise, we're delivering the talent, and we're delivering the talent with the technical and functional knowledge in support of an agency's operations. From a technical standpoint, these would be talent such as network engineers, software developers. They could be cloud experts. Really the full range of technical things you would think of in an IT environment. In addition to that, we're also providing functional expertise.
We have financial analysts that are part of our staff. We have human resource expertise that work alongside our software developers to produce a better product. It's both types of expertise that we produce. This is a very competitive market, as John mentioned. I can say that we do this better than anybody else. We're winning more programs in this area, and I'll give you some examples of how we're doing that. We do it by our highly qualified talent. We're not looking for programs where customers don't value that highly qualified skill. We're looking for. We pursue programs that customers value the talent. We also do this through disciplined program management. These are very complex applications and systems. We have a very disciplined process that I'll talk to you about.
You cannot be in this market without having the past performance to compete. You have to have similar past performance to go after that type of work. We do have that. We have a great portfolio of past performance that helps us to compete in this area. We have a cost-competitive structure that helps us to compete. We're able to give customers more value at a good price. Our highly qualified talent is really a key discriminator for us. Customers are looking for the talent. They're looking for the talent to execute these programs. This starts with our recruiting, our training, and our retention of these employees. John talked a little bit about how our investments we're making into employees. One of the things that we've been doing for the last few years is really upping our game in recruiting.
Recruiting is a really big deal for us in this market. And so we really have a really good recruiting machine. It involves everybody. It's not just an HR function in our business. All of the line management teams, our program managers are actively involved in recruiting and bringing those people on. Once we bring them on, we also are in training those folks. We're not only training leadership, but in addition, we have a training and certification program where we help our employees keep up their technical skills. The technologies that we're using are changing every day. And so in order to keep up with those skills, we offer the training and certification program and things like Cisco's technology, Microsoft's technology. We've also formed strategic relationships with Amazon Web Services and Microsoft Azure, which are the cloud providers for the U.S. government.
Both are growing, getting larger footprints in the government. And so in order to be able to use those products and help customers migrate their applications to the cloud, you have to have the expertise to do that. So we form strategic partnerships with them to give advanced training to our employees so that they can take that knowledge back and deliver it back to the solutions that we deliver to our customers. And that's been very successful to us. And lastly is about retaining those employees. John talked about our culture. A big part of our retention program is our culture. We spend a lot of time with employees. I can tell you, John does it. I do it. All of our leadership engage with our employees. And employees want career mobility. They want to move around in companies.
And so we've enabled employees to move around to work on different projects so that they stay in their company. Because when an employee comes to our CACI, they want them to come for a career, not just for a certain contract. So we really spend a lot of time on that. We call this our CACI talent machine because it really is a machine. It takes all of those things to take care of our workforce. And really, we have a real discriminator for us. Another part, in order to deliver outstanding performance in our programs, it starts with our program management process. We have a very disciplined process that helps our program managers and our program teams to execute their programs.
We call this our Delivery+ , which helps train not just program managers, but also our finance team to understand, to have the right business acumen to be able to execute on those programs. Delivery+ is a defined methodology, and it starts from the time we started a program all the way through the full execution of the program. And it helps employees from the monitoring of programs. We look at our programs on a monthly basis to make sure that we're executing, first delivering on our commitment to our customers, but also we look at it from a business standpoint. How can you improve margins and revenues and grow scope on that program at the program level? We're a portfolio of programs.
So if you work on, if you look at each program and you figure out how you can grow the scope on those programs and the margins on those programs, then eventually the whole entire business will rise and grow these programs. It gives our program management the tools and best practices that they need to execute. It also helps us improve our quality and efficiencies on our program. And it involves continuous process improvement. So how are we always improving on our program? I'm going to give you some examples of how we've done that in programs and been able to increase the scopes on our programs. So one example of an enterprise program we deliver, we're delivering IT architecture expertise. So this is a wide variety of expertise specialties, really, in IT that we're providing to the Army.
We're helping the army to plan out and to plan out their enterprise, their IT architecture. So we provide experts such as network engineers to look at their network, cloud experts to help them plan on how they would migrate their applications to the cloud. We've been very successful on this program. These employees on this program have taken advantage of our certification and training program. They take those expertise back to their program. This customer values those expertise. They're looking for some of the best architects to help them design out their network. So when they take those back to the customers, they value that. We've been able to increase the scope.
And so in two years on this program, we were able to double the revenue on this program and grow our margins by 600 basis points just by upping the skills of the employees that are already on the program.
Another example of an enterprise expertise program is a program where we have 100 software developers and finance analysts. So I talked about the functional experts that we deliver. And they worked with the Department of the Interior, and they consolidated 85 legacy applications into one ERP, one common financial system for the Department of the Interior. We were actually just won the recompete on this program. But because of this, we were able to, our continuous improvement, we were able to improve our margins on this program by 260 basis points. So this is when I talk about Delivery+ and how we look at each program once a month.
We're looking on how we can bring more capability to customers and both grow the scope so the revenue and at the margins at the same time. So I talked about how past performance is really important in this market. We just recently won, using these past performances I talked about in some of our other past performance, we just recently won a $631 million program that provides full range of IT services to an intelligence agency. So we've been able to leverage those best practices, our expertise, and our past performance to win this. These are the types of programs that we're looking for to pursue in enterprise expertise. We're looking for programs where customers value that expertise and also has a larger size, larger pursuits. So it's not just us that talks about this. Our customers have been very impressed with our delivery and our employees.
And they say we have an extraordinary ability to recruit. We have an innovative training solution. We exceed all their expectations, and our delivery is on point. So these are true testimonies from our customers about our execution. And we're very proud of this. So let's move on to enterprise technology. So in enterprise expertise, we talked about we're delivering talent. In enterprise technology, we're actually delivering technology to customers. So in this case, customers will say, I have a requirement. I have some kind of outcome that I'm trying to accomplish. And then we deliver the technology solutions to deliver those. So a couple of examples are end-to-end IT. So this could be their network performance. It could be their help desk or their end-user support. So where we're delivering their mobility, their mobile devices, and their end-user support. It may be delivering cloud services to them.
We're also helping customers migrate. There's a huge movement within the federal government to move their applications to the cloud. And so we've been instrumental in doing that for several of our customers, migrating their legacy applications and moving them into the cloud, or even to change them to a SaaS model where their customers are actually buying, I'd say, by the click. They want services. They want to pay for the service versus pay for the expertise or people by the hour. And we have delivered business systems and enterprise applications for customers. And I'll give you some more examples of those. So very similar to our enterprise expertise, we still deliver highly qualified talent. It still takes talent to do this. These are complex programs. So our program management is very important on these programs. And you have to have the past performance.
In this case, you have to have past performance that delivers large enterprise kind of applications. And it's still a cost-competitive environment. The difference here, though, is we're developing solutions. So it's not a per-hour type competition. It's more about your business model and how do you put together your pricing on those. But the big difference in enterprise technology is that we invest in repeatable technical solutions. So these are not products we're trying to build. We're actually trying to take customers that have similar problems and develop solutions for them that we can deploy for those customers. This gives us the ability to get technology to them faster or deliver to them faster. And frankly, actually, it helps us to improve our margins and performance on the programs. So we are continuously looking. These are just some examples.
We are looking for areas where we can solve a customer's problem more than one way, where customers that have the same problem we may serve with the same solution, so I'll give you a couple of examples. We built a tool called RMF Eagle, so RMF Eagle is a tool that helps us in the accreditation process, so RMF is the risk management framework, which is the government's accreditation process. So in order to put any kind of new application or connect something to a network, you have to go through security accreditation. It is a very long process, so we built a tool that helps us to automate that process and get through the process faster. It helps us to get capabilities to customers faster, and we use this across multiple programs, so I like to say we build it once and use it multiple times.
So this is just one example. Another example is our Data Fusion as a Service. As I said earlier, customers are trying to get through lots of data. The data insights are really important for them to make day-to-day operational decisions. And so we built a tool that can ingest multiple types of data. It doesn't matter where it's coming from, different data sets, but it puts it into visualization in a way that they can visualize it and make important decisions on that. And so customers are really interested in this to get through their data. Another product is what we call the CACI Cloud Solution Pack, which is a toolkit of how to migrate a customer to cloud. As I said, we have lots of customers that are trying to migrate their applications to the cloud.
And so we built this so that on our program teams, we actually already have a set of tools or things that the program teams can use for execution. That starts from where they're to work with a customer to be planning out their execution all the way through how do you operate in a cloud. And we use this across multiple programs. We've leveraged what we've learned on programs from a few years ago when we've done this. And we package these together so we can use it repeated on other programs. A great example of reuse is our Agile Solution Factory. So this is actually a physical facility where we do software development at scale.
So, a software development factory was built for agile development, where if you're not familiar with agile development, agile development is where teams work together and they integrate with customers to develop software faster. So, they typically will release capabilities to customers about every 90 days. They call them sprints, and so we built a facility just with the environment so employees can work in that environment. In addition to the actual facility and the way the facility is laid out, we also have the suite of tools of the environment that they can come in and build. So, any employee that wants to do software development can come in and get space, if you will, in our cloud, actually, and have the tools to enable them to do software development. We also train our employees on our agile process. So, it's a full suite of those types of things.
And it's not just a lot of companies talk about agile development. It's definitely a buzz. I can say we're actually executing this at scale. And I'll give you some other examples. But in addition to that, the Defense Acquisition University has recognized our processes as best practices. They've actually used our agile software development methodologies to train the government on that. We've also just recognized the Government Innovation Award for agile development. So one of the programs that we host in our Agile Solution Factory in Ashburn is a program we're supporting the Army National Guard. So this is their HR system, or it's a suite of applications because it's not just one application. So we've been helping them. First of all, we moved them from traditional software development to agile development a few years ago. And we've helped them to modernize their applications.
This application supports over 500 users of the National Guard. And the National Guard, of course, is every single state in the United States and the territories, actually. On this program, we were able to improve capabilities to customers faster. As I said, we do sprints. And so we can get capabilities to them faster. We also just recently won the recompete on this program. I think you heard us talk about that in the last earnings call. We won the recompete on this program. And this program's recompeted about every five to seven years in its history. It's the first time incumbent has ever won the recompete on this program. In addition to winning that, we also the customers have been really impressed with the way that we've executed and the results that we've given. They added two other programs into the recompete.
The scope on this program increased. It increased by 27% from the program before. That's a great story. We've leveraged what we've done in our Agile Solution Factory, what we've done on this program. John mentioned IPPS-A. We're also, in addition to that program on IPPS-A, building out the Army's HR system. We are modernizing the Army's HR system. Today, and this is Big Army, not National Guard, but today, the Army has about 65 different applications in order to do their HR processes. Many of them are not connected together. We're actually modernizing that. We're building their next generation, which will be one single system. We'll have the National Guard, Reserve, and the active duty in one system. It is PeopleSoft-based. That's the ERP system behind it.
So we're taking PeopleSoft and we're configuring it for the Army and the Army's processes. When this is deployed, this will be the largest PeopleSoft integration in the world. It'll have over a million users on this application. So this has been a great past performance. So we've taken what we've done for the National Guard, what we've done with the Army and the human capital area and their HR systems. And just a couple of weeks ago, actually, we were just awarded the same type of program for the Navy. So the Navy also has an HR modernization program. And we were just successful at winning that. And that'll support over 700,000 users. So taking these past performance and what we've done in agile development, and we've leveraged that just across those three programs, it's worth $1.8 billion in awards across these three programs.
So this is, again, an example of how we leverage our investments in repeatable solutions, our past performance to continuously win in those areas. So another example, and this is more in the IT infrastructure area, is we provide network solutions for one of the intelligence agencies. It supports over 20,000 users. On this program, we move one petabyte of data per day. Somebody asked me how big that was, so I had to Google it. It's about 60,000 movies. And I think I said it's 13 years of movies. So it's a large amount of data that we move across this network every day. It's also a 24 by 7, 365 network that you have to keep up and running. So we've been very successful at bringing additional capabilities to this customer. And we've been able to grow the program.
We were able to grow our margins by 280 basis points and the revenue by 50% over the last three years, four years, over the last four years on this program by bringing new capabilities to this customer. So we bring some of those investments that we make in other programs, and we bring this. We also deliver. We've been able to improve the performance on this program. This is a good example of this is for most of this program is a firm fixed price program, and so when you become more efficient on your program and you deliver the performance, so it has SLAs on it, then you can also increase your margins on this program, too. Another example of an IT program is where we provide desktop support for the Department of Homeland Security. It supports over 12,000 users at 300 different locations around the world.
On this program, we actually were successful. We built out a roadmap for this customer on where they needed to go from a technology standpoint. They've bought into that roadmap. We continuously bring them solutions on this program. We've also been able to migrate this customer from a per-hour sort of labor where they were buying really expertise by the hour, if you will, to a firm fixed price program that has SLAs on it. Because of that, then we choose how many employees that you need to give them those outcomes. We've been able to improve the margins on this over 1,000 basis points over the last four years. Revenue has increased by 23% on this program.
So these are examples of how we take a program that we have and we use our Delivery+ process where we look at the programs each month. We figure out how we can take new solutions to customers. And we grow both our margins and our revenues at the same time. In addition to that, John talked about winning. I think we're very, very good at winning. We're very focused on winning. And we're focused on going after larger opportunities. So we just won a program for $656 million to provide end-to-end IT solutions. So that's from their networks all the way to their end-user support for EUCOM and AFRICOM, which are in Stuttgart, Germany, which supports over 11,000 users. So again, leveraging past performance we have from other programs and some of those repeatable solutions helps us to win in new customer sets.
Again, our customers have been very impressed with the solutions that we deliver. They call them innovative, state-of-the-art, and they give repeatable, reusable outcomes. So how are we grow? We have been. We're going to continue to grow. So we've been very successful in the last few years winning our recompetes and winning new business and regularly taking work away from others. And we've been doing that by focusing on larger new business pursuits where we can really differentiate ourselves, whether it's through our expertise or through our past performance or the investments that we've already made to help customers solve their problems. And I showed you several examples of how we're increasing scope on our current program. So we really focus our program managers on-contract growth. How do you grow your program where you are? What other scope can you pick up?
And we're driving margin expansions by delivering the right kind of expertise, the customer's value, through strong program execution and investing in those repeatable solutions. So this has been our secret sauce, if you will. And these are the things we'll continue to do. It's a lot of focus and a lot of discipline across the business. So I thank you for your time. And I think we have a 10-minute break. I'm supposed to tell you when to be back. So that would be 10 till, please. Thank you.
Okay, everybody, Dan again. We're going to get started in just a minute or so. Okay. So to continue the discussion, John DeFreitas is going to come up and walk us through mission expertise. John.
Hey, good morning, everybody. I'm John DeFreitas, and I'll provide an overview of how we grow by providing our mission customers the expertise they need to accomplish their mission. Now, I manage a large portion of CACI's work supporting our mission customers, predominantly our national security mission customers. I joined CACI through the L-3 NSS acquisition in 2016, and I've worked in industry for about 10 years. Prior to joining industry, I spent over 33 years in the Army as an intelligence officer. I've had the opportunity to serve as a senior intelligence officer for several commands, served as the commanding general for the Army's Operational Intelligence Organization, and served as a Deputy Director for Analysis and Production at the National Security Agency. Now, for most of my career, I've been a customer in need of the mission capabilities that CACI provides.
My background and the background of our team gives us the insight and the experience to know our customer's mission, anticipate their needs, and provide solutions to help them accomplish their mission. And we use our experience to shape and win work. Now, before the break, DeEtte provided an overview of how we support our enterprise customers with expertise and technology. Now, I'll discuss how we support our mission customers with the expertise that they need, and I'll be followed by Kevin and David, who will discuss how we support our mission customers with the great technology that their teams bring. Now, in our part of the company, we grow by delivering the mission-domain talent that our customers need for their mission success. Now, let's look at the type of mission expertise that we provide. We'll start with intelligence operations. We provide expertise in all intelligence disciplines.
For example, signals intelligence, human intelligence, geospatial intelligence, counterintelligence. And we perform all of the intelligence functions. That's collection, analysis, targeting, collection management, information security, and others. And we provide our expertise to several military commands, military services, and intelligence agencies. Now, in special operations, we provide expertise in three major functions. One, full-motion video operations. That's building patterns of life, developing target folders, reporting, and supporting strike operations. Two, mission rehearsals. We build a virtual environment that allows special ops teams to rehearse their missions before execution, which really improves their mission success. And three, information operations. We provide the expertise to enable our customers to conduct information operations across the Middle East and North Africa. Now, for asymmetric warfare, CACI provides the largest asymmetric warfare capability to the United States government.
And we provide expertise to counter two major threats, improvised explosive devices, or IEDs, and more recently, the growth in unattended aerial systems, or drones, as they're known. And as you know, these are both growing global threats. Now, for our technical intelligence operations, we provide the engineers and scientists who analyze or reverse-engineer threat systems, capabilities, and facilities to determine vulnerabilities and to identify how to exploit those vulnerabilities. We also provide the engineers and craftsmen who build prototypes to validate the feasibility or effectiveness of an asymmetric threat. Now, for example, if the government asks, can someone buy a drone off of Amazon, weaponize it, and use it in an attack? Our teams will build a prototype so that government or law enforcement officials can learn what's in the art of the possible and how to counter such capabilities.
Our customers now call what we do their learn, track, and understand cycle. Now, we provide advanced training for critical mission skills. We have the course design experts, the subject matter experts, and the capability to deliver tailored training when and where needed by our customers. We provide more advanced cryptologic language and culture training to the intelligence community than any other company. Each year, we train over 30 languages and dialects, conduct over 50 area studies courses, and deliver almost 100,000 hours of platform instruction. And 41 of our courses are certified by the American Council on Education, which means that the government students that go through our courses get college credit for those courses.
Now, we provide training in full-motion video operations for our special operations customers. We provide advanced counterintelligence training for many of our DoD customers. And we provide advanced special ops training for U.S. Navy SEALs.
Now, CACI has had a rich history of providing logistics expertise to support stateside and overseas operations. Material readiness and logistics expertise remains a core competency of ours. And for ship modernization, we provide the experts to design, engineer, test, and provide contracting support to modernize 17 major U.S. naval platforms, including submarines, carriers, amphibs, auxiliary, and special purpose ships. And we also help modernize foreign ships that are managed through the U.S. Foreign Military Sales Program. Now, as you hear the mission expertise we provide, please remember two things. First, expertise in these areas is almost exclusively developed through U.S. government service. So you don't get this expertise by working at Costco or Bank of America or General Motors. And second, these skills are not commodity skills. Far from it. They're high-end mission skills, and they remain in great demand.
Now, let's look at what drives our sustained growth. First, we enjoy a healthy market and growing demand for our mission expertise. Next, probably one of the least known but most powerful growth drivers for us is that today, national security missions are conducted by a growing number of contractors. Now, when I was in uniform, when I was still in the government, I never saw a contractor performing mission support that we provide today. Today, there are thousands of contractors providing this type of mission support for national security missions. And CACI provides a large and growing portion of the contractors supporting our customers' missions. The government's current workforce model requires a mix of government employees and contractor employees to accomplish its mission.
The government is becoming more and increasingly dependent on contractors to fill staffing gaps, to meet their surge demand, and to provide new and evolving skills. Now, another growth driver for us, unfortunately, there's no shortage of national or homeland security challenges. Now, although many of our employees are currently engaged in counterterrorism operations in Iraq and Afghanistan, most of the expertise that they provide is fungible and in demand by other agencies or to support other theaters of operation. Now, we anticipate and we're well-positioned to manage personnel realignments resulting from force reductions in Iraq or Afghanistan if or when they come. And also, the reemergence of near-peer competitors is increasing demand for our expertise by new mission customers. Now, for our final driver, for almost 20 years, fleet modernization has been delayed due to budget priorities supporting operations in Iraq and Afghanistan.
With the advancements in Russian and Chinese capabilities, DoD's priority on navy fleet modernization presents solid growth opportunities for the expertise we provide. Now, the bottom line here, given the drivers that I've outlined, we're really excited about our growth conditions. Now, contrary to popular belief, there are barriers to entry to our mission work. And key among them are a company's capability to conduct classified work or to provide a classified working environment that the government needs to use. Over 85% of our employees conducting national security missions require high-level security clearances. CACI provides our customers with several secure facilities equipped with approved classified communications and mission information technology. This enables us to respond to our customers' current surge and evolving demand for mission space.
The lengthy time, high cost, and onerous government processes required to obtain security clearances or to obtain classified facilities and communication discourage many from attempting our mission work, and since Edward Snowden, the government security processes have gotten even more challenging. Now, another barrier is the company's ability to recruit people who have the required mission skills that our customers need. Many companies, especially smaller companies, choose to recruit and staff people with easier-to-find skills. They can outsource or augment their company's recruiting capability with recruiting agencies. However, staffing agencies rarely have success finding and recruiting the people with the expertise we provide. It's just not a good business model for them. Now, much of the mission expertise we provide supports overseas operations.
Executing this type of work requires a company to have infrastructure to conduct the types of missions like supporting personnel rotations into a combat theater, or guiding employees through a complex deployment and redeployment process, or handling pay that by law must go through another country's banking system, or obtaining security clearances for native linguists, or performing dozens of other processes required by our customer. The time, expense, and know-how needed to establish mission support infrastructure prevent many companies from competing for much of the work that we do. Now, another barrier is workforce skill development. As I mentioned, much of the training and expertise required of our workforce is predominantly provided by the government. Now, CACI develops and provides the training needed to ensure that our employees have critical, high-demand skills and that they meet the customer's demanding mission standards.
Any lack of corporate commitment or capability to develop key mission skills inhibits access to our type of work. Now, we still have competitors, but we know them and we compete with them well, and we don't often face new competitors. Now, how do we differentiate ourselves from our competitors? It's really by being exceptional at the blocking and tackling of our business. Exceptional program performance is a key to retaining our work and winning new work. Now, earlier, you heard John Mengucci talk about how program performance is one of our major discriminators. Probably equally important is we cultivate and maintain strong and enduring customer relations, and we serve as our customer's trusted partner. We work hard to make their mission success our mission success, and this ensures that our customers favor us with new work.
Now, our capability and agility to meet dynamic changes is another major discriminator for us, like our ability to provide experts on short notice to support crisis operations, and by the way, our mission experts are deployed in over 25 countries, and we're supporting eight ongoing U.S. operations currently, or like our ability to respond to mission surges as we did with Russia annex Crimea. One of our customers had an immediate requirement for us to provide Russian cryptologic linguists or language analysts while we were also providing them additional Pashto and Dari language analysts to support surge operations in Afghanistan. Now, we're often more agile at responding to rapidly evolving demands than either the government or our competitors, and our customers normally reward us for it. Now, I'll give you a couple of examples of how our differentiated mission expertise and agility helps us win work.
I'll start on the left. A couple of years ago, one of our customers needed to increase full-motion video operations. The demand for full-motion video operators far exceeded the demand, far exceeded the supply, and the government couldn't provide the training needed to rapidly increase that supply. We created an FMV Academy tailored to rapidly meet the customer's increased demand for qualified operators. We partnered with the customer to create a realistic training environment. We piloted the course. We required our employees to validate through government testing that they were fully qualified to meet mission requirements. Now, since we set up the Academy, we've achieved a 98% pass rate, and we have been able to meet the increased staffing numbers and quality that our customers demand.
And because FMV operator shortage existed across the government, we bid our training model to another customer, and our training model was key to us winning that customer's new FMV contract. Now, another example on the right. When the U.S. decided to re-enter Iraq, one of our customers had an immediate need to fill over 200 language operation positions in Iraq with contractors. Now, at the time, our intelligence work in Afghanistan supported the same mission customer and the same contracting shop. And we were performing incredibly well in Afghanistan and had just successfully met a surge requirement for over 100 additional experts. So the customer knew firsthand our capability. Because they valued our expertise and performance, our customer had high confidence that we could fulfill the new requirements very, very quickly.
Our customer assessed that our solution offered little risk to their mission failure and that they judged it was superior to other bidders, and of course, we won the contract. Now, in these examples, our performance and trusted partnership were differentiators that enabled us to win and grow new work. Now, how do we grow? It's pretty simple. We retain our current work, and we take work away from others, but we also position ourselves to win new and evolving requirements when it happens, and we achieve sustained growth with our solid program performance, superb customer relations, and disciplined business development and capture. There's really no magic here. It's really discipline. We help our customers achieve contracting efficiencies that subsequently benefit us both. We help them optimize their workforce.
This is really important for our customers since acquiring their contractor workforce is significantly different and far less understood by them than acquiring their military or government workforce. We help them build flexible contract vehicles with a scope and ceiling that allow them to meet rapidly changing mission demands, and as a result, we're frequently rewarded by both top and bottom-line growth. Now, one of our most exciting ways that we're growing is by combining our mission expertise with our mission technology capability to win new work. Now, in the past, our team could recommend improvements to the customer's mission outcome, but we had limited ability to provide a technology solution if that was required.
Now, what you're about to hear from Kevin and David will give you a good sense of how CACI grows by leveraging our mission expertise and their technology offerings to provide a broader range of mission solutions to our customer. Now, this user-developer technology environment that we built is a great growth driver for CACI. Now, here are a couple of examples of how we grow our mission expertise work. Now, one of our customers, we'll start on the left, one of our customers needed to consolidate several counter-IED contracts to gain efficiencies and mission effectiveness. Now, their contracts had been issued to several different companies over a period of time. We recommended a contracting approach to consolidate 14 different contracts into one, and our customer followed our recommendation. We created the management structure and the team to ensure customer success, and we ultimately won the contract.
Now, this win was a contract called F3I, which was CACI's largest single award IDIQ contract at $1.8 billion. And it's enabled us to significantly grow revenue and our employee base over the last two years, and it remains positioned to continue strong growth through the remaining period of performance. Now, another example. Because their work is dynamic and often reactive in nature, one of our customers traditionally obtained their contractor support using contract hour or labor hour contracts. They were under increasing pressure to demonstrate to their overseers the value that taxpayers got from labor hour contracting approach. Now, this pressure had been building for three to four years, and our customer was pretty desperate for a solution. We developed a model for transitioning labor hour work to completion task work.
This model enabled our customer to still respond to rapid changes in their mission environment and begin to effectively report to their overseers the operational value obtained for their budget. Now, we piloted the model with our customer. We validated the concept, developed task conversion processes, and trained their staff to transition labor hour requirements to completion task requirements. Now, that approach has been very, very successful. The customer now has satisfied overseers. They get great mission support. Their budget actually increased, and we get to implement efficiencies that improve the customer's mission and significantly increase our margins. Now, we achieve growth by offering creative solutions that come from our deep domain expertise and by executing important customer missions at a very high level. Now, our people, with their extensive mission expertise and superb performance, are a great discriminator and great growth driver for us.
Now, I'll leave you with a couple of examples of our team's extraordinary mission contributions. On the left are three members of our team receiving the Department of Defense Medal for Valor for some of the work that they did in Afghanistan. Now, the Medal of Valor is the nation's highest award for valor given to non-military personnel, and members of our CACI team have won 25% of all Medals of Valor given by the United States, and on the right is a certificate our team received for directly supporting operations to take down Osama bin Laden. Now, I'll grant you that these recognitions are at the high end of the award spectrum. However, they do represent the superb quality and expertise that we provide to our mission customers each and every day. Thanks for your attention. I'll be followed by Kevin Kelly.
Well, good morning, everybody. My name is Kevin Kelly, and I am one of two presidents that's going to talk to you today about our role in managing and growing CACI's mission technology business. For those of you who've not met me before, I have almost 30 years' experience in this business. The last seven years was as running LGS Innovations as its CEO, but had joined Bell Laboratories in 1997 and worked there ever since.
I have a background that is both government and contractor-based, having worked for the CIA, Lockheed Martin in the same business unit as John and DeEtte, and General Dynamics briefly before going to Bell Laboratories and spending the rest of my career with LGS. I joined CACI in March of 2019 through the acquisition of LGS, and I'm proud to be a member of John's management team as we seek to grow the mission technology business.
I'm an engineer at heart. Hopefully, you'll catch on to some of the passion. How many engineers in the room? There's a few. There's a few. I have an electrical engineering degree from Penn State University and a master's in engineering management from George Washington University. Engineering and innovation is my passion. I've spent my entire career serving as an engineer, a researcher, developer, then moving into business operations, sales, marketing, and eventually into the executive ranks, where I had the pleasure of serving as CEO and on several boards of both private companies, industry associations, and academic units. So by now, you've seen this matrix a few times. We've put it on the walls. It's on the floor. It's on your coffee mugs. John talked about it. Obviously, I'm going to be talking to you about the lower right-hand quadrant. So we're in the southern hemisphere.
I guess this is kind of like Africa, somewhere around there, Southeast Asia. Lower right-hand quadrant where we develop mission technology and ostensibly do three main things. We develop hardware and software systems that are used to enable the signals intelligence mission of our customers and enable the modern-day electronic warfare, which is the combination of SIGINT, COMINT, PHYSINT, and cybersecurity into a singular multi-mission solution. We help deliver actionable intelligence through the creation of software and analytics that make sense of all this collected information so that you can take information and turn it into intelligence, which is then used to enable an intelligence or a DoD mission environment.
And lastly, it's an innovation engine, an R&D-centric business that creates its own intellectual property that is owned by CACI that earns us distinction, those differentiated offers across the company that earns us a large amount of sole source work and is extensible across the entire CACI enterprise. So I'm going to give you some insight into each of these areas. So why does it take two of us to talk about mission technology? Well, we're not as good as DeEtte. That's it. We have two different businesses in CACI, two different business models, two different market engagement models within the mission technology area.
The part I'm tasked with are the mission unique solutions, largely an R&D-centric business that meets with our mission partners, as John DeFreitas just laid out, meets with the CACI and the government mission partners who are operating those missions to understand what they're capable of and, more importantly, what they're not capable of as they're in the field. Once we identify those mission gap areas, we apply our innovation engine, and we invent brand new solutions. Before the RFP hits the street, before a SETA has contemplated what the solution might look like, we're inventing. We share that innovation with our government customer. We seek feedback. Oftentimes, they invest with us, and we create brand new solutions to bring to the marketplace. Because they're very focused on a specific problem and a specific mission, these deliveries tend to be bespoke.
They're unique to that mission, so they're going to be lower volume solutions. Because they are the only solutions like it in the industry, they're going to be higher margin than our competitor solutions. We're not looking for me-too products. We're not looking for me-too software, me-too functionality. These are brand new mission-enabling technologies that we deliver direct to the mission. In the process, we produce intellectual property that is extensible across the company. The economics of this, given that we are focusing on the most challenging mission initiatives within the government, means that we've got an everlasting pipeline of opportunity to apply our talents. So we've got a good pathway to top-line growth.
Because we're unique, because we're often the only ones in the industry delivering that solution, we demand a premium for that technology in the same way that your leading technology companies do in the commercial space. No bucks, no Buck Rogers. We create the solution. We demand a premium for that. That premium pays for the innovation engine. This is a cycle that runs over and over again. This business is different than what my colleague David Nack's going to tell you about, where he takes that intellectual property and creates larger volume, multi-mission, multi-agency solutions, many of which you see out in the hallway. We certainly didn't bring them all. This is where he can develop products that are going to serve a multitude of missions sold at a much larger volume with commercial-like margins.
It's a very exciting time to have both the innovation piece and the product piece within the same company. So I won't steal any more of David's thunder. He'll tell you a lot more about that in the coming slide. So we talk about the areas where we're practicing principally, C4ISR and cybersecurity. You can't go to a government contractor meeting without hearing about C4I and cybersecurity. These are the largest investment areas outside of IT and infrastructure that the government spends their time and money on. This is where we're practicing. We're not all things to all people. We focus in on a few key areas. Let me give you a couple of examples. Most of what we do, because it's mission unique, because it's leading edge, is very classified. So I don't have a lot of customer names to share with you.
I don't have a lot of mission success stories to share with you, but I can give you some high-level examples. Command and control. CACI developed and manages the deployment of and the operations of all of the scheduling and the mission management for the overhead assets, the satellite constellations operated by the United States Air Force and by several intelligence agencies. This is creating from the ground up software that does all of the scheduling to line up the mission priorities so that we have the right assets in the right time collecting the right information and downlinking that. Within the communications area, some more conventional communications and unconventional communications. I'll give you a couple of examples, starting with unconventional.
CACI has a free-space optical communication solution that enables communications between satellites and between satellite constellations and the Earth without using the RF domain, solely in the optics domain, using laser-based technology. I'm going to tell you a lot more about that in a few slides, but using photonics to communicate between satellites and satellites and the ground to get out of the congested RF spectrum area and to get into an area where you have unlicensed point-to-point secure, high data rate, reliable communications. More conventional communications. A good example of that is the $122 million award we received from NAVAIR group to modify terrestrial systems, vehicles, backpacks to incorporate modern-day communication solutions and sensing solutions. We call that the CRIC-ES. This is to enable emergency response, crisis response missions operated by NAVAIR.
In the intelligence area, we develop everything from the underlying sensor systems, software, and most importantly, the analytics. A lot of what DeEtte talked about in the business and IT sector, the technology and the expertise to make sense of information so that you can do something with this. All of the fusion, the analysis, the machine learning, the AI that goes into creating actionable intelligence is what CACI spends its time on in the intelligence area. You may have seen recently a $415 million award on a contract called E3I, where we provide this to the Army TENCAP program. Soup to nuts, complete system that incorporates communications, sensing, intelligence into a unified platform. Within cybersecurity, there isn't a company in our market that doesn't talk about cybersecurity. When we get to that area, I'm going to tell you specifically what we do in cybersecurity.
But as a teaser, we focus in a very specific, unique area of the network, of the infrastructure. We focus at the core. A little bit more difficult to practice in this area, and I'll shed some light on that in a moment. What enables my business, this portion of CACI, is a business model that's driven by innovation, as I mentioned earlier. We seek to understand what the missions can and can't do. The most valuable conversation I can have is with our mission partners. Come back and tell us what happened. How did it work? What do you wish you had when you were out there? What surprised you in the mission environment? What are you worried about? Let us take that on. I love to ask him, tell me your top 10 problems.
What's keeping you up at night? There's a chance we can take one of those off the table. Not a lot of companies can say that. We apply our innovation engine to solving those problems. As I mentioned earlier, it tends to mean lower volume sales, but higher margin because we're the only ones out there. We invest in that R&D ahead of the RFP, ahead of the requirements. We invest in those solutions. The government often invests with us when we expose our R&D to them. And together, we hasten the delivery of those solutions to market. I'll give you a good example. 2005, the war in the Middle East. Soldiers are dealing with a signal set, a commercial signal set that no government ISR system was capable of handling. They came back to us and they said, this is what we're seeing. They were using this technology.
They caught on and they now started using this technology, and I'm being a bit vague intentionally. How can we identify and classify those signals? How can we geolocate those signals? How can I make sure that's not a civilian teenager versus a combatant? We need intelligence systems that can do this. We invested $5 million in the creation of a prototype. We had a lot of success with that prototype and we exposed it to the mission. They encouraged us to go to the next step and we developed a $20 million independent research and development program that we were going to pay for.
And the government invested another $20 million on top of that because they said, that's exactly what we need and we need to bring that to market. Within 18 months, we had deployed solutions at volume going out to the field and the government awarded us a $500 million sole source IDIQ contract. We're the only awardee. The RFP never hit the street. Our competitors never saw it. We didn't release it to the press. We're never going to. This is the type of business we're in. When we hit the ceiling of that $500 million contract, they issued another $500 million contract. We're on our third $500 million contract. That's one example. It's not a one-trick pony. This happens across our business. The only way this happens, we're in a highly regulated industry.
The government has to prove to themselves, to their acquisition authorities, that there's only one source on the entire planet where they can acquire that technology. That's the only way these things don't get competed. They have to demonstrate from a technology and a market standpoint, it doesn't exist anywhere else. And then they can do that. To do that time and time again with the same customers in the same technology practice area requires an innovation engine for us to stay one step ahead of our competitors in the market, which helps the mission stay one step ahead of the adversaries in the field. It's the only way this system works. It's a continuous process. The wonderful thing is we get our R&D paid for. It is a growth path for us from a revenue standpoint.
Because we're differentiated, it allows us to expand margins and pay for that innovation engine. And because we're paying for a lot of the fundamental technology, we own the intellectual property. We can extend it across the company. We can defend our intellectual base against competitors. As we sit here today, CACI has 326 patents in hand, lots of patents pending, and on average, we're generating 20 new patents a year. Keep in mind, we don't patent most things. We want to keep most things a secret, so there's a lot that's kept in trade secret, but just to give you an idea for the volume of intellectual property that we're dealing with on a daily basis. So what's this model of innovation?
Going back to what my colleague John DeFreitas was talking about, understanding the mission and the fact that more and more contractors, more and more of CACI is deploying with the mission. They have firsthand experience, so we meet with them. That feedback loop gives us valuable insight into what the mission can do and what they can't do. We apply our money on the left side of that slide, CACI investment, U.S. government investment to create those bespoke solutions that are going to solve those hard mission challenges. John talked about invest, partner, and acquire, that methodology. I like to use buy it, build it, borrow it because I'm not as smart as him and I have to use three B's so that I can remember what it is. Buy it, build it, borrow it. We go through an analysis.
If that gap exists somewhere and there's some small company out there or a large company out there that has that solution, we're going to try to acquire it because speed to market is everything. It solves the mission challenge and keeps us ahead of our competitors. So we're going to deploy that capital and acquire that asset. That's buy it. If it doesn't exist out there, I can't find it anywhere. I have to invent it. That's build it. If it exists out there and it's some small startup and it's 10 guys in a garage and they created this thing and they're not really a very valuable asset for us to acquire, but I need that intellectual property. Or it exists in a university laboratory somewhere and I can't buy a university. Can we buy a university? No, we can't buy a university.
I need to get a hold of that intellectual property, so we borrow it. This is where we use our intellectual property library as trade. I expose them to some IP that they need. In exchange, I get their IP. We build that solution, get it to market ahead of our competitors, solve the mission challenge. As a result, what comes out of that machine is new intellectual property that's leverageable across the company and most notably in the products area, and David Nack's going to tell you about that, as well as occasionally the underlying foundation for the next generation product. Sometimes that bespoke solution becomes the next generation product and we can build upon that for larger volumes.
So this is the engine and it just keeps going, just keeps feeding itself because we're paying for our R&D through contracted R&D and that's creating valuable revenue and margin growth that helps pay for this entire system. So I'm going to dive down a little bit within each of these areas. C4ISR. The battlefield is an ever-increasing wireless environment. Okay, that iPhone in your pocket has a GPS radio. It has a near-field communications radio so you can use Apple Pay. It's got a Bluetooth radio so you can listen to your music. It's got a 2G, 3G, and 4G radio. And despite what Apple says, it has an FM radio. All of these radios are receiving and transmitting in your pocket all day long. The battlefield is no different. Everything is becoming more connected. They have multiple radios.
We rely on that RF spectrum and the RF spectrum is becoming very, very congested. 5G is going to make it even worse. 5G is an architectural change. All of these Zigbee, OpenFog, near-field communications are low power signals, low propagation distances, but it's raising the noise floor. It's almost impossible to figure out who's who in the zoo. Where's that transmission coming from? Is it friend or foe? Do I need to worry about it? Was it here last week? I don't know. I need the analytics. I need to be able to see the signal. So we're focusing our practice in very high fidelity, signal identification and classification, monitoring the RF spectrum, making sense of who's friendly and who's foe in that environment. We do that through the creation of passive and active SIGINT systems.
These are systems that can make sense of all of the signals that are out there and monitor it in real time. Advanced direction-finding systems to precisely pinpoint exactly where that radiator is, where is it coming from, and all of the intelligence around it, the software that makes sense of all of this information because think of the number of radios I mentioned and all the numbers of devices that are in here and transmitting. I can't possibly make sense of that without some pretty sophisticated and advanced analytics. All of that tooth to tail enables the next generation C4ISR communications and sensing systems. As we move into cybersecurity, everybody talks about cybersecurity. Most of what they're talking about is the edge. They're talking about the handheld, the laptop, the tablet, sometimes the server, sometimes the cloud infrastructure, but they're talking about the edge. We practice in the core.
Why? Everything on the edge has to be authenticated by something in the core. Everything on the edge is going to get service that's provided to it through the core. All of those advanced services in 5G and 4G networking are brokered at the core. So you can attack the edge and it's good that we have companies focusing in on that area. And DeEtte certainly deploys a lot of solutions that help protect the edge of IT, but we're focusing on what makes the core vulnerable. We have 80 racks of equipment, global equipment that is operating 24/7. We study the vulnerabilities. We identify those vulnerabilities. We share them with our customers. Occasionally, they tell us to go work with the vendors to help close those vulnerabilities so that they can utilize those systems in their core safely.
And then on occasion, they share those vulnerabilities with the cyber operations group that then use them to rehearse and execute a modern-day cyber mission. C4ISR and cybersecurity are pretty conventional topics. Let me bring you into the future a little bit. Photonics. I talked about the crowded RF spectrum. The need to get to unlicensed domain. The need to get to higher data rates, higher speeds. CACI, through its acquisitions and its heritage, has been investing in optical communications for 30 years. This is not brand new to us. This is an area that has an extremely high barrier to entry. Two guys in a garage can't compete with us unless they have an $80 million clean room in their garage. This is an area where we have the infrastructure, the people, the intellectual property to develop next-generation optical communication solutions.
In fact, this February, we're going to be delivering to NASA a fully integrated optical terminal that will enable high-definition television live broadcast from the Moon. It's going to be integrated into the Orion spacecraft. So we just all watched the 50th anniversary of the Apollo mission and all that grainy footage that we saw of Neil Armstrong's first steps on the Moon. The next time the world sees live imagery from the Moon, it'll be a high-definition video stream that comes over one laser, CACI's fully integrated optical terminal that's mounted on board the Orion spacecraft. It's the only way to transmit in live fashion all of that data simultaneously down to the Earth. And there's one company that can deliver that, and that's CACI.
All that underlying technology, we have some proprietary techniques for light amplification where we use rare earth elements like erbium and deuterium to amplify light without the need for a lot of external pump lasers. We have optical modems that convert electrical communications to optical communications, and then the fully integrated terminal, which is the telescope, the gimbaling, the amplifier, and the modem, all combines into a very small package that enables that communication. Those underlying technologies are also what we use to enable our LiDAR systems, the light equivalent of radar, for measuring and sensing using light energy instead of RF.
Good luck jamming that, getting out of the RF domain, and then into enabling multispectral imaging, the non-visible light, being able to see footprints in the sand, foliage-penetrating imagery systems that enable you to have a much more rich picture of the battlefield without relying on the RF domain. This is the future of where communications and sensing is going. This business has a wonderful pipeline in the government space. In fact, CACI has won 100% of NASA's free space optical communications programs that have been competed thus far, 100%. Those same solutions are needed by the commercial industry. And the good news is the builders of those commercial communication satellite buses are the same ones that build those buses in the government space. So this is not a new market entry for us. We have the same partners providing the same solution, but it's serving two different markets.
So we're very encouraged about photonics and where we're going with that in the future. That intellectual property library is what we use to enable our business. It is the fuel for the engine, but it's extensible across the entirety of CACI. And you're going to hear more about that from David. But enabled by that feedback loop, the development of intellectual property and the ability to take that innovation and embed it in systems that are sold both to solve the mission-unique solutions, but also multi-mission environments is what we think makes us very unique. As I said before, I've been in this business almost 30 years. I've never seen a company that had everything from the innovation, the products, and the long services and support tail all within one company. This gives us a very unique advantage and enables us to be technologically differentiated. So I'm very proud.
As you can tell, I'm passionate about technology and innovation. I'm proud to be running a portion of CACI's mission technology business. One of the questions I was asked this morning is, what is the cultural differences between an LGS Innovations and a CACI? I'll remind you that CACI began with Markowitz and Karr, Markowitz an innovator working on algorithms, Simscript, Karr, an entrepreneur who knew how to make a business out of innovation. This is the roots of the company dating back to 1962. I was pleasantly surprised to find that innovation engine alive and thriving within CACI. And when we combine the assets of all of the recent acquisitions, Six3, Mastodon, LGS, Ticom GEO, what an amazingly powerful innovation story that we have. Our customers are absolutely giddy about what we're going to do next. They want to see what happens next.
This innovation engine, I think, is unparalleled in the marketplace, and I'm really proud to be a part of it. We're focusing this on C4ISR and cybersecurity. Those are the biggest challenging mission areas, the biggest growth areas for the business, and provide us a good pathway for continued revenue and margin expansion, and because we own that intellectual property, it's extensible across the business, but most notably in the area that you're going to hear a lot about next, and that's CACI Products. Thanks for your time this morning, and I'm going to turn things over to my colleague, David Nack.
Thanks, Kelly. Good morning. My name is David Nack, and I'm President of CACI Products Company.
And I'm going to spend the next 20 minutes or so talking about how we harness that mission expertise that John DeFreitas was talking about, as well as that engine of intellectual property creation and innovation that Kevin was telling you about in order to create products and solutions that not only differentiate CACI, but drive that top-line growth. And I'll explain to you why it contributes to our constantly expanding margins. So rather than run you through my resume, I thought what I'd do is share a story from early in my professional career that I think informs what we're trying to accomplish with CACI products for CACI today. So my first job out of government was as the director of sales of a small mobile satellite communications company in Dallas, Texas. And my first week on the job was also my very first trade show.
Of course, being young and arrogant, I was really going to show up my boss and show how many deals I could close at this trade show. We packed up the car, headed down from Dallas to Houston. It was an oil and gas communications and electronics show, and proceeded to schlep our booth and all of our hardware into the convention hall, set up our booth, and then, as all good salespeople do, as soon as you're done, is you walk the floor to see what the competition looks like and to see what they're selling. I was disappointed to find, I think it was within the third booth that I walked by, I found a display that had the same exact satellite equipment on display as was in our booth.
And I looked up at the graphics, and it turns out the graphics showing the satellite coverage and the different services and plans you could get also looked pretty much just like the ones in my booth. And I thought, man, what rotten luck to have a competitor just two booths down from me. And it turned out that the odds of this happening were actually not all that bad because as I walked around the convention hall, I found eight more companies that pretty much had the same exact satellite gear on display in their booth and pretty much the same graphics on display.
I thought to myself w ow, this may be harder than I thought in terms of trying to close a bunch of deals to impress my boss. I held out hope that she had some secret on how we could convince the customers to buy from us as opposed to all those other vendors. I made a beeline back to my booth, found my boss, and said, hey, there's nine other people here doing the same exact thing as us. What's our secret? How do we convince these customers to buy from us instead of from those other suppliers? She looked at me and she said, well, that's kind of hard. We don't want to compete on price because there's not much margin left.
So basically, winning personality and a winning smile will carry the day. That's when I learned that I neither have a winning smile nor personality because I didn't win very many deals that day, and I also learned that if you leave your current job and you want to go pursue a career in sales, please do not pick an undifferentiated, commoditized product or service space to do it in. Bad idea, but the good news is we learned our lessons, headed back to Dallas, and we proceeded to transform that company, and the way we did it was we used the profits of that company to invest in developing products and solutions that we wrapped around those services, wrapped around those satellite hardware terminals.
And shortly after launching those new products and solutions, we had tripled the number of satellite terminals for which we were managing billing, and we had doubled the profits of the company. And that's the takeaway for what we're trying to do with CACI Products today: drive growth through the development of product and solutions while expanding our margins. And let me tell you how we're going to do that. So by now, I'm expecting like tonight you're going to sit bolt upright, and this is going to be burned in the retina of your eyeballs. You know this chart very well, and I would assume you know by now that CACI Products Company squarely fits within the quadrant of providing technology that enables our customers' mission. And specifically, we're focused on that top bullet.
We build systems and products that enable the tactical warfighter to conduct signals, intercept operations, intercept enemy signals, conduct electronic warfare operations, and communicate. Those are the products that we're focused on within CACI Products Company. So next, I'd like to talk a little bit about the business model we use to deliver those products to our customers. Now, the products, I'm hoping that you have some time to stop by our display area where you can actually see real products like the ones that are on this slide. And Tom is going to go into a little more depth on the technology of what these products are. But essentially, we supply these products primarily to the ground forces of the U.S. military, so Army, National Guard, Marines, Special Forces. That's our focus.
And so what do I mean when I say we use a commercial business model to do this? Well, to explain that, let's start by talking about the traditional model. The traditional business model for delivering technology to the government customer space starts with a requirements process that's internal to the customer. The customer is identifying their gaps and needs, creates a set of requirements that they have, and this is a process that can take a significant amount of time depending on the complexity of what they're trying to solve and the number of stakeholders involved. But eventually, those requirements are codified and enter into what I kind of call that draft RFP process. So this is the process where a draft RFP goes out to industry.
Industry starts commenting on it with 300 questions or what have you, and you bounce back and forth until finally that RFP congeals into a relatively defined set of requirements that proposals can be issued against. The proposals are put in, an award is made, and we now get to enter into the development process. And there's a very important point I want to make here about the nature of that development process. That engineering process is pretty much like any commercial product's engineering development process, with the exception that it's governed by an overarching contract. And so for those of you who have been involved in developing products, you know that as you proceed through the development process, you have to make technical choices.
You either need to work upon an unexpected impediment, or you need to embrace an opportunity that is uncovered as you go through the development process. When a commercial company does that with their own investment dollars and their own developers doing the work, they are able to make those decisions rapidly and move to the finish line. When it's a contracted activity, it's a negotiation. So each time you want to make a bob or a weave in that development process, you're at the negotiating table. And hopefully, you can resolve that with your customer without having to go back to contracts because if you have to go back to contracts and issue a change in the contract, then that's going to take even more time.
The takeaway from this is that although at the end of the day, this process is very good for delivering what the customer asked for, it's not a particularly fast way to accomplish that. And if you're in a technology space where the rate of technical change is fairly fast, you run the risk that you will receive this technology at the end of the acquisition process as it enters the obsolescence period. And there needs to be a different way to address these needs. And so the commercial business model for many of our customers is very attractive because instead of waiting for that requirements process to come out of a particular customer, here at CACI, we're leveraging that mission expertise that John DeFreitas told you about in order to anticipate what an entire market space is going to want or need.
And so we're starting our process much earlier than if you had to wait for that requirements process out of a specific customer space. And once we understand what those gaps and needs are going to be by leveraging that mission expertise, we get to go to the candy store that Kevin Kelly was telling you about and look across all of that intellectual property and decide how do we best leverage our intellectual property to get a minimum viable product to market as fast as possible because we want to be first to market. And if we're doing this right, we are talking to our customers with a product that can do 80%-90% of what they want done before they even exit the requirements process. And that's the power of this business model.
This is how we disrupt programs of record, and this is how CACI wins. And this business model is working because if you look at where our revenues and the product space are derived from, 90% of our revenues are derived from products that leveraged our own internal intellectual property and internal investment. That means that we're making the right choices. 95% of our business is fixed price. This is sort of a key driver for margins. So next, I want to talk to you a little bit about how we leverage that business process for our markets because there's a lot of change happening within our market space. Let me start by talking about our markets in the traditional way. The traditional way of thinking of our markets as separate verticals. There is a tactical signal vertical.
In this vertical, you provide products and systems that enable our warfighters to intercept enemy signals so we know what their plans and intentions are, and so we know where they're located. The second market is the electronic warfare market space. In this market space, you have a variety of products or boxes that enable the warfighter to disrupt our enemy's ability to communicate with one another, to use their smart weapon systems, to receive data from their surveillance sensors that are talking about where or identifying where our forces are located. And so that's sort of the electronic warfare markets area. You probably know us best in this space for the counter- UAS, counter-U AS, I think counter drone. This is an increasing threat, as you all know from recent news reports. And SkyTracker is a flagship product within CACI.
We've been a leader in this space for quite some time, and we are able to essentially allow our customers to first identify the fact that an enemy drone is in their operating area, and then number two, take measures to non-kinetically disable those drones so that they can't conduct surveillance on our forces or they can't launch a missile at our forces. So SkyTracker is an example of one of our products that's been in the market for many years now. And then finally, the tactical communications market. This is pretty straightforward. Picture the soldier in the field with the walkie-talkie. Far more sophisticated than that, right? Because these devices communicate with aircraft, satellites, ships at sea, as well as with each other. So they're very sophisticated devices.
But traditionally, these have been three separate vertical markets with an array of boxes that are delivered to our customers in each one of those markets. And the user has historically been a separate discipline within the military, a communications officer, a signal officer, an electronic warfare officer. But today, those missions are converging, and we're going to talk about that. So we now need to be able to do all of those disciplines simultaneously, and instead of having three discrete users, we now have one soldier that needs to be able to do all of these activities simultaneously. And so the obvious question is, why? Well, the reason is pretty straightforward, and if you've been keeping up with what's been going on in the space, you've probably read about it.
And that is that for the last couple of decades, we have been focused on asymmetrical threats, fighting the war on terrorism, fighting adversaries such as ISIS and the Taliban. And when you fight ISIS or the Taliban, one of the things that you tend to take for granted is that you have full control of the electromagnetic spectrum, think radio frequency spectrum, meaning that our forces can communicate freely because they don't have their own robust electronic warfare programs. And over the last couple of decades, we have been busy investing on how best to win those wars while our near-peer adversaries, think China and Russia, have been busy investing in their electronic warfare capabilities because they have watched how much we depend on our communication systems, how much our military depends on information.
They've realized that if they can disrupt our ability to communicate with each other, with our weapon systems, and with our surveillance systems, they can severely degrade the U.S. military's ability to conduct war. So now you'll hear this discussion about the fact that we need to dominate the electromagnetic spectrum, which sounds ooh and ominous. But at the end of the day, all it means is we need to better make sure that our forces can communicate, and we better make sure the enemy forces cannot communicate. And that, it turns out, is a multi-domain cross-functional activity, right?
Because now I need to do SIGINT in order to intercept enemy signals so I can find out where the enemy is, how they communicate with one another, and so I can develop a plan to use my electronic warfare capabilities to disrupt and suppress those communications so they can't happen, and at the same time, I need to make sure that I have communications that will work even when my adversary is trying to jam my RF spectrum, so that's the new mission that we need to serve, and in order to do it, there's a couple of things that sort of necessarily follow. The first is mobility and agility. It's more important than ever, so I told you that each one of these disciplines, if you think of them as vertical markets, involve multiple boxes.
So if you take the boxes you need for signal, the boxes you need for electronic warfare, and the boxes you need for communications, and you think of that poor one soldier that I told you about that has to schlep all that gear around, you see that that's absolutely untenable. We need to converge these disciplines, these technologies, these functions, and these products into a single box if we're going to be able to ensure that our soldiers can move on the battlefield. I kind of think of this, I don't know if you like, one of my favorite movies is A Christmas Story. At Christmas time, you remember Ralphie's brother on the floor, more bound in all those clothes, and he can't get up off the ground.
That's sort of the plight of our soldier today if you were to equip them with all the boxes necessary to fight this new style of warfare. The last point, software-defined everything. I'm really going to let Tom talk about that. But software-defined everything is the way we can get to this multi-mission vision. Software-defined everything is the way we can keep these systems modernized. Software-defined everything is the way a soldier in the battlefield can identify a signal that they've never seen before, record it, send it back, get someone to code up software capabilities to deal with that signal, whether it is to intercept it or suppress it or jam it, and push it back out to the entire install base over a software upgrade. That's what software-defined functionality does for our customers. So that's what the market wants, and that's why convergence is happening.
The good news is, in the commercial world, we have a very obvious history that we can look at as to what's happening and how it foreshadows what's happening in the government market space. And this is the consumer electronics space. Depending on your age, you may recognize some of these things, and some of these things you may not recognize. But there was a time when you might look at a young professional and find that they were carrying notebooks. They might be carrying a newspaper to keep current with the news, and they might carry a camera so they can take pictures and a music player so they can listen to music on the subway, and they might have a separate cell phone. And all of these different devices were considered separate markets, separate products at one time. And most of these markets and products have disappeared.
You don't see these things anymore. They're dinosaurs. They've been replaced by this, the smartphone, and this is analogous to what's happening in our market space, one hardware-platformed, $1.8 million apps that define the functions that that single hardware platform can do. So when John Mengucci was talking about software-defined everything, that's what he means, and obviously, if you're the special operations soldier that has to carry the equipment on the battlefield, he's all about you giving him an iPhone that can do all of his missions, right, so now let's talk about what that looks like in our space. I've already talked about the fact that in order to do the signal mission, you need to have multiple boxes. You need wideband recorders so you can record signals. You need passive intercept systems. You need survey equipment. You need ELINT systems that can detect things like radar.
All of these systems have now been replaced by a single device. It actually looks very large on this very large screen. If you'll go out to look at the display case, you'll find that it's quite small, and that platform is able to carry out all of those missions. Inside these boxes are a series of hardware modules, and what that module performs is based on the software that you flash to that hardware module, but this is just the signal piece, right, so we are now taking our electronic warfare capabilities, all that intellectual property that Kevin was telling you about, and we're also taking the software functionality from those systems and porting it over to this common platform, so still, our soldier has to carry only one device in order to do both his signal mission and his electronic warfare mission.
And then finally, he needs to be able to communicate. We are developing these communication waveforms and capabilities that can survive this new contested radio frequency spectrum that we've been talking about, and we can run those waveforms on the same exact platform. So at the end of the day, we come full circle. It doesn't look quite as sexy as an iPhone, but nonetheless, we have that single hardware platform. We have software-defined functionality, think the App Store, that you can flash each one of those hardware modules in order to enable direction-finding signals intercept electronic warfare. And I think by now you probably see our vision. It's not just our vision; it's our customer's vision, and it's already a program of record within the early adopter community of the ground forces. And so we are on the right track. So let's talk about our differentiators.
I think you can talk about our differentiators on two levels. You can talk about it at the product level, where essentially we are first to market with a multi-mission box that will enable us to conduct this new style of warfare, dominate the electromagnetic spectrum. But I ask you also to look at our business model. We are fundamentally different. We have that incredible deep mission expertise that DeEtte has told you about that allows us to anticipate the market's needs. We leverage that in order to identify how best to deploy our intellectual property in order to get to market first. So we get to market first with the technology that they need. We get there with a better price point because we leverage intellectual property that we already own, and that is how CACI wins.
Because we're leveraging technology and intellectual property we already have, that's how we grow our margins at the bottom. This is why when you look at CACI's financial performance, you see constant growing top line and constant expanding margins. How do we win? Pretty straightforward. Our plan is to be first to market. We want to anticipate the market's needs and leverage that intellectual property that we already have to get to market first. We get to market first and get two additional advantages. One, by leveraging intellectual property that we already have, we reduce our costs to get to market, which means we can offer solutions at a better price to our customers. In addition, we reduce our technical risk to get these capabilities to market. All of this is what feeds CACI's comparative advantages, and this is why we are winning.
So now let's talk about how we grow. It's a pretty simple model. We exploit what we have. We sell the products we have today. I told you about the program of record, and for the next year or two, we need to fill out, equip all of the units that need this technology, and that will take us some time. In addition, we have new customers that are adopting these existing platforms. In fact, a couple of weeks ago, we got our first orders from an international customer, a close U.S. ally, who's also contemplating standardizing their ground forces on these hardware platforms. The next step is we need to expand further. How do we expand? Well, we're doing it in two ways. One is we're adding additional hardware platforms, and these are platforms just capable of housing more of those hardware modules I was telling you about.
The more modules you have, the more simultaneous mission you can conduct. Pretty straightforward model. But at the same time, what we're doing is that incredible backlog of intellectual property that Kevin was telling you about, we need to get about and are getting about taking all that intellectual property and making it so that it can run on these converged hardware platforms. This means we're adding constant value to our existing install base. We can monetize that increased value to our existing install base. But at the same time, our customer base is growing because we added new capabilities that enable new mission that attracts new customers. That's how we expand. And then finally, let's talk about exploring. This model is working phenomenally within this market space of enabling our forces to dominate the electromagnetic spectrum.
We have other platforms that address other problems within our customer space, and as we roll those out, they're each targeted at billion-dollar-plus market spaces, and this is how we layer additional revenue streams on what we already have. So hopefully, at the end of this, if you come to a trade show and I'm in a trade show booth, you will see that, yes, I do have actually a winning smile and a winning personality, but in addition, I have a highly differentiated offering that allows our top line to grow and is expanding our margins. And with that, I think you've all earned a break, 10 minutes. Please come back in 10 minutes so we can continue to share with you CACI story. Thank you.
We're just going to give about 10, 15 more seconds for folks to mingle in, and then Tom Kirkland's going to kick it off for us. Come back one.
Good morning. My name is Tom Kirkland. I've now spent over two decades, roughly about 22 years in the tactical communications and SIGINT markets. Seven of those years was with the U.S. Army as a non-commissioned officer, five years deployed overseas. This morning, I'm going to provide additional insight into the technology behind the mission technology area of the quadrant that was covered by Kevin Kelly and David Nack. The technology we are developing today is closely aligned to the way that our customers are acquiring new technology, but also how they want to deploy technology in the future. Our customers understand they have to deliver capability faster. This is to deal with current threats as well as near-peer threats.
So what about CACI is different with our technology? You've got to hear a lot about our different types of technology that we have with Kevin Kelly's presentation. But really, what makes us different is our internal investment to develop mission-specific capabilities. It's our unprecedented access to our customers, being able to receive that critical information at the edge about what our customers need that you got to hear about in John DeFreitas's presentation. It's our ability to deliver new technology faster than anyone in industry on multi-function platforms that you got to hear about in David Nack's presentation. This is what our customers are asking us for today. So think back for a second to David's presentation and his iPhone example. When you have an iPhone and you want a new capability, you don't go buy a brand new iPhone.
The very first thing you do is you open up the App Store, and you look at that long list of applications, and you decide if you can get that capability from the App Store. Or think of a more modern vehicle. When you take it into the dealership for service and you need service done on the vehicle, they take it and they plug it into a diagnostic machine, and they find out if the vehicle can be fixed leveraging software rather than hardware. This is to save them money and save you money. Our model is very similar. We're rapidly developing and deploying new capabilities leveraging software. We're doing this so that we can keep pace with modern technology, but also outpace our current and future threats. We're doing this for our DoD customers, our intelligence customers, and other government organizations.
We're doing it in five key areas, signals intelligence, electronic warfare, communications, command and control, and cyber operations. These are the key areas that our customers have asked us to focus on. This is where they want advanced technology to be developed. And talking about why are we taking this model? Why are we moving down the software-defined path? It's because the modernization model of old no longer works. Our customers are telling us it no longer works. So let's take, for example, a Stryker. A Stryker is a combat vehicle used to transport troops, but it's also used for advanced C4ISR operations. If you want to add one new capability into a Stryker, one new C4ISR platform into this vehicle, it'll take you roughly two to three years to define what that new capability is.
It's then going to take another five to seven years to actually develop that capability. Then another two to three years to put this capability into the field. Once it's in the field, they want to keep it there for another 10- 15 years. This is for one new capability. This takes entirely too long. It takes roughly 10 years to bring that capability to bear at a price point of $630 million. This is exactly why you see our customers doing things like acquisition reform and why you see the Army standing up new organizations like Army Futures Command so that they can get after this problem. They can provide new capability faster and for less expensive. This is not only true with the Stryker. This is true across all DoD platforms.
The Air Force is saying in combat operations, they expect to have to update their platforms every two to three days. Every two to three days, they're going to provide a new capability on a platform. So what is CACI doing about this? We're aligning ourselves to our customer. We're anticipating our customer needs. We're talking to them. We're gathering that insight that we need so that we can deploy that next level, that next type of communication or platform that they're going to require for combat. We're doing this through a software-enabled process. So our speed to market is incredible. We're very, very fast. And we're less expensive to develop the technology and deploy the technology. Again, closely aligning ourselves to what the customer is asking for today. A great example of this is the E3I contract that we received last year for $415 million.
On this contract, we are providing software and hardware capabilities to the U.S. Army on platforms just like the Stryker, but we're doing it in days, weeks, sometimes months. We're not doing it over a 10-year life cycle. This is an extremely exciting contract to be a part of for us, so I've talked about kind of the model of how we're thinking about technology, a little bit on the strategy side, so let's talk more about the actual technology itself. Just by a quick show of hands, how many of you are familiar with the term IED? Right? Improvised Explosive Device. Improvised Explosive Devices played a significant role in Iraq and Afghanistan, and even closer to home, the dual bombings in 2016 here in New York City and the Boston Marathon bombings were both IEDs activated by cell phones.
Over the last 10 years, CACI has invested heavily into data analytics, digital signal processing, signals intelligence, electronic warfare, and direction finding. Taking these capabilities, we created a very large signal of interest library, over 300 signals. That one cell phone signal that I mentioned earlier, that's a single signal. We have over 300 of these signals. Again, one of the largest in the industry. What we're able to do with this is we're able to pinpoint one specific signal in a very congested RF environment. We can find that one specific signal, and we can provide capabilities to our customers. These capabilities, if they have the right authorities, they're able to detect the signal, characterize it, and then locate it. Once they have that information, they can decide what they want to do with it.
Do they want to just monitor the signal, interfere with the signal, or actually control the signal? Our customers in the Department of Defense and the intelligence community are extremely excited to have CACI on their side in providing this technology to them. And as David mentioned, we have products that are enabled by our software. We've taken our direction-finding library as well as our signal of interest library. We've pulled those together, and we created two incredible product portfolios: the signals intelligence and the counter-UAS portfolios. And again, please feel free to stop by in the lobby and learn more about these products from us. These products serve two great, two incredible platforms' capabilities for us. The first one they do, the first thing that our products provide for us is they provide a way for us to deliver our technology very quickly to market.
The second thing it does is it allows us a platform to develop from so that we can develop our software capabilities and deploy them to other systems that are running our software. So let's get into a use case, exactly how this technology would be used. So imagine that you're an operator in the desert in Syria. It's a nice, beautiful, warm day. And you have our equipment. You have a tablet sitting in front of you. And on this tablet, what you would see is you would see two signals. First, you would see a cell phone. You can see the frequency range that it's on. You can see exactly where it's located. And then you can also see a drone. You would be able to tell what type of drone that is, see, again, the uplink, downlink, and the location.
Because they have the green brackets, those are both friendly assets. And then a new signal pops up. It's a garage door opener. Again, you're an operator, middle of the desert in Syria, and a garage door opener is being detected. This is a problem. Garage door openers are commonly used to detonate IEDs. So once you have this information, you can see exactly where they're located. You can decide what you want to do with the signal. Do you want to just surveil it? Or you know where it's located. You can just go have a nice, friendly conversation with the person that's pressing the button. Or you can take another action, an electronic action, to neutralize the signal.
But what's really different about CACI and our approach in delivering software onto our platforms is that when a new signal appears and it's unknown, again, you can see where it's located. You can see the frequency, but you're not quite sure what it is. What you're able to do is you can pull that signal into your system. You can have it analyzed. And then a new signal of interest library will be delivered to you. And there will be a new signal that says, hey, this is a key fob. Again, it's a concern. It's a key fob in the middle of the desert. So again, you go through the exact same process and you decide, are you just going to monitor it? Are you going to interfere with it? Or are you going to electronically attack it?
What's very powerful here is that we have over 3,000 systems deployed today with this capability. This is a great install base for us to build off of, but it's also an incredible install base for our customers to leverage to receive our new capabilities. So what is our IP actually getting us? In FY 2019, it provided over $1 billion in new contract awards. In FY 2020, it's allowing us to pursue over $2 billion in new business. And it's allowing us to increase our probability of win on larger programs or record. A great example of this is the Trojan contract that we received last year for $413 million from the U.S. Army at Aberdeen Proving Ground, where we're providing signals intelligence and communication support, and we're leveraging our intellectual property. We've talked a lot about signals intelligence, electronic warfare. So let's move into data.
We're all very familiar with the vast amount of data that's in the world today. Today, we generate over 250 billion emails a day and 8 billion text messages a day. That's pretty staggering considering we have about 4 billion people on the planet today that actually have internet access. This is data that you and I rely on every single day to do our jobs. It's the same data that our customers rely on in order to execute their mission. But also inside this data, there are individuals and people, individuals and groups that want to leverage this data to plan and coordinate attacks against the United States and our partners. We worked with one of our intelligence community customers to create a new tool called FADE, or Fusion Analysis and Development Effort.
What we're able to do with this tool is we can ingest large amounts of data from both classified and unclassified sources, over 400 different data feeds simultaneously. We can look at the information, we can analyze it, and we can correlate data for our customers. With this information, the analysts can decide if there's a coordinated attack that might happen. They can see different patterns of life that are taking place all over the world. They can provide actionable intelligence to their senior leadership. It's a very, very powerful tool, and today we have over 12,000 active users of FADE, and we provide over 200 data layers. You might ask yourself, what's a data layer? A data layer is how our customers want to see the information.
It's exactly how they want to parse out the information, be able to view it so they can provide that actionable intelligence that I was talking about. Something different that we did on FADE as well is we provided a different business model to our customers. Our customers felt with their older tools, they were not receiving the value that they really wanted out of them. They felt like they were paying too much. They weren't getting the new capabilities that they were looking for. So we worked with them and we created a new business model. We also decided to host FADE in the cloud. By hosting it in the cloud, it allows us to scale very quickly from hundreds of users to hundreds of thousands of users. It also allows us to deploy software technology very quickly.
So staying with the theme of data here, but moving into more of the transportation of data and the communications aspects of data. One of the things we continued to hear from our customers was they wanted the ability to communicate on a secure phone anywhere in the world. They wanted access to classified information from their cell phone. And this isn't a new concept. It actually exists today, but it's a hardware-driven model. So many of you are probably familiar with mophie phone cases or other types of phone cases. That's exactly what's out there today. It's a hardware encryption module that's a sleeve that sits on the back of your phone. There's a couple of problems with this. First off, every 18-24 months, you're going to get a new phone, which requires a new sleeve.
And so you're just going to continue to pay into the system of buying new sleeves. And also, once you put the sleeve on, you're only allowed to do classified communications on that device. You can no longer do unclassified communication. So CACI took what everybody considered to be a hardware problem, and we fixed it with software. We developed an application with our partners that allows us to provide both a secure capability, classified email, text messaging, and telephone calls, as well as unclassified capabilities. Again, email, telephone calls, text messaging, and access to the internet. It allows them to only carry one device instead of two devices, again, decreasing that hardware cost. It also allows them to, instead of changing phones every 18-24 months, that's no problem. Get a new phone if you want a new phone and just download the application.
We also decided, just like with FADE, to host this in the cloud. By putting this into the cloud, we can distribute it very quickly. Again, scale hundreds of users to hundreds of thousands of users without a problem, and as customers want access to new capabilities, we can deliver that through the cloud, and our customers have access to the data that they want at all times. It's really, really exciting. A lot of our customers are excited to be able to carry this singular device to provide all their communications needs, so in closing here, our technology today, we're focused on software-enabled solutions across all of our products, all of our solutions. We're driving hardware convergence. We're making sure that our customers that have to carry equipment on their back, that they're only carrying one device instead of multiple devices.
We're providing more capability in that single device than they would receive across all of their platforms. We're providing advanced data analytics, not just with FADE, but also to be able to understand what the data environment looks like and provide more secure communications. We're executing our customer's vision. And I would say this is the most important aspect. We're listening to our customers. We're getting that feedback, and we're executing their vision. We're providing them capability faster than anyone in industry. And what does this mean for CACI? It means accelerated growth. We're growing at the top line and at the bottom line by leveraging our intellectual property. So thank you for your time today. And I'm now going to pass it over to Tom Mutryn, our CFO.
Good morning, everyone. I am Tom Mutryn, the Chief Financial Officer of CACI. I've been with the company as of tomorrow, 14 years, a 14-year celebration of being a member of the CACI team. I'm very fortunate and grateful to work for this company over the past many years. I've seen it evolve, change, continue to get better year after year after year. Foundationally, we have a strong culture based on ethics, character, respect, doing the right thing. And it's a pleasure to work for this type of company. When I joined the company, we were much smaller. We've seen significant growth during that time period. I've been 20 years as a public company CFO, doing a variety of work, acquisitions, financing. I was the CFO of US Airways. We did financing of a large number of aircraft, strategy, accounting, and the like.
And again, a pleasure working for this particular company. A little bit retrospective look at CACI. We closed 2019 in June of this past year. We did what we said we were going to do. We said we were going to increase margins. We increased margins. We said we were going to grow organically. We grew organically. We said we'd generate strong cash flow. We did that. We used that cash flow plus borrowed money to do several key acquisitions. We've been speaking about LGS and Mastodon. We also bought the Navy Systems Engineering business from a competitor, augmented our capabilities quite nicely. We've raised guidance four times during this time period, a couple of them driven by the acquisitions, but just continued strong performance of the organization in record awards. Serious statistics here. I won't read them all. Increased margin. We have a 10 basis point margin improvement.
Actually, if we adjust for some large one-time acquisition-related costs, the margin expansion was materially greater than that. So we're very happy with our results. In 2019 was not an aberration. This has followed a pattern of significant growth over an extended time period. The charts here depict a 20-year growth period. Beginning of that period, we were approximately a $500 million company. As we sit here today, we're between $5.5 billion and $5.7 billion. Revenue growing very nicely, 13% compounded growth. But what's more important to me is our net income and earnings per share are growing at a higher rate than that, as is operating cash flow, i.e., we've been expanding margins during that time period on a very steady system. Internal work and relying on some external expertise to try to understand what the addressable market is. Sizable, growing 3.5%.
Around 40% of our addressable market is mission, growing 6%. The remaining 60% is enterprise, growing 2%. Growth in both those sectors, plenty of opportunities, an opportunity-rich environment for CACI. And for me personally, and as a taxpayer, I'm delighted that the government is spending money in these particular areas because we have a positive budget environment. Signal versus the noise. The signal is that the U.S. government is willing and wants to invest in areas which are very relevant to us. A bipartisan support for national security interests, two-year budget deals. Will we have a CR or not? In a way, it doesn't matter. The signal is that there is demand among our customers for these types of products. John spoke about our addressable market. We do some internal work and rely on some external expertise to try to understand what the addressable market is. Sizable, growing 3.5%.
Around 40% of our addressable market is mission, growing 6%. The remaining 60% is enterprise, growing 2%. Growth in both those sectors, plenty of opportunities, an opportunity-rich environment for CACI. For me personally, and as a taxpayer, I'm delighted that the government is spending money in these particular areas because there's a real need for these types of investments. I could have gotten many, many different quotes, but the first one speaks about our enterprise mission, that a lot of our systems are outdated, they're inefficient. It's cost-justified for the U.S. government to improve their infrastructure of our nation's resources. Money well spent in those particular areas. The second quote talks about the mission side of the equation. Most experts would agree that the United States' technological capabilities versus potential adversaries have eroded over time. When we engage the enemy, we do not want a fair fight.
We want to have overwhelming superiority to protect the national interests and U.S. lives. There is a need to do this. Hence, a lot of our focus is on a very critical need for the government. Looking forward to FY 2020, we guided to these numbers in June. We reinforced that guidance in August. We expect revenues to be between $5.5 and $5.7 billion. 12% revenue growth, around 5% of that is organic. So continued strong growth, 100 basis point margin improvement, driven materially by the acquisitions, kind of good news, and then organic margin expansion as well. We're very pleased to provide this type of guidance going forward. I'll spend a few minutes talking about the four quadrants. I will provide you some numbers, probably not as many numbers as you would like, but I'll provide you some.
First of all, the point is we have balanced work for CACI across all four quadrants. In terms of the enterprise, that is approximately 35% of our work, expertise and technology. Missions are around 65% of their work. So that's generally how our kind of work balances out. The margin characteristics of those are very similar to the margins that John spoke about earlier in terms of the margins within the market. Expertise, lower to mid-margin levels, and technology, higher margins, as expected. In terms of growth going forward, at least for 2020, the quadrant with the highest growth in excess of 25% is the mission technology quadrant. And that is driven both organically and by the acquisitions of LGS and Mastodon, which fit generally squarely within that particular quadrant. The goal, though, is to grow throughout those four quadrants.
Each of those quadrants are contributing profitability and growth and kind of earnings per share. Our commitment to our shareholders is depicted here. We have committed to grow organically. We have committed to expand our margin, and we've committed to deploy capital wisely, and I don't use the term commitment loosely. This is something that we as a company take very seriously. It's a promise to our board of directors. It's a promise to our shareholders that we will deliver on these, and we've been doing very nicely in the past few years, and we continue to do that going forward, and I'll talk about each of those. First of all, organic growth. John mentioned $10.3 billion of awards, an impressive number, significantly higher than it has been in the past. 70% win rates for new business and recompetes, very high win rates, very proud of that success.
Book-to-bill 2.1 on a trailing 12-month basis. In other words, $10.3 billion awards, around 67% is for new business for CACI. That strong set of numbers, increased backlog, will support the growth in 2020 and beyond, some longer-term sustainable awards. Several years ago, we said we wanted to bid less and win more after larger opportunities. That was a very kind of deliberate strategy for CACI. It took several years to kind of retool the machine that we have and put those plans into place. It's very gratifying to see the success of that. The chart on the left shows a contract award value. The average contract award value increased from around $5 million in FY 2016 to 14x , to be close to $70 million in FY 2019. The average award is materially greater.
In terms of size of awards, this past year, we went around 15 awards greater than $100 million. Six of those were greater than $400 million. So we said we were going to go after larger awards and be successful. Lo and behold, we have been successfully kind of doing that. Credit to the team at CACI, business development, and the operations organizations to drive that success. We have a robust pipeline going forward, both in terms of awards that are pending adjudication, plus the awards that have been expected to be submitted in the next six months. The pie chart here shows you the balance of the work that we have to be submitted over the next six months. And as you can see, balance across the portfolio, a little bit more weighted towards the mission side of the equation than the enterprise side of the equation.
But these numbers are going to fluctuate over time. We'll win an award, a new one will come into solution, but this is fairly representative of a nice balance mix across the four segments for CACI. So in order to grow organically, our business development machine will focus on big opportunities, be successful, winning across the four quadrants of CACI. Next, we want to expand margin. And it's multiple ways to expand margin, kind of not one single, kind of one trick pony. First of all, focus on gross margin. Gross margin is revenue less direct cost. How do we expand that? A higher technology content. I hope you're coming away today to see that CACI is offering very high technology, IP-based content into our awards that differentiates ourselves, less of a commodity, but a differentiated offering for CACI.
Fixed price engagements or commercial products. David Nack's commercial product pricing frees us from the federal acquisition regulations, and we can price kind of very attractive commercial type of margins. Bid appropriately, high award fees. A lot of the profitability focuses on the operational performance at a program level, more self-performance, less reliance on subcontractors, fill positions quicker, get the right people performing work, and that's going to accelerate our ability to increase margins, and on the overhead side of the equation, we have a fixed amount of indirect expense. Let's ensure that we do things efficiently, effectively, have good systems and tools, and leverage that over an increasing basis, and that will help our kind of overhead structure.
Last July, we opened a shared service center in Oklahoma City where we took a variety of processes that were being done in a traditionally high-cost environment, Washington, D.C., and moved them to a concentrated lower-cost location in Oklahoma City. The team there is performing admirably, providing kind of very good systems, and some of the savings allow us to reinvest in other aspects of CACI to continue to invest in the company. We're focused kind of both on meeting our 2020 commitments, and we care about shorter-term earnings per share because people in this room care about shorter-term earnings per share, but at the same time, we're focused on investing in developing capabilities for the long run. We're investing in human capital, a variety of programs to ensure that we have competitive benefits, pay, training programs, internships. Let's invest in our people. It's a people-based business.
John spoke about the importance of leadership across our enterprise, investing in business development, which drives those strong awards. Kevin and David spoke about IR&D investment, investing in new capabilities. That R&D is concentrated in the mission technology sector, but there is R&D investment across the four quadrants. And in fact, that IR&D spending increased 10x in the last two years, a significant investment. And then internal investments to drive efficiencies. In the callout box at the bottom says that margin expansion and investments, so we're doing both, are enabled by those higher gross margins and business efficiency. And we are also maintaining competitive rates. We would like to create products and service offerings which are less price-sensitive, but at the end of the day, price is a factor in a variety of government decisions, and we have competitive rate structures across the four quadrants.
Each of the quadrants may have different characteristics, but we do have competitive rates across those quadrants. Lastly, let me talk about deploying capital. CACI generates strong, predictable operating cash flow. We sell to the government. The government typically pays its bills on time. If we submit an accurate invoice, the government will pay that invoice quickly. That helps our DSO. Capital spending is relatively steady. It's been running approximately kind of 1% of revenue of facilities, internal IT infrastructure, and the like. So very predictable, dependable cash flows. And we also have the ability to borrow money. Right now, we have approximately $1.6 billion of outstanding debt. That debt is pro-rata bank debt, so a number of banks are in the audience and on the call, and I do want to thank them for the support of CACI. Leverage is around 3.2x at the end of June.
40% of our debt is fixed right now. So as interest rates go down, we'll be able to take advantage of some lower interest rates. The remaining 55% is fixed, and so we have some protection against rising interest rates. Now, will interest rates go up or down? I personally don't know, but I think we have a nice kind of mix of debt. And that healthy cash flow in our borrowing capacity allows us flexibility to do cool things. Right now, we could easily do a $1 billion acquisition, kind of debt finance it, and our leverage would be less than four times. And so plenty of dry powder to pursue good acquisition opportunities. We have said in the past that deploying capital for M&A is our kind of number one priority. We proactively look for good companies, strategic-led.
What gaps do we have in terms of technology or customers or geography, and find those differentiators which will allow us to offer more capabilities to our customers? A pretty robust acquisition process. First and foremost, the value of an asset is future cash flow is discounted. I think we all know that. The job is to try to forecast those future cash flows accurately. Both internal expertise at CACI, plus if necessary, some outside expertise can help us accurately forecast those cash flows. Once we get the cash flows forecasted appropriately, we can determine what the purchase price is, making sure that we generate positive present value investments, accretive transactions, and after we do a transaction, we religiously track the acquisition performance, kind of two years. Here's what we said we were going to do. Here's what we did to convince ourselves that we are making sound investments.
Typically, what we're seeing is our acquisitions exceed what we think. The callout box on the bottom, we believe deploying capital for the right acquisitions is the best way for us to deliver shareholder value. That is a firmly held belief of CACI. A history of some of our acquisitions to demonstrate how we're filling in a variety of gaps. This is not an all-inclusive list. Back in 2010 and beyond, we did an acquisition called Techni-Graphics, which allowed us to enter into the geospatial space. We didn't have much work with those customers or that technology. A system where it allowed us an early entry into some SIGINT kind of work.
Back in 2011 and 2012, and I want to mention Wexford in 2010 as well, kind of Army Special Forces, IED type of work, which was a precursor to the work that John DeFreitas spoke about being successful with the FSDE program. 2011, 2012, some investment in business systems capabilities, APG and Delta Solutions. Some of that helped us ultimately win Army IPPS and other types of large programs like that. Six3, we spoke about a lot. Our first foray into signals intelligence, digital signal processing, some electronic warfare work. L-3 NSS provided some capabilities in enterprise IT, kind of fundamental to the strong position we have in enterprise IT and some intelligence services work. And then most recently, LGS and Mastodon, I think we're familiar with those. When we're not acquiring, we're leveraging. So very much of a sawtooth pattern.
Our pattern is to borrow sums of money, finance acquisitions, then slowly pay down debt, find other acquisitions, borrow money, pay it down, kind of a repeatable pattern. Very predictable cash flow, kind of disciplined in terms of the type of companies we purchased, and during this most recent time period, average leverage is around 3.4x , somewhere within those in the ballpark, but this is a pattern we expect to continue going forward. We often get a question about how the management team is compensated. Is the incentives and our motivation aligned with shareholder interests, and thought it'd be worthwhile to put this chart up. 80% of kind of managements, the senior leadership compensation is performance-based, so there's a small salary component, but the rest is work at risk, and 30% of that is cash compensation based on some annual targets of earnings, revenue, and talent.
These are consistent with the plan that the board of directors approves, which is consistent with the shareholder commitments. Our plan has organic revenue and margin expansion. So we are being incented on delivering what we said. 50% is based on long-term incentive compensation. Where CACI's multi-year stock price is tracked and stock-based compensation is based on that. So a very clear alignment between the management's interests and our investors' interests. Certainly, we believe that to be the case and the board and the compensation committee believe that as well. The last slide I have is again very similar to the slide that kind of John presented earlier. Strong record of performance. And fundamentally, we have the right culture. And our Chairman, Jack London, says that our success is a result of our culture, not the other way around. And so that is foundational to what we do.
John spoke about the strategy, kind of win business, operational excellence, deploy capital. That is what we have been doing. That is what we plan to do. That allows us to expand our margins, grow organically, deploy capital wisely. So a nice track record of success. And the goal is to duplicate these types of charts in the many years ahead. So with that, I'll conclude kind of my comments, and I believe we'll turn it over to questions and answers. So thank you.
Okay. So we are going to turn to Q&A. We're just going to take a couple of seconds to bring some chairs up. And then John, Tom, you can stay here. And the presidents will all come and join us in the front of the room. Just a reminder for folks on the webcast, there is a Q&A function.
George Price or myself will be manning the Q&A over the webcast and will chime in via the microphone to ask any of your questions. A couple of folks have asked about slides that you've seen thus far today. We will be posting them to the IR site immediately following the conclusion of the presentation. You can get out there and grab the slide deck. With that.
Sure. Yeah.
We're going to walk around and pass mics to the audience as questions come up just so the folks on the webcast can hear the questions, so if you don't mind raising your hand and waiting for a mic to reach you, and we will kick off Q&A now.
Hey, thanks very much. Tom, just getting at the growth forecast. If you look at mission enterprise, the blended market's growing 3.5%. If I look at your mix, that would imply growing 4.5% this year. Guidance at the midpoint is 5%. So the intent to outgrow the market, is that a comment on the end market's 3.5%, sorry, 3.5%, or your blended 4.5% based on your mix?
Yeah. So the overall market's growing at 3.5%. And so that is kind of the stake in the ground. And we've used that as the kind of benchmark to determine how well we're going to grow. To the extent that we have concentration in some higher growth areas, that should be helpful to allow us to kind of move higher in certain areas.
The 2% for enterprise and 6% for mission, the slide said five years. Is that your five-year forward outlook for those categories?
Yeah. Yeah. That's based on the analysis we've done and decomposing the federal budget documents and prognostication, ourselves and some outside parties. That is what we believe the market will do, and so given that, we want to grow faster than the underlying market, so that is our kind of five-year indication given what we know at this point in time.
Thanks, Tom.
Yes. So Cai von Rumohr. So you mentioned that your bids expected to submit are $13.5 billion. I believe at the end of the year, it was something like $16.3 billion. So it looks like those bids to submit have come down. I mean, are those you're still looking at a 70% win rate at those, and are you just submitting less, or give us some color on that if you could?
Yeah. So given the timing of these charts and where we finished the last fiscal year, the actual bids to be submitted and bids submitted is still very robust between where the year ended and where we find ourselves at today. Customers have made the right decisions more often than they've made the wrong ones. And so we're very pleased thus far with our capture rates. You've heard us say many, many times, we always strive to drive our incomplete capture rate greater than 90%. It is clear from all the information that we've shared today that on the new business side, Mike Duffy, and his business development team, as well as all of the operations folks, have been driving our new business win rate as well. We like where we sit today.
We're coming up on another quarter close, and we're confident that we'll be sharing additional information going forward, so.
Excellent. Thank you. And your 2% and 6% five-year CAGRs, if we think about the year-to-year progression, I would be guessing that those numbers would be higher maybe next year because we certainly have some momentum. At what point, if your numbers are correct, do you see the rate of growth for the market decelerating?
Yeah. So now we get into that question of how large do the budgets get, right? What our intention today is clearly we're at a $700-and-some billion budget level today. The nation cannot sustain a $1 trillion budget five years from now. Against that backdrop, as we look at what we can go out there and grow, it's the reason why we sort of moved from the triangle to the square, which is really making certain that we had capabilities and customer relationships so we could continue to grow this company. I don't want to say regardless of where budgets go, but within that $700-or-so billion number, with $200-and-some billion addressable market being a $5.5 billion company, we're very comfortable with that. We like our odds.
The fact that we're out there winning more, the fact that we're five years into the plan of actually bidding less and winning more and making certain that we're bidding higher margin work and also going after larger jobs that, frankly, have a longer period of performance, which means we're recompeting less often, which means we can take the same investment dollars and apply those to other growth areas. We like where we are today, and we like where we're going to be headed. So rather than predicting where the top end of the budget goes, we're the size company that as long as we can continue to grow in our addressable market, then we will continue to be providing a better-than-average growth. Tom, anything you want to add?
That's good.
Thank you.
Yeah. Thanks, Cai.
Yeah.
I guess I'm up here, Ed Caso, Wells Fargo. A lot of great presentations. Love the matrix. Do you need all this sort of product-focused work to offset all the good stuff on DeEtte's side here to keep that 10-30 basis points? It seems like 10-30 basis points seems awfully light given all the excitement you've offered this morning. So if we put more color to the matrix, is the stuff on the left going down as a percentage margin?
So I'll answer on a macro level. Clearly, the reason why we wanted to be what we believe is even more transparent was to actually show exactly what you asked, right, which is there are four quadrants that are growing at different rates, and expected margins from new business wins are sort of what we showed in the low to mid and mid to high. Overall, it's reasonable to expect that where we have more competition in the enterprise expertise area, those margins are feeling pressure, clearly. Now, you also see that the work that we have when we win business there, we look to our team to go grow margin. So different margins that we're bidding versus what we're actually able to experience two, three, four years in. We're also looking to move customers from enterprise expertise to enterprise tech. So you have that capability.
Different than a pure government services company, we believe we differentiate because we welcome customers to move from the buying of labor hours, as DeEtte explained, into actually buying more enterprise tech. If you look across moving over to the margin side, it is very reasonable to expect that margins on that mission side are going to continue to grow. Also, you're going to see our total addressable market grow. We have had LGS and Mastodon part of us since March. Been very, very happy with the rate of integration, not just moving people on the same systems, but frankly, getting folks within Kevin's Heritage Shop and David's business and the rest of CACI and really thinking about how does one plus one plus one equal five. So clearly, I would expect that our addressable market continues to grow in that mission expertise and in the mission tech area.
What else we have been factored in is that feedback loop, right? There was a lot talked about today about having people on the other side of the wire using products and explaining to our technology teams, here's the enhancements that are absolutely needed. At the same time, we've got a large number of business development folks and client executives who are out there working many, many parts of the federal government talking about the importance of electronic warfare and the importance of buying capabilities differently than you're buying them today. You cannot expect, as Tom Kirkland shared, you can't expect the way you modify a Stryker to be the way you handle a new signal set hitting ground forces tomorrow. That has to be different. And our customers are actually spending in that model.
That E3I award is the first sign that the Army is looking to look at signals and intel very, very differently. That instead of going to a traditional platform vendor, looking at how do I modify that platform that I've had and really looking at what kind of mission packages can I put onto that. It doesn't make platform providers bad. It just means the way they solve quick, agile, emerging needs is going to be different. Our customer sets across the industry, across the government, are asking for quicker turn cycles in the manner that we can deliver, deliver, deliver more.
So we would expect margins on the mission side to continue to grow quicker than it will on the enterprise side because those are market dynamics, which you can't underestimate is what DeEtte and her team do on the program execution side and on that reuse side where we're able to win programs at X margin and actually deliver at Y. Thanks for the question.
Thank you, John. Building on that idea between the mission side and the enterprise side, can you talk about the benefits of having those two businesses together? I mean, on your Venn diagram or on your competitive chart, not everyone is in every box you guys are. So what are some of the benefits of having those two businesses together? And then almost related is, Tom, you mentioned that you're growing all four quadrants, but given the growth outlook and margin dynamics in the mission side, why not really focus the M&A efforts there instead of no offense to the other side?
So all right. First question around benefits of having both an enterprise and a mission focus. Clearly, this company's roots started at the enterprise expertise side. That's what this company was when it was founded. It also had, as Kevin Kelly chatted on, it had a tech flavor and a tech focus. Albeit smaller, it still was an entrepreneurial, innovative culture that was trying to move this company into something bigger and more differentiated. So although the company started in the enterprise expertise area, it moved quickly into the enterprise tech. So if you think about the 1980s where IT infrastructure was going to more network-based and from a hub-and-spoke to away from the mainframe and into standalone devices, that's where this company moved. And then as more efforts came up, looking at that mission expertise side, how do we grow into what the customers actually deliver?
The next natural extension, frankly, was to move into mission tech. Having a well-understood, well-instantiated enterprise businesses company will always be foundational. What we've done over the last seven to 10 years was really build out what that mission piece is, so as a part of the leadership team, and I'm assuming as part of our investment community, you want a company that's continually growing, and we're not going to grow by trying to win low-margin business at even lower margins. There is some end to that game. On the margin side, we don't think there is a top-end case to EBITDA margins for a company that has both expertise and technology in their portfolio. If you believe what the market dynamics are, you believe the EBITDA margins that traditional providers earn on the mission tech side, then that should show you where that top-end tops out.
It's far away from the 10.3% EBITDA margins that we enjoy today, so that's on the first part. On the M&A side, we are a strategy-based company, and you'll hear me say that over and over. We look at our strategies, we find the gaps, and we are very, very judicious about whether we're going to invest, we're going to partner, or we're going to acquire. The billion-dollar question right is, so where's your next acquisition going to be? I'd love to know that, and if I knew that, I still wouldn't share it, but it suffices to say that given that you understand how we look at this business and how we look at future investments and how we'll continue to move more towards this is the kind of information that we can move out there, it's clear that we're looking for gaps across all four areas.
The fact we spent a lot of time talking about mission tech is because it's the latest piece that we've added to our entire portfolio. It clearly is where we did our last two largest acquisitions, be that with LGS and with Mastodon. But I would tell you that if DeEtte came to me and said, in the enterprise tech area, we've got these three gaps, and here's a company that can fill two of those three gaps, we're going to prosecute with that just as hard as we're going to prosecute something in the mission tech area. So I wouldn't be leaning too far to that bottom right on every assessment that you're doing. Now, on the opposite side, you can say, well, why would you do that? Because it's not highest growth. All four sectors of this company drive growth.
There is a base of business this company needs for us to be able to invest and keep our rates at a fair market value and extremely competitive. That's a balancing act, frankly. Wherever we can find capability and customer gaps that we can fill, we will do that. We will never buy at scale. We're not looking to buy top line without bottom. We're not looking to be the biggest and the largest. You've heard me say many, many times, scale is an issue if I'm a $1 billion company going against a $20 billion company day in and day out. The fact that the largest company in this marketplace is not more than two times the size of CACI, I'm struggling where scale has supported better win rates. Frankly, at a 70% win rate, we haven't lost to scale.
It's more about how we can better manage the cost side of our business and redistribute our investments. Build a shared service center 2,000 miles away so we can take costs out of doing that and put more money into IRAD and BD.
Just a quick follow-up on the M&A and also the margin targets at 10- 30 basis points. That's an organic target. Should we be surprised or better said, should we expect future M&A to be accretive to that 10- 30 basis points as LGS and Mastodon were? Or if the acquisitions happen to be lower margin, then so be it, and we might take a step back on margin at some point.
Yeah. Yeah. So I'll take that. So everything else being equal, we like companies that differentiate themselves in somewhat definitionally they're at higher margins. So we look materially more favorably on acquisition candidates, which are margin enhancements versus margin detractors. If it's a lower margin business, a 5% kind of margin business, the question is, what is the stickiness? What is the staying power? How would they differentiate themselves? And so I think it would be likely that any acquisition would be coming at either average or above margins.
One other thing on acquisitions. We talk a lot about capabilities and customers and very little about culture and what actually makes an acquisition solid, and I thought, Kevin, you want to talk a little bit about what it was like coming onto the team and.
There we go. So that was my first conversations with John and with Ken, principally with John around culture. How do we take a company like LGS, which was more of a pure play in any innovation space, and marry it with a company like CACI, which had both technology and innovation side as well as the services and solutions side? And I had multiple conversations with John before we ever talked about money, before we ever talked about cost, before we ever talked about underlying systems. We talked about people. We talked about what motivates your people. Why don't you have the turnover rate that some of your competitors have? He wanted to understand what makes the machine tick.
And that has worked tremendously because it matched up very nicely with the other technology assets that were already within CACI, prior acquisitions and what they had built internally, people valuing the mission. I was telling somebody here this morning, one of the most valuable things we can do is expose our folks to the mission. And they become wed to it. They don't leave. They like this. This makes a huge difference. They can work anywhere. These are brilliant people. They can work anywhere. And John and the entire management team understands that. They're highly marketable people, high-quality degrees, clearances. They can go work anywhere. They stay because of the way we treat them. They stay because of the importance of what we do. And that wasn't unique to LGS. That was within CACI. And by marrying them together, it was a cultural magnet that just stuck together.
That is key. When John and Tom talk about finding those M&A targets, it's finding something that's differentiated, that's going to add value, that plugs a gap that we have in our strategy, but most importantly, has a culture that matches because culture is not something you can engineer, not in the short term. It either is synergistic or it can be very detrimental trying to integrate. There's an awful lot of attention paid to that and frankly has helped make our and Mastodon's integration very successful.
Thanks, Kevin.
Hi. Sheila Kahyaoglu with Jefferies. Kevin, maybe I'll stick with you, so keep the mic. When you think about the mission market as $90 billion, how much did LGS and Mastodon expand that? And is there any way you guys could quantify how big products is and how quickly you see that portion of the business growing?
Yeah. So let me start and I'll hand it over to Kevin. Prior to LGS and Mastodon, we last shared our total addressable market. It was in the $200 billion range. So you should take a look that we went from $200 to $220 billion, which is further proof of the capabilities and the customer relationships that we picked up as part of both LGS and the Mastodon acquisitions. On the products piece, and Kevin, any comments around that you want to share on what you all brought in some of the areas?
So without getting into the numbers, which CACI has disclosed already, companies like LGS Innovations that are pure plays in the technology and innovation space focus on individual missions and enabling those missions. But companies like that are eventually going to run out of airspeed, and you need a force multiplier. You need to grow a new delivery, a new way to address new market, or you need to become part of that new market. And that's where CACI was a huge force multiplier for us. They had much broader reach into intelligence and DOD marketplaces. And then with the addition of Mastodon, who brought an even more diverse market set, it allowed us to expand our vision into addressable market.
I don't have the exact numbers for you, but the hopes and dreams of companies like mine of where we could take this technology, but for the fact that we don't have the relationship, we're not an incumbent, we're not our own entity in that area, and we have to displace a competitor. Those are huge barriers to entry. But when acquired into CACI, our biggest concern day one was controlling the interest on both sides. Do you know where we can go? Do you know they have this client exec? Do you know they already have this contract? And vice versa. Do you know LGS has this technology? Did you realize that they had this signal set? So it was creating a control system around how much, without disrupting the businesses that we both had, how much interaction we were going to have. That's a great problem to have.
You asked a question around products and the size of the products business and the like. Tom, you want to get a little light?
Yeah. So we said that the bottom right-hand quadrant, mission technology, was approximately 30% of our business. So 30% on $5.5 billion is around $1.6 billion. So that's where we are in that general quadrant. Getting more specific than that, David, you kind of spoke about CACI products, which is the commercialization of various products. We're selling products in other parts of the business as well. So we're not providing that level of fidelity. I think it suffices to say that that bottom right-hand quadrant, again, approximately 30% of our business today, and that's the one that's exhibiting the highest growth and has the highest margins. And so hence, it's in a way more fun to talk about because it's photonics and all these things like that.
But the point I think that we want to leave you with is that all four quadrants are providing kind of very valuable kind of offerings to the government, which are generating profit and revenue and cash flow in enabling our stock price. And for me, it's gratifying to see that mix across those four quadrants and not just focusing on the bottom right.
One other add-on to Sheila's question, I don't think we covered a lot of today, is when we hear us talk about a products business, what we did is we've created a commercial-like entity within CACI that's called CACI Products. Okay? I don't want people to run out there saying, we're going to go deliver commercial products, okay, or, we're going to hit the commercial market. So I'm going to be very, very careful and very, very crisp here. What we have is a portion of the company that is not a CAS compliant business. So they don't have a certified accounting system, which means some government work they can't do. They can't do cost-plus work because you have to have a validated build-up of all of your rates.
So when our customers say, I want the left coast technology, and I want it as quickly as the left coast can generate that, our position back is, how about we do that on the right coast from a company that knows what your agencies need, what missions you serve? What I hear you saying is you want it a little bit more quickly, and we're not going to get in this dance around how much margin is too much margin. Okay? It's true. We're a publicly traded company. We're a national security company. It's okay to make a profit. Stated clearly, it's okay for us to make a profit. But what our customers are asking for when they're saying, I want an iPhone, you can't ask for an iPhone and say, I also need you to invest the way the iPhone was created.
I need you to do a lot of that out of pocket, but I also want to look at your bill of materials, and I want to talk about what fee you should actually make on that. That's where the model is traditionally broken. So we created a portion of CACI that's not under a CAS disclosure statement that can offer commercial pricing immediately. And in some circles, with some entry customers, that is the differentiation they want to see from companies who have been traditionally in this marketplace for 40 or 50 years who haven't moved to that model. Again, it's that risk-reward balance that we're willing to invest ahead of customer need to make certain that we have a way to deliver that product, but that's going to come at more commercial-like pricing. Okay. Thank you.
Yeah. Yeah. And the margin, I'll just add on to that, can be very powerful. To the extent that we already develop the software, the next sale of that software is at an infinite margin. There's no additional cost to take that software and load it on a particular device. And so once we spend the money to make those investments, as we grow incrementally, it's highly, highly profitable.
You've done, I think, an interesting job of laying out the benefits of focusing on mission and technology and products. Could you spend a minute discussing the risks of that and how you're mitigating those risks?
Yeah, sure. So as I started off with, the foundational strategy of the company still remains the same. Okay? We are still winning new business. We're going to perform on that business, and we're going to continue to deploy capital for growth. It's clear going to something like mission tech has a little bit of ring of risk because margins are usually a risk-reward equation. I would tell you that when I get up every morning, I think about risks versus the opportunities we have. Part of what mitigates the risks is that we aren't blindly going where no man has gone before. We're actually going to a place where our customers have been asking traditional providers to go. They have far more needs and far more resources. What's different about here is we acquired assets that already had the experience of going into this mission tech area.
We also brought the leadership team along with it. Kevin Kelly is here with us today because Kevin Kelly has driven mission tech for decades. Mark Benoit, who is the founder and CEO of Mastodon, reports directly to David Nack. So Mark Benoit still remains with us, who is the founder and that kind of a model around how do I take a different look at building devices that can do two or three or four different functions versus just one. So you traditionally would like to hear me say, well, we got to set up a manufacturing facility, and therefore we have a lot of manufacturing. But again, we're not looking at building traditional products piece parts-wise, 100,000 sq ft unionized facilities. We're really looking at taking a lot of commercial tech that has been hardened.
Think about memory and processing power put into a chassis that can take on any form, whether it's SIGINT, whether it's communications, whether it's cyber payload delivery, and the like. Are there risks? Absolutely so. But we've been doing mission tech for quite a long time. This is not a bet-the-company quadrant. This is a meticulously and strategically over a six-year period, starting with Six3, moving this company from what was traditionally called a government services provider to somebody who understands both enterprise and mission. So from where I'm sitting today, I'm surrounded by an outstanding leadership team. We got great experientials. Will we have bumps in the road? Absolutely so. Do I expect those to be large financial bumps? Absolutely not. We would not have made that kind of a move. David, anything you want to add in that regard?
So I think the other thing I'd like to add to that is I mentioned the leveraging of the existing intellectual property we have as the center of focus. So from a technical risk perspective, a lot of that risk is taken off the table because what we're doing is productizing, essentially, intellectual property that's already been created. And yes, investment and development is required to productize it and meet the mission requirements for a specific customer. But it's a lot different than more of that bleeding-edge research that you might associate with the technology space. I'll let Kevin handle that part. And so we have an option to leverage more government investment for the bleeding edge. And we have an option to use our investment dollars when we feel that the risks are relatively manageable. And guess what? That's what we do.
So that's just one more thing I wanted to add.
Kevin, anything you want to add?
Yeah. Since you backed up the timeline to the bleeding-edge side, so on that side, the risk you run is out punting your coverage, right? Inventing way ahead of the market need. And as I mentioned, my legacy with Bell Laboratories, there's literally a museum of inventions that came out way too early. So what we do is we expose our full IRAD portfolio to the government to solicit feedback. And this is to invoke the adage of fail fast. If you think you're going down a pathway that can't migrate into the mission in the near term, let's crank down on that investment and pour the money and the efforts back into the areas that are going to make a more near-term impact.
And this is something that the government was asking for, that companies expose their IRAD in lots of ways that expense rolls right back through our labor rates, and the U.S. government, the taxpayer, ends up paying for it. And so they were saying, hey, don't we get a say? Don't we get some visibility into what you're doing? And I know LGS and CACI, as a heritage, have always exposed those investments to the government to solicit feedback. It's one of the best sales tools you can have. Why are some of our competitors choose not to do that or to fight the notion that they have to expose that? I can only speculate they're either not proud of what they're doing, or they're using it for bench time, or it's not as transformational as the types of investments that we make.
So in terms of that being the risk of out punting your coverage and how you mitigate that risk, it's expose it to the light of day and collect the feedback. Thank you.
What else do we have? Okay. I'll have you all. I'm going to close up with. Oh, I'm sorry.
Just a follow-up. Yeah, just a follow-up. Thank you very much.
You bet.
Right now, you seem to be on this trend of embracing what the customer wants today and therefore moving in the direction that you've laid out today. What does a CACI do if, let's say, the customer were to move in another direction? Maybe there's a global contingency that pops up and all of a sudden you need a lot more people doing a lot of things that CACI used to do. I mean, is this a company that is sort of just stuck in a good way, focused on going in this direction, or are you going to have to be very flexible, again, if there were to be some contingency that is clearly unforeseen at this point?
Yeah. So look, clearly, strategy is a place to come from, right? So we're always consistently looking at where our customers are going.
I can probably date back to 16 quarters back when we talked about electronic warfare, okay, and electromagnetic spectrum and how important that was going to be. And at that time, the questions were, I'm not really hearing that from the global customer. You're right because maybe we're all talking to the wrong people. But over time, especially with the Army and watching how the Russians annexed Crimea, it's a lesson for everybody in this nation, frankly, to really understand what happens when we take our eye off the ball. Okay? The tough thing of being the United States is that you've got to have capabilities across many, many fronts. And I will tell you, I haven't seen many of those fronts go away. Okay? We're not exiting anything in this step forward. The next chapter of CACI is not about exiting. We went through some of that.
We really looked at the kind of things we were delivering. And if we had a high subcontractor content, it didn't make any sense for me to spend investment dollars to recompete and win somebody else's revenue. So we got out of that practice. We found ourselves giving program management skills and those kind of things away so we could continue to grow top line. Bad recurring revenue model. So as this customer transforms and as this nation gets hit with different threats, what we're talking about here is broad spectrum, broad-based. The electromagnetic spectrum has been around since the first electron. It's going to be here long after that. So as customers and adversaries and partners move around that spectrum to us, there is no end in what our federal government is taking a look at and what can be done there. Okay?
I think some of the examples today during Tom Kirkland's explanation is it might have been humorous to see a garage door open or go up on the screen, but that's the kind of things that we're going to be facing today and tomorrow moving forward. Not to play off of something just in the news, but I'm going to play off of something just in the news. If you looked at what happened over the weekend, I was on the Hill five years ago talking about the danger of drones. I'm happy that Amazon can deliver a gallon of milk to my house in 15 seconds. That's awesome. Okay? But because I come from the national security space, I'm looking at it in a really different angle, which is what happens when I can deliver a quart of milk or a gallon of milk to someone's house.
What else can a drone deliver? And how do we make certain that we are protected as a nation, just as well protected as our troops are when they're going to face those same exact things? So I don't know. John, you can probably talk about what we see out there and what we face and how that continues to every new insurgent, every new issue crops up new technological needs.
Yeah, I think as John says, our folks are working with the customers in every theater. So we literally are in every theater of operations. So if you want to worry about the North Koreans, I got guys that are over there working with that. We're across the CENTCOM AOR looking at that threat. We're in EUCOM looking at the European threat. So whether you're talking about near-peer competitors dealing with the Russians or the Chinese, the convergence of conventional fire maneuver, and the marriage of asymmetric threats, I think little green men over in the Ukraine, our guys are there working with every one of our customers that have to defend against those threats, that have to understand where technology is evolving from our competitors so that they feed it back to these guys so that we then recommend to the customer how to stay ahead of that cycle.
It's absolutely critical to our mission success as a nation.
Any other questions? Okay. Let me just wrap with one thing because we are coming up on everybody's time. Can I have a click? Do I have a click? Do you have a click? We all have a click. Okay. I'm going to end where we started. I hope that by keeping your attention today, that we've actually done an admirable job talking about, one, who we are and what it is we do. We believe we have strong alignment to where this market's going, in fact, creating some of the markets and some of the additional spend in this next two-year budget cycle, which is very supportive of where this company's headed. Also, how do we differentiate? Try to spend as much time in each of those four areas talking about what makes us grow, what concerns do we have, and what differentiates us.
As investors, we believe you need to hear that from us. We're going to go in this market. Here's the reason why. Here's how we differentiate. And not only words, but the last three years, the last four years of showing that 1%-4% above the addressable market growth and 10-30 basis points isn't just rhetoric. It's not just a goal. We've actually delivered it. And if we've done all that well, then from where we sit, we hope from where you all are, the CACI is a compelling investment. I can't thank every one of you enough for taking the time today. I'm sorry that we've gone about 25 minutes over. We do have boxed lunches here. And we'll be around for the next 30-45 minutes should anybody else have any other questions.
With that, thank you all very, very much for your interest, for your willingness to come here and hear our story. Appreciate it very much. Thank you so much.