Translation please!

May 11, 2006

Yesterday, in its 10-Q Caci International (CAI) disclosed that it had received a subpoena from the Department of Energy’s Office of the Inspector General. Why it waited until May 10 to disclose something that was issued on March 27 is just one of the questions, though.

In the disclosure, the company says that the Energy Department "may involve alliance benefits include teaming agreements, strategic partnering agreements and reseller agreements" but fails to explain what any of these transactions are. And an extensive search of Caci’s earlier filings finds very few mentions of any of these words. For example, the words "teaming agreements" are only mentioned briefly in an employment contract.

Some people may remember that Caci, a large government contractor, was implicated in the Abu Ghraib mess, as this New Yorker article pointed out two years ago. What this latest investigation means for Caci investors — shares were up sharply until right around late March which we’re hoping is just coincidental — remains to be seen.

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