John Mengucci: Yes. That’s not a perfect answer to the hypothetical. For a long time, we said that we would occasionally perhaps consider $4.5 million. I think in the current environment, that’s going to be less. But I could imagine for the right asset, 3.5%, maybe a little more is sort of in the ZIP code we consider. It’s difficult to answer that, obviously, outside the context of a specific target. But certainly, you should think about us thinking about up to a turner, so all what we have historically said.
Jan-Frans Engelbrecht: Great. That’s really helpful. And then just a quick follow-up on the Spectral award. Just given the hardened grade environment in the Indo-Pacific strengthen the Navy budget that should likely continue for the next couple of years? Are there any sort of additional bidding opportunities that you see in the next 12 months to 24 months, specifically related to Navy electronic warfare signals intelligence that we should look out for?
John Mengucci: Yes. Great. Look, our electronic warfare and our electromagnetic spectrum, detection and countermeasure equipment is deployed on a lot of assets today. Actually, it’s not so much about the next 12 months to 24 months what are the other bids that we can put out there. It really talks about the reason why my prepared remarks mentioned that Spectral is the program, right. Our customer on Spectral is already looking at how do we morph the program as it was awarded is something that can do two things. One, that actually gets updated for today’s current threats. Remember, we began investing on Spectral. I think it was fiscal year ‘16, if I remember right that job was awarded this past year, and we are having a lot of detailed discussions around what does the threat look like today, is there anything we can do to get delivery sooner and then can we address more platforms that we have set up in the contract today.
When we won that program, there is a $1.2 billion award. I believe we booked that at $600 million and we are sort of sorting through what the other $600 million looks like. So, we have done an outstanding job. We are all over this market. The Navy is the purpose-built customer for us as we are out there delivering. And I would also say that as we start to show what Spectral has and we deliver to the Navy, there is other customers out there that are getting another look at where our capabilities have moved to and then tie back to another question, in light of what’s happening on the global stage, there is other countries that are seeing those type of capabilities. So, one loves the funding that we have in place on Spectral. Two, we made all the right rate calls to invest ahead of customer need, so we would start up immediately.
And then three, great technology team where it’s working with the Navy to find out how can we deliver that even quicker because that near-peer threat in the entire INDOPACOM regions is going to depend on.
Operator: Our next question comes from Tobey Sommer with Truist Securities. Your line is open.
Tobey Sommer: Thank you very much. Could you talk about trends that you are seeing in terms of billable headcount growth and the outlook for that, any sort of changes, and difficulty in recruiting and the implications for kind of both revenue growth and associated expenses as we turn into calendar ‘24?
John Mengucci: Yes. Tobey, thanks. First off, look, I would love when our expertise and technology grow. I am looking for material growth in both of those markets as we get through the year, just have raised guidance says we are going to have organic growth between 7.5% and 9.5%. And based on some of the jobs that we are winning, frankly, when the rest were Ts [ph] jobs or they are technology jobs, we are going to need talent. Look, we are well positioned there. We have got three great internal hiring programs, Hashtag making moves. Frank is one where we – lot people move around the company on different projects. That’s the beauty of building a technology business here. Hopes are much more fungible and we can move them around and that helps them build their career.
Over 40% of our hires today totally come from a referral, which is outstanding for us. It keeps our talent with just costs down. And we already know people have assessed people, right. We sort of have this tag line, great people know other great people, and it’s working very, very well. And then last, how does the job market look, look, we have done a lot to draw people to our business. We have got – we have a large internal program for our company size well over 300 interns. And then we moved to this flexible time off and financial wellness program, which is what new hires are absolutely looking for. And frankly, we find a way to differentiate ourselves in the marketplace around expertise or technology of labor. This is a company they are going to find that from first.
So, flexible time off a really good financial bonus program that comes to a charge to all of our employees. So look, we finished FY ‘23 with attrition running about a full percentage point lower. You can do 1% on 22,000 people and back into how many less people we have to go out there and hire. So, for both expertise and for tech, I like what the market is giving us our ability to hire and retain talent.
Tobey Sommer: And if I could get your perspective, what do you think on the proposed changes in merger guidelines at the FTC? And how does that impact your acquisition program and thoughts around that?
Jeff MacLauchlan: Yes. John will probably want to – maybe want to add some thoughts to this. It’s not – I don’t expect it to have a large impact on our thinking about managing and evaluating the pipeline. I mean we are in a position where our focus is on gaps and sort of filling strategic areas that are of interest to us. There is very little in our pipeline that involves either vertical integration or acquiring competitors. It’s really about complementary capabilities, which is probably one of the less threatening areas in terms of competition, but I don’t know if you have any thoughts you would add.
John Mengucci: I think you have answered.
Tobey Sommer: Thanks John.
Operator: Our final question comes from Louie DiPalma with William Blair. Your line is open.
Louie DiPalma: John, Jeff and George, good morning.
