DLH Holdings Corp. (NASDAQ:DLHC) Q1 2023 Earnings Call Transcript

Zach Parker: I’ll start with the timeline piece and then give some color again, around the VAs acquisition process. Timeline wise, let me make sure we’re level setting everyone. We are continue to be on so source bridges since 2016. It’s amazingly long, procurement administrative lead time, and Paul, if you will. But that is actually where we’re currently operating November of 2016, is when the second of the major contracts were awarded in 2011 12 timeframe came to fruition. Now, with regard to the way in which they’ve come out, they’ve actually come out the same as they did somewhat similar to the way in which they did for the contracts that we won that ended in 2016. So that was, of course, in the 2010-’11 competition arena, those contracts, the contracts we’re performing on today, were all awarded as unsolicited as individual site bids.

So we had maybe 40%, 50% share of one set of those and a little more on the other set. But they were procured by the government and VA as seven standalone VA, some companies would be one or two. Some could be more. We of course, where we had three or four of them as an incumbent, we did bid all seven. So happened that we won all seven and having had that clean sweep the government has managed the work and we’ve collaboratively agreed to manage the work as though it was a logistics contract and a pharma contract. But in each of those cases, they were individually solicited just like they are now by site. And then of course, they gave preferential treatment to small business in that arena as would normally be the case. And then, of course, over the last few years, we’ve had various versions of the kingdom where induced acquisition changes, and appropriately so the VA remains strongly committed as our way to the small business community, and particularly in service disabled veteran owned small businesses.

We have partnerships that we’ve put into place over the last few years. And that’s been an integral part of our strategy and continues to remain an integral part of our strategy even today, is to leverage approaches that would have benefit for SPOSB. So the current state, as you’ve seen, other solicitations, again, are back like they were when we won the last time as standalone businesses, standalone sites. The difference here is rather than in encouraging service disabled small businesses as teammates, it is currently in a set aside mode, so that the SPOSB has to be a part of the prime position for each of these. So we’re continuing to support them. We’ll evaluate, how the evolution of the acquisition strategy would come. And we’ll come out as a work to a conclusion on this acquisition process.

But either way, we remain fully committed to serving our veterans the way in which we have providing differentiating capabilities to net out as high customer satisfaction ratings, up to an including JD Power Awards on a pretty extensive basis. So we remain committed with our in our partnership with our veterans, and we’ll continue to embrace the small business investment as well.

Jeff Bronchick: So just given the highly efficient way in which the government works, particularly today, how would you envision a timeline of submission review initial awards subsequent complaints and whining, and then into a final next face of the — just roughly speaking?