Brian Kinstlinger: Great. My last question revolves around the GRSi transaction. I’m curious, I don’t know if you provide numbers or high level again, whichever. If you look at their 2023 revenue, is it growing over — did it grow over 2022? Did it shrink? Is it the same? And then I’m curious if you evaluated where you hope to be at this point in terms of its revenue contribution again, from the IT side. Are you where you would hope to be? Or was it more impacted as well by what’s going on in the broader market? And so maybe you’re a little bit behind plan.
Zach Parker: Sure. So we’re tackling that one. Great question. Yes, regarding ’22 to ’23 and beyond. As you may recall, the — first of all, they’ve — that acquisition has delivered all that we have expected in terms of enhancing our competencies, our capabilities and channels for growth in expanding markets. So it’s been a very, very, very strong in that regard. You may also recall that in the existing book of business that existed when we closed the acquisition in December 8, there was still a fair amount of contracts that we considered that were — had been small business set aside, and that was worked at — there’s a degree of uncertainty as to whether or not we would be able to retain that work within the GRSi. And in most cases, that remain as a minimum, we would likely get 50% of any arrangements or 49% of any arrangements that we have with a small business partner.
So those are starting to — those — the schedule and the timing of those have been a little bit different from what we had expected going forward. But they’re obviously — they’re having with Kathryn and I fully anticipated the type of erosion in that market area, while the company is doing very good in positioning that we’ve won a couple of those that were — we’re not terribly optimistic on. But again, it would net terms in terms of have a net negative effect on the revenue. But that was all anticipated because it’s those capabilities that allow us to win in the unrestricted market that we saw the value and we’re comfortable seeing some of that erosion for the small business set aside work. So Kathryn, do you want to add to that?
Kathryn JohnBull: Yes, absolutely right. So the strong EBITDA contributors were locked in, really protected and have continued to deliver. There’s been some erosion of the lower-end work, as Zach described, a lower end from — just from a numbers perspective, no disrespect to the work being performed and the customers being served or obviously. But from a growth perspective, to your second point, naturally, GRSi has been equally, if not more so affected by the delays in decisions around particularly that large IDIQ that Zack mentioned, CIO-SP4. They were, as many of you remember, we talked about on former — prior calls. They are a schedule holder on CIO-SP3. So unlike DLH, the heritage DLH, which really did not have the resident technical capabilities to bid on CIO-SP3, but was preparing itself through its acquisition program to be credible in CIO-SP4.
In contrast, GRSi was on CIO-SP3, but that’s a small business, and they’ve obviously grown out of that. So they’ve kept the work they had but the opportunity to really bring their expanded talent that they’ve built over time into the large-scale operations that we expect as part of their forward opportunities, that’s been delayed. So the growth strategy for GRSi has that bit of an overhang that the whole business in the industry is experiencing. But in terms of relevance to our journey ahead and really ability to contribute to our talents in addressing the market, they are everything we expected them to be.
Zach Parker: Yes. Let me add a piece to that, though, we — our strategy was built — was not just to come on those qualifications, we have been very, very active in driving collaboration across the business. We really are looking at one plus one equaling three. So we were not looking at their existing business based on capabilities alone. What we have seen and what excites us most is the synergy of pursuit of these opportunities based upon our heritage NIH work as well, which is heavily based in the science and security side of the business, with the IT aspects that came with the acquisition. When you put those together, you have some of the world-renowned epidemiologists and research scientists together with the technology capabilities that came along with the acquisition.
We are seeing some innovations and opportunities to provide past performance references that the customer is not seeing very much on the competitive landscape. So we’re excited about the synergy and what that has opened up in terms of not only the value propositions, but cross-agency selling.
Brian Kinstlinger: Okay. Thanks so much for your time. Thank you.
Zach Parker: Thank you.
Operator: And as we have no further questions in the queue, I’d like to turn the conference back over to Zach Parker for any closing remarks.
