So, it’s great to see that program up and operating. I think as we look across this year and being an election year and knowing that there could be a change in administration in the next year, the key is for agencies that have really kind of thought through and planned and timed the procurement processes for their IT modernization initiatives. In other words, the need is compelling, and it happens in a somewhat cyclical fashion. I’ve been around the industry long enough to recall the last time we went through IRS modernization. So, it’s kind of every couple decade the systems get aged and outdated, technology is advanced, and we have to go through a modernization wave. Those that will present the greatest opportunity to the contracting community are those that have been, if you will, kind of baked in terms of the procurement strategy and the table set to be executed on between now and the next year.
So, in terms of areas of opportunity, where we feel like we see these waves in a number of civilian agencies and we feel we’re well-positioned. But to pivot to the second half of your question, I will say, and I’ll quote my former boss, Rich Montoni, who used to say, we can never keep our technology saw sharp enough. And he’s right. There are areas where I think we could continue to build-out our capabilities somewhat organically, but also inorganically. One that comes to mind, I think, for everyone in this community is cybersecurity. And I think increasingly these days, the capability to help agencies navigate, I want to say AI, but I’m going to restrain myself because I think the key to effective AI implementation is data. And so, helping agencies clean up and make use of their data and get it into a form where it can be valuable and inform their AI strategy with proper governance is another frontier, I think, that all of the vendors in our community are looking at addressing one way or another.
So hopefully that gives you a bit of insight. But we, as I said in my prepared remarks, continue to feel quite optimistic about IT modernization because our Federal customers have said very clearly that it remains a priority for them.
Bert Subin: You said about EDOS, you said task orders are starting. Have you started work on that or you’re just starting to see the potential activity?
Bruce Caswell: There are task orders that are out being bid by the various vendors on the contract presently.
Bert Subin: Got it. Thank you. Sorry, David.
Bruce Caswell: I think David wanted to add there.
David Mutryn: Yeah, I’ll just — I agree that this is definitely an area of interest on the M&A front and thought I would just chime in as well. I said on the last call that free cash flow should enable us to de-lever down to about 1.5 times by the end of the year absent M&A. So just pointing out that we do have capacity and the appetite in the near term.
Bert Subin: Thank you, both. Appreciate all the color.
Bruce Caswell: Sure.
James Francis: Thanks, Bert. Operator, back to you.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
