To give you an example, many businesses in the industry are tracking an anticipated BPA from the Department of Energy that has a $10 billion ceiling on it that’s expected to go into the procurement process later this year. And that would span any potential change in the political setting in Washington. So to summarize, we feel that this area of IT modernization technology services particularly the competencies that I mentioned represent an excellent organic growth vector for the company as we move forward. But at the same time, we remain focused — and I think this is one of the company’s greatest competencies in combining technology with business process services to deliver programs at scale. And more and more these days the RFPs that we see do show a flavor or a combination of those where you need to deliver for example a cloud-based technology solution that meets Federal certification requirements which themselves are changing with CMMC coming along, but also combined with the labor component to meet the mission requirements of the procuring agency.
So we feel strongly that those two areas really when taken together represent a solid underpinning for the growth targets that we’ve laid out for the business. And I think David is going to add something to that.
David Mutryn: Yes. And Bert just further on your margin question at the risk of being repetitive, we do intend to continue to drive margin improvement up in that 10% to 14% range with what I mentioned before is kind of it continued focus on standardization and operational efficiency through the Maximus Forward program as well of course with our ongoing efforts with the Outside the U.S. portfolio.
Bert Subin: Great. Just one last one for me. Can you give us a — you highlighted the VAMD recompete and the CCO recompete. I guess just maybe like a two-part clarification. On the CCO would you still be interested in bidding that if the terms change significantly? Like what’s the time line on that in your view? And then are there other recompetes to be aware of? Or is your profile pretty thin otherwise?
Bruce Caswell: I’ll go ahead and address the first piece the CCO rebid. And I don’t want to offer too many comments as it relates to strategy here obviously because it’s an active procurement process. When you really look at the context of the reprocurement and consider that as I outlined in my prepared remarks it’s interesting, but not entirely surprising that we’re seeing continued action by the government here. I noted that there was communication posted last week suggesting an RFP date on or around May 16 and that the procurement would cover a contract for a transition period plus nine option years. It’s important to note that no further details are provided including any specifics related to the planned labor harmony agreement requirement, which we understand is really the sole basis for triggering this premature rebid of a successfully performing contract.
Also as I mentioned on the last call the procurement of this size typically take up to a year or more to complete and it’s not uncommon for the process to take up to three years. So we’ll note that there’s a strong likelihood that an RFP could trigger a pre-award protest to the GAO and potentially further given the unprecedented nature of the anticipated labor harmony requirement. It’s also important to note here that further complicating the path forward is that there are significant operational impacts that would need to be accommodated and considered under resulting new contracts including slowdown requirements to significant small business subcontractors who may be in our view least equipped to comply. So it begins to get complicated when you kind of take theory and put it into practice.
I mentioned in my prepared remarks that we remain very committed to continued high-quality services. While the rebid matter plays out. And — but we do have genuine concerns regarding the impact of the rebid on the ecosystem of small disadvantaged businesses that have been put together to support this program. And in many communities they’re the primary employer. So the theory behind the labor harmony agreement is to ensure continuity of operations. And yet we’ve repeatedly noted our record of service continuity. And indeed our view of the evidence suggests that any reprocurement only increases the risk of service failure to tens of millions of seniors. So in summary while the RP — when the RFP is released we’ll evaluate it comprehensively, we’ll determine our appropriate course of action at that point in time giving due consideration to all of our available options.
So at this point I’d probably stay away from speculating further on the competitive environment, but I’ll just note that it’s a major area of focus for the business.
David Mutryn: And Bert on your second point nothing else large on the — in the near-term horizon to call out.
Bert Subin: Great, color guys. Thank you.
Operator: Thank you. Ladies and gentlemen, this brings us to the end of the question-and-answer session. We would like to thank everyone for the participation in today’s conference. You may disconnect your lines and log off the webcast at this time. And enjoy the rest of your day.
