So there’s so many aspects that go in that just don’t get captured in a metric in and of itself. Now that being said, obviously, we had planned for and anticipated a higher book-to-bill. As Prabu also mentioned, we’ve had incredible bookings for the first month of this quarter. And in the world of what could a should, if it happened last quarter, again, a very different metric, a very different conversation. So I don’t think there’s anything that’s systemic in the delays. Delays is good, better and different is a part of how this ecosystem operates. We do our absolute best to forecast with as much diligence as we can, when things will close, when they’ll clear the protest cycle. But of course, much of that is not in our hands. That’s in the customer’s hands.
So with all that being said, I don’t believe there’s anything systemic in our portfolio that’s an issue. I don’t believe there’s anything that’s really a big difference in the customer’s buying behavior. Obviously, the headwinds around budget and CR, I’m sure, weigh on people’s minds. But I don’t see anything that would cause — at least doesn’t cause me considerable alert or concern as I look to the future. And as Prabu has mentioned, even with this book-to-bill, even with some of these delays, we’ve got new business coming online, and we have a very strong and healthy pipeline. So that’s my view of it, but I want to make sure, Prabu can address some of the specifics.
Prabu Natarajan: Thank you, Nazzic. Let me add a couple of color here, and I’m going to take us up one level up. As we think about where this business is positioned relative to the pipeline, we have a pipeline that’s — I’m going to say circa $100 billion. And to me, that’s really where I start. And then I think as we think about the multiyear growth objectives we’ve laid out the 2% to 4%, certainly, hopefully, at the midpoint, about 3%. We have to then work our way from where the pipeline is to how much of it is qualified and then how much we are submitting as a fraction of that pipeline. As we work our way down the funnel, I want to reassure folks listening to this that we have sufficient pipeline to go prosecute the growth objectives we’ve identified.
We’ve got to get our submit volume higher, some of that is seasonal. Some of that is timing, and we’re seeing some of that this year. And some of that is recompete losses, which do impact book-to-bill. And therefore, to me, as I put the macro with the micro, I think about it as over time, we have enough pipeline and therefore, we get our submits up higher, and our win rates are actually pretty competitive on the new business front. We’ve shared over the last 1.5 years or so, that our new business win rates are tracking a lot higher than they have been tracking historically. And I don’t need to go through the list of new programs that we’ve won just in the last 18 months, but recognize that there’s enough pipeline here and the award activity has slowed a little bit in the first-half of the year, but some of that is transitory, I think — and the reality is we feel good about where the overall portfolio sits, but we’ve got to get to submit volume up, and we are holding our share of recompetes as Nazzic said earlier on the call.
But to me, that’s the macro and the micro together.
Matt Akers: Okay. Great. That’s helpful color. And then I guess I wanted to ask on T-Cloud and how fast you kind of see that program ramping up. I assume that’s kind of been calculated in the guidance you’ve given over the next couple of quarters, but to how fast is a pretty sizable program?
Prabu Natarajan: Sure. I’ll take that one. At this point, what our guidance reflects is a nominal amount of contribution from T-Cloud. We’ve received the first task order on the program, and we are expecting a fraction of that to convert into sales this year. One way to think about it is probably less than one-half of 1% this year, ramping to somewhere between 1% to 1.5% of enterprise sales next year and hopefully, higher than that the year after. But we are assuming that the ramp is going to be methodical. We’ve got to get through some initial design gates that we are working with our customers actively. And — but we do expect that program to ramp. At this point, there is very minimal amounts of revenue contribution assumed in the guidance for FY ‘24.
Matt Akers: Great. Thank you.
Prabu Natarajan: Sure.
Nazzic Keene: Thanks.
Operator: Your next question comes from the line of Bert Subin with Stifel. Please go ahead.
Bert Subin: Hey, good morning and Nazzic I’ll echo my congratulations. And actually, I have my first question for you. As you reflect on your time at — just maybe just a high-level question, sort of thinking through your tenure. Just as you reflect in your time at SAIC, where do you think we are in the evolution toward sustaining that profitable organic growth that you mentioned? And what in your view has changed at the company in your time that you think sets SAIC up well to just to increase growth as we think into the future?
Nazzic Keene: Yes. Thanks for the question. So as I look forward, as I look at the company today and I reflect on what I believe it looks like going forward, and Toni and I are in lockstep on so much and so focused on profitable organic growth. So I do think the company is well positioned to keep this drumbeat going forward. Now as we all know, any given quarter, you could have 8% or you could have less than 8%. But I think the ingrained in the DNA of the company at this juncture is really focused on driving profitable organic growth. And we see it across the board. Over the course of my tenure, we have done substantial work at the leadership levels of the organization, ensuring that we have leaders that have a growth mentality and a growth mindset, we have done significant work in changing out our sales organization, our go-to-market organization and certainly the investments in the innovation areas that differentiate us.
So I’m very proud of what the team has been able to accomplish. The good news is, although I’m stepping down, the team that does the heavy lifting every day is here every day. And so that mindset, that focus and that energy will continue and even accelerate under Toni’s leadership. So I feel very confident in the company as it sits today with this as an underpinning of what gets done, what gets measured gets done and where we focus each and every day. So I think that’s how I would answer the question around how do we sit today, what have we accomplished and how does that look forward. And hopefully, that addresses the highlights of your question. Bert if anything?
Bert Subin: No, no, that’s it.
Nazzic Keene: Sure, thanks.
Bert Subin: And maybe just as a follow-up for you for Prabu. You provided some great commentary on the pipeline and your view towards the macro setup for the company or just the broader business. If we’re thinking through current dynamics, what success is the company having when it comes to growth within contracts where you already have a current book of work just given what you noted on favorable hiring, retention and outlays trends? And how much of a tailwind do you think on contract growth can be in these next couple of quarters? Is that something that potentially pushes you towards the higher levels of the guidance levels you’re looking at?
