Prabu Natarajan: Thank you, Nazzic. The one thing I will probably tee up is, aside from all of the macro factors driving improved labor conditions across the business, we are probably seeing, for the first time in maybe a little over 24 months. Organic headcount increase that is comfortably better quarter-over-quarter. We’ve signaled for about two to three quarters now that labor conditions are improving. It is directly contributing to higher head count inside the organization. The other thing that the team is doing that is really bearing fruit is to the extent we have some difficult recompete challenges, we are finding ways to redeploy talent that is needed in other parts of the business. This has always been the holy grail for human capital management inside companies, and we’re doing a better job of it now than we did a couple of years ago, kudos to the team.
So we are holding on to critical higher-end talent that we are effectively redeploying in other programs. So instead of seeing the headcount come in and go with programs, we’re actually doing a better job holding on to that headcount, so we can organically drive headcount retention were for a company with that much backlog and that much ceiling, we have enough and more opportunities inside the company to redeploy talent, and that’s an area where we’ve spent some time and investment getting better at, and we’re starting to see the benefit of that inside our headcount numbers themselves.
Nazzic Keene: Tobey, one more thing I’ll add, and you guys have heard me string these words together now for several years, but profitable organic growth creates an environment. So not only does it create opportunity because you’re growing the business, you have to hire people, but people like to be part of a growing organization. And in some of the programs we’ve won, and I probably mentioned several, but in the area of space or the area of cloud or exciting sexy new programs and people want to be associated with a company that are winning these types of programs that are so mission-critical. So I think the goodness in addition to being good for the shareholders, it’s great for an organization to be a growing entity, especially in areas that are exciting and new.
Tobey Sommer: If I could sneak a follow-up then. Outside of Vanguard, are there any sort of chunky contracts that could prospectively be broken apart into multiple procurements over the next couple of years?
Nazzic Keene: Vanguard is certainly the largest 1 and the most visible, as Prabu was mentioned, any given year, 20%, give or take, of our portfolio is up for recompete. And so that’s just the nature of the business. But Vanguard is 1 certainly that would have and could have the biggest impact. But again, we expect to win our fair share and we’ll continue to deliver on that program until things change.
Prabu Natarajan: And one last data point here, as we signaled in the script, there’s about $8 billion of IDIQs that we’ve won over just the last 2 to 2.5 years. That is not fully reflected in the backlog. In addition to that, we are part of multi-award IDIQ wins over the last couple of years that are probably just as big as the single award IDIQ number, if not bigger. So if you think about the labor environment improving, if you think about the work being task order driven and filling out the ceiling inside of contracts, I think the conditions are ripe for organizations that focus on contract growth to deliver outsized on contract growth over the next few years especially in the backdrop of a budget environment that’s likely to be somewhat difficult. So to me, I think, as I think about the context, that’s the environment we’re sitting in right now. But on the whole, we’re pleased with how we’re doing on the labor front.
Tobey Sommer: Thank you. Good luck, Nazzic.
Nazzic Keene: Thanks.
Prabu Natarajan: Thank you.
Operator: Your next question will come from the line of Louie DiPalma with William Blair. Please go ahead.
Louie DiPalma: Nazzic, congratulations on your tenure at SAIC, you left the company in a much better place than when you started on the culture front and you also hired Prabu, Toni and Joe, which were 3 great additions to the team.
Nazzic Keene: Thanks, Louie.
Louie Dipalma: And for either Nazzic or Prabu, SAIC has shown nice balance between its IT services and mission services, can you talk about your exciting takeaway win from Northrop Grumman for the Space Force ground radar contract that Nazzic just referenced. And I know it’s still in the protest window, so you may be limited, but are there significant other space opportunities in the pipeline?
Nazzic Keene: Yes, let me tackle the first part of that. So as you hit the nail on the head, it is still in the window. So we’re not going to say a whole lot. What I will say is we’re very excited, we’re thrilled with the win. And we expect to be able to book this, hopefully, in the near term. But I’m not going to say a lot more than that just because it is going through the process. But we always love to win new business, and we always love to win from a formidable competitor. So that’s — this is — it’s really great to be able to talk about it. What I will provide some color on is the — this is a great example, and we talk about this periodically on the call of our space strategy. And so being able to navigate the work that we have today, being able to expand our footprint in the broader space domain, critically important mission programs as you referenced, has been fundamental to our strategy, and it’s great to see these proof points.
And to your — the latter part of your question is absolutely greater opportunity in our space-related pipeline and we look forward to being able to talk about those and announce those over the course of the next couple of years. So it’s a very important part of our strategy. It’s — to your first part of your question, our ability to deliver on mission engineering programs as well as IT-centric programs is critical to our overarching strategy of being a diversified player. And so this is a great proof point of exactly that.
Louie Dipalma: Great. And also on the mission front, at the Analyst Day in New York City and previously in Huntsville, SAIC showcased its counter UAS systems of systems solution. Has the SAIC system continued to make progress in demonstrations with the U.S. Army? And is there opportunity for the system to be deployed in Ukraine and other hot geopolitical areas?
Nazzic Keene: Great question. Yes, we’re still very pleased and very proud of the counter UAS business that we have. And I certainly can’t speak specifically to Ukraine. I don’t think that would be in good context. But I can tell you that we are getting great traction with not just the DoD, the Army as an example, of broader DoD customers, as well as civilian customers. And they certainly see the value in this. We’ve been able to demonstrate in many ways and are looking to continue to advance our position in posture with this solution. The unique nature of how we’ve built this solution where we take best-of-breed parts, for lack of a better word, and integrate it to an end-to-end solution, allowing us to tune it to the specific need of the customer is something that has stood out and has been very powerful as we continue to have the conversation and dialogue with our U.S. government customers.
Louie Dipalma: Thanks. That’s it for me.
Nazzic Keene: Perfect. Thanks so much.
Prabu Natarajan: Thanks, Louie.
Operator: We have no further questions at this time. That will conclude today’s meeting. Ladies and gentlemen, we thank you all for joining. You may now disconnect.
