So kind of big picture, on the margin rate guidance, I think you’re exactly right. I think sort of on a truly pro forma basis, we are expecting the business to grind up about 20 basis points kind of year-over-year. I think very proud of kind of what we delivered last year. And obviously, the portfolio actions plus the other things that we’ve got in the hopper here allow us to get comfortable on a 50 basis point increase to margin rate from 8 8 to 9 3 at the midpoint. There are a couple of things that we’ve very actively looked at, continued focus on efficiency-related improvements. We have actively talked about our real estate footprint as a potential tailwind here as we continue to cycle out of facilities that are minimally used inside the organization.
We are very actively looking at labor curves across portfolio. So I’d say the short way of answering the question would be that we’ve got a few things that we are continuing to grind through inside the organization that gives us comfort that we will obviously continue to move margin up on a multiyear basis. And the reality is at Q1, we want to make sure we start the year appropriately placed on the risks and opportunity side. And hopefully, we continue to execute and improve margins as we run through the rest of the year.
Jason Gursky: Okay, great. Thank you.
Operator: Your next question comes from the line of Matt Akers from Wells Fargo. Your line is open.
Matt Akers: Hey, good morning, guys. Thanks for the question. I wanted to ask kind of on the portfolio. After this divestiture, the logistics business, I guess, are there other pieces that maybe don’t fit? Or I guess on the flip side, are there may be other assets that you might need to sort of enact the GTA kind of mix strategy that you’ve talked about? And maybe could M&A be part of the cash flow story going forward?
Nazzic Keene: Yes, Matt, it’s Nazzic. Hi. So a couple of things, is there other aspects of the portfolio that we’re looking at from a divestiture? The short answer is no. We continue to run and operate a very agile strategy process inside of SAIC. So we’re always looking at how our current portfolio supports our long-term objectives, and we continue to do that on a regular basis. But as we sit here today, we don’t see anything that bubbles up. As it relates to that divestiture, I wanted to highlight a couple of things. We’re very proud of what that portfolio has contributed to SAIC over the many years since it was acquired into the SAIC portfolio. But as we sat here today and as we’ve been communicating with you, as we focus on the GTA part of our strategy, it became not core to our long-term strategy.
And so we looked for the right time, at the right price, all the rights for an opportunity to divest it and very, very pleased with how the team has executed against that objective and very proud and pleased with where it’s going to end up inside of ASRC Federal, where I know they’ll have a great ability to drive their business, drive growth and be a great part of their long-term strategy. So as we sit here today, we don’t see anything else that falls into that category. On the flip side of your question, do we see opportunities to acquire? We’re very well positioned at SAIC. We believe we’ve got the sale and the capacity to deliver and execute on the strategy that we’ve been communicating and the strategy in which will provide some longer-term financial guidance next week.
