Science Applications International Corporation (NYSE:SAIC) Q4 2023 Earnings Call Transcript

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As it relates to profitability, I think that that’s something TBD. It’s not uncommon for re-competes to put some profitability headwinds when you do re-compete, and it’s certainly in the early days of execution. But again, we will look to areas where we can differentiate, we can set ourselves apart, we can bring solutions to bear that best support the customer and best support our objectives as well. So, that’s probably all I am going to say on Vanguard at this point. But again, I just want to reiterate and appreciate the team that’s delivering to this very critical mission because it’s easy to get €“ kind of get sidelines sometimes with all of the re-compete process that’s happening, but our team is laser-focused on delivering and very proud of them.

Cai von Rumohr: Terrific. And the last one, impressive takeaway wins in TCloud and One IT. So, as we look at kind of what you are bidding, do you have other significant takeaway bids in the outing because up until these two wins, we hadn’t really seen this kind of aggressive takeaway effort on your part?

Nazzic Keene: So, on those two, we appreciate you €“ I appreciate the comments. Very proud of how we sit today. But as Prabu mentioned, they are both still in their post-award process, but very pleased with our ability to get this far and very, very optimistic that we will clear the post-award process and have much more to share with you after that. I will say that both of these are positioned in our GTA areas of focus, so continues to really focus on that part of our strategy and complement and provide some proof points to that part of our strategy. And I think it’s €“ all I will say is I believe the team has brought forward a very competitive and compelling solution for our customers. As it relates to other things in our pipeline, we certainly do see opportunities to continue to create a position in the market in these areas that we choose to differentiate, and we look forward to sharing more of those types of wins with you in the quarters to come.

Cai von Rumohr: Thank you.

Prabu Natarajan: And Cai, if I can add to that. As Nazzic said, we have got a few other things in the pipeline on an annual basis for every one of the next 3 years to 4 years that have the potential to deliver. The more important thing that we tend to focus on is why SAIC, how can we articulate the proposition that we bring to a customer on a takeaway opportunity. We all know takeaways are hard in this business because incumbent re-compete win rates are pretty high. So therefore, the why SAIC question is a really critical part of the questions we have for the team inside our gate review process and making sure that we are tying the investment dollars to effectively and compelling the answering the question on a repeated basis.

Looking at draft RFPs, what’s changed from the last time, terms and conditions, are these the things that we want to be bidding at, what is the potential for a particular opportunity to be a game changer in terms of either that customer, that class of technology or a way to build out other parts of the pipeline. So, those are all really important ingredients that we look to the teams to answer for us. And again, at the end of the day, this is good old-fashioned habits and hygiene getting the things positioned where the technologies that we are bringing truly get differentiated from our competitors, but not just that, they also get scored as a differentiator. To me, this is just good old-fashioned, solid business development resulted in two big wins and hopefully a few more in the future.

Cai von Rumohr: Terrific. Thank you.

Operator: Your next question comes from the line of Greg Konrad from Jefferies. Your line is open.

Greg Konrad: Good morning.

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