Booz Allen Hamilton Holding Corporation (NYSE:BAH) Q3 2023 Earnings Call Transcript

And even with our record hiring, we’re still having filled every rec. And the place where it’s hardest for us to recruit is in clear technical staff for work in the intelligence community. And so we still have a lot of open recs there and now a significant volume of open recs had EverWatch. So our goal ultimately in this area is to retain and grow that workforce and deploy it against the work that is in front of us, I think we’re doing well there. There’s more work to do because, ultimately, we want to continue to grow that workforce as the way which we grow the Intel business overall. And then the last point I would make on the protest environment overall, that continues to be a slow process. We have a number of things that have slid to the right as a result of that.

I think that we are very optimistic about the awards picture in the near term, as we mentioned in the prepared remarks. And we’re feeling good about the overall demand picture and the momentum that we have.

Cai von Rumohr: One broad follow-up. It seems like there’s plenty of money around to make awards, but sort of across the industry, it seems like the activity is a bit slower. Some of your peers have talked about the lack of contracting officers. And as you know, the process to become a contracting officer is pretty onerous. Do you see that as a problem that there’s just not enough qualified people to kind of make the awards, and that’s 1 of the reasons things are slowing?

Horacio Rozanski: Yes, to the extent that the contracting workforce in the government has been constrained for a long time, and they’ve been under pressure for a long time. Again, you and I have been on these calls for a while, I mean there was a time where, for example, the department wanted to re-compete things more often. And so that increased the workforce or the workload on the contracting shops significantly without a corresponding increase on the headcount that needed to address that from the government side. And that’s been a perennial issue. I don’t know that it is any worse now than it’s been in the past. Again, ultimately, from our perspective, the – I’m sorry, I’m saying it again, but the demand picture right now feels very strong.

Cai von Rumohr: Got it. Okay. Thank you very much.

Horacio Rozanski: Thank you.

Operator: One moment. And our next question will come from Matt Akers of Wells Fargo. Your line is open.

Eric Allen: Good morning. This is Eric Allen for Matt. Just a quick follow-up on book-to-bill. I know it’s more of a timing thing, but was there anything taken out of the backlog, any cancellations there?

Matt Calderone: No, nothing meaningful. I think the top line message is we have the backlog and the award and proposal pipeline we need to meet our near and medium-term growth aspirations. And even more important, the capabilities and solutions we’re building in line with our VoLT strategy are really resonating with our clients. So we said it both in stronger quarters like Q2 and lighter quarters like this one that we want to focus – we focus on last 12 months book-to-bill. And if you look back at where we were at the end of Q3, the prior fiscal €“ three fiscal years, that was between, let’s say, 1.15 and 1.3 and right now, we’re at 1.22. So we’re right in line with where we want to be and Q4 is shaping up well.

Eric Allen: Okay. Thanks. If I could do one more. I think we’re seeing more military aid packages being sent to Ukraine lately. So just wondering, if you’re seeing any benefit from all the support money?