But there could be opportunities for us to do some technology-based tuck-ins as we did with the Koverse acquisition. And so we continue to look at the opportunity space to accelerate our GTA strategy today. So that’s where I would see potential acquisition. Again, we are very choosy, very particular and very disciplined. But as I look forward, if there is an opportunity similar to what we did with Koverse where it accelerates the current part of our strategy, we would certainly take a hard look at that type of acquisition.
Matt Akers: Okay. Great. Thanks. And I guess, if I could do one more, just €“ if you could remind us on recompetes? I know you mentioned Vanguard got extended, anything else that we should watch for moving forward?
Nazzic Keene: Well, certainly, the Vanguard is one that’s top of mind. It’s everybody in the industry knows about it, and it’s a significant part of our portfolio. So very pleased with our team’s focus as we continue to deliver to our critical customer, the Department of State there and very proud of their keeping the eye on the ball even through the procurement process that is taking place. So €“ but as we look forward, there is always some elements of recompete in the portfolio, and we keep a close eye on those. And we just €“ we’ve become, over the course of the last couple of years, much more disciplined, much more focused on ensuring that we’re delivering the right solutions customer at the right price to protect those recompetes that are so critical to our success. But due to competitive reasons, we prefer not to touch or talk about too many of those in a public forum.
Matt Akers: Yes. Understood. Thank you.
Nazzic Keene: Thank you.
Operator: Your next question comes from the line of Robert Connors from Stifel. Your line is open.
Unidentified Analyst: Hey, Prabu and Nazzic, this is Rob in for Bert. Are you guys able to hear me?
Nazzic Keene: Yes. Good morning.
Prabu Natarajan: Good morning.
Unidentified Analyst: Okay. Great. And I was just wondering with regards to the margin expansion. And I think before you guys had cited some metrics around GTA versus core. And just trying to get a sense of part of the margin expansion story going into €˜24, how much is driven by GTA versus core versus sort of on-contract growth?
Prabu Natarajan: Sure. Hey, Rob, Prabu here. I’ll take that one. So we’ve flagged over the last few quarters that we expect margins to be about 200 basis points higher than our core margins. That was obviously before the divestiture of the supply chain business as well as the deconsolidation of the FSA joint venture. We continue to see GTA margins trending at least 2% higher than the core margins, which are now actually higher than where they used to be, core margins are sitting right about the high 8s now. And therefore, we are continuing to see that opportunity on a multiyear basis. We tend to think about what’s inside of the pipeline and whether the pipeline is biased to higher levels of GTA. And the answer is that’s an important metric we track inside the company.
The pipeline is trending towards and biasing towards higher levels of GTA on a multiyear basis. And then we want to make sure that we are differentiated in the things that we’re going after. So we’re really truly focused on the quality of the things that we’re chasing to ensure that we are not spraying the investment dollars across the portfolio. So, both tuned into the depths of the pipeline, but also the quality of the things that we’re going after. So we continue to see, I’d say, encouraged by the potential for margin expansion as we inflect the business towards higher levels of GTA over the next several years. Hopefully, that was responsive.
