Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue Recognition

NOTE 8 – REVENUE RECOGNITION

Disaggregation of Revenue

The Company disaggregates revenue from clients, most of which is earned over time, into categories that depict how the nature, amount and uncertainty of revenue and cash flows are affected by economic and business factors. Those categories are client market, client type and contract mix. Client markets provide insight into the breadth of the Company’s expertise. In classifying revenue by client market, the Company attributes revenue from a client to the market that the Company believes is the client’s primary market. The Company also classifies revenue by the type of entity for which it does business, which is an indicator of the diversity of its client base. The Company attributes revenue generated as a subcontractor to a commercial company as government revenue when the ultimate client is a government agency or department. Disaggregation by contract mix provides insight in terms of the degree of performance risk that the Company has assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as the Company is required to deliver a scope of work or level of effort for a negotiated fixed price. Time-and-materials contracts require the Company to provide skilled employees on contracts for negotiated fixed hourly rates. Since the Company is not required to deliver a scope of work, but merely skilled employees, it considers these contracts to be less risky than a fixed-price agreement. Cost-based contracts are considered to provide the lowest amount of performance risk since the Company is generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements.  

	Three Months Ended June 30,										Six Months Ended June 30,
	2022					2021					2022					2021
	Dollars		Percent			Dollars		Percent			Dollars		Percent			Dollars		Percent
Client Markets:
Energy, environment, and infrastructure	$	160,401		38	%	$	167,309		43	%	$	316,444		38	%	$	330,533		43	%
Health, education, and social programs		208,953		49	%		167,640		43	%		414,750		50	%		325,906		42	%
Safety and security		33,409		8	%		29,618		7	%		62,809		7	%		60,816		8	%
Consumer and financial		20,347		5	%		27,958		7	%		42,575		5	%		53,748		7	%
Total	$	423,110		100	%	$	392,525		100	%	$	836,578		100	%	$	771,003		100	%

	Three Months Ended June 30,										Six Months Ended June 30,
	2022					2021					2022					2021
	Dollars		Percent			Dollars		Percent			Dollars		Percent			Dollars		Percent
Client Type:
U.S. federal government	$	225,229		53	%	$	182,241		46	%	$	444,221		53	%	$	358,225		46	%
U.S. state and local government		64,056		15	%		58,487		15	%		130,165		16	%		115,637		15	%
International government		27,144		7	%		37,148		10	%		53,863		6	%		73,894		10	%
Total Government		316,429		75	%		277,876		71	%		628,249		75	%		547,756		71	%
Commercial		106,681		25	%		114,649		29	%		208,329		25	%		223,247		29	%
Total	$	423,110		100	%	$	392,525		100	%	$	836,578		100	%	$	771,003		100	%

	Three Months Ended June 30,										Six Months Ended June 30,
	2022					2021					2022					2021
	Dollars		Percent			Dollars		Percent			Dollars		Percent			Dollars		Percent
Contract Mix:
Time-and-materials	$	169,980		40	%	$	162,249		41	%	$	334,821		40	%	$	322,085		42	%
Fixed price		185,823		44	%		160,288		41	%		369,962		44	%		307,757		40	%
Cost-based		67,307		16	%		69,988		18	%		131,795		16	%		141,161		18	%
Total	$	423,110		100	%	$	392,525		100	%	$	836,578		100	%	$	771,003		100	%

Contract Balances:

Contract assets consist primarily of unbilled amounts resulting from long-term contracts when revenue recognized exceeds the amount billed often due to billing schedule timing. Contract liabilities result from advance payments received on a contract or from billings in excess of revenue recognized on long-term contracts due to billing schedule timing.

The following table summarizes the contract balances as of June 30, 2022 and December 31, 2021:

	June 30, 2022			December 31, 2021			$ Change		% Change
Contract assets	$	190,506		$	137,867		$	52,639		38.2	%
Contract liabilities		(24,612	)		(39,665	)		15,053		(38.0	%)
Net contract assets (liabilities)	$	165,894		$	98,202		$	67,692		68.9	%

The net contract assets (liabilities) as of June 30, 2022 increased by $67.7 million as compared to December 31, 2021. The increase in net contract assets (liabilities) is primarily due to the timing difference between the performance of services and billings to and payments from customers. There were no material changes to contract balances due to impairments or credit losses during the period. During the six months ended June 30, 2022 and 2021, the Company recognized $24.9 million and $20.1 million in revenue related to the contract liabilities balance at December 31, 2021 and 2020, respectively.

Performance Obligations:

The Company had $1.2 billion in unfulfilled performance obligations as of June 30, 2022 which primarily entail the future delivery of services for which revenue will be recognized over time. The obligations relate to continued or additional services required on contracts, including those that are either noncancellable or have substantive termination penalties, and were generally valued using an estimated cost-plus margin approach, with variable consideration being estimated at the most likely amount.  The amounts exclude marketing offers, which are negotiated but unexercised contract options and indefinite delivery/indefinite quantity (IDIQ) and similar arrangements that provided a framework for customers to issue specific tasks, delivery, or purchase orders in the future. The Company expects to satisfy these performance obligations, on average, in one to two years.