The incumbent Perspecta (PRSP) that has handled US Navy IT infrastructure for the last 20 years lost $7 billion contract to untested competitor Leidos (LDOS) in Feb 2020. But this chapter is not closed yet and the company has been protesting for several months while it has already cut revenue guidance to adjust for this loss. Meanwhile, activist Jana Partners has been building a position since June and now owns 7.4% stake. Separately, since Sep 18th traders have been gradually accumulating December 22.5 calls in anticipation of some good news. Lastly, even without this Navy contract, management in last earnings call talked about book to bill ratio of 1.5x and growth returning to double digits percentage in 2H20. All this explained in the podcast.