Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Mike Lewis – BB&T Capital Markets.
Mike Lewis – BB&T Capital Markets
George, a quick question for you kind of at 30,000 feet here. I attended a briefing today with Senator McCain speaking. He was discussing Afghanistan. One of the interesting comments he made with regard to Afghanistan was that, and I’m quoting him here, ?the increase in troops was not a surge but just an increase in strength that could last for a number of years.? With that said I’m wondering about the JERRV and the other RV3133 work. Based on the expectation we saw from the contract release in January on this work what is your expectation on the ultimate level of business you can derive from this over the next, assuming we are in Afghanistan for the next five years?
George Pedersen
I can’t look out five years but as the troops move there our support operations, not just JERRV but a number of other areas, will have to go with them. I am aware of some of the comments the Senator made and I won’t get into the business of defining anything said. As you have heard me say for the past 2-3 years now we did not believe this mission would be over any time soon. Bob would you like to amplify at all?
Bob Coleman
We are already seeing a ramp up in requirements in Afghanistan. As you know that is much tougher terrain than Iraq so I think we have our work cut out for us there. I am worried that is going to be a long endeavor as Senator McCain has said though I think we will continue to grow in that area in 2009 and 2010.
Kevin Phillips
I will comment because I know the question is coming that as we mentioned, $50 million of the JERRV program is related to SOCOM and is rolling into that effort. We are projecting at least $75 million at the low end of our guidance coming from that program and obviously if requirements come up we can provide some more detail as we get better visibility as well.
George Pedersen
I think you know that they are looking at an $82.2 billion plus up which would take them through. That is a bit higher. I think the last time Secretary Gates was talking about $66 billion and that number has increased. If you look at some of the components of where they are spending their money you will find that the systems that they are sending in require the kind of support we have provided the past five years. That is too long an answer.
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