Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Cox with Piper Jaffray.
Michael Cox - Piper Jaffray
Good morning gentlemen and congratulations on the quarter.
Dan Batrack
Thank you very much Michael.
Michael Cox - Piper Jaffray
My first question is on the margin profile. As you look at the types of projects and contracts that you are looking at in the stimulus package obviously there is a lot of uncertainty there but I’m curious what you would anticipate the margin profile would be of those types of projects. Do you anticipate competition escalating?
Dan Batrack
It’s a question that we get asked frequently and generally its associated with observations that there is an expectation, there will be more competition, more participation and potentially pressure on pricing. We actually don’t expect to see that. And in fact we expect that most of our work is going to be awarded at least initially through the existing contracts that we have in place.
Quite often these are what we refer to as indefinite delivery and definite quantity contracts that we already have in place. That’s what I refer to in reference a moment ago about the $8 billion in contract capacity that we have in place today and both the rates and the time and material, the unit rates for staff, and if its cost plus, they’re already in place.
And so we believe that one, the competitions can be limited, if the contract holders are already in place and typically these IDIQ contracts for a given client are held by perhaps two or three to as many as four or five, and in some locations we’re the only contract holder where it’s a unique service.
So we expect the competition not to increase by the very nature of the contracts we held, but the pricing has already been established and negotiated as part of these contracts and so we think that the rates and the profit margins will be similar to what we have seen in the past.
Michael Cox - Piper Jaffray
Yes, that’s very helpful. Shifting to the wind segment, I am curious to what sort of activity you are seeing there? What you are anticipating through the balance of the year? There seems to be a level of optimism that that will pick back up and is that a segment you could build back up to a$ 200 million backlog level at some point.?
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