Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Erik Olbeter – Pacific Crest Securities.
Erik Olbeter – Pacific Crest Securities
Real quick sort of getting back to some of the work you saw pushed off, I think you sort of talked about the supplemental not being passed as sort of a key issues, are these things that could slip sort of beyond the third quarter? Or, have you seen sort of a pickup in activity sort of post the passage of the supplemental at the end of June?
Terry W. Glasgow
As you know, there were a lot of alternative plans being postulated in the event it was not approved and so most of the services and agencies were kind of in a hold mode through the June timeframe. What we’ve seen now is they’ve now turned it back on again and I would not expect this to extend in to the fourth quarter of our year because this is the fourth quarter of the government year and they need to get these done. My expectation is that we ought to see some fairly good awards coming out in the near future in terms of the market place.
Erik Olbeter – Pacific Crest Securities
Judy, it seemed like direct labor content was up in the quarter a little bit more than expected. Do you sort of expect to go back to more of a normal seasonal pattern in the back half of the year? And, in terms of award fees, that $600,000 is fantastic but I assume for the rest of the year we should have a normal award pattern as well?
Judith L. Bjornaas
Yeah, about half of that award fee was unexpected. It came in a little bit earlier than we were thinking it would. As far as the DL, it depends on how fast some of these things transition over that Terry talked about. PEO Solider did have kind of a high labor content in Q2, we’re expecting a little bit lower on that the balance of the year. Again, it’s just kind of hard to say with the GWAC and the awards under the GWACs from our teammates, but yes we are expecting it to be a little bit lower in the second half of the year.
Operator
Our next question comes from William Loomis – Stifel Nicolaus & Company, Inc.
William Loomis – Stifel Nicolaus & Company, Inc.
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