Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question is from the line of Rob Springarn with Credit Suisse.
Rob Springarn - Credit Suisse
Morning, guys.
Michael Strianese
Hey, Rob.
Rob Springarn - Credit Suisse
You have certainly covered a lot of material there, both you and Ralph, so we appreciate the detail. Could you talk a little bit more, either Michael or Ralph, on the AM&M margin in the second half? You talked about mix. You alluded to mix and just how JCA flows through there and a little bit more color on some of the award fees, et cetera.
Ralph D’Ambrosio
In terms of the sales mix, which resulted in lower margins, one, we had more sales in the base support operation work. That includes the three big programs: Fort Rucker, Contract Field Teams and JOG. Those contracts, which are either cost type or timing material, carry lower margins than the fixed-price work that we do on MHP and the foreign C130 work in Canada. And as I said, those sales declined in the quarter.
Additionally, we had sales on JCA and on the JCA contract although I am not going to go into specifics as to what we are earning on it. We said already a few times that we are earning a margin that is less than the composite margin in the segment. But that is what driving the reduction in the aircraft mod and maintenance segment.
Rob Springarn - Credit Suisse
Did you say you would have some award fees in the second half?
Ralph D’Ambrosio
Yes, the Fort Rucker contract, which includes award fees as well as some incentive fees, is a physical year contract. Most of those fees are awarded in Q3. Historically, we have had award fee improvements in Q3, and I am expecting that we will have some of that again Q3 of this year.
Rob Springarn - Credit Suisse
OK. Mike, there has been some talk about rivet joint in the U.K., opportunity there. Could you speak to that, and is there any impact on Nimrod?
Michael Strianese
Well, yes, that is exactly the point, Rob. The MOD has been, as you know, last year we won the role as prime contractor on the Helix Program. Helix was upgrading the electronics surveillance suite on the Nimrod aircraft.
The U.K. has been reconsidering that decision, and as we understand it, considering purchasing rivet joints instead. There are a couple of reasons for that, and again, they are working in out with the Air Force with our support.
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