Question-and-Answer Session
Operator
(Operator Instructions) We do have a couple of questions in the queue. We’ll here from Brian Gesuale with Raymond James.
Brian Gesuale – Raymond James
Wanted to dig into some of this pipeline of business and look at re-competes, maybe if you could tell us the sense of timing and size of those re-competes coming from recently acquired businesses as well as the core businesses?
Paul M. Cofoni
Bill do you want to take that one?
William M. Fairl
I will Paul. So first of all concerning re-compete acquired businesses, that of course is one of the things we look very carefully at as we go through our due diligence process to see what’s coming up and we have a good track on those. There’s nothing extraordinary coming up there this year. I’d say we kind of take a look over the next 12, 18, 24 months as we go about acquiring businesses. As far as our organic acquisitions go I’ll let Randy take that one. Randy’s been tracking that one kind of carefully. Randy?
Randall C. Fuerst
Yes I think the actual flow of those deals hasn’t been anything out of the normal. Quite frankly we positioned pretty well, well in advance of those re-competes. In fact as Bill and Paul said as soon as we win a job we start figuring out how we’re going to win it the next time. So from that standpoint we don’t see anything out of the ordinary.
Brian Gesuale – Raymond James
Okay. Terrific and my follow-up would be, Paul it sounds like you have some exciting things where you’re getting some incremental direct labor into your mix here starting in the second half of this fiscal year. Is this going to be the time where we anniversary out of these negative kind of direct labor or mix issues year-over-year? Is that going to be Q3 or Q4 of this year? Or, do we have to wait a little bit longer to see that mix start to turn modestly positive?
Paul M. Cafoni
Are you talking about the mix between direct labor and OEC?
Brian Gesuale – Raymond James
Exactly.
Paul M. Cofoni
I think we actually are seeing that level out here. We had over the last year and a half or so shift heavily towards OEC’s and that seems to have stabilized. We’re at about a 60/40 split and it’s not varying quarter-to-quarter dramatically.
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