Good afternoon. May name is Jacking. I’ll be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Fiscal Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Thank you.I will now turn the call over to your host, Jonathan Doros. Please go ahead, sir.

Good evening to all. Our earnings announcement was filed this evening and we have posted a copy of this slide presentation and prepared remarks to our website, which we will reference during the call. I'd like to refer you to our forward-looking statement disclaimer, which is summarized on slide 2.Certain statements contained in this presentation constitute forward-looking statements, as such term is defined in Section 27A of the Securities Act of 1933, as amended; and 21E of the Securities and Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Statements made in this presentation and an update on historical facts are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning the potential effects of the COVID-19 pandemic on our business, financial condition and results of operations and our expectations as to our future growth, prospects, financial outlook and business strategy for fiscal 2020 or future fiscal years. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include the magnitude, timing, duration and ultimate impact of the COVID-19 pandemic and any resulting economic downturn on our results, prospects and opportunities.For a description of these and other risks, uncertainties and other factors that may occur that could cause actual results to differ from our forward-looking statements, please see our Annual Report on Form 10-K for…

All right. Thank you for joining us today to discuss our response to the COVID-19 pandemic, as well as our fiscal year second quarter results.Before I get started, I wanted to share our recent announcement on our launch of Jacobs’ Climate Action Plan. Even in the face of the COVID-19 pandemic, we remain focused on delivering on our strategy and advancing our purpose of creating a more connected, sustainable world.We often say, we are a people business at Jacobs, which is why we must take actions that help sustain the world within which we all live. Jacobs’ first Climate Action Plan sets us apart capturing the shared passion, pride and drive of our people, as we work to preserve the planet for future generations.The launch of this plan is another major milestone in our cultural and company transformation. Our collective focus on developing and delivering on our strategy, including a deliberate portfolio of transformation brings us to this important juncture. Together we are committing to 100% renewable energy and Net Zero Carbon by the end of 2020, with a long-term commitment to be carbon negative by 2030.Moving forward, we want to leverage our depth of expertise and leading position in the industry to work with our clients and our supply chain to drive climate resiliency into our solutions, investing together in projects that drive profitable reduction in carbon emissions. This is an exciting milestone in the company’s history, and a course that we can take pride in delivering on together as we reinvent our tomorrow.Now turning to slide 5. Our new brand, Challenging today. Reinventing tomorrow, has served as a strong galvanizing driver as we navigate through the COVID-19 environment. Throughout the past 8 weeks we have challenged the way in which we work and the markets we face and…

Thank you, Steve. And now, moving on to slide 7 to review our Critical Mission Solutions performance. During the second quarter, our CMS business continued to perform well with total backlog now $9.1 billion, representing 5% year-over-year growth on a pro forma basis.Growth was driven by sizeable new business wins with the Navy to deliver intelligent asset management, and with the Air Force for research and development of rocket and propulsion technology, as well as two smaller but strategic wins for cyber assessment solutions for the U.S. Patent and Trademark Office and a develop and operations contract with the FBI’s electronic laboratory. Overall, Q2 performance was in-line with our expectations for the business.As a part of the overall financial scenario planning for the company, we believe the crisis will have a short-term impact on our CMS business, with 90% of the temporary decline we are currently experiencing due to the impact of physical distancing associated with COVID-19.The underlying structural demand for our services remains strong and as a result we expect business to ramp up as we approach the end of our fiscal year and expect continued growth in fiscal ‘21 and beyond.Our CMS business is supported by long term, enterprise contracts. Unlike other parts of our CMS portfolio which can be executed virtually, these contracts involve highly technical work, such as Department of Energy remediation and Department of Defense test ranges, where access to the client’s site is required. Some elements of these stable and resilient contracts are experiencing temporary impacts from physical distancing protocols.Let me now share with you further details on the impact by sector. Our US Federal Civilian business makes up approximately 40% of CMS revenue, with a majority coming from our NASA and DOE clients.Jacobs provides broad support to NASA in its accelerated work to…

Thank you, Bob. I am now going to discuss more detailed summary of our financial performance for the second quarter of fiscal 2020 on slide 9.Second quarter gross revenue increased 11% year-over-year, with pro forma net revenue including KeyW, but excluding the stub period from three weeks of Wood Nuclear, up 7.5%, with 10% growth coming from P&PS and 4% growth from CMS.Adjusted gross margin in the quarter as a percentage of net revenue was 23%, down 160 basis points year-over-year. The decrease in gross margin was primarily due to the success in delivering our cost synergy targets for the CH2M acquisition, as some of that benefit has accrued to our clients via lower overhead reimbursement rates in some contracts.The lower reimbursement rate, of course, is more than offset by the absolute lower level of G&A costs. The impact remains a net positive to the company. That is exhibited by the lower G&A as a percentage of net revenue of 110 basis points year-over-year to 14.8%.It was also positively impacted by lower travel and employee related costs associated with some early impacts from COVID-19 cost mitigation efforts. In short, the improved G&A level as a percent of Net Revenue continues to show improved growth leverage for the company.GAAP operating profit was up 63% to $168 million and included $44 million of restructuring, transaction and other charges, and $24 million of other charges consisting of $22 million of amortization from acquired intangibles, and $2 million of costs associated with the Worley transition service agreementsAdjusting for these items, adjusted operating profit was $237 million, up 7% from the prior year. Moving on, our adjusted operating profit to net revenue was 8.5%, down 50 basis points year-over-year on a reported basis, driven by a decrease in CMS, flat performance in PPS, and higher…

Thanks, Kevin. Now let me review our total company outlook to account for the expected impact from COVID-19 on our business over the remainder of fiscal 2020 year.We are updating our fiscal 2020 adjusted EBITDA outlook to a range of $950 million to $1.05 billion from our previous range of $1.05 billion to $1.15 billion. We are also updating our fiscal 2020 adjusted EPS guidance, to a range of $4.80 to $5.30 from $5.30 to $5.80.At the mid-point of our revised EPS range, 2020 fiscal year adjusted EPS represents year-over-year growth when excluding the impact from fiscal 2020 and 2019 discrete tax items.Our revised guidance is based on an analysis of several scenarios that estimated the impact of the COVID-19 pandemic on our results. Specifically, physical distancing initiatives, which create temporary limitations on our clients’ and Jacobs’ ability to perform work primarily in the current fiscal Q3 period is the single biggest impact on these projections.The gross impact to EPS is estimated at approximately $1.50 at the midpoint of our estimates. Included in that estimate is approximately $100 million investment to retain talent, equivalent to approximately $0.50 per share. Importantly, we have strategically decided that we will maintain this talented workforce given our belief that we expect a rebound later this year, thereby ensuring access to this talent as we return to growth.We have taken significant actions to reduce this gross impact by reducing our cost structure, effectively reducing costs in the back half of the year by $1 of EPS. These efforts include elimination of discretionary, corporate, LOB and other employee related costs.As a result, our net expected impact at the midpoint of our range is $0.50 per share based on our decision to maintain our existing work force and to ensure that we have access to our talent to drive the expected return to growth. We believe it is a strategic imperative to retain our talented people across the company.We expect the majority of the earnings revision to occur in our third quarter. As we move into the fourth quarter, we anticipate the impact of the pandemic on Jacobs to subside and our business to return to run-rate levels over the course of the fourth quarter.Importantly, we expect fourth quarter adjusted EBITDA to improve with potential for year-over-year growth. As previously stated, we expect strong fiscal second half reported free cash flow of at least $400 million. And we believe that 2021 is shaping up for a strong rebound in growth. We’ll provide an update as we approach the end of this fiscal year as we further evaluate how the COVID-19 pandemic unfolds.With that, I’d like to open up the call for questions. Operator, we’ll now open the call.

Thank you [Operator Instructions] First question comes from Joseph DeNardi with Stifel.

Hey. Good evening, guys. Steve, you've obviously spent a lot of time in the last two years kind of reshaping the portfolio, I'm wondering if you could just provide your thoughts on how impactful what we're going through now is on that going forward. I'm not asking you for kind of guidance on what markets you might invest into. I'm sure that's sensitive for competitive reasonsBut do you see opportunities emerging from this or are those opportunities kind of more on the margins, just trying to get a sense for how material you think you need to adapt the business to what's happening?

Sure. Look I think all the work that we did over the last several years strategically is fortuitous, now as we go through this pandemic. When we did that work, we did a lot of strategic analysis on how this will make us a much more resilient company. And even though we're going through a temporary downturn, it's a result of something that you know, none of us ever predicted and that would be that we would be unable to physically go to work, our clients wouldn’t be able to physically go to work, all that is gone through a correction.What we hear and see from our client based on our pipeline that's surging projects and programs that are not getting canceled, they're just moving to the right, that this resilient portfolio will continue to play out and gives us optionality as we move into fiscal 2021. There will be certain sectors amongst our portfolio, a very diverse portfolio that should be clear winners and others that you know, are going to be under pressure.And we're already in that transition of redeploying our workforces, going quickly our workforce to be able to address an attack that - those sectors that you mentioned, that should be big winners as we go into 2021.So you know, we're actually pretty positive about ‘21 and look forward to getting through this his current quarter.

Okay. And then Kevin, just on the trimming of $100 million of EBITDA from this year, how much of that just goes away versus you know, being able to recoup that or is there kind of a lingering effect from some of the headwinds into next year?

Yes. Look, I think - thanks for the question, Joe. We're not going to really talk about 2021. Today although we gave very clear views as it relates to our return to a more normalized level of performance. So I won't go further than that. But I do think that the dynamic of those $100 million, some of that is temporary in nature to ultimately help support our ability to deliver the results in the guidance that we've provided. And then some of that will start to get back at it and reinvesting in certain parts of the business.So I think the fundamental way to think about it is, as we've got this revenue decline in the short term, which then affects ultimately the profitability pretty immediately because we're keeping our talent in place, so that drop in revenue almost falls to the bottom line. We're being very, very diligent and aggressive and - in eliminating kind of almost all discretionary travel and other related costs.And the good news about this though is that we're learning a lot due to some of the things that are happening from working from home and some of the productivity we're seeing, which is good to see, that we're going to take that learning and be able to leverage on that to 2021 and beyond.So not all of it's going to go away, but certainly there is a big chunk that we're just doing it to make sure that we're doing the right thing for our shareholders, our employees and our other stakeholders.

Okay. And then in CMS I mean, book-to-bill are very, very good, ranks pretty well amongst your peers on that side of the business. When does that actually start to translate into maybe more material organic growth within CMS? Thank you.

Well, probably within the next two to four quarters. It's kind of a 6 to 12 month book-and-burn type of cycle and those two - the two big drivers that that drove that book-to-bill ratio, Joe, were long term contracts, I'd give it two to four quarters.

Great. Thank you.

Thank you. [Operator Instructions] Our next question comes from Michael Dudas with Vertical Research Partners.

Good afternoon, gentlemen.

Hey, Mike.

Hi, Michael.

Steve, very, very - pretty good presentation, very detailed and thoughtful. As you are in the midst of the crisis, do you anticipate as we move through this, will Jacobs as an organization drive more business because your clients are going to pull more opportunities from you or you have the technology and the skill sets to push more solutions on the business where as we look towards ’20, ‘21 and ‘22 there overall could be maybe a tailwind in a sense because of the changes in the new normal?

Yes. Well, again as I started to address that Michael in the first question. I think we're well positioned and what we believe we're going to be all the sort of critical missions and critical activities that are going to go on as we emerge from this COVID-19.And the Life Sciences business is a great example of one, you know, we're an industry leader there. That business has been a very global business and I think is - we believe now is going through a temporary transition to kind of reconfigure the whole supply chain and how to not only you know address the near-term opportunity of therapies and vaccines associated with COVID-19, but really to become more resilient in the event that this type of pandemic or something else happens which has created supply chain issues. And so these are initiatives that you know, we're in the mix on and we're well positioned to capitalize on that, no matter what the outcome is because of our global integrated delivery, our capabilities and our industry-leading position.And so, whether it's life sciences, healthcare, cybersecurity and of course, the critical missions that we do across our CMS business, which have been sort of on temporary hold are going to have to get at it, and we're positioned. You know, you think of the whole CARES Act, that whole CARES act that has supported our businesses to make our talent mission-ready for the essential critical work that's going to have to get done as soon as everyone gets back to work over the next several months. And so you know, there's a tremendous opportunity unfolding for us and we feel like we're well positioned.

Duly noted. My follow up would be maybe for Bob, you highlighted the social distancing and the mitigation that you and your clients are going through in the field and your opportunities. Is there - do you have a sense of protocol that you're basing this towards in the - later this year. Do you anticipate in 2021 and beyond what we're seeing now and how you're working is how it's going to be? Or is there - these are difficult for a sense of more normalcy that comes back as our society evolves, given that what we've been going through?

Yes, Mike, I don't think we know the timeline. And so what we're doing in preparation of - instead of preparing for a world post-COVID, we're kind of preparing for a world with Covid and using technology is our friend. And so those physical distancing requirements, let's just take a field application and this applies to both CMNS, as well as PPS, we're developing - actually we have in-house technology around this with our ION platform where we're wearing bracelets that determine how far we are from each other, as well as contact tracing throughout the entirety of different sites or bases.So clearly it's a world that we're not anticipating and we look at our future projections. We're not putting a timeline on. Well, things are going to go back to the way they were on February 1st on X date. We're anticipating that it's going to be going longer.

Understood. Appreciate your thoughts, gentlemen. Thank you.

Thank you. The next question comes from Steven Fisher with UBS.

Great. Thanks. Good afternoon. You guys talked about a number of programs where you expect to ramp back up to targeted profitability levels really by the fourth quarter. It sound like what are all the most important things that have to happen to achieve that. And how much of that do you think is within your control?

Yes. Well, I think we said it in our stated remarks that we're attributing 90% of the shortfall to this whole physical distancing limitation. So clearly, a key assumption you know and everything and we're talking about is that, that that's going to start to subside. Governments lift restrictions not only here in the U.S. of different city states, but across the globe.And that all takes place through the course of the remainder of this year. We're not assuming any accelerated basis but, that it gradually happens as - you know, as we're all starting to see. But it's going to happen throughout the third and fourth quarter. So that's you know, that's the major assumption. That's clearly not in our control.And so I think that's kind of a simple answer to your question as far as what's the key driver. Because once that happens I think that's the message we're trying to make sure that you all understand. This is a situation where the demand is sitting there and we just - we and our clients have to physically get back at it.So this is not a situation where projects have been cancelled and we're trying to rebuild the pipeline. We have a record high pipeline. Our backlog has grown. We just got to physically get back to work enough, not the way it used to be, but to a certain level recognizing that we probably as a company will continue to have remote working forever.Now that we've learned that in certain areas it's a more efficient, effective basis. But where we do need the face to face physical interactions and engagement with our clients. That's the key assumption around what we're talking about today.

Got it. And then your global design center concept has been a very unique element of your margin enhancement opportunities. I am just curious how that usage is ramping up Q2? And then really how you think this new working model will impact the use of the design centers. Is that really an opportunity as everyone learns how to work more remotely is that an even better opportunity to leverage the design centers.

Yes. Steve, it's Bob. We actually see it as what's happening now, as a catalyst to even drive that strategy at a faster rate. What we've seen specifically in areas like Poland and India and Southeast Asia is - it is an incredible - an incredible level of efficiency as people go to remote and still operating in a design center capacity. And so I think that what's happening now is definitely going to serve as an accelerator for driving connected delivery and integrated delivery to another level.And then as we look forward to kind of the future of the workplace, we are going to have centers that require project collaboration with people in those centers. And so we're looking at layouts and workplace strategies that are unique by the different function of that operation or that office.And so a design center might have a different layout and say its a hub or a client site which might have more - I'm making this up, conference-based rather than workspace cubicles that are socially distance apart from each other.So we're right in the midst of all of that, it's part of that now to next kind of initiative, as we look forward in new markets and new ways of doing things from this dislocation.

What was the ramp up this quarter on that. Is there a percentage increase in usage or anything you can give?

I don't have a exact percentage but I'd say it's been greater than it was in previous quarters.

Okay. Thanks a lot.

Thank you. Our next question comes from Jamie Cook with Credit Suisse.

Hi, good evening and hope everyone is - glad to hear everyone's well and healthy. I guess my first question just on the guide, Kevin when you talked about the COVID impact and you talked about you know, the EBITDA and EPS impact, but is there any way you can help us understand the impact across the two different segments CMS and P&PS if possible.And then also just try to understand you know just the cash flow dynamics, I understand why you lowered. However, I'm just trying to understand the impact on cap [ph] what you assume for DSOs by the end of the year where they can go. And then is the CMS cash flow holding better, we're hearing from other contractors that you know government is - d the governor is actually paying their employees quicker. Thanks.

Yes. So thanks for the question. Jamie I just. I'll give you some general commentary to give some perspective on the two businesses. The actual kind of dynamics in CMS in Q3 specifically have a greater impact associated with some of the comment that both Steve and Bob just made as it relates to the physical distancing.You think about certainly the nuclear work and some of the other things that we talked about commercial. We actually have to be onsite and certainly the - some of the test range work as well. So that ends up being a bigger impact to CMS. So if you look at versus the size of the business, the majority or the larger piece, I should say in terms of costs or terms as a percentage basis or more CMS based and in 2020 third quarter. But there we’re expecting a challenge in both of the business versus a year ago. So I would say a greater percentage reduction in Q3 for CMS.And then I think ultimately as we transition to Q4, certainly an improving dynamic in CMS and probably a more - a little bit more elongated recovery for PPS just because of the shifting of the portfolios as Bob was characterizing in terms of re-jiggering of pipeline and some of the customers thinking relative to the shaping change of the opportunities.Having said all of that, I will say you know, we're now a few weeks into Q3 and I would say we're encouraged by the views and in the things that we're seeing relative to customers and how they're affecting and our business relative to how we're driving that. So we're being prudent with our view of what the impact is and we're going to see how we play out and ultimately get back at it in 2021.As it relates to cash flow, the second part of that question, I think look, where we took the cash flow guide a little bit down, obviously EBITDA impacted and so certainly part of its there and then the other part is associated with what we're suggesting is a potential as it relates to some disruption on the collection side.We're actually seeing pretty good performance as you suggested on the CMS side. So we're just thinking that it might be more about P&PS. But we'll play that out. And so far we're actually seeing pretty good, pretty good performance through the first parts of Q3.

And I'm sorry do you want to commit to sort of where we think it can be by year end?

No I think we're going to - we're going to hold tight and see how it plays out. But look I think it's embedded into that that new cash flow number, so to be honest they can't fall out of bed, if we're sitting there with the 300 - 350 for the year, free cash flow.

Okay. Thank you. I appreciate the color.

No problem.

Thank you. Our next question comes from Gautam Khanna with Cowen.

Yes. I'm wondering if you could give us some color on the - of bookings as we move through the rest of the calendar year. You still expect kind of a calendar Q3 budget flush at CMS and maybe you could just characterize sort of the front log. What – how the RFP pipeline coming through and how much and where things might be stretching if at all?

Yes. So, Gautam, this is Bob. So it is a bit of a different story between CMS and P&PS. And so let me kind of take them both separately. CMS, we see the - talked about it in the script. The pipeline is strong and the pace and velocity of our proposal activity probably hasn't been stronger. And so that has been a pretty strong cadence that it's only been a bit not stifled but slowed when we have those confidential or those secure proposals that we have. We can only do the proposal in a skiff and though we have skiffs within our real estate portfolio at times we have to use our clients as well. So say that strong and we see the award cycles not fundamentally shifting, so that pipeline remains very resilient.On P&PS, again as Steven and Kevin have mentioned before, this isn't a matter of cancellations, it's probably more a matter of some shifting of the pipeline. So we see that bookings target. We're still confident that we can be right on where we had projected, but we're tracking that week for week for potential slippages and most of that is coming from the fact that at our state and local business these are our clients that are probably getting more accustomed to - are becoming a little slower and getting accustomed to working from home then maybe we are.And so we're assisting our clients in the evaluation of these proposals. It's not that they're going away, it's just kind of the piece by which they could be reviewed and awarded.In our private sector business, it's actually been surprisingly resilient. And in fact, we've received some - just recent, can't disclose them, just recent awards from some of our larger private sector clients in the - from beginning to end through evaluation to award, all of those were done remotely. And so it's overall kind of a balanced approach there. We feel confident on this the - on the forecast.

Yes, one thing I want to add here on top of what Bob talked about in addition to the size of the pipeline and everything that Bob talked about, as far as the pace is the margin in the pipeline is also improving. And we've got - you know, we've really upgraded our capability to measure and monitor this over the last 12 to 18 months.And as we look at that pipeline that Bob talked about compared to a year ago, the margin is a significant improvement, so which bodes well for our strategic goal of not only profitably growing, but increasing the margin of Jacob's.

Thanks a lot guys.

Thank you. We have a question from Michael Feniger with Bank of America.

Thanks guys for taking my questions. I appreciate all the color. To be clear, I know EBITDA is expected to grow in 2021. Is there some expectations that we could see the weakness in the second half of this year lead into the first half - in the first half of next year in that PPS segment? Because it seems there's a lot of confidence that CMS kind of inflects in the fourth quarter. But could PSS with the delays and maybe pressure on public budgets and the small local and state municipalities, is there an issue that can bleed, can some of these delays bleed into the first half of next year?

Well, let me start and then Bob maybe build on it. You started getting into an area that we're all watching closely is how, what's going to happen now on a state and local level because you know the government in the US has done a great job to really support the defense and civil you know, the federal side. And now what know we're looking anxiously, looking forward to seeing what they do with the next round of cares, hopefully in the next few weeks around state and local.And you know, there's a lot of positive news coming out that you know, I think everyone expects that they're going to provide relief to that sector. And so that should start to provide some good foundation as we enter 2021.And then the other piece is that, you know, there's a lot of discussion about, finally because this has been going on for years even pre-COVID is, the need for a big federal infrastructure stimulator to really get people going, putting the work, back to work around addressing the crisis across the nation on highways, bridges, a whole host of areas, you know, the need to continue to accelerate water and wastewater - and the whole broadband and everything else.So we're hoping and monitoring that and lobbying and very active on the hill to hopefully see later this year Congress could finally get at that that big infrastructure stimulus, whether that happens later this year or leaks into early next year, that's a real positive for Jacobs.And so you know, I think that's going to play a piece of what kind of momentum. If nothing happens and you know, there's a big vacuum on supporting the state local side. Yes, that could provide some headwinds over the next six plus months. But Bob…

Yes. So it would maybe I'll also a bit talk about where we're positioned and we saw this you know in previous cycles as well. And I think it's actually even strengthened during this dislocation is the depth of intimacy we have with our clients. There was a previous question about what we can control and what we can't control.What we can't control is our ability to solve our client's deepest challenges and right now our clients are experiencing challenges that they've never even seen before. And with our, whether it be a framework agreement that we've had for decades and that’s CMS and P&PS alike or you know newer clients that we're now getting into different types of solutions over providing.We're getting to a point where whenever it comes back and it might be a step change in one part of our business and more of a trend in the other part of our business. I would say that we are better positioned now to capitalize on that than we ever have been ever. And we have been in a good position in the past as well. So we're positive about that.

Thank you. That was helpful. And you mentioned in your prepared remarks, Australia and how you saw aviation and lower tax revenue due to the lower commodities and you think it's going to hit Q3 and then should recover in Q4. Can you just flesh out why that, that is the case. I understand the limitation, fiscal limitations and the shortfall from COVID being able to get to certain sites and the impact that's having there. But why for example, that example you provided with Australia, why does that just be isolated into Q3 and then we had that recovery in the Q4?

Yes, because I think that there were tailwinds going into COVID, that COVID magnified. And so you know the commodity crisis though was exacerbated and effectively magnified as a result of everything that we've read about in the news, whether it be oil or gas or even in the metals commodities, COVID accelerated it to where now the need for government intervention was further accentuated.And so, I think the speed by which we're seeing government intervention in, whether it be in Singapore and Australia or New Zealand, it's faster and it's already happening.

Perfect. And just lastly, I mean, on the free cash flow is there anything we should be aware of when we turn to page 20, 21…

Hello? Next question.

Thank you.

Jump back in the queue.

You need to get in there.

Our next question comes from Sean Eastman with KeyBanc Capital Markets.

Hi, team. Thanks for taking my questions. I appreciate all the color today. My question is just you know, as we look at the margin being up in the bid pipeline, I'm just curious if there's sensitivity to that assessment around the macro environment? To what extent is the bid pipeline price sensitive? And you know is there kind of a risk that you know, the assessment of that margin profile on the work you're looking at could degrade?

Well, you know, I think the margin improvement is less about pricing and more about mix and the type of programs and projects we’re strategically going after. So look, I think everything always has you know, a potential to be under pressure, under certain situations when you talk about margin.But I think we're confident in the margin profile improvement because it's been a strategic emphasis on driving a different approach on the type of things that we're going after and prioritizing you know, rather than as we started this transformation journey several years ago it was like let's just sort of go after everything that we can and it's much more of a strategic approach now, as we've you advanced the company, culture around strategy. So we would say that it's a pretty solid profile, less around macroeconomics and more about delivering on winning those new types of businesses.

Thank you. Our next question comes from Josh Sullivan with Benchmark Company.

Good evening. Just on the intelligent - on the intelligent asset management vertical. You had the recent win at the Kitsap base in Washington. Can you give us any color, any early read on that contract? And I'm curious if, you know, your other intelligent asset contracts at Mayport or Langley, are you seeing interest to expand their scope to address the virus?

So the short answer Josh, is yes, we are seeing interest to expand our scope, talk specifically on the first part of your question with regards to the West sound contract in Washington with NASA. That's a really unique case. One, the team did a fantastic job on winning that with a differentiated solution and then keep in mind, we were awarded and had to mobilize in the midst of COVID. And we interviewed selected and mobilized folks all virtually and it was a true testament to our team and in CMS, led by Steve Arnett.. He did bit a - the team did a fantastic job at that.I think others are catching part especially when you talk about Mayport and specifically other NASA-type facilities. And so I think that differentiator of, yes, we can provide more value from the actual asset Intelligent Asset Management offering, but we don't need this prolonged, very in-depth and laborious mobilization plan in the means and methods and how we do it is going to lead to even greater growth.

Got it. Okay. And then just as a follow up you know, as far as the bid pipeline, any would say or quantify what percentage is in intelligence assets?

I might have to get back to you on that one. It's - you know, it's kind of weaved into a lot of our offering, but as far as giving you an exact number as a percent of the pipeline, I probably needed to follow up on that.

Got it. Thank you.

We have a question from Andrew Wittman with Baird.

Great. Thanks for taking my questions. I'm going to just do a couple of cleanup questions because I think all the big picture and other questions have been taking care of here. But I wanted to understand here if in the quarter there were any award fees, project closeouts or the like that were reported in the results that we should know about impacting the quarter. Obviously these come up from time to time and didn't have a comment, so I thought I'd ask.

We always we always have that Andrew, but ultimately not mature at all in the quarter.

Okay. And then just as it relates to some of the more newly acquired companies here obviously Wood groups closed in the quarter, I was wondering what the contribution from that was to the backlog, as well as the maybe the total amount of revenues from that and KeyW that were recognized in the quarter?

Yes. The new backlog from Wood was just over $400, about $4.25 million. And then what was the second part of the question.

The acquired revenues from KeyW and Wood in the quarter.

From KeyW I don't have that handy, but the stop period for Wood was very, very small, probably about $20 million or so.

Thanks.

There is no additional callers in the queue, sir. Are there any closing comments or remarks.

Yes, we're going to be closing comments.

All right. So thanks everyone. Our transformation over the last 4 years as we just discussed during Q&A is been focused on building a strong culture and a portfolio which would prove resilient under multiple economic scenarios. Clearly COVID-19 is presenting a challenge that no one could not have predicted. But our transformation is proving to be the foundation that’s going to help us see - us through this all – through this successfully. We are keeping our people safe, delivering on our commitments to our clients. We are also moving with swiftness and agility, shifting our work model to ensure business continuity and we’re in the process of accelerating our digital transformation plan. And most importantly, we are retaining our most important asset, our talent to people. And so as we define how we’re going to work in the future, we expect to benefit from significant cost savings, as well as further positive cultural benefits and the flexibility for our people and advancements in how we serve our clients. And that future starts now. Thank you.

Thank you. And that now concludes the call. You may disconnect.