Will Gabrielski (American Technology Research): What are the competitors doing and is it getting more competitive on the bid side and on the capacity side?

Michael S. Taff: You really have to assess this from each individual business, but the market is much more robust. Looking at the level of backlog that we have at close to $5 billion, back in 2005 J. Ray''s backlog was below $1 billion, bids outstanding is in the $3 billion range for J. Ray and the focus project is $14 billion.

It varies depending on what region of the world you are talking about. And within a decade, we kind of have reached into the world that comes in and out of being very busier times. But in general, if you look at just the world demand for hydrocarbons, much more significant than what it was on a macro basis and our view today than it was four or five years ago.

John A. Fees: We are continuing to see a decrease in output with an increase in demand and I can''t predict and I''m not sure anybody can predict reliably what this current global recession and economic crisis is going to have an impact on that.

However, with that significant capital expenditures within that being able to develop existing known and potentially develop all resources there, that''s going to have to happen to keep that output from going down.

We believe that there will be a good work going forward. We have not seen in fact, we have seen an increase in certain regions in terms of project perspectives and where we''re going. We do not see anything there that would lean to be towards anything more than a robust bidding environment and many good large projects for us to execute on.

In the government side, we hve actually had record quarters and we are pulling in record backlogs in that particular segment for our customers to who we supply nuclear components to overall on the government side.

On the power side, I would expect this dynamic that we are seeing of new generation versus running the existing base to be about where it is right now for the next 1 or 2 years domestically and in the United States.

Our business is low, but unique from the standpoint that when we see the newbuild OEM business down and reserve margins decrease, and there is a desire for more electrical output in United States, we see our service business go up. And so one kind of offsets the other ones in much higher margin than the other and so they work very well together.

And internationally, we still see very robust circumstances internationally. There has been so much has happened in the last 30 days in term of the financial and credit markets domestically and around the world. But we don''t know what the impact of any of that is and whether or not there is going to be any slowdown there.

However right now, we are seeing fairly robust demand internationally for power generation and we really believe over there next year or two, you''ll see more results from us in that area than we have in the last.

Will Gabrielski (American Technology Research): Can you just talk about the government margin going forward?

John A. Fees: We have certainly have been able to get some incentives in some of these long-term agreements that we''ve made with the government. We have been able to deliver on some of those incentives.

Brian Chin (Citigroup): For BWXT, does it make sense to explore strategic options to monetize that and somehow capture that value because it doesn''t look quite the market is really taking into account that you got this piece of your business that''s fairly stable?

Michael S. Taff:We evaluate all of our strategic options on a fairly routine basis, and we will continue to do that. We believe in that in the structure of company. Certainly, the BWXT, the government group is a very stable business. It''s continued to perform very well, last two quarters have been two of the best quarters in the history of the company. But it also speaks kind of to the diversity of. McDermott.

John A. Fees: We think the combination of having a large project focus with a core repeatable base really makes us uniquely positioned in E&C space and we value that positioning.