Sunday, August 26, 2018 9:06:48 AM
Operator, you may now open the call up for questions.
Question-and-Answer Session
Operator
[Operator Instructions] Our first question comes from the line of Mike Crawford with B. Riley FBR. Please proceed with your question.
Mike Crawford
First, regarding the new combat convoy simulator win, who is the competition there? What did you think your probability was of wining? And are there any other such projects that perhaps you’re bidding on but aren’t factored in any guidance?
Dean Krutty
On the Marine Corps’ Combat Convoy Simulator Program, we believe we had two other competitors based on our internal intelligence that’s never been released to us formally or into industry who the competitors were. We had it as a basically a one-third probability in our pipeline based on the fact that there were two other good competitors and we certainly endeavored to bid on contract like CCS.
We don’t advertise to industry what we are bidding on for competitive reasons, nor do any ever you have competitors, but certainly we do have other similar proposals out there and hope to win them. The only future program that I’ve been willing to talk about probably is program like CDT where the whole industry already knows we are competing and so it doesn’t hurt us to put the information out.
Mike Crawford
We did see that contract award when it was announced and I mean I did say that there was three offers received, I just want to know if you knew who they were. And just before moving on when will CCS revenue and earnings start to have flow the income statement?
Dean Krutty
Mike, the competitors on CCS we believe we do know who they are. I don’t know that it’s my place to put that out there for them. As far as the revenue goes, we expect $2 million to $3 million of that revenue to start showing up in the second half of this year. If you look at our internal planning somewhere on $10 million of the 17.7 has been funded should show up in 2019 and then the reminder of the initial funding in 2020.
The contract had options on it. Some of the options absolutely need to be exercised because they involve part of our integration tasks and delivery tasks. Others are the options the marines have seven facilities for CCS. The Navy has two. The two Navy facilities are part of the option dollars. So that I’d say is truly an option for the contract, but those funds within the end of 2020 and into the next few years after that.
Mike Crawford
Just one and two more, if you don’t mine. Just real quickly on the AAV. Is that the [indiscernible] cook it -- is it something that has been solved? Do you have a sense of when you can start moving and fold swing on that program?
Dean Krutty
Yes. So, what happened at the end of the first quarter as we basically put a pause because the washout rate we’re getting from our manufacturing floor was too high, and we didn’t want to go with that kind of poor throughput for the remainder of the program, so we did a pause, did some redesign work at the beginning of Q2. We then had to step up a lot of overtime to catch up to the delivery temper that SAIC was keeping.
We believe we solve that in the quarter and incurred the cost for in the quarter. So going forward, we think we we’d be back on the regular hours. We did do some overtime in July, but as of today we are back to working in normal schedule. And we’ll be keeping temper with the marines and SAIC. So, they’re the really the gatekeepers for the throughput. We are currently working the lower initial production as you expected, Mike, and expect to be able to keep with SAIC and their delivery rate.
Operator
Thank you. Our next question comes from the line of Alex Gates with Clayton Partners. Please proceed with your question.
Alex Gates
Thank you. Good morning Dean. Sorry, I hop on the call a little late, so I might have missed some of your earlier comments. But, I was wondering did you provide any commentary on where MEPS currently stands? And when that could start contributing?
Dean Krutty
Hi. Thank you, Alex. Good morning. I did not provide any commentary previously on MEPS, but as you know MEPS is a very important program for the Company. Testing is in progress, the MEPS light systems are about to be complete with their testing, with their Marine Corps. As you know we’re under contract to support the Marine Corps testing during this period. They’re just about to begin testing on the MEPS medium systems. We have not gotten the results from the testing as far as the system efficiency, which are some of the longer term. They need to run system for month on end to generate those results.
But systems are working and the Marine Corps seems to be happy so we’re staying close to that. We still expect towards year end or maybe at the very beginning of next year that the marines will put out a request to industry asking for some guidance about what they should be buying and we certainly have some recommendations having gone through the entire development that we did. And then, we expect them to follow on with our fee for production beginning in the next year.
Alex Gates
And then on CDT, has RFP fully come out for that yet?
Dean Krutty
As you know when we talked last year, the draft was out. Industry submitted question. The questions and the answers are actually both dropped yesterday. So we’re just downloading those last night and getting the feel for what other people ask. We still expect the ERP to come out this quarter. The government and the army is advertising they’re getting get it done this fiscal year. So, it gives them basically August and September. And if so advertising is the spring time award, I wouldn’t be surprised if that slid into summer.
Alex Gates
And then I noticed at your -- at the B. Riley Conference, you guys put out the new presentation obviously, you highlighted a lot of new revenue levels from these new program which is helpful. Is that something that you’re going to update going forward? Or is that just the kind of, hey, here is the snapshot of where we think we could be year and half two years from now?
Dean Krutty
Well, I think I mean the presentation that I put out showed the potential of the Company and the priorities that we are working on the things that are going to drive us and drive our growth kind of the strategy that we have laid out. And I don’t have any reason to update it, but certainly you are welcome to call and take the pulse any time you want Alex. I’m open to tell you where we stand at any given time.
Operator
[Operator Instructions] It appears there are no further questions at this time. I’d like to turn it back to management for closing comments.
Dean Krutty
Thank you, operator. That concludes our call for today.
Operator
Thank you. Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
And so we are told this is the golden age
And gold is the reason for the wars we wage U2
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM