Land Port of Entry Modernization Transportation Border Working Group – Washington Update

1. Land Port of Entry ModernizationTransportation Border Working Group – Washington Update October 28th, 2009

2. American Recovery and Reinvestment ActOverview • LPOE Portfolio • LPOE Modernization Efforts Underway • CBP program update • GSA program update • Key Milestones in Master Schedule

3. Conditions straining the Infrastructure include: Rapid post-9/11 evolution of CBP mission and operational requirements Current facilities designed to meet legacy missions Some facilities constructed more than 70 years ago On average, facilities over four decades old Increased staffing strains existing facilities LPOE Facilities ModernizationCritical Needs within an Aging Infrastructure • Operational impact of maintaining status quo • Current facilities cannot meet demands of today, much less the increased demands of tomorrow • Current funding levels will not meet CBP’s funding needs for over 40 years • Evolving security and law enforcement mission requires modern facilities to detect, deter, and prevent • Travel and trade facilitation suffers from aging and inefficient facilities 3

4. American Recovery and Reinvestment ActOverview 4 In February 2009, Congress appropriated funding in ARRA for the modernization of the U.S. land ports of entry (LPOE) and in support of economic recovery efforts. Modernization plans include: • Enhancing technology and infrastructure at LPOEs • Helping CBP meet its border security mission while continuing to facilitate legitimate travel and trade. Overall, Congress appropriated $720 million in ARRA funding for LPOE modernization. • $420 Million appropriated for CBP-owned LPOEs • $300 Million appropriated for GSA-owned LPOEs

5. American Recovery and Reinvestment ActLPOE Modernization - Portfolio • Current LPOE Portfolio Inventory • Typical Characteristics based on Ownership • CBP-Owned Ports • small, in rural areas with low traffic volume • severe dilapidation and out-dated facility design drive facility needs • GSA-Owned or –Leased Ports • large, in urban areas with high traffic volumes • major congestion and inefficient configuration drive facility needs 5

6. American Recovery and Reinvestment ActCBP Port Replacement Program • Based on operational priorities, feasibility and risk assessments, CBP submitted the following 23 CBP-owned ports in its April Expenditure Plan: • Antelope Wells, NM • Del Bonita, MT • Frontier, WA • Cannon Corners, NY • Scobey, MT • Churubusco, NY • Boundary, WA • Hansboro, ND • Los Ebanos, TX • Pinnacle Road, VT • Walhalla, ND • Pittsburg, NH • Neche, ND • Carbury, ND • Morses Line, VT • Westhope, ND • Hamlin, ME • Morgan, MT • Noonan, ND • Whitetail, MT • Antler, ND • Sherwood, ND • Wild Horse, MT

7. American Recovery and Reinvestment ActPrioritization Process ARRA Legislation-mandated Use of Funds by Ownership Strategic Resource Assessment Facilities Ranked by identified needs Sensitivity Analysis Project Feasibility & Risk Assessment Capital Investment Plan • Data Collection 60 data points across four categories: Mission/Operations Health/Life Safety Personnel/Workload Space/Site Def. Weighted Scale Facility receive score in each score Scores are adjusted by category % weight Final facility rank determined by combined weighted scores Validation Operations inputs additional data/information Identify additional drivers/constraints/ legislative mandates • Project identification Conduct Risk Assessment: • Environmental • Technical Feasibility • Cultural/Historic • Land Acquisition Develop project requirements Project Plan Incorporate funding requirements Incorporate project phasing Develop budget request

8. American Recovery and Reinvestment ActCBP Repair and Alterations Program • CBP will conduct repairs and alterations at 41 of the CBP-owned LPOEs. The range of improvements include the following: • Security enhancements and port hardening • Site utilities and Infrastructure enhancements • Emergent repairs • Mission enhancements

9. American Recovery and Reinvestment ActGSA Program Update • ARRA appropriates $300M total funding for GSA-Owned LPOEs, which will fund site acquisition, design, and/or construction for 7 projects

10. American Recovery and Reinvestment ActKey Milestones Contract Awards 17 design/build projects have been awarded Antelope Wells, NM; Frontier, WA; Scobey, MT; Walhalla, ND; Neche, ND; Noonan, ND; Antler, ND; Wild Horse, MT; Churubusco, NY; Hansboro, ND; Pinnacle Road, VT; Pittsburg, NH; Carbury, ND; Westhope, ND; Morgan, MT; Whitetail, MT; and Sherwood, ND. These projects are now conducting kick-off meetings and entering the design phase of the construction process. We anticipate NTP on these projects when the construction season opens in the spring. The next round are slated for award in the new calendar year Real Estate Negotiations to begin in this calendar year Anticipated closing in the next calendar year Environmental Initial site surveys from April to June 2009 Draft documents available for public comment for short periods from July to November at www.northernborderNEPA.com. 10

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