1. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Public and Private Sector Roles in the Supply of Transport Infrastructure and Services Privatized Highway Asset Management presented by Kent O. Lande, P.E. Vice President and Chief Engineer LBG, Inc. March 8, 2005

2. Preserving Today’s Infrastructure for Tomorrow SM VMS, Inc. Who is VMS, Inc.?  Created outsourcing concept for O&M of roads and highways known as Asset Management.  VMS launched in 1996 — Virginia DOT Interstate Highway Asset Management Contract—the first contract of its kind anywhere in the U.S.  VMS performs work on 13 additional performance-based roadway asset maintenance contracts — Alaska, Texas, Oklahoma, Florida and Washington, D.C.

3. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM What is Asset Management? An at-risk programmed approach to repairing, preserving and operating physical assets to meet pre-determined goals. Maintenance Market = $40 billion

4. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Characteristics of Procurement Contracts  Performance/Outcomes Based  Predetermined Outcomes  Fixed Price  Limited Change Order Potential  RFP  Government Specifies Location, Roadways, Level of Performance  Contractor Proposes Detailed Standards, Asset Conditions and Associated Work and Cost

5. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Benefits of Asset Management  Guaranteed Savings  Assured Outcomes  Solutions to Staff Shortages  Risk Transfer

6. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Government Protection  Fixed Cost  Performance Bond  Quantitative Performance Monitoring  Liquidated Damages

7. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Government Role  Set Bonding Requirements to Avoid Contractors Who Cannot Perform  Pay on Schedule-no questions asked  Use Separate Mechanisms to Resolve Disputes  Total Commitment from the Political Side  Total Commitment from Management  Ministry of Works  Employees  Unions

8. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Contractor (Private Sector) Role  Proposes Detailed Standards, Asset Conditions and Associated Work and Cost  Works as an Extension of Resources to the Ministry of Works  Offers New Means, Methods and Techniques to Work Programs  Abides by Detailed Performance Standards  Full Transparency and Independent Audit of the Contractor’s Performance and Financials

9. VMS, Inc. Preserving Today’s Infrastructure for Tomorrow SM Asset Management: A Complete Program