Land Port of Entry Modernization Efforts Transportation Border Working Group – Washington Update April 14, 2010 Transportation Border Working Group – Washington Update April 14, 2010

Agenda CBP Mission Overview Tenets of CBP’s Infrastructure Efforts o Resources (Raising funding requirements, increasing application efficiency) o Project Delivery Timeline (Reducing time it takes to deliver LPOE projects) o Quality and Performance (Improving livability, sustainability, and adaptability) Strategic Resource Assessment Update o Current Efforts o Next Steps LPOE ARRA Update o CBP-owned land port modernization o GSA-owned land port modernization CBP Mission Overview Tenets of CBP’s Infrastructure Efforts o Resources (Raising funding requirements, increasing application efficiency) o Project Delivery Timeline (Reducing time it takes to deliver LPOE projects) o Quality and Performance (Improving livability, sustainability, and adaptability) Strategic Resource Assessment Update o Current Efforts o Next Steps LPOE ARRA Update o CBP-owned land port modernization o GSA-owned land port modernization

CBP Mission Overview A typical day for CBP at the ports of entry includes : Executing 73 arrests of criminals at the ports Processing Over 1 million passengers and pedestrians, including 653,000 aliens; 70,000 truck, rail, and sea containers; 331,000 incoming, privately owned vehicles Seizing Over 7,500 pounds of narcotics; over $295K in undeclared or illicit currency; and 4,125 prohibited meat, plant materials or animal products including 435 agricultural pests at ports of entry CBP officers at the land ports serve as the frontline in defending the American public against terrorists and instruments of terror while facilitating the lawful movement of goods and people across the border Modernized land ports of entry enable CBP to:  Strike the proper balance between facilitation and security  Maximize the safety and effectiveness of CBP Officer’s executing the mission  Enhance site and building configuration to meet growing trade and travel  Provide adaptive infrastructure to handle evolving inspection technologies

Tenets of CBP’s Infrastructure Enhancement Efforts I. Stewards of Government Resources: -Acquiring additional modernization funding -Maximizing application efficiency II. Accelerating LPOE project delivery timeline III. Improving the performance and quality of products I. Stewards of Government Resources: -Acquiring additional modernization funding -Maximizing application efficiency II. Accelerating LPOE project delivery timeline III. Improving the performance and quality of products While Tenets II and III are integral to a successful modernization effort they cannot be fully realized without the necessary increase in resources (or efficient application of reasonably expected resources)

Tenets of CBP’s Infrastructure Enhancement Efforts Increase Resources CBP identified a $6 billion need to address modernization requirements across the LPOE portfolio within 10 years and requested a commensurate increase in federal appropriations. Our efforts led to an infusion of $720M in funds received under the American Recovery and Reinvestment Act of 2009 (ARRA):  $420M for CBP-owned ports, $300M for GSA-owned, to be obligated by end of FY2010. Still, the average annual appropriation for LPOEs has been in the neighborhood of $150M. Given these realities, CBP has to consider low-cost, high-impact project funding solutions to meet operational requirements, e.g.:  Inspection Lane Enhancements  Interior Renovation and Reconfiguration  Targeted Deficiency Focus CBP identified a $6 billion need to address modernization requirements across the LPOE portfolio within 10 years and requested a commensurate increase in federal appropriations. Our efforts led to an infusion of $720M in funds received under the American Recovery and Reinvestment Act of 2009 (ARRA):  $420M for CBP-owned ports, $300M for GSA-owned, to be obligated by end of FY2010. Still, the average annual appropriation for LPOEs has been in the neighborhood of $150M. Given these realities, CBP has to consider low-cost, high-impact project funding solutions to meet operational requirements, e.g.:  Inspection Lane Enhancements  Interior Renovation and Reconfiguration  Targeted Deficiency Focus

Tenets of CBP’s Infrastructure Enhancement Efforts Deliberative Application of Resources Given limited resources, it is critical that CBP apply available funding to the areas of greatest need, using a deliberative prioritization process to rank projects. CBP uses a five-step process during prioritization: Given limited resources, it is critical that CBP apply available funding to the areas of greatest need, using a deliberative prioritization process to rank projects. CBP uses a five-step process during prioritization: 1.Gather baseline data using the Strategic Resource Assessments (163 LPOEs) to gain an understanding of workload impacts and facility requirements. 2.Rank the LPOEs by identified needs using over 60 unique identifiers falling under the above four set criteria. 3.Conduct a sensitivity analysis on the initial ranking of needs. 4.Assess project feasibility and risk. 5.Establish an executable investment plan.

Tenets of CBP’s Infrastructure Enhancement Efforts Accelerate Project Delivery and Improve Quality/Performance The following initiatives are among the efforts CBP has made to reduce project delivery lead times and improve quality/performance of LPOEs:  Kit-of-Parts development to streamline design (GSA)  Increased emphasize on master planning  Better functionality (innovative booths and layouts) The following initiatives are among the efforts CBP has made to reduce project delivery lead times and improve quality/performance of LPOEs:  Kit-of-Parts development to streamline design (GSA)  Increased emphasize on master planning  Better functionality (innovative booths and layouts) Inspection Booths Lane Systems Canopy Systems

8 Strategic Resource Assessments Quick Overview Identify and prioritize facility requirements:  Document CBP facility needs in a consistent manner.  Align facility investments with CBP’s mission.  Justify resource requests within CBP, DHS, and Congress.  Target available resources to the areas of greatest need.  Plan, budget, and execute facility investments objectively and fairly. Identify and prioritize facility requirements:  Document CBP facility needs in a consistent manner.  Align facility investments with CBP’s mission.  Justify resource requests within CBP, DHS, and Congress.  Target available resources to the areas of greatest need.  Plan, budget, and execute facility investments objectively and fairly. Current LPOE Portfolio LPOE Facility OwnershipTotal GSA-owned98.560% GSA-leased22.514% CBP-owned4325% NPS-owned11% Total Facilities165 Calais-International Avenue, ME

9 First Round of SRAs: Completed for 163 LPOE facilities between 2004 and Formed basis of CBP’s initial $6 billion LPOE Modernization Strategy. Second Round of SRAs: Conducted over the next three years. Builds upon SRA methodology and prioritization capabilities. Improves & expands the process to include air, sea, and land ports of entry. Provides national prioritized database of capital project needs based on objective, defensible port criteria. Focuses on actionable, cost-effective facility recommendations to meet current and future capacity needs and operational requirements of CBP. First Round of SRAs: Completed for 163 LPOE facilities between 2004 and Formed basis of CBP’s initial $6 billion LPOE Modernization Strategy. Second Round of SRAs: Conducted over the next three years. Builds upon SRA methodology and prioritization capabilities. Improves & expands the process to include air, sea, and land ports of entry. Provides national prioritized database of capital project needs based on objective, defensible port criteria. Focuses on actionable, cost-effective facility recommendations to meet current and future capacity needs and operational requirements of CBP. Strategic Resource Assessments Current efforts and Next Steps

Summary Dashboard ARRA GSA-Owned LPOE Modernization Projects 10

11 CBP will be able to modernize 33 LPOEs, 10 more than initially planned, due to cost savings realized in the initial project awards. 31 out of the 33 LPOEs are on the border with Canada: CBP has awarded 18 of these design/build projects at the following ports: Antelope Wells, NMNeche, ND Churubusco, NY Hansboro, ND Westhope, ND Noonan, ND Scobey, MT Pinnacle Road, VT Wild Horse, MT Pittsburg, NHWhitetail, MT Antler, ND Sherwood, NDMaida, NDCarbury, ND Morgan, MTWalhalla, NDFrontier, WA The awarded projects are now conducting pre-construction conferences and entering construction. Environmental: Sustainability – upon completion, all ports will be LEED-certified and will incorporate green building elements for improved efficiency and reduced environmental impact. Status Update ARRA CBP-Owned LPOE Modernization Projects

12 The following Land Ports of Entry on the U.S.-Canada border have been completely renovated in the last two years: In addition, the following brand new port began operation in 2009: Calais-St. Stephen, ME Champlain, NY (2009) Massena, NY (2009) Warroad, MN (2010) Recent Accomplishments

13