2013 Fall TBWG CBP Washington Updates

Field Operations Facilities Program Management Office 2 TBWG: CBP Washington Updates Agenda Historic NB Appropriations & Current LPOE Magnitude of Need Alternative Financing Initiative Alternative Financing Legislative Framework Development Engagement in Emergent Alternative Financing Opportunities Alternative Financing Program Framework Development Path Forward FY 2014, FY 2015, & Beyond Questions

Field Operations Facilities Program Management Office Through its FY06 Strategic Resource Assessments, CBP identified a $6B need to recapitalize its LPOE portfolio, which consists of 122 northern border ports and 46 southern border ports Since FY07, Congress has appropriated $1.4B to LPOE modernization, $668M of which has been allocated towards northern border ports 3 TBWG: CBP Washington Updates Historic NB Appropriations & Current LPOE Magnitude of Need The gap between annual appropriations and resource needs continues to grow as unmet LPOE construction, sustainment, and technology costs rise

Field Operations Facilities Program Management Office 4 TBWG: CBP Washington Updates Alternative Financing Initiative To address these funding challenges and leverage non-traditional funding sources, CBP targeted the development of a long-term alternative financing strategy as an agency priority initiative in FY12 and again in FY13 Key initiative focus areas include: Proposing AF legislation that augments CBP’s ability to utilize outside resources as a supplement to traditional funding mechanisms Engaging in a mixture of internally and externally initiated emergent AF opportunities Establishing an AF program framework in anticipation of continued AF project engagement and in preparation for the opportunities posed through enactment of AF legislation

Field Operations Facilities Program Management Office 5 TBWG: CBP Washington Updates Alternative Financing Legislative Framework Development Enacted in FY13 and resubmitted with President’s FY14 Budget CBP in the process of implementing pilot agreements Reimbursable Services Proposal Submitted with President’s FY14 Budget CBP proposed language borrowed by various Congressional proponents, who have in turn submitted their own proposals for consideration CBP Donation Proposal House Cuellar Proposal (broadly targets all border facilities) Senate Landrieu Proposal (adopts and expands on CBP language) All parties amenable to enhanced alternative financing authorities (CBP providing technical assistance as needed) Various Hill Proposals

Field Operations Facilities Program Management Office 6 TBWG: CBP Washington Updates Engagement in Emergent Alternative Financing Opportunities Peace Bridge, NY AF Demonstration Project Commercial warehouse renovation and expansion in partnership with the Buffalo and Fort Erie Public Bridge Authority Engaged in pre-construction activities; project completion targeted for FY16 New International Trade Crossing, MI Greenfield Project CBP in process of refreshing its operational and space requirements Concurrently working with GSA on design development activities with final concept design due in May Operationally-Driven AF Opportunities CBP in process of targeting operational priorities for further AF consideration

Field Operations Facilities Program Management Office 7 TBWG: CBP Washington Updates Alternative Financing Program Framework Development Business Model Framework Who are our customers and what are their prevalent needs and pain points? How do we address these needs and pain points through our program value proposition? What key activities do we engage in to create, deliver and capture value for our customers? What resources would we require to execute these activities? Strategy Portfolio Management Human Capital Risk Management Communications Management, etc. Tools AF Application Screening AF Candidate Assessment Investor Identification & Analysis, etc. Processes Proposal Review & Evaluation AF Agreement Development & Negotiations, etc. Overlaying Program Infrastructure

Field Operations Facilities Program Management Office 8 TBWG: CBP Washington Updates Alternative Financing FY 2014, FY 2015 & Beyond FY 2014 AF Program fully developed and implemented Continued program infrastructure development Development of out-going proposals & engagements with investor community Possible CBP Donation Authority enactment and implementation FY 2015 & Beyond AF Program in a position of developing and entertaining a mixture of incoming and outgoing proposals “Big Picture” PPP engagement, continued policy reform and exploration of alternative delivery mechanisms

Field Operations Facilities Program Management Office TBWG: CBP Washington Updates Questions