1. California Prison Receivership Project Glenn Ballard August 10, 2009 $6 billion budget 10,000 beds 7 locations throughout California Receiver wanted first project complete within 24 months of construction start Courtesy of URS/BLL JV

2. “Co-Opetition” A relational contract Three IPD Teams A concept for collaboration “Co-Opetition” A relational contract Three IPD Teams A concept for collaboration 8/4/08 Start Const. Original Concept Hard start 11/22/08 Proposals Systems Confirmation 1/1/09 Approx. Award 10/31/08 End of Co-Op Teams in place Courtesy of URS/BLL JV

3. December Reorganization Funding issues opened further opportunities Could we develop the prototype to drive cost down, square footage out but increase operational efficiency? What bold ideas could we develop? How would we do that? Took the last two weeks of December to design a way forward December Reorganization Funding issues opened further opportunities Could we develop the prototype to drive cost down, square footage out but increase operational efficiency? What bold ideas could we develop? How would we do that? Took the last two weeks of December to design a way forward Courtesy of URS/BLL JV

4. Target Value Design: Look for the Big Ideas 7 facilities to 6 Reduce square footage 10% Modularize buildings Standardize rooms and services Pre-packed trayed – Dayroom meals Put services on the housing units; eliminate some redundant treatment facilities Target Value Design: Look for the Big Ideas 7 facilities to 6 Reduce square footage 10% Modularize buildings Standardize rooms and services Pre-packed trayed – Dayroom meals Put services on the housing units; eliminate some redundant treatment facilities Courtesy of URS/BLL JV

5. How maintain productive tension between collaboration and competition? The initial co-opetition strategy failed to drive innovation. Intellectual competition was submerged by collaboration. The project fortunately got a second chance when funding problems delayed the construction start date. Using target value design, the project team produced a design that met functional and quality requirements, within the budget.