CEO Report

June 29, 2023

| Upcoming Board Meeting| Program Update| Upcoming Procurements| Relevant Materials

UPCOMING BOARD MEETING

• September 20th and 21st
  • San Diego – location TBD
    • Day 1: Board of Directors Meeting
    • Day 2: Workshop regarding the Development of Brightline West

PROGRAM UPDATE

Program Update — CP 1

• CP 1 Utility Relocations (Critical Path)
  • Total of 96 remaining utility relocations that are on or near the critical path.
  • Utility relocation goals have been established based on the critical needs of the project.
  • All critical relocations are currently on track to be delivered in 2023 and 2024, based on the current forecast.
  • Proactively monitoring the schedule and working with third parties to ensure timely delivery.
• PG&E and AT&T Facilities Relocation
  • Change Order: 48.8
  • Justification: The relocation of PG&E and AT&T utilities was excluded from the original scope of work for CP 1. The approval of this change order increases the provisional sum budget to complete the necessary relocation of PG&E and AT&T facilities. Without approval, construction of CP 1 would be significantly delayed.
  • Scope of Work: Scope change and budget increase.
  • Cost: $107,000,000  

UPCOMING PROCUREMENTS

To deliver an operational schedule consistent with the timelines in the Project Update Report (PUR) and our agreement with the Federal Railroad Administration (FRA), the Authority will need to advance procurements in the second half of 2023 for:

• The installation of Track and Systems where civil works are completed.
• The procurement of trains (i.e., rolling stock) for testing, commissioning, and in-service operations.
• Implementing a procurement strategy that incorporates broader procurement methods, smaller contracts, increased flexibility, and an
  emphasis on maximizing qualified bidder pools.

At the July hearing, there will be a presentation to the Board on procurements “Lessons Learned” and an outline of our proposed strategy to advance procurements to maintain a schedule towards operations. After the July strategy discussion, management will be proposing RFQ’s for the Board’s consideration later in 2023 and over the course of several successive months.

RELATED MATERIALS

• Board Memo for June 2023 CEO Report.
• June 2023 CEO Report PowerPoint Presentation.
• Video of the June 2023 Board Meeting and CEO Report.