COMMONWEALTH OF DEPARTMENT OF GENERAL SERVICES OFFICE or THE 717-787-5996 July 11, 2018 Daniel K. Walsh Ted Sak Co- Chairman President/CEO The Walsh Group Heery International d/b/a Walsh Heery Joint Venture d/b/a Walsh Heery Joint Venture 929 West Adams Street 999 Peachtree Street NE Chicago, IL 60607 Atlanta, GA 30309-3953 Re: 065 577-36 RRB DGS 577-36DBC.1 Third Revised Rebid New Correctional Facility SCI Phoenix Skippack, PA Dear Mr. Walsh and Mr. Sak: It was believed by Department of Corrections (DOC) that the SCI Phoenix project would be completed prior to SCI Graterford deteriorating to a point where it becomes a potentially unsafe facility. However, due to the delays in completing SCI Phoenix, the SCI Graterford facility, which still houses the inmates that will be transferred to SCI Phoenix, continues to deteriorate and is becoming questionable. Unfortunately, at a date yet to be determined, the DOC will be forced, due to the deterioration and safety concerns at SCI Graterford, to begin the transfer of inmates into SCI Phoenix prior to SCI Phoenix being completed. In Its determination, the DOC will be considering the issues at SCI Graterford against the issues at SCI Phoenix. When DOC ultimately determines that the issues with SCI Graterford outweigh the issues at SCI Phoenix, DOC will begin to transfer inmates and staff into SCI Phoenix. At that time, SCI Phoenix will become an active prison and WHJV will be required to adhere to 0005 procedures in such a facility. If DOC determines its safer for the inmates and DOC staff to be transferred to SCI Phoenix prior to its completion, this will not signify acceptance of SCI Phoenix and WHIV must continue to complete the project and honor the Contract Documents including, but not limited to, the Final Inspection and Close-out procedures. The Department of General Services and DOC reserve all rights and defenses available under the terms of the Contract Documents and applicable law. Nothing contained in this letter is, and shall not be construed as, an admission of liability or a waiver of any of 065' or DOC's ROOM SIS NORTH OFFICE BUILDING. HARRISBURG. 17125 Mr. Daniel Walsh Mr. Ted Sak Wash HeeryJoint Venture July 11, 2018 Page 2 rights. All such rights are fully reserved whether or not mentioned herein or in subsequent communications. It is imperative WHJV addresses and corrects all remaining issues in a timely manner in accordance with the Contract Documents and submits the proper forms for Final Inspection and Close-out. In the recent past, WHJV has made great strides toward completing this sophisticated maximum-security prison project. We hope this continues. Sincer rt 0 Secretary