Broomfield, Colo., April 15, 2010 - In keeping with the City charter, MWH today submitted a response to the OIG's draft review of the City of New Orleans' Professional Services Contract with MWH Americas. MWH supports the office of the OIG process, respects the review process and appreciates this opportunity to clarify the OIG's findings.

Central to the MWH response was the fact that MWH has complied with its contractual commitments. MWH efforts in support of the City's recovery did not violate any of the terms of its contract or result in billings to the City in excess of the amounts supported under the terms of the agreement. MWH rejects any suggestion it is profiting unfairly from its work on the City's recovery projects. The contract is reasonable and competitive, and MWH has adhered to its terms. MWH did not bill for time spent negotiating the contract.

In its response, MWH clarified the misperception that MWH has hampered the City's ability to obtain reimbursements for work performed. On the contrary, while the City has paid MWH $30 million for work performed, MWH efforts have already assisted the City in securing approximately $52 million in additional funds, beyond the amounts initially authorized by FEMA, for the City's recovery program. MWH continues to assist the City in pursuing hundreds of millions of additional dollars of FEMA funding.

The MWH response also clarified statements in the draft review regarding expense reimbursements. While the OIG draft review suggests that MWH improperly invoiced the City for $1,309,572 in unspecified or inappropriate expenses, this is simply inaccurate. There was just one exception found, totaling $18.32, for which MWH will issue a credit to the City.

Despite some sensational media treatment of the story, it is important to note that MWH is a highly qualified partner in the recovery and received the highest-ranking evaluation score over five other proposers in an open process. Nowhere in the draft review does the OIG suggest that MWH is not highly qualified or that MWH has not made significant contributions to the recovery efforts of the City. MWH continues to be committed to providing quality service to the people of New Orleans.

MWH is proud to have been a part of the New Orleans community for more than 30 years, providing engineering, technical and project management services, and is proud to have been a vital part of one of the largest recovery projects ever undertaken. MWH has remained true to its commitment, has met City deadlines and has stayed on budget.

MWH believes that the quality and integrity with which it has delivered crucial recovery services to the City is evidenced by the significant impact that it has had on the recovery. Together with its local team of more than 100 architects, engineers and construction companies including eight Disadvantaged Business Enterprise (DBE) partners, MWH is currently engaged in more than 600 recovery projects for the City of New Orleans. Since late 2007, MWH has led efforts to rebuild libraries, police, fire stations and recreation facilities and has assisted in completing more than 150 projects, with more nearing completion.

In its draft review, the OIG advanced 14 findings relative to the City's contract with MWH. The City's full response is available at www.cityofno.com.

In keeping with the City charter, MWH today submitted a response to the OIG's draft review of the MWH will continue to cooperate with the Office of Inspector General as the final report is prepared.