To: MangoBoy who wrote (1550 ) 6/18/1998 12:18:00 PM From: MangoBoy Respond to of 6846
[Level 3 Communications Selects Kiewit to Build Advanced National Fiber Optic Network](speaking of conduits... btw, Kiewit is the construction arm of PKS, the former corporate parent of Level 3 prior to L3's being spun off. -- mark) 15,000 Mile Network to Connect Cities Across The U.S. OMAHA, Neb., June 18 /PRNewswire/ -- Level 3 Communications, Inc. today announced that it has selected Peter Kiewit Sons', Inc., to build a 15,000 mile national communications network, which will serve as the intercity or long distance portion of the Level 3 Network. This network will be interconnected with Level 3's local networks in cities across the United States. Overall cost of the project is estimated at approximately $2 billion. The contract calls for construction to commence immediately. Construction will take place in phases, with network completion expected in the first quarter of 2001. ''Kiewit's national presence and experience in managing projects of this scope and magnitude were clearly factors that were considered as we went through the process of selecting a construction program manager from among several firms,'' said James Q. Crowe, president and CEO of Level 3. ''Another key factor was Kiewit's willingness to tie its compensation directly to performance.'' ''We have great respect for the Kiewit organization and its ability to complete projects on time and within budget,'' said Crowe. ''Kiewit is recognized as one of the leaders in building communications networks, having built networks for a number of providers including MFS Communications. '' Innovative Contract Ties Compensation to Performance The significant size and complexity of the project made it important to align the interests of the selected program manager and Level 3. The negotiation produced a contract that provides for Kiewit to be reimbursed for its auditable cost relating to all direct and indirect project level costs such as payroll, materials, subcontracts, equipment, rent and supplies. Above that, Kiewit will have the opportunity to earn an award fee that will be tied to performance results as measured and determined by Level 3. Award Fee Contract To determine the fee to be awarded, Level 3 will evaluate Kiewit's performance in five areas, with cost and speed of construction receiving the greatest weight. Kiewit will also be evaluated on its performance in the areas of quality, safety and program management. The award fee received by Kiewit will be determined by Level 3's assessment of Kiewit's performance in each of these areas. Level 3 Network To Be Continuously Upgradeable Level 3's network is designed to be continuously upgradeable, so that the network can evolve to accommodate changes in both technology and customer demand. Unlike the networks of most other competitors, which were constructed with no spare conduits, Level 3 will install six to eight conduits along its network. Initially, fiber cable will be installed in only one of the conduits. The remaining conduits will be available for use as fiber technology and customer demands change. Network To Be Optimized For IP Technology Level 3's network will utilize Internet Protocol (IP) technology, rather than older circuit switching technology predominantly used by major telephone companies. In addition to the intercity network, Level 3 is also building IP-based local networks in cities across the U.S. Development of these networks is currently underway in 15 cities and construction contracts are being negotiated independently from the intercity portion to be built by Kiewit. A majority of the intercity network will be constructed along railroad rights of way. Level 3 recently announced an agreement with the Union Pacific Railroad Company granting Level 3 rights of way along nearly 7,800 miles of Union Pacific rail routes, primarily west of the Mississippi River. Negotiations for the balance of required rights of way are ongoing. About Kiewit Founded in 1884, Peter Kiewit Sons', Inc. is one of North America's largest and most respected construction organizations. In 1997, revenues were $2.8 billion. The company is the largest firm in the construction industry owned entirely by its active employees. Headquartered in Omaha, Kiewit serves clients through a network of Kiewit and affiliate locations across the United States, Canada and several international locations. The firm's World Wide Web address is kiewit.com . About Level 3 Communications Level 3 is a communications and information services company that is building the first national Internet Protocol (IP) based network. The Level 3 Network will combine both local and long distance networks, connecting customers end-to-end across the U.S. Plans also call for the company to expand internationally. In the interim, Level 3 has signed an agreement to lease a national network over which it will be able to offer advanced IP-based services beginning in 1998. Level 3 will provide a full range of communications services -- including local, long distance and data transmission as well as other enhanced services and Internet access services. Level 3's common stock is traded on The Nasdaq National Market under the symbol LVLT. Its World Wide Web address is l3.com .