R -- Contined Pension Support

The Pension Benefit Guaranty Corporation (PBGC) proposes to extend the period of performance under Contract No. PBGC01-CT-03-0682 with the Integrated Steel Group (ISG). Under the contract, ISG is assisting with transitioning the pension plans of the Bethlehem Steel Corporation to the PBGC. An extension to the contract for nine additional months is necessary to complete the transition. The extension involves approximately 6,000 labor hours effort. In view of the ISGs familiarity with the complexities of the Bethlehem Steel plans, pension administration, and their knowledge of ERISA as well as PBGC policies and procedures, ISG is uniquely qualified to perform these additional services in a timely manner. See Note 22.