BRUSA August 2015

TECHNOLOGY

AUGUST 2015

Illumina : No. 3 pick for “smartest companies”

WWW.BUSINESSREVIEWUSA.COM

PRIMED

FOR GROWTH PIEOLOGY CEO

Carl Chang

talks strategy, success and the rise of the fast casual industry

COMPANY OF THE MONTH DPR Construction BioMarin Headquarters Project

DIRECTOR’S LETTER

CORPORATE AMERICA IS no stranger to innovation; in fact, many experts

believe that the success of a business tomorrow has a direct correlation with its ability to accept – and implement – innovation today.

For this month’s cover story, Sasha Orman, editor of our sister brand Food, Drink & Franchise World, spoke exclusively with Pieology CEO Carl Chang to better understand the “recipe” behind his brand’s rapid success. With a nod to innovation, Chang offers readers an inside look at his company, focusing on the role it plays within the rapidly-growing fast casual industry.

Another company that has embraced innovation as a key tool for success is Illumina, the San Diego-based startup that quickly became a leader within the healthcare industry. Stephanie Ocano, senior editor of another sister brand, Healthcare Global, takes an in-depth look at the impactful and innovative advancements being made by the biotech firm to help drive forward the business of genome sequencing.

Innovation is only part of the puzzle when it comes to launching or even expanding a company; location is also key to corporate success. This month’s top 10 feature highlights 10 U.S. cities that embrace and support innovation and an entrepreneurial spirit: Consider one of these for your next venture.

Enjoy the issue!

Jennifer White

Director of Content jennifer.white@wdmgroup.com

3

CONTENTS

FEATURES TECHNOLOGY

6 MARKETING Building an empire on ideals

Illumina: Leading the business of genome sequencing

16

TOP 10

COMPANY PROFILES CONSTRUCTION

ENERGY

34 DPR Construction BioMarin Expansion Project

54 Philadelphia Gas Works

44 Archer Western / Hubbard JV Northwest Corridor

24

Places to do Business

34

DPR Construction

64 Pittsburgh Water and Sewer Authority 76 Midland Cogeneration Venture

HEALTHCARE 84 PAML

54 Philadelphia Gas Works

5

MARKETING

BUILDING AN EMP

ON IDEAL 6 August 2015

PIRE

LS

Pieology CEO Carl Chang discusses growth, future plans and the importance of a purpose behind the brand W R I T T E N B Y: S A S H A O R M A N

7

MARKETING HOW DO YOU know when you’ve found your calling? Most would agree that it’s when you find success doing something you love. Not everyone knows what their calling is right away; but when you finally find it, there’s no mistaking it.

Carl Chang didn’t start out in the pizza business. He followed a less straightforward path—first navigating the world of sports, as coach for tennis star (and younger brother) Michael Chang, before building a career in real estate development. But through all of it, one concept persisted in his mind: the idea of food as a means to bring families and communities together through good times and hard times alike. By 2007, Chang was brainstorming ideas for breaking into the restaurant industry. That desire crystallized in 2008 when the recession hit.

“A lot of our friends and children’s friends were going through a lot of financial hard times, and how it reflected back to me—and how Pieology came to have true meaning— was that I wanted to use it as a way to reinvent a segment that was a bit broken,” says Chang.

8 August 2015

Technomic named Pieology the faste

As the concept of the fast casual, build-your-own-pizza chain began to take shape, so did a deeper reason for being.

“I always remembered pizza as a point of celebration,” he explains. “Instead of this discounted convenience food it had become, how could we portray an environment where, in hard times like the recession, people could enjoy designing and creating their most beloved food in an environment that inspires, and that embraces community? An environment where, if you’re not

est growing restaurant chain in 2014

having the best day, you can resonate with one of the quotes on the board and feel a little bit better? Where those that are in a better situation in life, feel inspired to help others as well?�

Understanding that feeling and that sense of community, says Chang, is how Pieology became Pieology. By 2011 the concept was ready to launch, and a calling was found.

The business behind the concept Pieology may have been based on concepts more personal than

financial projections and growth models, but business knowledge and leadership are nonetheless critical for any fast casual concept to thrive.

Chang and his executive team show a keen understanding of this, and the proof is in the numbers: with tripled sales and unit growth in 2014, consulting firm Technomic recently named Pieology the fastest growing restaurant chain of the year, earning the pizza chain a coveted #1 spot at the top of the firm’s Technomic Top 500 list.

9

MARKETING

Thirty percent of all pieology locations are corporate-owned For Pieology, finding a balance between corporate and franchised locations has helped the chain achieve a sweet spot of growth and brand alignment.

“Originally my vision was to be 100 percent corporate, because I have a little bit of a different motivation at a personal level,” says Chang. But before long his sports background and competitive nature served to propel Pieology toward a different path—a selective form of franchising that 10 August 2015

would more effectively drive growth while above all staying true to the chain’s mission statement.

“What I wanted to do was try to find the most sophisticated groups who have the capability to operate at the highest level, and really believe in the purpose Pieology is serving,” says Chang. “That meant higher touch points, more community involvement, and giving back as part of that strategy—we require our GMs to do two-to-three outreaches within

TRENDS SHAPING MOBILE COMMERCE IN CANADA

Pieology CEO, Carl Chang their community in every period as a mandate of the responsibility.”

With a rigorous vetting process, finding the right operators with the right motivations can be more time consuming—but in the long run it has helped the brand stay unified, growing and preserving its reputation. “What I believe we have, if I’ve done my job well enough, is a great alignment of our culture and commitment with our in-store leaders, the ones who represent the brand on an everyday 11

MARKETING

Fresh sauce is made in-house daily basis—making them part of the environment and a part of that feeling of making a difference.”

Alignment and the art of leadership through example Chang is a big believer in alignment, whether that’s an alignment of ideals with franchise partners or an alignment of business strategies. The latter is a driving force behind Pieology’s 12 August 2015

commitment to keeping 30 percent of all locations corporate-owned.

“I believe in having skin in the game—as the founder of Pieology and a believer in the brand, I have to walk the walk and talk the talk,” says Chang. “If we represent a significant portion of the stores developed across the nation, and we’re one of the best operators in the system, then I have a fair voice to share with our other top

BUILDING AN EMPIRE ON IDEALS

operators. We operate our stores, we operate successfully, and we’re able to give back.”

That representation through action is a significant example of Pieology’s executive leadership model.

“Some of our competitors may have more of a 100 percent franchise model,” Chang observes. “But my perspective on that is: how do you encourage your operators to operate a certain way, when you don’t have personal experience to be able to draw from or share from? That to me is a philosophical difference that I struggle with. I think if you’re properly aligned, you share in the rewards, but you share in the risk—and then you can relate better as you teach.”

Pushing the envelope on quality While business strategy is vital, what keeps consumers coming back is the food. Born and raised in New York, where pizza is not just dinner but a culture, Chang is aware of that importance and is committed to pushing the envelope where quality is concerned, starting with fresh dough and fresh sauce made in-house each day and moving further into concepts like organics from there.

“As we continue to increase our buying power, most look to reduce their cost of goods sold because they’re trying to increase margin,” says Chang. “My perspective is that, if our margin is reasonable enough, I want to continue to push the level of quality of our product.”

Chang attributes that desire to a simple love for great food and a desire to share it with Pieology consumers.

“As we’re allowed to continue to push that envelope, we’ll continue to push that envelope across the board and continue to try and stay relevant,” he says. “We won’t be all things to all people—but what we can do is try to appease our loyal followers and consumer base by continuing to drive the very best product, and continuing to be price conscious without trying to drive price.”

Putting people first “The thing I found most rewarding as we first started the concept is that, unlike those that came and developed after, our purpose was true and sincere,” says Chang. “What I appreciate is that all of our growth up to a certain point was very organic.

All of our posts, all our pictures— 13

MARKETING

CEO Carl Chang is committed to engaging with customers that was all from our followers, our consumer base; people that fell in love with Pieology. None of that was developed by us. That came from a very sincere place.”

That sincerity has been mutual,

14 August 2015

from the core concept of endless pizza opportunities created by each individual, to programs that give back to communities—Chang brings special attention to Chicken Lavigne as one of the chain’s first major campaigns to

BUILDING AN EMPIRE ON IDEALS

give back, inspired by James Lavigne, a young culinary student and frequent visitor to Pieology’s Fullerton location.

After learning that Lavigne had lost his fight with Hodgkin’s Lymphoma and reaching out to his family, Pieology put one of his favorite pizza combinations on the menu as a featured special—through this, even in the early days of the restaurant, Pieology and its consumers were able to raise five digits for Hodgkin’s Lymphoma research. It’s a touching story for Chang, and a representation of his vision for the brand.

“For me, I want Pieology to be everyone else’s: I want it to serve a purpose for every person, every individual, in hopefully the most positive way,” says Chang. “It’s not mine. It’s not Carl’s company. What I care most about is celebrating our Pieologists—the people that come in and feel inspired.

We embrace our consumers. We have more touch points than everyone else because we want a relationship with our people. Quite frankly, I think that’s why we’ve had success in our growth: I believe it comes from a very true and sincere place.”

Focusing on growth “At the end of the day, most of us feel equally if not more rewarded by seeing us make a difference in other peoples’ lives than just strictly a monetary reward—I think a balance of the two is critical,” says Chang.

That balance is evident in the pizza chain’s trajectory. While the business growth may be due to making personal connections, those personal connections can’t continue without further business growth. So Pieology is focused on growth, as long as it’s organic and steady, and not simply a race to the top.

“We’re approaching 600 commitments now, and our corporate strategy is continuing to grow our footprint,” says Chang. “With that said, we’re always going to be focused on customer service and engaging with our consumers. That means aggressive yet steady growth—very calculated, very strategic. We won’t grow for the sake of growing, because to me, the first person to 3,000 units is not the winner. To me it’s about stewardship—trying to set up systems and long term success, rather than short term wins.”

15

TECHNOLOGY

16

August 2015

LEADING THE BUSINESS OF

GENOME SEQUENCING

Innovation is the driver of success, and no other company knows this better than Illumina, which is poised to become the dominant force in the world of genomics.

W R I T T E N B Y: S T E P H A N I E C . O C A N O

17

TECHNOLOGY IMAGINE THE VASTNESS of a topic as broad as astronomy, combine it with the study of particle physics and then integrate the digital information housed by a social media giant such as YouTube—this is how expansive the field of sequencing human DNA has become.

Predicted by scientists to take the lead as the biggest data giant in the world, the claim is a testament to the complexity of the human genome, and it is a feat that needs to be met with the latest tech solutions to house and understand such a titan.

In the bustling city of San Diego, California, a biotech company manufactures and markets integrated systems for the analysis of genetic information, and in the coming age of genomic medicine, it is poised to become a dominant supplier for the industry.

Illumina has one goal: to apply innovative technologies to the analysis of genetic variation and function, making studies possible that weren’t even imaginable a few years ago.

As researchers race to develop DNA-based technologies to break firsts in a market that is predicted by Forbes to exceed $20 billion in the 18

August 2015

near future, the global leader shows no signs of letting up or slowing down.

A brief history Illumina evolved from “blue sky” research in the chemistry department of Cambridge University that later transitioned into the revolutionary sequencing by synthesis (SBS) technology: the foundation of

Historically, NGS data required expert analysis, which presented a major hurdle to adoption of RNA-Seq technology.

Illumina’s user-friendly innovations are solving this issue.

Illumina’s sequencing instruments.

In April of 1998, the company was founded by David Walt, PhD of Tufts University and inventor of BeadArray technology; Larry Bock of the venture capitalist firm CW Group; John Stuelpnagel, DVM; Anthony Czarnik, PhD; and Mark Chee, PhD. In 1999, CEO Jay Flatley joined the company.

When the company completed its

initial public offering on July 1, 2000, it generated over $100 million, signaling its success to come.

The ensuing eight years after Illumina’s IPO marked numerous notable moments, particularly with the development of new technologies, but not without setbacks.

Illumina began as a 25-person startup that sold microarray 19

TECHNOLOGY

BaseSpace allows users to access NGS data Neroanywhere Burning ROM from at anytime

chips—useful in examining spots on the genome for mutations—but as the genome sequencing market grew relatively fast, so did competition.

The company began to lose money (for example, in 2003, Illumina had $28 million in revenue and a net loss of $27 million) and the potential for microarrays was starting to dim as more comprehensive sequencing technology began to improve, and quickly.

Flatley knew that there was only one thing that could keep Illumina alive and 20

August 2015

relevant to the industry: innovation.

Driving innovation to succeed In 2006, when news of another company being close to creating its first rapid readout of an individual human genome reached Flatley, he knew that was the answer for Illumina: either build or buy a sequencing technology of its own.

Flatley bought the company Solexa, which had been developing the concept of sequencing by

T H E A G E O F T H E C O M P A N Y- W I D E H A C K

synthesis—both a faster and cheaper process than traditional methods— and the acquisition has since proven to be a turning point for the company.

To date, Illumina has spent more than $1.2 billion on acquisitions, but the ability to innovate and improve the technology of the companies it buys is what has kept Illumina at the helm of the genome sequencing industry.

In an interview with Forbes back in April, Flatley noted that the reason for Illumina’s vast success was attributed

to remaining technical at the top.

“We think it’s very important that the people who lead our company, which you might think of as my top 20 to 50 executives, have technology backgrounds,” said Flatley. “That could be science, engineering, software, or [other related fields]. To be the winner in this business, you can’t just be a good general manager.”

With over 3,700 employees under his name, Flatley spends a lot of his time thinking about how 21

TECHNOLOGY

Jay Flately, CEO to protect the culture that has been built and extending it to the global infrastructure.

“We empower our teams to go off and do great things,” continued Flatley. “They only have to come back to us under a very fixed set of circumstances. We [in management] can set the strategy and direction and 22

August 2015

talk about specifications. They can do the execution, which they are really good at.”

Empowering a healthy future via partnerships Illumina places high value on collaborative interactions to fuel groundbreaking advancements in life

LEADING THE BUSINESS OF GENOME SEQUENCING

science research. With the ability to sequence at an unprecedented scale, the company relies on partnerships to venture into new fields that can impact the world.

It is no secret that Illumina has been making strides in the field of fertility as of late. Last year, the company acquired Verinata Health—the maker of a non-invasive prenatal sequencing test to identify fetal abnormalities— thus allowing Illumina to offer this service to consumers (through their doctors) in a market that could be worth billions of dollars in revenue.

Additionally, the company has formed the Global Fertility Alliance with Merck KGaA of Germany, a leader in fertility drugs, and Genea of Australia, which operates fertility clinics.

The alliance will aim to standardize procedures for assisted reproduction and help families across the globe have healthy babies.

“We are confident this collaboration of innovators in the fertility field will deliver a significant positive impact for healthcare professionals, fertility labs, and most importantly their patients,” Tristan Orpin, senior vice president and general manager for reproductive genetic health at Illumina, told Times of San Diego.

Looking overseas, by partnering with China-based genomic enterprise Annoroad, Illumina is looking to co-develop a next generation sequencing (NGS) diagnostic system that will improve patients’ reproductive health. The NGS technology has been observed by scientists lately and is being considered as a key factor for empowering precision medicine around the world.

The partnership signals the company’s attempt to expand overseas and broaden its customer base in the country while also allowing it to capture a larger share of this multibillion dollar market.

Leading the genomics revolution Illumina is not only one of the most important companies in biomedicine but is also a leader in the field. With a history of producing innovative products and technologies over the span of 15 years, Illumina may soon claim the market all to itself.

As noted by Forbes, “Just as Intel became the company that sparked so much of the computer revolution, Illumina has risen to prominence as a driver of the genomics revolution.”

23

TOP 10

TOP 10

LOCATION, LOCATION Top 10 places to do Written by: Jennifer White Researched by: Tomas Lucero

0

N, LOCATION! business

25

TOP 10

Choosing the right location for your business is a big decision, and while it is not the only factor that plays into a corporation’s success, it will have an impact.

Based on extensive research done

by Forbes, NerdWallet, WalletHub, CNN, Business Insider and other data-crunching sources, these 10 cities should definitely be considered for future business ventures.

Chamber of Commerce, incubates small businesses by granting loans of up to $100,000 to new for-profit organizations.

The state of Wisconsin supports larger, more established businesses as well by offering deductions for corporate dividends received and for job creation, as well as special capital gains treatment.

10

• Potential neighbors: Schneider Nation, Inc. Associated Bank Georgia-Pacific JBS

Green Bay, Wisconsin

• Average revenue of businesses: $1,594,448 • Estimated median household income: $42,584 • Unemployment rate: 5.1% In 2013, Business Facilities Magazine ranked Green Bay, Wisconsin, No. 2 on its list of emerging financial centers.

Already strong in transportation and tourism, Green Bay is also moving in on the start-up game: Advance Microloan Program, sponsored by the Green Bay 26 August 2015

09

Portland, Maine • Average revenue of businesses: $716,382 • Estimated median household

Portland

TOP 10 PLACES TO DO BUSINESS

• Estimated median household income: $44,487 • Unemployment rate: 4.5% According to Business Programs Manager Nelle Hanig, who works in the Economic Development Department for City of Portland, Portland stands apart from other business-friendly cities because it boasts an “urban lifestyle and fantastic quality of life” as a mid-sized but thriving city.

Dominant industries in the area include food, biosciences, information technology, health care, finance and insurance, marine industry, tourism, arts and culture. The city also hosts Maine Startup and Create Week to show support for innovation, creativity and startups within the Portland area.

• Potential neighbors: L.L. Bean, Inc. Maine Medical Center TD Banknorth, Inc. Goodwill Industries of Northern New England

08

Bridgeport/ Stamford/ Norwalk, Connecticut • Average revenue of businesses: $2,145,214 • Estimated median household income: $76,797 • Unemployment rate: 6.8% The Bridgeport/Stamford/ Norwalk area of Connecticut provides a dense network of commuter rail lines, simplifying commuting and encouraging trade.

Although there is not a stand-out dominate sector, manufacturing, healthcare and finance are popular industries within the area.

“Norwalk prides itself on being friendly to both established businesses and start ups. [The city] hosts ongoing programs for start-ups and entrepreneurs that help secure financing, business planning and networking opportunities,” said Elizabeth Stocker, Director of Economic Development for the City of Norwalk.

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TOP 10

• Potential neighbors: General Electric Co., Inc. United Technologies Corporation GTE Corporation Xerox Corporation

07

Beaumont, Texas

• Average revenue of businesses: $2,778,973 • Estimated median household income: $40,322

• Unemployment rate: 5.8% While not the first city to come to mind for launching a business, Beaumont, Texas is in fact prime territory for establishing a business. Listed as number seven on Wallet Hub’s “Best Cities to Start a Business,” the BeaumontPort Arthur metro area brings in 155 percent more revenue than any other city on this list.

• Potential neighbors: Exxon Mobile Corporation Christus St. Elizabeth Hospital Goodyear Tire and Rubber Lamar University

06

Fort Wayne, Indiana • Average revenue of businesses: $1,965,562 • Estimated median household income: $44,599 • Unemployment rate: 6.3%

Beaumont, Texas

28 August 2015

Quality of life is key for residents and businesses in Indiana. “We really looked at a lot of quality of life

TOP 10 PLACES TO DO BUSINESS

05 Fort Wayne

issues. Not only are we a low-cost community – our taxes are very low – we also pay a lot of attention to trails, park systems,” said Pamela Holocher, Deputy Direct of Planning and Policy for the City of Fort Wayne told Forbes.

Indiana has the second lowest property tax rates in the Midwest, was listed as No. 8 on the Tax Foundation’s State Business Tax Climate Index, and has plans to decrease the state’s corporate tax from the current 7 percent to 4.9 percent by 2021.

• Potential neighbors: General Motors Lincoln Financial Group BFGoodrich Raytheon Systems Corporation

Evansville, Indiana

• Average revenue of businesses: $1,844,834 • Estimated median household income: $49,809 • Unemployment rate: 4.8% According to Evansville Mayor Lloyd Winnecke, the Indianabased area is strategically located for business, and is estimated to be “within a day’s drive of 75 percent of the U.S. and Canadian populations” as well as “accessible to every U.S. market by road, rail, air and water.”

“Companies have swift access to the customized data they’ll need along with the opportunity to speak with key partners in government, private industry and workforce development to provide an accurate picture of the business climate,” he said.

As previously mentioned, Indiana was listed as No. 8 on the Tax Foundation’s State Business Tax Climate Index, and has plans to decrease the state’s corporate 29

TOP 10

tax from the current 7 percent to 4.9 percent by 2021.

• Potential neighbors: ALCOA Warrick Operations University of Southern Indiana Bristol-Myers Squibb General Electric Co.

04

Dallas, Texas

Texas was also listed as No. 10 on the Tax Foundation’s State Business Tax Climate Index, and Dallas itself area came in fourth on the list of highest number of Fortune 500 companies in operation.

Exxon Mobile, the second largest company in the world, also has its headquarters in the IrvingDallas-Fort Worth-Arlington metro area of the state.

• Average revenue of businesses: unknown • Estimated median household income: $58,431 • Unemployment rate: 3.8%

• Potential neighbors: Exxon Mobile American Airlines Bank of America Corporation AT&T

Thanks to a lack of income tax across the entire state, Texas continues to be a popular place for businesses, recently earning the nickname “Silicon Prairie” due to the high number of tech companies worked out of the Lonestar State (the city ranked ninth in the country for having the highest number of tech-related organizations).

03

30 August 2015

Boulder, Colorado

• Average revenue of businesses: $721,489 • Estimated median household income: $57,112 • Unemployment rate: 3.5% The city of Boulder is one of the most educated on this list: 56

TOP 10 PLACES TO DO BUSINESS

percent of the population has a bachelor’s degree or higher.

Startups, particularly those in the technology and science sectors thrive in the area, thanks to incubators and accelerators like Boulder Startup Week, TechStars, and Boomtown. Other key sectors include clean energy, bioscience, aerospace, and outdoor recreation.

“Boulder is very collaborative and people are accessible. The university, city government, non-profit organizations and business community have a strong working relationship. Aspiring entrepreneurs, start-ups and growing businesses are

supported through business support organizations and informal networks,” said Jennifer Pinsonneault, Business Liaison for the City of Boulder.

“We have a modest business incentive program that offers pre-approved rebates of certain fees and taxes paid to the City of Boulder to primary employers that meet eligibility requirements and demonstrate a commitment to social, environmental and community sustainability,” she added.

• Potential neighbors: IBM Corporation Lockheed Martin Information Systems Ball Corporation Oracle Corporation

02

Cedar Rapids, Iowa.

• Average revenue of businesses: $1,514,835 • Estimated median household income: $52,242 31

TOP 10

• Unemployment rate: 3.8% Cedar Rapids, Iowa, ranks seventh for the state with the lowest cost of doing business, and companies in the area also receive a standard economic development incentive to offset costs. This is in addition to not being taxed on machinery and equipment and receiving a low insurance premium tax. The city also boasts an unemployment rate that is significantly lower than the national average (3.8 percent versus 5.5 percent).

Maria Johnson, Communications Division Manager for the City of Cedar Rapids, said that the city assigns each new and expanding business a case manager. “This offers owners a higher level of personal customer service and assistance to help their success. Cedar Rapids has a long history of providing support for existing businesses as well as an extremely strong start up community support network.”

A stronghold for bioprocessing/ bioscience-based business, Cedar Rapids also has a highly educated 32

August 2015

workforce, thanks to Iowa State University and its creation of a liaison position. This program will help encourage collaboration between the city’s processing industries and Iowa State students in the fields of science, engineering and economics.

• Potential neighbors: Transamerica General Mills Archer Daniels Midland Schneider Electric

01

San Jose, California

• Average revenue of businesses: unknown • Estimated median household income: $99,669 • Unemployment rate: 4.6% Silicon Valley remains the largest technology hub in the country, and San Jose has played a key role in helping the region earn this status: In 2013, San Jose experienced

TOP 10 PLACES TO DO BUSINESS

the fourth-highest job growth in the U.S., and in 2014, area-based companies collectively received 53 percent of the nation’s venture capital funding.

Employment rates are also impressive when compared to other cities. Although the unemployment rate for the area overall is 4.6 percent, employment in the professional, scientific and technical services categories increased 6.3 percent, positioning all other categories to follow suit San Jose boasts the highest average weekly wage of any metro area ($1,920), and the area’s GDP per-capita was the second highest in the nation ($102,534).

Residents’ personal income, which experienced an unprecedented 6.2 percent increase in 2012, remains significantly higher than other metro areas.

Add to this the fact that 21 percent of the residents aged 25 years and older have advanced degrees – double the national average – and it should come as no surprise that San Jose is our top pick for businesses in 2015.

• Potential neighbors: Apple Cisco Google Hewlett-Packard

San Jose, CA

33

DPR Construction

BioMarin and DPR Construction collaborate to build greatness Discover how BioMarin and DPR have combined talents to expand a research and development facility, achieving greatness along the way Written by: Cutter Slagle

Produced by: Tom Venturo

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DPR CONSTRUCTION

D

PR Construction and BioMarin applied for a building permit in June 2014, joining forces to expand BioMarin’s research and development facility in downtown San Rafael (ultimately bringing the developmental sciences group to BioMarin’s main administration campus). The project officially broke ground on the development in August of that same year—and it’s been on the fast track ever since.

BioMarin Principal Engineering Project Manager Jim Redenbarger recently spoke about the collaboration and how BioMarin 36

August 2015

originally acquired DPR Construction’s assistance, stating: “DPR is known for doing excellent work and proved that they were best suited for this project.”

“This type of project is in DPR’s core market,” DPR Construction Project Manager Tim Kueht said.

“We are always searching for different projects that allow us to be collaborative and push forward in the industry, versus staying with old and traditional practices.

We enjoy working with partners, subcontractors, and various people in the community to develop a relationship and joint understanding

CONSTRUCTION

of the work process in order to complete a project.”

While a structure to this degree often takes at least three years to complete from design to develop to build out, the center is slated to be finished in December 2015—just 18 months after starting.

The factors behind this turnaround time can be contributed to a range of qualities, but collaboration is the one that seems to be the most significant.

“When it comes to building, everyone is ready to go—every member of the team is completely onboard,” Kueht stated.

“We are always searching for different projects that allow us to be collaborative and push forward in the industry” – DPR Construction Project Manager Tim Kueht

Tackling challenges to the expansion This expansion project has been put into motion to create a facility that will accommodate all research needs. Most importantly, this is a solid w w w . d p r. c o m

37

GHILOTTI CONSTRUCTION

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DPR CONSTRUCTION

design that can help accomplish a magnitude of goals, including the ability for departments to be switched out and restacked and even turned into laboratories.

Also due to this expansion, more collaboration within the building will be able to take place. Redenbarger noted that the various features of the building will be a way to bring people together.

“This expansion is already proving its worth,” he stated.

“Science equals change, and we are accommodating that change with this building.”

CONSTRUCTION

The building is located in a very urban setting and there have been a few challenges—challenges that Redenbarger, Kueht and their respective teams have been able to overcome.

For example, schedules have proven to be particularly daunting, as has the task of getting all of the right materials in order and in a timely manner. Then there’s finding the manpower—both Redenbarger and Kueht agreed that it’s not just about getting people, but the right people for the right job.

“This entire project is a highly w w w . d p r. c o m

39

DPR CONSTRUCTION collaborative effort,” Kueht explained. “It takes everyone involved to help achieve overall goals.”

Whether it’s been the challenge with the foundation, the various bay conditions or the different restrictions that were put into place, the team has been able to work together to overcome them.

“DPR is very good at identifying challenges early on—sometimes even before they happen,” Redenbarger said. “They’ve resolved issues, which has ultimately saved the project time and money.”

There is a central utility plant on the roof of the building that has been quite demanding due to the fact that a lot of equipment has to fit into

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CONSTRUCTION

such a tight space. It’s important for employees to work safely in the small quarters. This is where technology and having a model of the building came into great assistance.

Technology and the assistance of BIM Both Redenbarger and Kueht have acknowledged the importance of Building Information Modeling (BIM) and how this type of technology has not only assisted all involved parties with efficiently handling the expansion, but also allowing workers to stay on track to complete the project on schedule.

“Because of BIM, everyone has access to the model and all of the building information,” said Kueht “The designing and detailing information we have can be pushed through instantly, meaning BIM saves us a lot of time; BIM allows us to have a quicker and more efficient process.

“With BIM, we are accurately building with the most current information,” he added. “We are finally able to see the value of technology, as well as understand it and like it.”

Redenbarger agreed with Kueht’s positive feedback regarding BIM, adding, “BIM allows us to identify areas that need improvement so that we can then advance our skills and approach and move forward. We’re completely sold on the BIM process. It enhances the collaboration for all players on the project—everyone wins.”

Both Redenbarger and Kueht plan to continue using BIM going forward in their careers.

“This entire project is a highly collaborative effort; it takes everyone involved to help achieve overall goals” – DPR Construction Project Manager Tim Kueht

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When asked about any other technological techniques being utilized, Kueht said, “We use the latest technology that is available, leveraging it and taking it the next level to produce faster and more accurate results.”

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August 2015

Commitment to achieving milestones As with any project, one of the biggest—if not the biggest—goals is to deliver the build on time and on budget. And so far, this hasn’t been an issue with this expansion. As stated earlier, completion is looking

CONSTRUCTION

Company Information INDUSTRY

Construction Global HEADQUARTERS

945 Front Street, San Francisco, California , USA, 94111 FOUNDED

1990 EMPLOYEES

1860 REVENUE

$2.9 billion PRODUCTS/ SERVICES

Construction

to wrap up by year’s end; this is an aspect that everyone should be proud of accomplishing.

“That’s our goal,” Kueht started, “to have everyone involved in the project walk away completely satisfied and proud of their work from all aspects. It’s important that everyone is happy and had a good time being part of the project.”

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Northwest Corridor Project (Northwest Express Roadbuilders – Archer Western/Hubbard Construction JV)

A better driving experience for Atlanta A look at how the Northwest Express Roadbuilders joint venture is planning to ease traffic and commuter stress in Georgia’s Atlanta suburbs Written by: Sasha Orman Produced by: Tom Venturo

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C O M PA N Y N A M E

Paving of new express lanes’ ramp from Wade Green Road at northern end of the project

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s communities and suburbs grow, infrastructure and utilities must be able to match and support that growth. In Georgia’s suburbs north of Atlanta, progress and population growth has led to gridlock and congestion along Interstates 75 and 575— known as Atlanta’s Northwest Corridor—particularly during rush 46

August 2015

hour traffic in the mornings and evenings. Recognizing this growing and untenable situation, the Georgia Department of Transportation (GDOT) began development on the Northwest Corridor Project (NWCP) to improve transportation options and provide relief to the 400,000 residents who drive these crowded highways every day. To take on

SECTOR

the design-build-finance side of the project, GDOT has enlisted Northwest Express Roadbuilders—a joint venture project combining the skills and expertise or Archer Western and Hubbard Construction with Parsons Transportation as lead designer.

An ambitious project

The Northwest Corridor Project is not a simple undertaking. The project consists of 40 bridges—the longest of these bridges standing at nearly 6,000 feet long—plus 110,000 feet of storm drainage and a mix of 63 different wall systems, featuring a roughly equal mix of concrete and asphalt paving.

“It’s really the first project of this w w w. n w c p r o j e c t . c o m

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CONSTRUCTION GLOBAL

kind and this size for the GDOT,” says Kevin Oswandel, Senior Project Manager for the Northwest Corridor Project. “They’ve never done something of this magnitude.” The joint venture entity Northwest Express Roadbuilders was named as the chosen building and financing team of the project in 2013.

At the end of the project, the intended result will be toll roads managed by the State Road Tollway Authority (SRTA) through GDOT. “We build the entire infrastructure, then they will come in behind us and put up the cameras and the toll sensors and operate the toll systems,” says Oswandel.

“Once we’re done, we don’t have a maintenance element: it’s strictly design build at that point.”

Progression of substructure for milelong bridge at Canton Road Connector

Easing the challenges of the daily commute “There are several different commutes in Atlanta that are challenging, but these are especially challenging on Interstates 75 & 575,” says Oswandel. “There’s a lot of suburban development in the north that travels south toward downtown—in the morning it’s gridlocked all the way from the north to basically downtown, and in the evening it’s gridlocked in reverse.”

The solution that GDOT and Northwest Express Roadbuilders are applying to this problem is a relatively unique one: the reversible managed lane. The Northwest Corridor Project will be building two barrier-separated managed toll lanes on the west side of I-75, between I-285 and I-575. North of I-75 / 575 split, NWCP will

photographed at dusk

First girder setting operation for superstructure of flyover bridge for new express lanes’ interchange

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First beam setting operation on mile-long bridge being constructed at Canton Road Connector

CONSTRUCTION GLOBAL

add one reversible managed lane to the center median of both I-75 northward toward Hickory Grove Road, and along the I-575 northward to Sixes Road.

According to Oswandel, the toll lanes will be directed to carry southbound traffic from the suburbs into Downtown Atlanta in the morning. In the evening, the lanes will be reversed to carry traffic heading northbound out of the city.

While the southern section of the project will have two managed lanes, both will head in the same direction depending on time of day.

Some commuters are hesitant to traverse toll lanes, but Oswandel also points out that these managed lanes will not be taking away space from any pre-existing lanes along

Interstate 75 or Interstate 575 — rather, they will be additions that will give drivers more space and more choices. “It’s basically to try to relieve congestion, and to give motorists an option,” he says. “We’re not doing anything with the general purpose lanes—those are staying just as they are. We’re not taking lanes away from general purpose, but this development will just give motorists the option of getting on the toll system if they want to.”

Meeting the challenges of construction The $840 million Northwest Corridor Project is the largest infrastructure project in the history of the Georgia Department of Transportation, and such a large project always

“Atlanta’s got a lot of challenges in their road systems and their commutes… I think this project so far has been very successful and has shown that it can be the innovative way of constructing work elsewhere in the city” – Kevin Oswandel, Senior Project Manager w w w. n w c p r o j e c t . c o m

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ARCHER WESTERN/HUBBARD CONSTRUCTION

Demolition of superstructure of existing Hickory Grove Bridge, this bridge will be reconstructed to accommodate the new express lanes

comes with challenges. The trick lies in meeting these challenges head on and overcoming them to meet project goals. According to Oswandel, GDOT and Northwest Express Roadbuilders are meeting the challenges presented by the Northwest Corridor Project through teamwork and communication.

“We have a pretty good partnership with the state, we meet regularly with them and we work through challenges,” says Oswandel. “This is innovative thinking-outside-the-box for Georgia DOT—working through the design process has been a little bit 52

August 2015

challenging, but they’re learning as well and it’s a good process.

As far as our joint venture, it is a fully integrated blend of two of the nation’s major highway construction companies. We don’t have certain portions of the project for one company or another: we have project management, engineering, and superintendents from both companies in every aspect of the work, basically functioning as one company. It’s a bit of an innovative approach.”

Finding success for all At the moment, the Northwest

CONSTRUCTION GLOBAL

Corridor Project is approximately 25 percent complete and on track for completion in 2018. As progress continues, GDOT and the Northwest Express Roadbuilders joint venture can continue to look ahead to what the future will hold.

“We have a lot of different individual goals,” says Oswandel, noting that success for Georgia on this project can also translate to success for Archer Western Contractors and Hubbard Construction Group further down the line. “This is a pilot project for them as well, and a successful project like this would lead to better opportunities for both the state and for our two companies.

Atlanta’s got a lot of challenges in their road systems and their commutes, and this could be one of many that may come down the pipe. I think this project so far has been very successful and has shown that it can be the innovative way of constructing work elsewhere in the city.”

The joint venture is also considering success of the projects in all its facets, examining the achievement of its many different goals and what true success means for this project. “It all depends on how you define success,” says Oswandel, who notes that strong training and workplace safety for his 450 staff and subcontractors is just as critical as every other piece of the puzzle. “Profitability, safety and success for the state as well as our subcontractors and suppliers—everybody needs to have a degree of success in the project for it to be truly successful.”

Company Information INDUSTRY

Road infrastructure HEADQUARTERS

881 Franklin Road, Suite 405 Marietta, Georgia, USA FOUNDED

2012 EMPLOYEES

450 BUDGET

$840 million

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Philadelphia Gas Works PGW CEO Craig White discusses new initiatives, infrastructure upgrades, and all that lies in store for Philadelphia’s gas utility Written by: Sasha Orman Produced by: Tom Venturo

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PHILADELPHIA GAS WORKS

Corporate Headquarters

S

ince 1836, Philadelphia Gas Works (PGW) has been supplying residents and businesses throughout the City of Philadelphia with natural gas as a utility. But the service has not remained stagnant over those two centuries. The energy industry is evolving, and PGW is evolving with it to find new and exciting ways to serve its city.

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Embarking on new initiatives Within the past year, Philadelphia Gas Works has been seeking out new business opportunities—and finding several. One important prospect that the company has been working hard on is the expansion of its liquefied natural gas (LNG) assets.

“We have a very large LNG footprint—over 4 billion cubic feet of storage, in addition to a liquefaction plant and a vaporization plant,” says

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Distribution

Craig White, CEO at PGW. “So we have the ability to liquefy and store a substantial amount of LNG, and then we can do a variety of things with that. We can vaporize it and put it into our distribution system, or distribute the liquid via our truck offloading racks. That’s a business that we hope to expand, and that’s got us very excited.”

PGW is also looking at increasing involvement with compressed natural gas (CNG) vehicles. The company already has one third party fueling station up and running in Philadelphia, and is hoping to expand this through an aggressive

rate structure favorable to facilitating business. ”We believe that fleet use of natural gas for fleet vehicles is something that’s going to expand, as it has in other areas of the country,” says White. “We think it’s going to be here eventually, so that’s another area that we’re aggressively addressing.”

A third initiative that PGW has been pursuing intently as a strong opportunity in the future is combined heat and power (CHP). Installation of CHP systems has already grown substantially this year compared to the year before—White estimates w w w. p g w o r k s . c o m

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around 30 active projects at the moment. “So it’s pretty exciting,” he says. “Combined heat and power is a nice addition for PGW.” Improving existing infrastructure Older cities throughout the Mid-Atlantic and Northeast regions of the United States share a rich and expansive history. But they also share aging infrastructure in need of upkeep and renovation. In the City of Philadelphia, PGW is undertaking a major initiative to ramp up the rehabilitation of its own infrastructure, ensuring that it is able to provide better and more reliable service for years to come.

“We are accelerating our program, as have other utilities in Mid Atlantic and Northeast regions—areas of the country that have a

SUPPLIER PROFILE

PGW employees deliver new backpacks and school supplies to homeless youth at The Salvation Army Red Shield Family Residence in Philadelphia. Supplies were donated by PGW employees as part of an annual internal campaign to support children and education in Philadelphia.

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PHILADELPHIA GAS WORKS preponderance of cast-iron bare steel and unprotected steel,” says White, explaining PGW’s most recent undertaking, which consists of excavating and removing existing outdated pipe to be replaced with modern updates. “Newer systems are primarily plastic and welded steel, and we’re moving in that direction with our replacement program. We’re on pace to double our replacement of the aging infrastructure within a year.”

To accomplish this goal, PGW has increased its total yearly expenditure from $40 million up to $75 million— in other words, of the $100 million budget that PGW is allotted each year, 75 percent is currently being reserved toward replacing aging infrastructure. But according to White, as a matter of enhanced reliability and safety, it’s funding well spent.

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risk,” White explains. “When we talk about safety, we’re not only talking about safety as it pertains to our customers: we’re certainly also talking about safety as it pertains to our employees. We have extensive training programs, and much of what we do here at PGW is just to stress that safety is the most important aspect of what we do every day. I want my employees to go home safe to their families each and every day.”

Improving consumer satisfaction In addition to its daily focus on the well being of its employees, PGW also understands the importance of maintaining a strong relationship with its user base in both the residential and commercial spheres.

“One thing we believe is very important: people have to feel Improving employee safety they’re getting value for this service,” That matter of safety is vital to says White. “When they feel they’re Philadelphia Gas Works. “That’s what getting good value, they’re more we’re here to do: we’re here to provide inclined to pay their bill and expand safe and reliable service,” says White. the use of natural gas, especially in This is a driving force in the company’s a commercial environment. So we current emphasis on infrastructure see customer satisfaction as a very building and replacement. integral part of the success of the “Replacing infrastructure reduces business as we move forward.” w w w. p g w o r k s . c o m

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PGW has recently been able to boast stronger JD Power consumer satisfaction scores than ever before, and it attributes much of 62

August 2015

this to a strong focus on customer satisfaction initiatives, including a revamping of its website and a commitment to taking advantage of

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social media to connect with customers directly.

“It’s a good way to stay in touch with your customers and inform them,” says White. “We’re using these social media outlets to inform our customers of what we’re doing and when we’re doing it, along with some of the other just basic blocking and tackling—when we’re on their block, what we’re doing, when we’ll be starting a project and when we finish a project. We’re trying to communicate at a very granular level with our customers to improve customer satisfaction and improve the experience when you’re working with a utility.”

Company Information INDUSTRY

Utilities HEADQUARTERS

Correspondence Department, PO Box 3500, Philadelphia, PA, USA, 19122 FOUNDED

Looking forward Moving into the future, Philadelphia Gas Works expects to immerse itself even further in the new initiatives that the company is pursuing today.

“I fully expect that we will have made some decisions around LNG and be moving forward with some aspect of that project,” says White.

“I see the CHP business continuing to grow with engineers, architects, building operators, all gaining experience with combined heat and power—and with CFOs recognizing the value of greater efficiency in energy systems, which will definitely hit their bottom line in a positive way.

We’re going to accomplish a lot of cast iron main replacements, we’re going to expand our markets, and we’re going to expand LNG. So I’m extremely excited that within this next year: you’re going to see significant changes starting to occur at PGW.”

1836 EMPLOYEES

1,650 REVENUE

$800-900 million PRODUCTS/ SERVICES

Utilities

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Pittsburgh Water & Sewer Authority

The Success Story of the Pittsburgh Water & Sewer Authority With new management, PWSA has evolved into one of the most efficient water utilities in the country.

Written by: Ian Hanner

Produced by: Tom Venturo

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P I T T S B U R G H WAT E R & S E W E R A U T H O R I T Y

Micro Plant

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he Pittsburgh Water & Sewer Authority (PWSA), founded in 1984, was born to manage a $200 million capital improvement program intended to overhaul the city’s aging water treatment and distribution infrastructure. Not only was some the equipment getting run down, but more strict water quality requirements mandated by both the state and federal governments necessitated an intelligent restructuring of a system that, at 66

August 2015

the time, supplied water to tens of thousands.

Today, that system, upgraded several times over, supplies fresh water to more than 86,000 people throughout the city of Pittsburgh.

But PWSA’s story isn’t over yet—the organization is striving to improve every day with a range of changes that will move the city of Pittsburgh into a greener future while improving the operational efficiency at PWSA itself.

ENERGY

The Operational Efficiencies There was a time when PWSA lagged behind in the race to enter the 21st century. Problems like long call wait times and poorly optimized finances plagued the department which had for so long served as a beacon to the rest of the nation.

That changed in 2012 when the PWSA Board of Directors authorized an agreement with Veolia Water North America— since renamed Veolia Environment— that would allow the private entity to take a degree of control at PWSA while trimming fat from the budget and improving the department. Along

with the agreement, Veolia instated interim Executive Director Jim Good, a Veolia employee, to right the ship.

“I gave the hallelujah amen sermon,” Good told the Pittsburgh Post-Gazette in 2013. “I told them that we were there to work with the employees as their partners.

I provided assurances that there wouldn’t be any layoffs and that together we could achieve anything.”

Good’s task was a large one: how do you go about systematically changing an organization in business since the 1980s?

The simplest answer was to cut unnecessary expenses and w w w. p g h 2 o . c o m

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SUPPLIER PROFILE

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P I T T S B U R G H WAT E R & S E W E R A U T H O R I T Y consolidate redundant departments, such as the two divisions handling water and sewage. Previously, the water and sewage departments existed in almost wholly separate areas of the organization, having different directors, supervisors and even facilities.

“If you can fix a pipe, you can fix a pipe, whether it’s water or sewage,” Good said. “It doesn’t matter if it’s a water main or a sewer main, so we merged everyone together.”

That simple idea has a large impact for PWSA. Another is the separation of PWSA property and employees into above-ground and underground assets.

“This also will improve the repair process and shorten the repair times,” Good said. “We’ll know faster if we need a water truck driver or we need a water pipeman, for example.”

Good is also trying to do away with regular laborers, instead opting

for job placement opportunities in higher areas of the department and providing a clearer path up the career ladder.

“It gives them a pay bump and it gives us more flexibility because now they have the ability and the endorsements to do more,” he said.

“So it benefits both ends.”

The Greener Future These days it’s difficult to discuss the environment or climate without some sort of call to action. But regardless of the stance one takes on climate change, it simply makes good sense for a water authority that relies on finite resources to do whatever it can to conserve and protect.

That line of thought led to PWSA’s introduction of a series of green charrettes— forums with the foremost experts in green water and sewage technology discussing major issues means of making

“If you can fix a pipe, you can fix a pipe, whether it’s water or sewage” – Jim Good, Executive Director w w w. p g h 2 o . c o m

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Pittsburgh Chemicals

P I T T S B U R G H WAT E R & S E W E R A U T H O R I T Y

improvements.

“We invited industry experts from not only across the region, but some international experts as well, to get everyone’s heads together and figure out, ‘What are our wet weather issues?’ ‘What is green infrastructure?’ ‘How can we work together to change municipal court codes and to install green infrastructure while encouraging green infrastructure on private property whenever feasible?’”

Good said.

The meetings were a huge hit. Representatives from the Department of Transportation, Public Works, the Department of Health and a range of local advocacy groups, architects, engineers and builders were given a chance for their voices to be heard.

The key takeaway from these meetings? That they needed

to happen more often. So immense was the benefit of open communication that had previously been lacking that PWSA moved to form the Green Infrastructure Technical Advisory Committee (GITAC).

The GITAC is made up of officials who have been present since the first charrette. Meeting once per month, this board highlights key areas that PWSA can make improvements in the realm of clean tech.

“They work specifically on how PWSA can do more with green infrastructure. We don’t have control over private property, but we certainly can include best practices and recommendations in our developers manual,” Good said “There are all sorts of hurdles to green infrastructure that are not unique to Pittsburgh.”

So in a nutshell, GITAC’s main task

“Pittsburgh is uniquely poised for large-scale, innovative changes in the next few years. I love this city and it is an honor and privilege to have the opportunity to continue working at the PWSA” – Jim Good, Executive Director w w w. p g h 2 o . c o m

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Pittsburgh Pumps 3: Inspection of interior

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is to learn from examples from around the world so that PWSA can come to the forefront as a green infrastructure innovator, rather than having to play catch up.

Company Information INDUSTRY

Better Service for Pittsburgh While some questioned the wisdom in allowing a private organization control over a public entity, the efforts of Good and Veolia have been a runaway success. In fact, so successful was Good at managing the Authority that in May of this year, he was hired as the permanent executive director of PWSA. “We are happy to have Jim’s continued experience and leadership as a permanent part of the Authority,” Chairman Alex Thomson said in a news release. “He has played an important role in the changes at PWSA over the last three years.”

While Good’s vision and business acumen proved indispensable in the turnaround at PWSA, he emphasized that it was very much a team effort, with everyone at PWSA wanting what was best for not only the Authority, but Pittsburgh— a city with a chance to once again serve as a beacon for not only the country, but the world.

“Pittsburgh is uniquely poised for large-scale, innovative changes in the next few years,” he said. “I love this city and it is an honor and privilege to have the opportunity to continue working at the PWSA.”

Energy HEADQUARTERS

1200 Penn Avenue Pittsburgh, PA, USA, 15222 FOUNDED

1984 EMPLOYEES

270 REVENUE

$125 million PRODUCTS/ SERVICES

Water & Sewage

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Midland Cogeneration Venture (MCV) Repurposing for success Growth, improvements, and the power of redundancies at Michigan’s Midland Cogeneration Venture Written by: Sasha Orman Produced by: Jason Wright

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M I D L A N D C O G E N E R AT I O N V E N T U R E ( M C V )

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n the early 1970s, developers broke ground on a proposed two-unit nuclear plant in Midland, MI. Ultimately the project was abandoned in the 1980s as nuclear power fell out of favor—but rather than demolish the still-unused site, a decision was made to repurpose the plant and make use of its untapped potential and many on-hand assets.

Since 1990 that plant has operated as the Midland Cogeneration Venture (MCV), the largest cogeneration plant in the United States, a vital source of energy for the Midwest United States and Manitoba, Canada.

Assets for growth While the Midland site may have been built to originally house nuclear power generation, today it stands as an impressive example of the potential of clean energy through steam and natural gas, housing multiple turbines that help MCV reliably provide up to 1,633 MW of power to the grid for the Midcontinent Independent System Operator (MISO) and adjacent industrial customers.

“We have 12 gas turbines, 78

August 2015

two steam turbines, one back pressure steam turbine and six package boilers,” says Brian Vokal, Vice President of Operations for Maintenance and Engineering at MCV. “All of this allows us to continuously meet our contract obligations and we are very proactive in scheduled outages—we’ve had over 99 percent availability to our contracts since 2008.”

A key part of that availability comes from the multiple redundancies built into the site, including its two 400+ megawattproducing steam turbines that together are an invaluable asset for MCV operations. “The way the plant is configured, we can only operate one or the other at a time—this is the only plant in the world with a spare 400 MW turbine built into the design of the plant,” Vokal explains.

“Whenever we take an outage on one of our steam turbines, we operate the spare. So for the past 25 years, our contract availability to our customers has been over 99 percent, which is world class, and it’s because we take advantage of all the assets we acquired from the abandoned nuclear project.”

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MCV employee Walt Smith reparing a valve actuator w w w. m i d c o g e n . c o m

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M I D L A N D C O G E N E R AT I O N V E N T U R E ( M C V ) Another one of these key assets is the 880-acre cooling pond, built into the nuclear plant design and now repurposed for the site’s new cogeneration function to provide a closed loop cooling system. “We don’t draw any water from a river or a lake, as we have our own cooling pond,” says Vokal, noting that this feature helps MCV attain full compliance with EPA Clean Water Act 316(b) rules.

“It’s just utilizing our existing assets,” he adds. “Because we’re

so redundant with multiple pieces of equipment, we can take outages on individual pieces with little to no effect on our availability to our customers. That’s a key strength that we have.”

Safety as a priority Another key strength for MCV is its emphasis on safety, a critical priority for any power facility. Safety at MCV is overseen through quarterly meetings and maintained through coordination meetings every single

ENERGY

day. These daily meetings, attended by engineering, maintenance and operations managers along with key supervisors, serve to address potential safety issues as they come and before they grow into major hurdles.

“It has really improved the communication of our staff in successfully completing their daily tasks,” says Vokal. “From both a safety and performance standpoint, that’s one of the key things that we’ve done to enhance our communication—just by simply sitting down and huddling for 15 minutes each day.”

The results of this prioritizing speak for themselves: MCV is able to boast a sterling safety record, coming up on four years with no OSHA recordables and no lost time injuries. It’s a point of pride for MCV and for its staff.

A valuable company culture MCV prides itself on building a strong and supported company culture, made stronger by its employees—many of the 123 employees currently on staff have been with the company for over

two decades. “We definitely benefit from the fact that 20 percent of our workforce has been with us for more than 15 to 20 years,” says Vokal.

“With such a significant number of veteran employees, the expertise here is unmatched.”

Nevertheless, people management is a difficult endeavor across the board in the energy sector today: with the average age of staff approaching retirement age, turnover is frequent and the need to find skilled and interested young workers is critical.

“We’re starting to see that attrition with our aging workforce beginning to retire and move on to other things, so we’ve really in the past couple years had to be proactive in our recruiting strategies,” says Kelly Moldovan, Director of Human Resources and Corporate Support at MCV. To counter this issue, MCV has looked to the power of partnerships.

“We had to reevaluate where to find these new hires coming in, which has created positive relationships with local universities, technological schools, military recruiters,” says Moldovan. By building the right w w w. m i d c o g e n . c o m

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M I D L A N D C O G E N E R AT I O N V E N T U R E ( M C V )

Package boiler deareator tank

partnerships to find skilled workers, the hope is that these new recruits will eventually become a part of MCV’s long-term corporate culture. “The longevity of our employees here, and the culture at MCV because of that longevity, is something we’re extremely proud of.”

implemented a back-pressure steam turbine to extract energy from let-down steam, upgraded the primary steam turbine, upgraded the turbines and compressors on our gas turbines, and when we purchased six package boilers, we were able to run the plant with zero gas turbines, which was important Expanding on advantages in the when the gas prices were high in future relation to market electric prices.

“Continuous improvement has We implemented evaporative been a big part of our operation cooling on our gas turbines in 2009, since 1990,” says Vokal. “We’ve and we continue to look at other 82

August 2015

ENERGY

applications to reduce our auxiliary loads.”

That continuous improvement imperative has never stopped, and what’s in store for MCV in the future is continuing to build on its current site—improving reliability and take even further advantage of the benefits that its location offers.

“We still have a lot of advantages, right here at the Midland site, of assets that aren’t fully utilized,” says Vokal. “Thermally we only use about 20-35 percent of capability of our cooling pond; we have significant access to natural gas, with a large gas transmission line into the site.

We’re also located near a considerable electric transmission substation two miles away. With those assets available to us, we’re looking to expand.”

In addition to utilizing advantages already at hand, MCV also has plans to add 600-700 megawatts of power at its Midland site through the addition of a new steam turbine and up to two gas turbines. With this, MCV will have the option to provide further energy to Michigan on a merchant or industrial power purchase agreement basis.

As it continues to grow and improve, the focus remains on continuing to provide great uninterrupted service to the customers who rely on MCV power each day. “We are very nimble to the market, and because of our flexibility, efficiency and economies of scale, we are looking to expand our capacity,” says Vokal. “We can build onto our plant and continue to offer a high level of reliability to our customers.”

Company Information INDUSTRY

Energy HEADQUARTERS

100 E Progress Place Midland, MI, USA, 48640 FOUNDED

1990 EMPLOYEES

123 REVENUE

Not Disclosed PRODUCTS/ SERVICES

Energy

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PAML

- Pathology Associates Medical Laboratories

With a focus in diagnostics with national corporate headquarters in Washington, PAML is a recognized leader delivering healthcare solutions.

Written by: Stephanie C. Ocano Produced by: Tom Venturo

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PAML Lab

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August 2015

H E A LT H C A R E

PAML General Administration

Our goal is to do anything and everything to help you as a provider to succeed in delivering the highest quality of care.

This is the ideology behind PAML (Pathology Associates Medical Laboratories) – a medical reference laboratory serving physicians, hospitals and allied health professionals. Ranked among the top clinical reference laboratories in the nation and considered an industry leader in joint venture partnerships, PAML is dedicated to personalized service, rapid turnaround time and innovative information management systems.

We recently spoke with Dr. Francisco R. Velázquez, President and Chief Executive Officer at PAML, to further understand the history of the company and his methodology to become a driving force in the healthcare solutions industry.

From West to East – A History of Going Nationwide Founded in 1957 in the town of Spokane, Washington, PAML was initially focused on serving the Pacific Northwest region. From Montana to Idaho, the company soon discovered that its reach could extend much farther. Over the years, w w w. p a m l . c o m

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BreathTek® UBT for H. pylori

You Suspected H. pylori.

BreathTek UBT Confirmed.

To be sure of your diagnosis AND confirm treatment success, choose BreathTek UBT • Antibiotic resistance is approaching 25%, increasing the need for eradication confirmation1-3 • ACG* calls the UBT method “the most reliable nonendoscopic test…“ to confirm H. pylori eradication4 • BreathTek UBT offers excellent sensitivity (96%) and specificity (96%) to confirm eradication in adult patients5 • False negative test results may be caused by: − Ingestion of proton pump inhibitors (PPIs) within 2 weeks prior to performing the BreathTek UBT. If a negative result is obtained from a patient ingesting a PPI within 2 weeks prior to the BreathTek UBT, it may be a false-negative result and the test should be repeated 2 weeks after discontinuing the PPI treatment. A positive result for a patient on a PPI could be considered positive and be acted upon − Ingestion of antimicrobials or bismuth preparations within 2 weeks prior to performing the BreathTek UBT − Premature POST-DOSE breath collection time for a patient with a marginally positive BreathTek UBT result − Post-treatment assessment with the BreathTek UBT less than 4 weeks after completion of treatment for the eradication of H. pylori • False positive test results may be caused by urease associated with other gastric spiral organisms observed in humans, such as Helicobacter heilmannii or achlorhydria.

H. pylori can’t hide from BreathTek UBT… Approved as an aid in the initial diagnosis and post-treatment monitoring of H. pylori infection in adults and children ages 3 to 17 years Please see BRIEF SUMMARY on adjacent page.

Click here to learn more or visit BreathTek.com. *ACG, American College of Gastroenterology.

April 2015

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Brief Summary about BreathTek UBT Intended Use The BreathTek® UBT for H. pylori Kit (BreathTek UBT Kit) is intended for use in the qualitative detection of urease associated with H. pylori in the human stomach and is indicated as an aid in the initial diagnosis and post-treatment monitoring of H. pylori infection in adult patients and pediatric patients 3 to 17 years old. The test may be used for monitoring treatment if used at least 4 weeks following completion of therapy. For these purposes, the system utilizes an Infrared Spectrophotometer for the measurement of the ratio of 13CO2 to 12CO2 in breath samples, in clinical laboratories or point-of-care settings. The Pediatric Urea Hydrolysis Rate Calculation Application (pUHR-CA), provided as a web-based calculation program, is required to obtain pediatric test results.

The BreathTek UBT Kit is for administration by a health care professional, as ordered by a licensed health care practitioner.

Warnings and Precautions • For in vitro diagnostic use only. The Pranactin®-Citric solution is taken orally as part of the diagnostic procedure and contains Phenylalanine (one of the protein components of Aspartame), 84 mg per dosage unit, and should be used with caution in diabetic patients. (For reference, 12 ounces of typical diet cola soft drinks contain approximately 80 mg of Phenylalanine.)

• A negative result does not rule out the possibility of H. pylori infection. False negative results do occur with this procedure.

If clinical signs are suggestive of H. pylori infection, retest with a new sample or an alternate method.

• False negative test results may be caused by: — Ingestion of proton pump inhibitors (PPIs) within 2 weeks prior to performing the BreathTek UBT. If a negative result is obtained from a patient ingesting a PPI within 2 weeks prior to the BreathTek UBT, it may be a false-negative result and the test should be repeated 2 weeks after discontinuing the PPI treatment. A positive result for a patient on a PPI could be considered positive and be acted upon.

— Ingestion of antimicrobials, or bismuth preparations within 2 weeks prior to performing the BreathTek UBT — Premature POST-DOSE breath collection time for a patient with a marginally positive BreathTek UBT result — Post-treatment assessment with the BreathTek UBT less than 4 weeks after completion of treatment for the eradication of H. pylori.

• False positive test results may be caused by urease associated with other gastric spiral organisms observed in humans such as Helicobacter heilmannii or achlorhydria.

• If particulate matter is visible in the reconstituted Pranactin-Citric solution after thorough mixing, the solution should not be used.

• Patients who are hypersensitive to mannitol, citric acid or Aspartame should avoid taking the drug solution as this drug solution contains these ingredients. Use with caution in patients with difficulty swallowing or who may be at high risk of aspiration due to medical or physical conditions.

• No information is available on use of the Pranactin-Citric solution during pregnancy.

• For pediatric test results, the Urea Hydrolysis Rate (UHR) results must be calculated. The Delta over Baseline (DOB) results are only used to calculate the UHR metrics to determine H. pylori infection in pediatric patients. DOB results cannot be used to determine the infection status of pediatric patients. Use the web-based pUHR-CA (https://BreathTekKids.com) to calculate the UHR. • Safety and effectiveness has not been established in children below the age of 3 years.

Adverse Events During post-approval use of the BreathTek UBT in adults, the following adverse events have been identified: anaphylactic reaction, hypersensitivity, rash, burning sensation in the stomach, tingling in the skin, vomiting and diarrhea. Because these reactions are reported voluntarily from a population of uncertain size, it is not always possible to establish a causal relationship to drug exposure.

In two clinical studies conducted in 176 (analyzed) pediatric patients ages 3 to 17 years to determine the initial diagnosis and post treatment monitoring of H. pylori, the following adverse events experienced by ≥1% of these patients were: vomiting (5.1%), oropharyngeal pain (4.5% to include throat irritation, sore throat, throat burning), nausea (2.3%), restlessness (2.3%), stomach ache/belly pain (1.1%), and diarrhea (1.1%). Most of the adverse events were experienced by patients within minutes to hours of ingestion of the Pranactin-Citric solution.

In another clinical study comparing the UBiT®-IR300 and POCone® in pediatric patients ages 3 to 17 years, the following adverse events were observed among the 99 subjects enrolled: 2 incidences of headache, and 1 incidence each of cough, dry mouth and acute upper respiratory infection.

May 2014

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References: 1. Vakil N, Megraud F. Eradication therapy for Helicobacter pylori. Gastroenterology. 2007;133(3):985-1001. 2. Vakil N, Fendrick AM. How to test for Helicobacter pylori in 2005. Cleve Clin J Med. 2005;72(suppl 2):S8-S13. 3. Chu Y-T, Wang Y-H, Wu J-J, Lei H-Y. Invasion and multiplication of Helicobacter pylori in gastric epithelial cells and implications for antibiotic resistance. Infect Immun. 2010;78(10):4157-4165. 4. Chey WD, Wong BCY; Practice Parameters Committee of the American College of Gastroenterology. American College of Gastroenterology guideline on the management of Helicobacter pylori infection. Am J Gastroenterol. 2007;102(8):1808-1825. 5. Package Insert for BreathTek UBT. Otsuka America Pharmaceutical, Inc; 2014.

©2015 Otsuka America Pharmaceutical, Inc.

April 2015

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PA M L PAML grew to encompass a wider geographical presence, additionally realigning its focus to diagnostics.

“About three years ago, we launched a professional services corporation,” said Dr. Velázquez.

“We developed a portfolio of complementary skills that are useful not only to us as a company but more importantly bring valuable services to those that we work with.”

Referring to PAML as a healthcare solutions company, Dr. Velázquez went on to explain that his primary goal was to do the best work possible, leaving his clients and partners with the solutions and a roadmap to providing better care.

“Our goal is to go in and help you and leave as quickly as we can,” said Dr. Velázquez.

Successful Direction How does a company remain competitive, especially within the

H E A LT H C A R E

healthcare industry? According to Dr. Velázquez, the answer is simple: pay attention.

“We pay attention to new developments,” clarified Dr. Velázquez. “And not just in the healthcare industry, but in others as well.”

“It’s important for us to understand what the world around us is doing because ultimately most of the trends that we see in other industries will come to healthcare,” he continued.

PAML also connects with higher level academic institutions to understand where innovation is headed. By spending time with entrepreneurs and those investing venture capital dollars in new technologies, PAML successfully keeps its “finger on the pulse.”

Innovative Solutions PAML is striving to close the gap in

“It’s important for us to understand what the world around us is doing because ultimately most of the trends that we see in other industries will come to healthcare” – Dr. Francisco R. Velázquez, President and Chief Executive Officer w w w. p a m l . c o m

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Sarstedt - solutions for the clinical lab Sarstedt offers modular technology for efficient sample preparation. With options for bulk loading, identification, decapping, sorting, aliquoting, and recapping - we provide the automation you need now plus the ability to add more later. And because we are also a global manufacturer of premium consumables, we can provide the total solution for all of your requirements.

Sarstedt is a proud business partner of Pathology Associates Medical Laboratories.

800-257-5101 . customerservice@sarstedt.us . www.sarstedt.com

PA M L the continuum of care between the time that individuals are consumers and the time that they are patients.

“Right now, both worlds don’t connect and we’re looking to connect those better,” said Dr. Velázquez.

With more consumers looking for ways to proactively manage their health, many have turned to the internet for help in accessing medical resources to help them make smart decisions. In response to this, late last year PAML unveiled its website for Cinch™, the company’s new consumerbased product line that empowers individuals to reveal their health through easy access to laboratory testing and information.

“Our Cinch product line is a step above what is currently being offered in the market for directto-consumer laboratory testing,” said Shawn Whitcomb, PAML’s Chief Information Officer in a press release. “We are delivering the same superiority in laboratory testing that patients receive from their physician, but with much more convenience and flexibility, and often at a lower cost than a traditional physician visit.”

H E A LT H C A R E

Additionally, PAML recently launched another brand titled AION (meaning “life” or “longevity” in Greek) which aims to assist physicians practicing personalized medicine by delivering evidencebased testing utilizing robust diagnostic technology to detect risk factors and biomarkers associated with aging.

Through clinical relevance and uniformity of testing, AION aids physicians in their efforts to monitor patients and manage treatment programs over time. AION also provides nationwide concierge phlebotomy services to healthcare providers that do not have in-house drawing personnel, as well as an online portal delivering enhanced reports.

“We’ve segmented the areas of wellness we serve into traditional and clinical wellness, wellness for consumers, wellness for the ageing population and we’re now entering into corporate wellness for employees,” said Dr. Velázquez.

Why Choose PAML? “In short, we’re a true partner,” said Dr. Velázquez. “Our goal is for you to w w w. p a m l . c o m

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BD Vacutainer®

The World’s Most Trusted Brand of Specimen Collection Products

QUANTA Lite®

Calprotectin Differentiate between IBS and IBD with a non-invasive marker of intestinal inflammation.

1

BD Vacutainer® Push Button Blood Collection Set and BD Vacutainer® Blood Collection Tubes

Now available, an FDA cleared assay that delivers the results physicians need for patients with symptoms of IBD • A new fecal ELISA test kit offering expanded dynamic range of 15.6-500mg/kg1 • High sensitivity helps guide decision-making when selecting patients for endoscopy2

For more information visit www.inovadx.com Scan this QR code or go to www.inovadx.com/calprotectin to learn more about this important marker

BD Life Sciences – Preanalytical Systems is an industry pioneer and leader in modern evacuated blood collection systems – the home of the BD Vacutainer ® and BD Microtainer ® product portfolio in venous, capillary and urine collection, transfer and transport.

BD, BD logo and all other trademarks are property of Becton, Dickinson and Company © 2015

1.800.631.0174 | www.bd.com/vacutainer

INOVA Diagnostics, Inc., San Diego, CA 92131 858-586-9900 www.inovadx.com References: 1. QUANTA Lite Calprotectin directional insert.

2. Bunn, S. et al. Fecal calprotectin: validation as a noninvasive measure of bowel inflammation in childhood inflammatory bowel disease. J Pediatric Gastroenterology Nutrition 2001;33:14-22.

QUANTA Lite is a trademark of Inova Diagnostics, Inc. © 2015 Inova Diagnostics, Inc. All rights reserved.

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H E A LT H C A R E

Company Information INDUSTRY

PAML HEADQUARTERS

Healthcare FOUNDED

1957 EMPLOYEES

1000

succeed. We’re focused on quality and service in terms of providing for those that work with us.”

As a value-driven organization, PAML looks to enhance the skills and abilities of its clients all while remaining community-centric.

Mindful of its presence in the community, PAML is constantly looking to locally brand joint ventures for the benefit of its partners and the community as a whole.

“Our goal is to do upwards of 90 percent of the volume generated in a particular region locally,” explained Dr. Velázquez. “That way we can increase the efficiency of our local partners, provide them with a revenue stream they didn’t previously have, and maintain the continuity of information for the region of delivered care.”

REVENUE

$250 M PRODUCTS/ SERVICES

www.paml.com

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