GCA Construction News Bulletin November 2017

VOL. 58 ISSUE 11 NOVEMBER 2017 • GUAM CONTRACTORSʼ ASSOCIATION

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TABLE OF CONTENTS

CONSTRUCTION NEWS BULLETIN

NOVEMBER 4

S.A.M.E.

FEATURE STORY

22

PHOTO HIGHLIGHTS

26

Small business notes

30

Military news

34

8

INSIDER NEWS EIC/COY WInners

12

FEATURE STORY

18

18

Feature Story

22 Feature Story

THEDIRECTORS

THEEDITORIALS

THETEAM

PRESIDENT James A. Martinez Guam Contractors’ Association

Guam Contractor’s Association (GCA) in conjunction with Adztech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA.

PUBLISHER: James Martinez

CHAIRMAN Conchita Bathan Core Tech International

While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, staff, GCA members, GCA Board of Directors and advertisers.

AD SALES: Jaceth Duenas

For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net.

EDITOR: Adztech

PAST CHAIRMAN William Beery Tutujan Hill Group

VICE CHAIRMAN John Robertson AmOrient Contracting

SECRETARY/TREASURER Mark Mamczarz Black Construction Corp

CONTRACTORS DIRECTORS: Joe Roberto East Island Tinting Peter Errett Hawaiian Rock Products

Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive, Suite 203, East West Business Center, Upper Tumon, Guam.

Jessica Barrett Barrett Plumbing

Zenon Belanger ARS Aleut Remediation ASSOCIATE DIRECTORS: Jeffrey Larson TakeCare Asia Pacific

To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: gca@teleguam.net. www.guamcontractors.org

Patty Lizama Pacific Isla Life

Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

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Mark Cruz Mid Pac Far East

English: GCA

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PRODUCTION: Jason Davis Christopher “Taco” Rowland Jaceth Duenas PHOTOGRAPHERS: Christopher “Taco” Rowland

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CONSTRUCTION NEWS BULLETIN

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INSIDER NEWS

CONSTRUCTION NEWS BULLETIN

THE GUAM INDUSTRY FORUM 2018

The long-anticipated construction of military facilities for the relocation of Marine Corps forces to Guam is at last underway, with more than $300 Million in contracts awarded near the end of the last fiscal year (FY). More will be awarded during FY2018 and beyond. The Society of Military Engineers – Guam Post has taken the lead, with support from the Guam Contractors Association and the Guam Chamber of Commerce, in organizing the Forum to be conducted at the Dusit Thani Guam Resort in early March 2018. The program involves a total of $8.6 Billion in design, construction and other service investments of which approximately $3 Billion will be financed by the Japanese Government. The largest portion of that investment is for a new permanent Marine Corps Base in the vicinity of Potts Junction. Contracts for Marine Corps Base site preparation, the Live Fire Training Range, and Waterfront Headquarters have already been awarded.

RiMS - Ruder Integrated Marketing Strategies has been engaged to provide their event planning expertise and logistical support. Guidance is being provided by the NAVFAC Pacific GPMO, the OICC Marianas, and the Japanese Ministry of Defense.

Registration will commence in early December with a special website being set up to permit on-line registration.

The event is expected to attract over a thousand attendees so early registration is encouraged along with arrangements for travel and accommodation in Guam.

Pricing will include an early-bird special.

Unlike the three previous forums, this one will include participation/attendance

by Japanese firms. If required, concurrent translation from English to Japanese will be provided for each of the presentations.

Facilities will be set up to encourage teaming between Japanese and U.S. contractors. The Guam Industry Forum will be held at the 6th Floor Conference Center of the Dusit Thani Guam Resort from 7-9 March 2018. The timeline of events will be as follows: Day 0 – Tuesday, 6 March – Early on-site registration and the first of three evening networking mixers.

8 | NOVEMBER2017

Day 1 – Wednesday, 7 March – The Guam Industry Forum opens with introductions, program presentations, and panel discussions. Day one will conclude with the second networking mixer following completion of day one program activities.

Day 2 – Thursday, 8 March – The Guam Industry Forum continues with program presentations and panel discussions concluding with a summary of key takeaways. The final networking mixer will be held following completion of day two program activities.

Day 3 – Friday, 9 March – An optional bus tour of project sites will be scheduled for the morning. The Charlie www.guamcontractors.org

Corn Scholarship Golf Tournament will also be held at Starts Golf Resort.

The tournament will take place in the afternoon with registration beginning at 11:00 AM. The 76th Guam Seabee Ball will also be held on Saturday, 10 March, at the Nikko Hotel for those interested in attending.

Stay tuned for more news about the event in the coming weeks.

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INSIDER NEWS

THE GUAM INDUSTRY FORUM 2018 The House and Senate have each passed their version of the NDAA and are now in Conference Committee to resolve outstanding differences. Congresswoman Bordallo is a senior member of the House Armed Services Committee and is participating. We have advised her staff that 4,000 workers for military projects is not sufficient because military projects have been delayed and will now be performed within a compressed time frame. It appears the Bill with language supporting more H-2B’s for military funded projects will pass and the President is expected to sign it into law. The sections pertaining to this draft legislation from both the House and the Senate are quoted in full text hereafter: House Version SEC. 1062. WORKFORCE ISSUES FOR RELOCATION OF MARINES TO GUAM. (a) IN GENERAL.—Section 6(b) of the Joint Resolution entitled ‘‘A Joint Resolution to approve the ‘Covenant To Establish a Commonwealth of the Northern Mariana Islands in Political Union With the United States of America’, and for other purposes’’, approved March 24, 1976 (48 U.S.C. 1806(b)) is amended to read as follows: ‘‘(b) NUMERICAL LIMITATIONS FOR NONIMMIGRANT WORKERS.—An alien, if otherwise qualified, may seek admission to Guam or to the Commonwealth during the transition program as a nonimmigrant worker under section 101(a)(15)(H) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)) without counting against the numerical limitations set forth in section 214(g) of such Act (8 U.S.C. 1184(g)). An alien, if otherwise qualified, may, before October 1, 2020, be admitted under section 101(a)(15)(H)(ii)(b) of such Act for a period of up to 3 years (which may be extended by the Secretary of Homeland Like Us On Facebook

Security before October 1, 2020, for an additional period or periods not to exceed 3 years each) to perform services or labor on Guam pursuant to any agreement entered into by a prime contractor or subcontractor calling for services or labor required for performance of the contract or subcontract in direct support of all military-funded construction, repairs, renovation, and facilities services, or to perform services or labor on Guam as a health-care worker, notwithstanding the requirement of such section that the service or labor be temporary.

This subsection does not apply to any employment to be performed outside of Guam or the Commonwealth.’’. (b) EFFECTIVE DATE.—The amendment made by sub section (a) shall take effect on the date that is 120 days after the date of the enactment of this Act. Senate Version SEC. 1264. WORKFORCE ISSUES FOR RELOCATION OF MARINES TO GUAM. (a) AMENDMENTS TO THE MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL YEAR 2009.—Subsection 2824(c)(6)(D) of the Military Construction Authorization Act for Fiscal Year 2009 (division B of Public Law 110–417; 10 U.S.C. 2687 note) is amended— (1) by inserting ‘‘and the Secretary of Veterans Affairs’’ after ‘‘the Secretary of Labor’’ each place it appears; and (2) in the last sentence, by striking ‘‘ determines’’ and inserting ‘‘ determine’’. (b) AMENDMENT TO JOINT RESOLUTION APPROVING THE COVENANT ESTABLISHING COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS.—Section 6(b) of the Joint Resolution entitled ‘‘A Joint Resolution to approve the ‘Covenant To Establish a www.guamcontractors.org

By John M. Robertson

Commonwealth of the Northern Mariana Islands in Political Union With the United States of America’, and for other purposes’’, approved March 24, 1976 (48 U.S.C. 1806(b)) is amended to read as follows: ‘‘(b) NUMERICAL LIMITATIONS FOR NONIMMIGRANT WORKERS.— ‘‘(1) IN GENERAL.—An alien, if otherwise qualified, may, before December 31, 2023, seek admission to Guam as a nonimmigrant worker under section 101(a)(15)(H) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)) without counting against the numerical limitations set forth in section 214(g) of such Act (8 U.S.C. 1184(g)). The numerical limitation of such aliens may not exceed 4,000 for any fiscal year. An alien, if otherwise qualified, may, before December 31, 2023, be admitted under section 101(a)(15)(H)(ii)(b) of such Act for a period of up to 3 years to perform services or labor on Guam pursuant to any agreement entered into by a prime contractor or subcontractor calling for services or labor required for performance of the contract or subcontract in direct support of all military-funded construction, repairs, renovation, and facilities services necessary to enable the Marine Corps realignment in the Pacific, notwithstanding the requirement of such section that the service or labor be temporary. This subsection does not NOVEMBER2017 | 9

INSIDER NEWS apply to any employment to be performed outside of Guam or the Commonwealth. ‘‘(2) APPLICABILITY OF CERTAIN REQUIREMENTS.—The requirements of section 2824(c) of the Military Construction Act for Fiscal Year 2009 (division B of Public Law 110-417; 10 U.S.C. note) shall apply to this subsection.’’. (c) EFFECTIVE DATE.—The amendment made by subsection (b) shall take effect on the date that is 120 days after the date of enactment of this Act. Impacts The above does nothing for non-military funded projects with the following impacts among others: • Contractors are enticing workers from each other and the wage for a $15.00 per hour tradesman has shot up to $25.00 to $30.00 per hour and is climbing.

• Housing starts have slowed considerably and there is a shortage of housing on island. New houses are costing 50% to 75% more. This includes single family dwellings and multifamily apartments and condominiums.

• The island is short of hotel rooms and investors are prepared to build new hotels but cannot do so without skilled off-island tradesmen – meaning workers with H-2B visas.

• Military contractors will require accommodation for their senior staff and workers and will do what they must to secure housing for them. This will put further pressure on the Real Estate market and especially for those local citizens not able to afford higher rental rates.

• Critical infrastructure projects are already being put out for bid and there are no bidders. Projects underway are behind schedule and there is little chance for schedule recovery.

• A contract for modernizing the labor and delivery space at Guam Memorial Hospital is a much-needed facility and the solicitation for bids attracted no bidders.

• The Guam Waterworks Authority (GWA) has a project coming out soon to add secondary treatment to their Northern Wastewater Treatment Plant to comply with an EPA mandate. The Guam Power Authority (GPA) has a project to construct a new 180 mW 10 | NOVEMBER2017

CONSTRUCTION NEWS BULLETIN

Power Plant to replace 90 mW of generating capacity that was destroyed by explosion and fire and to replace another old inefficient and polluting 120 mW of generating capacity that has to be retired by EPA mandate.

GPA and GWA have together approached the military to have these projects included as directly supporting the military and thus eligible for H-2B workers. Local military officials cannot guarantee success in that regard and the USCIS will most likely deny such a request.

The Class Action Lawsuit U.S. District Court Chief Judge Frances M. Tydingco-Gatewood on Wednesday 25th October ordered an additional briefing in the class action complaint filed by the Guam Contractors Association with 11 other named Plaintiffs. The employers have argued that the denials amount to an improper change to the program, but the federal government has argued Guam has long abused the program based on differing interpretations of “temporary worker”. The number of H-2B workers on Guam has dwindled, from more than 1,000 in prior years, to fewer than 100 in recent months. U.S. District Court Magistrate Judge Joaquin Manibusan has recommended that the plaintiffs should not be granted a preliminary injunction that would require the government to issue visas for alien workers on Guam.

Judge Manibusan had concluded that the plaintiffs are unlikely to win their ultimate case, thus a preliminary injunction would be inappropriate. The chief judge said in her calling the hearing that she will hear arguments on the objections to Manibusan's report and recommendation, and on the motion to dismiss, on 9th November, at 2:30 p.m.

Tydingco-Gatewood said, based on a preliminary review of the filings associated with the pending motions, she believes additional briefing with respect to seven questions may be useful. The seven questions are: 1. What deference, if any, is to be given to decisions on H-2B visa applications; 2. What deference, if any, is to be given to an interpretive rule guiding this kind of decision; 3. What deference, if any, is to be given www.guamcontractors.org

to a change in an interpretive rule guiding this kind of decision; 4. What showing must be made to establish the existence of an interpretive rule, the application of an interpretive rule, and the change of an interpretive rule; 5. How, and when, a change in interpretive rule might appropriately account for "serious reliance interests"; 6. What constitutes a "serious reliance interests" in the context of visa applications, and specifically, H-2B applications; and 7. Whether this case, featuring claims focusing on denials of fiscals 2015 and 2016 visa applications, may now be moot.

The chief judge ordered the parties to answer these questions no later than 2nd November at 3 p.m.

The specialist attorney the Plaintiffs engaged for this case will be overseas during early November and has requested a continuance of the case. Jeff Joseph also requires time to research and respond to those seven questions. A new hearing date has not been set. We can at least be encouraged in that the case now appears to be moving.

Initiatives of the Governor Governor Eddie Baza Calvo has made a number of trips to the nations’ capital with primary purpose of resolving Guam’s workforce crisis. Unfortunately, his demands for action have fallen on deaf ears. In one such encounter, he walked out in disgust from a scheduled meeting with the Acting Director of the U.S. Citizenship and Immigration Services. On Saturday 4th November, he, along with other regional governors, met with President Donald Trump in Honolulu. He explained the dilemma we face without an adequate workforce for Guam infrastructure and other civilian projects. He came away encouraged by the president as well as his Chief of Staff, General John F. Kelly, that action will be taken. We shall see! Meanwhile, we cannot give up on our Class Action lawsuit without more certainty that appropriate action is being taken in Washington.

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That’s Excellence “Not all of us can do great things. But we can do small things with great love.” – Mother Teresa We are all striving for excellence. Luckily, we are looking at an industry that is continuously setting the foundation and building upon best practices for its future and that of Guam – literally and figuratively.

As we look to the horizon at the growth of our island, it is crucial to have overall growth at the forefront. Overall, the membership of the Guam Contractors Association shares this vision – bringing together innovation and building each other up for the community as a whole.

“Excellence” comes with a lot of things.

Last year, we posed the question: “how do people measure excellence?” At the time, we were using it as a way to get you thinking about the subjectivity of the term.

This time, and as we continue to give the award out, the answer to the question is becoming a little clearer. Maybe the packets don’t do enough justice for the awardee or the applicants. They are merely words on paper.

However, maybe ‘excellence’ starts off with some notoriety, a dash of success, a whiff of progress, and a magnifying lens on the greater picture of the future of the industry and its overall impact on the community.

Labelling something ‘excellent’ doesn’t simply put a possibly subjective adjective before something – it sets the stage - the model, the example – for how we should all be striving for excellence.

This year, Black Construction receives the 2017 Excellence in Construction Overall Award! The Black Construction family, with Leonard Kaae, Senior Vice President and General Manager at the helm, works every day to build with their colleagues and clients to execute excellence in every facet of their industry and our community. It would have been easy to just reprint last year’s article, but we know our industry is anything but easy.

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Maybe Black Construction Corporation has gotten the Excellence In Construction Overall award so many times – 10 times to be exact – because they are constantly challenging themselves and growing.

Challenging in the sense they are endlessly erecting on the foundation laid nearly six decades ago.

As existential as it sounds, isn’t that how we get better? We are at the constant throws of the fates and our own choices, but how we tackle these challenges or triumphs is completely our own doing.

Black Construction has made it their job to not just set the standard, but break it apart and do their own thing. This is evident in their growing list of projects, like the one we celebrated last year - their work on a secluded project in the middle of the Indian Ocean.

Two years ago, we wrote about their incessant and tireless work to be a helping hand in our community. Like their safety performance record, Black Construction’s outreach continues to expand. Big Brothers Big Sisters, the Make-A-Wish foundation, USO Guam, the Guam Veterans Association, and the Guam Chamber of Commerce have all experienced the warmth and generosity of Black Construction.

More pointedly, Black Construction has worked with the Santa Rita Mayor’s Office over the last few years with their village float, and this year for the construction of the 2017 Liberation Day Queen’s float. In a letter written by Santa Rita Mayor Dale Alvarez, “the assistance you provided again this year, undoubtedly gave us the tools to be able to create a beautiful float for Queen Kaemiha Muna and her Royal Court.”

In a letter dated April 11, 2017, Fr. Jeffrey San Nicolas wrote to Kaae and Black Construction his appreciation for helping with removing items from Kamalen Karidat – a local organization geared toward helping Guam’s homeless out of the Archdiocese of Agana.

www.guamcontractors.org

NOVEMBER2017 | 19

FEATURE STORY

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Additionally, Black Construction donated two forklifts to the Guam Trades Academy. The donation is meant to augment the partnership and grow the training of future of the construction industry. “The students of the Trades Academy can use the forklifts for proper “hands-on” operating procedure training and operating techniques,” it states in their submission packet.

Beyond all the notable construction awards they receive, it is instances like these that allow us to connect more intimately with the Black Construction family. More than the job at hand, the one we get paid for, Black Construction has made it a point to be involved in our community – a partner, not just in its building, but its overall growth.

Nevertheless, our definition of “excellence” does not necessarily need

20 | NOVEMBER2017

to be set by the work of one company who takes the awards. Our desire to good – excellent – work shouldn’t either. The rubric for such awards stays the same, but the outlook on growth and development – in our community or on paper – is not set in stone.

What we can agree on besides their contributions professionally and throughout the community is Black Construction’s excellence stems from the heart. It comes from a love they have for the people and the community they serve. This isn’t to say that others industry don’t have that same love. We all do – that goes without saying. Maybe now is the time to realize the big things don’t necessarily make us excellent. Maybe now is the time to celebrate the small things that make us excellent.

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CONSTRUCTION NEWS BULLETIN

The year is coming to a close, and you can usually tell that when there are more galas, pageants, and fundraising balls. The Red Ball, the Pink Ball, Make-A-Wish Gala, Miss Universe Guam, Miss World Guam, Mr. Guam, the Island Music Awards, the list goes on and on. These events showcase a lot of local talent and raise awareness for good causes.

But, hey! The Guam Contractors Association has one of those awards, too! However, instead of tuxes and ball gowns, smiles, and selfies, there are overalls, hardhats, sweat.

Okay, there’s probably sweat going on at the aforementioned events, but each year, we celebrate the Contractor of the Year.

Just in case you have never seen the criteria, the application states the award is given to companies who stand out in the industry, has an impeccable safety record and encourages and inspires health and wellness opportunities for its employees, promotes “environmental responsibility and sustainability”, encourages professional development “through training and promotion opportunities”, and one that is active in its social roles and service to our island. That can sound like a tall order for most non-contractors.

However, year after year, we find ourselves looking at Contractors who are not just building, designing, and landing those big projects, they are adding to the greater tapestry of our community through their service, commitment to safety, and the future. They are the ones who are plumbing, pouring concrete, doing safety trainings, planning out the projects, designing the beautiful structures, landscaping surrounding areas, outperforming themselves from the year prior, yet prioritizing the training and education of the novices who want to fill their boots.

Above all else, they maintain a sense of duty to continuously build on their best practices and the development of the professionals they employ.

For these and many other reasons, we are proud to congratulate and announce Landscape Management Systems, Inc. as the 2017 Contractor of the Year! Known more colloquially as LMS, they shine through with over two decades of contracting experiences. LMS management did not rest on their laurels. They realized to be named Contractor of the Year,

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FEATURE STORY

they were going to need to set goals – not for the business, but for their employees.

They look at the long term. What can be improved over time, and that starts with the people who work for the company. “We set a goal to improve ourselves by investing in our people and we are proud to say that today we have approximately twenty-six certified Safety Officers and eighteen certified Quality Control inspectors on hand,” said Robert Salas, LMS Director, pointed out in the application.

The last time we celebrated LMS, they received the Associated Builders and Contractors, Inc. National Safety in Excellence Award. It was a stand-out moment for LMS and Guam because the award was also awarded to several high-profile companies in the U.S. Mainland.

Beyond that, LMS boasts a long list of clientele and projects that range from local government to beautification, housing, and even federal.

But the key Salas brought up is the idea of growth and improvement. They are always working toward something. They are always setting goals and objectives. “LMS is constantly evolving processes and procedures to improve upon our best work, as demonstrated by our consistent receipt of numerous Excellence in Safety and Excellence in Construction awards,” Salas stated.

Moreover, they emphasize that growth and improvement doesn’t just stop for their projects, but is flourishing with their employees. They are ensuring that members of the LMS family are getting training in safety hazardous awareness and other quality control. Additionally employees are going to off-island conventions, like the Green Industry and Equipment Expo as a mode of expanding their skills and industry knowledge. “This goal of constant growth and improvement has been crucial for maintaining employee morale,” Salas explained. CNR Training, CORE and Spirometry Tests, 30-hour OSHA Safety Course, Herbiciding Training, Quality Control Training, Safety Training – it’s all been part of this plan to instill and couple knowledge and morale into LMS employees.

If the emphasis on their employees was not enough, Salas points to programs LMS has started to help their employees realize their dreams of owning their own home through buying or renovating. “Our company is not

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NOVEMBER2017 | 23

FEATURE STORY

CONSTRUCTION NEWS BULLETIN

simply a source of a paycheck to our employees,” Salas started. “Our company is a family with all our employees as integral members.”

As much as the LMS family is a growing and thriving entity, they still place our community as a top priority. They are giving back be participating, sponsoring and contributing to numerous organizations and events on island. From the Guam National Olympic Committee to the Guam Police Volunteer Association, from the Make-a-Wish Foundation to the Barrigada Mayor’s Office, from the Kick the Fat 5K to helping the First Lady’s Rigålu Foundation, LMS isn’t just a community partner – they are much more than that.

When we’re looking at contractors in Guam, it is easy to think of buildings, pipes, equipment, and safety requirements and certifications. It is sometimes easy to forget that these things all start from an idea, a

24 | NOVEMBER2017

plan, a dream, a goal. The LMS family in their desire to make Guam a better, safer place has realized just that, and has gone above and beyond. It seems there is no stopping the growth and improvement of this year’s Contractor of the Year, Landscape Management Systems, Inc. The Contractor of the Year does more than name the top contender in the industry. It evokes and inspires a sense of responsibility to all in it. Striving for excellence, promoting safety, health, and wellness, emphasizing employee training and morale, and supporting community resources – these are all part of the criteria for Contractor of the Year, but they are also goals that should be personified throughout our community.

On behalf of the Guam Contractors Association, congratulations to Landscaping Management Services, Inc., we cannot wait to see what goal you set and accomplish next!

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PHOTO HIGHLIGHTS

CONSTRUCTION NEWS BULLETIN

GCA Luncheon OCTOber 18, 2017 The Hyatt Regency Hotel Guest Speakers Fire Chief Joey Manibusan & Joel Jones

28 | NOVEMBER2017

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SMALL BUSINESS NOTES

CONSTRUCTION NEWS BULLETIN

Wanted: A Few Good Men and Women

The GCA Small Business Committee supports small business members of the association to ensure their voices are heard and needs are met within GCA capabilities.

Do you have an issue or concern that we might be able to assist with?

Do you have an idea or suggestion that may benefit our small business community?

Help us help you by joining us at our monthly meetings or contact: Lysander “Al” Star (Chair) 647-7870 islaroofing@guam.net Jane Ray (Co-Chair) 735-2595 jane@pacificsbdc.com Gerardine Mendiola (Co-Chair) 647-2895 gmendiola@guamptac.com Our next meeting is on Tuesday, Nov. 28th , 11:30 AM at the GCA conference room 202.

Please RSVP with Elaine Gogue. Her email address is elaine.gogue@guamcontractors.org

GUAM PTAC

FREE

PUBLIC

WORKSHOPS The Guam Procurement Technical Assistance Center (PTAC) is offering a FREE workshop to the public on Thursdays (unless otherwise specified). Workshops run from 9:00am-10:00am in the UOG Jesus and Eugenia Leon Guerrero Business and Public Administration Building, Margarita Duenas Perez & Jaime Felipe Tuquero IT&E Lecture Hall, 131 (unless otherwise specified)

November 2017 11/16/17 - Updating Your SBA Profile and Navigating the Dynamic Small Business Search (DSBS) Your SBA Profile is a great marketing tool. The Guam PTAC will show you how to setup and update your profile. The DSBS is SBA's database of small businesses.

We will show you how to use it to help your company succeed in government contracting.

11/30/17 - Getting Started with GSA Schedules The GSA Schedules program offers greater opportunities for your company. GSA is trying to make it easier to get on a schedule. The Guam PTAC will provide guidance on the steps to pursue a GSA Schedules contract. Special Guest Brandy Untalan, GSA Customer Service Director Guam, CNMI, & PI will be available to answer any questions.

11/22/17 - Developing a Capabilities Statement A Capabilities Statement is a marketing tool that can help you succeed in government contracting. The Guam PTAC will assist you with developing this great marketing tool.

Source: Federal Business Opportunities (FBO) and Federal Procurement Data System (FPDS).

Register at: guamptac.ecenterdirect.com

For more information, contact the Guam PTAC at (671)735-2552 or visit www.guamptac.com

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MILITARY NEWS

CONSTRUCTION NEWS BULLETIN

small biz notes

The month of October was slow for the Federal Government as the previous fiscal yea r closed out and preparations for the new fiscal yea r begin. Additionally, spending is restricted by the Con tinuing Resolution (CR) authoriz ed by Congress until December 8, 2017.

• About $767K was awa rded to Small Business (SB) concerns on Guam for a variety of products and serv ices through 31Oct2017.

Socio-economic breakdown:

• $978K - Small Disadvantage d Businesses (SDB) • $297K - HU BZ one Small Bus • $719K - Women-Ow ned Sm inesses (HZ) • $157K - Ser vice-Disabled Vetall Businesses (WOSB) eran-Ow ned Small Businesses (SDVOSB)

Source: Federal Procurement Dat a System Next-Generation (FPDS-NG).

in case you missed it:

The GCA Small Business Committee supports small business members of the Association to ensure their voices are heard and needs are met within GCA capabilities. The Committee meets on a monthly basis (typical ly the last Tuesday of the month) to discuss various issues/concerns faced by our small business members. The Committee also plans and organiz es workshops geared to assisting our small business community. All GCA members are invited to attend and discuss any issues or concerns they may have.

Ideas and suggestions that may assist or benefit our Guam business community are always welcomed.

Mr. Lysander “Al” Starr (Chair) Tel: (671) 647-7870 or email islaroofing@guam.net Ms. Jane Ray (Co-cha ir) Tel: (671) 735-2595 or email jane@pacificsbdc.com Ms. Gerardine Mendiola (Co-cha ir) Tel: (671) 647-2895 or email gmendiola@guamptac.com

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CONSTRUCTION NEWS BULLETIN

MILITARY NEWS

did you know?

Flow Down Clauses

Subcontractors/suppliers on a government contract are not completely relieved of all government rules and regulations.

Most government contracts have “Flow-Down” requirements or clauses. The Federal Government includes mandatory flow-down clauses in contracts to Prime contractors and requires the Primes pass them to all their subcontractors/suppliers down the chain.

There is no standard list of flow-down clauses for government contracts. Flow-down requirements vary from contract to contract based on a number of factors; e.g. type of contract, duration, total cost, specific product/services provided, etc.

How do you know if a requirement is a “flow down”? If you have a government prime contract, flow down instructions are typically inserted in the clauses that must flow down. For example: FAR 52.232-27 -- Prompt Payment for Construction Contracts (Jan 2017). Excerpts from this clause include: (c) Subcontract clause requirements. The Contractor shall include in each subcontract for property or services (including a material supplier) for the purpose of performing this contract the following: (1) Prompt payment for subcontractors. A payment clause that obligates the Contractor to pay the subcontractor for satisfactory performance under its subcontract not later than 7 days from receipt of payment out of such amounts as are paid to the Contractor under this contract.

(2) Interest for subcontractors. An interest penalty clause that obligates the Contractor to pay to the subcontractor an interest penalty for each payment not made in accordance with the payment clause (i) For the period beginning on the day after the required payment date and ending on the date on which payment of the amount due is made; and (ii) Computed at the rate of interest established by the Secretary of the Treasury, and published in the Federal Register, for interest payments under 41 U.S.C. 7109 in effect at the time the Contractor accrues the obligation to pay an interest penalty.

(3) Subcontractor clause flowdown. A clause requiring each subcontractor to-(i) Include a payment clause and an interest penalty clause conforming to the standards set forth in subparagraphs (c)(1) and (c)(2) of this clause in each of its subcontracts; and (ii) Require each of its subcontractors to include such clauses in their subcontracts with each lower-tier subcontractor or supplier.

Other flow-downs include: • 52.222-27 -- Affirmative Action Compliance Requirements for Construction.

• 52.222-36, Equal Opportunity for Workers with Disabilities (Jul 2014) • 52.222-50, Combating Trafficking in Persons (Mar 2015)

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