GCA Construction News Bulletin October 2020

VOL. 61 ISSUE 10 SOCTOBER2020 • GUAM CONTRACTORSʼ ASSOCIATION

Food Security

STOPCORONAVIRUS

si yu'us ma'ASE TO ALL OF OUR HEALTH CARE WORKERS, FIRST RESPONDERS, FRONT LINE AND ESSENTIAL WORKERS

for your dedication and hard work FOR INFORMATION & RESOURCES ON COVID-19, VISIT OUR WEBSITE

WWW.GUAMCONTRACTORS.ORG

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TABLE OF CONTENTS

CONSTRUCTION NEWS BULLETIN

OCTOBER PRESIDENT’S LETTER

6

S.A.M.E. update

8

Military news

10

FEATURE STORY

12

Small business notes

16

Construction headline

18

NAWIC NEWS

20

NEWSLINE

22

12

FEATURE STORY

20

2020

NAWIC NEWS

NOW ACCEPTING ONLINE PAYMENTS VIA PAYPAL

VISIT OUR WEBSITE FOR MORE INFO 2 | OCTOBER2020

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EDITORIALS

CONSTRUCTION NEWS BULLETIN

THEDIRECTORS

THEEDITORIALS

THETEAM

PRESIDENT James 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 Peter Errett Hawaiian Rock Products VICE CHAIRMAN Bill Beery Tutujan Hill Group

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.

SECRETARY/TREASURER Grace Jacot SET Pacific PAST CHAIRMAN Jessica Barrett Barrett Plumbing CONTRACTOR DIRECTORS: Don McCann Black Construction Corporation

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.

Shoja Rezvani Contrack Watts Contractors John Sage Pacific Rim Constructors Inc.

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.

Dan Soriano Granite Construction Lucia Wood APTIM ASSOCIATE DIRECTORS: Jose Garcia First Hawaiian Bank

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

Mark Cruz MidPac Far East Patty Lizama Pacific Isla Life

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

Camilo Lorenzo Matson Navigation

PRODUCTION TEAM LEAD: Geri Leon Guerrero AD SALES: Jaceth Duenas PRODUCTION: Jason Davis Geri Leon Guerrero Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: Al Sampson Pete Diaz Franklin Turner Cara Wulf Joanne Messier Rebecca Gale GCA STAFF: Desiree Lizama Elaine Gogue Francine Taitague Trevor Cruz COVER: Starting a garden is a good way to get yourself out of the house for a little while and provide some variation to your dinner table.

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PRESIDENT’S LETTER

CONSTRUCTION NEWS BULLETIN

President’s Letter

Hafa Adai GCA Members: The month of October has officially been proclaimed as Careers in Construction Month for Guam by Governor Lou Leon Guerrero and Lt. Governor Josh Tenorio, as we join the rest of the nation in this celebration. Typically, we kickoff this event with our Annual GCA Family Day Picnic at the Joseph Flores Beach Park (aka Ypao Beach). With the restrictions on group gatherings and the closure of the beaches to organized activities, we had to cancel this year’s event, all for the better as we protect the health and well-being of our hardworking individuals in our industry and the biggest asset of our members. Not sure if we can even do a virtual picnic, but I digress. Back to Careers in Construction Month.

Careers in Construction Month is a month-long celebration of the rewarding and well-compensated career paths available in the construction industry. This year there is an added urgency to workforce development in construction, as demand for more skilled workers are needed for the billions of dollars of work on military construction and local infrastructure and commercial projects. Contractors are looking for more local skilled labor. It is the goal of GCA to raise public awareness of the need for these essential workers and to advocate the benefits of a career in construction. Although this COVID-19 pandemic has put a damper on our regular activities planned specifically for Careers in Construction Month, like the annual Construction Warriors career exploratory event for middle and high school students, we are seeking other ways to get the message out through our social media pages and also considering holding a virtual Construction Career Day event for later this year. It seems “virtual” anything is the new normal in this COVID era.

Another event tied into our Careers in Construction Month is the Annual Excellence in Construction (EIC) and the Contractor of the Year (COY) Awards. Deadline for entry submissions is Friday, October 23, 2020. Judging will take place the following week.

Unfortunately, the annual gala and awards banquet celebrating our anniversary, the EIC and COY will not be able to take place this year. However, we are planning a special virtual event to showcase these excellent projects and to announce the winners in this year’s EIC and the Contractor of the Year for 2020. Be on the lookout for this announcement in your email and in our social media pages on Facebook and Instagram.

Dångkulu na si Yu’us ma’åse’ James A. Martinez President Guam Contractors Association

Guam Contractors Association

6 | OCTOBER2020

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S.A.M.E. UPDATE

CONSTRUCTION NEWS BULLETIN

Society of

NEWSLETTER OCTOBER 2020

American Military Engineers

ANNOUNCMENTS 7 DEC 2020

Application Deadline for the 2021-2022 SAME Leadership Development Program Learn more at: www.same.org/ldp

1 DEC 2020

Nomination Deadline for National Leadership positions. Submit nominations online at: www.same.org/ leadershipnominations Welcome SAME Guam Post Newest Sustaining Member: KHLG & Associates Inc. To learn more visit: www.same.org/directory View Upcoming & Recorded Education Opportunities Available free to members.

Visit: www.same.org/education -opportunities to boost your knowledge!

SAVE THE DATE 5-7 NOV 2020 ChST (4-6 NOV 2020 CST)

2020 SAME Federal Small Business Conference, Dallas, TX Virtual National Event Register at: www.samesbc.org

SEPTEMBER RECAP: 2020 VIRTUAL JOINT INDO-PACIFIC INDUSTRY FORUM This year, the Honolulu and Guam Posts hosted a joint industry forum focused on the INDO-PACOM region. The forum was held on September 16,2020, 1000 - 1400 HST and broadcasted from Joint Base Pearl Harbor-Hickam, Tradewinds Ballroom.

This year’s theme was “Uniting the Pacific in the Past, Present 2020 VIRTUAL JOINT and Future.” In celebration of the centennial of SAME, a historical INDO-PACIFIC INDUSTRY FORUM video was presented celebrating the founding of the society and Honolulu & Guam Posts the rich history of SAME across the Pacific. With the establishment of SAME in 1920, of the original charter members, twelve were in the Pacific Region (4 in Alaska, 7 in Hawaii, and one in Korea). Today, SAME has over 100 Posts and 30,000 members representing the armed forces; government agencies; nonprofit associations; academic institutions; and private sector firms.

SAME is represented throughout the Pacific since the 1940s with Posts located near major military installations. Pacific Region posts and chapters are located in Alaska, Guam, Hawaii, Japan, Korea, and the Philippines.

The forum agenda included military program updates from U.S. Indo-Pacific Command, U.S. Air Force, Naval Facilities Engineering Command (NAVFAC) Pacific, Marine Corps Base Hawaii, and Officer in Charge of Construction (OICC) Marine Corps Marianas (MCM). The forum program also included small business updates on what’s new for contracting for NAVFAC Marianas, NAVFAC Pacific, NAVFAC Hawaii, and U.S. Army Corps of Engineers Honolulu District.

LCDR Matt Evans closed out the forum military program with a presentation on the Guam Build Up and Marine Corps Base Camp Blaz.

The full video of the 2020 Joint Indo Pacific Industry Forum can be view at:

https://www.same-pif-vibe.com/

www.facebook.com/SAMEGuamPost 8 | OCTOBER2020

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S.A.M.E. UPDATE

OCTOBER2020 | 9

MILITARY NEWS

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SMALL BIZ NOTES NAVFAC Marianas awarded about $391M in contracts from October 2019 through September 2020 on which Small Business (SB) concerns may participate as prime or subcontractors.

Of that amount, about $342.1M was awarded to SB concerns to provide a variety of products and services on Guam. Socio-economic breakdown of the SB awards are: - $319.5M - Small Disadvantaged Business (SDB) - $172.1M - HUBZone Small Business (HZSB) - $22.6M - Women-Owned Small Business (WOSB) - $14.9M - Service-Disabled Veteran-Owned Small Business (SDVOSB) The sum of the figures above exceed the overall SB awards of $342.1M because some SB concerns qualify for multiple socio-economic categories.

Significant SB awards in September:

• Fargo Pacific Inc. was awarded about $2.1M for • Setiadi Architects LLC was awarded about $1.2M for family housing roofing repairs/replacement on A-E services to prepare a family housing area developAnderson Air Force Base. ment plan study at Andersen Air Force Base.

• Modern International, Inc. was awarded about $8.7M to provide energy efficient lighting, HVAC, and PV upgrades on Naval Base Guam.

• Serrano Construction And Development Corp. was awarded about $4.9M for fuel station repairs/upgrades Naval Base Guam.

• Vsolvit LLC was awarded about $1M to provide IT support services on Naval Base Guam.

• Reliable Builders, Inc. was awarded about $1.5M to implement soil erosion remediation on Naval Base Guam.

• Serrano Construction And Development Corp. was awarded about $5.7M to provide energy efficiency repairs and upgrades to existing building systems on Naval Base Guam.

• Fargo Pacific Inc. was awarded about $2.8M for pump station repairs/upgrades on Naval Base Guam.

• • Serrano Construction And Development Corp. was awarded about $2.3M to construct a modular structural fire training facility on Andersen Air Force Base.

• • Modern International, Inc. was awarded about $1.8M for chiller replacement on Anderson Air Force Base.

• Green Clover Services was awarded about $1.4M to provide aircraft and aerospace ground equipment services on Anderson Air Force Base.

Fargo Pacific Inc. was awarded about $1.9M to install underground electrical power lines on Naval Base Guam.

Serrano Construction And Development Corp. was awarded about $4M to construct a consolidated contingency center on Andersen Air Force Base.

• Ian Corporation was awarded about $1.3M for hazmat abatement services on Naval Base Guam.

• Serrano Construction And Development Corp. was awarded about $3.3M to provide a new stand-alone building for storage and maintenance of specialty vehicles on Andersen Air Force Base.

• Clayarch Inc. was awarded about $1.4M to replace military family housing playground equipment on Andersen Air Force Base.

Source: Federal Procurement Data System – Next Generation (FPDS-NG)

10 | OCTOBER2020

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MILITARY NEWS

FLOW DOWN CONTRACT CLAUSES Construction and related activities continue to move along in spite of Covid-19 requirements and the current Continuing Resolution spending bill which runs through 11 Dec 2020.

A number of MILCON (military construction) projects have been awarded and several more are expected to be awarded for the construction of Marine Corps Base Camp Blaz.

Due to travel restrictions and skilled labor shortages, prime contractors are seeking qualified subcontractors to assist with current and upcoming projects.

That said, here is a friendly reminder about flow down clauses: Subcontractors/suppliers on a federal 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 its contracts and requires prime contractors to include them in subsequent contracts to subcontractors/suppliers.

(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.

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.

Other flow-downs include: • 52.222-27 -- Affirmative Action Compliance How do you know if a contract clause/requirement is a Requirements for Construction. “flow down”? If you have a government contract, flow • 52.222-36, Equal Opportunity for Workers with down instructions are typically inserted in the clauses Disabilities (Jul 2014) that must flow down. For example: • 52.222-50, Combating Trafficking in Persons (Mar 2015) 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:

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OCTOBER2020 | 11

THE IMPACT ON LOCAL FARMING by: R.D. Gibson

CONSTRUCTION NEWS BULLETIN

This pandemic is something. Full-stop. Period. However, you want to put an emphasis on it. There are probably several different punctuation marks that can be used, as well. There are so many ways that can demonstrate how a lot of things in our normal lives have been uprooted.

We do not need to go through the litany of COVID-inspired changes because they seemingly change every few hours.

However, we can’t stray away from the fact that COVID has changed the way we look at food security and the growth and further development of local food production. Guampedia.com has an article detailing the agricultural practices of the ancient CHamorus. In it, Darlene Moore wrote very matter-of-factly, “food collecting is one of the most important activities in order for a population to survive.” The ancient CHamorus found food either from the ocean or in their backyards - coconut, breadfruit, taro, fish, whatever they could find in the lagoons, and, even, rice.

Several decades ago, CHamorus had ranches where crops were grown and livestock raised to feed families.

Now, it’s a nightly drive or weekend trip to the grocery store to grab food for the week. Yet, a lot of food is still heavily imported. According to the Port Authority of Guam’s website, the agency ‘handles more than 90-percent of the island’s total imports’ - 60-some percent of which comes from the United States.

But, swing forward to our current situation with food distribution lines, local produce specials on social media, and examining the needs of a market looking to have as little contact as possible with COVID. It seems there is a market for fresh, local produce that doesn’t shift through too many hands, and gets right to the dinner table.

For local farmer, Jeremy Bevacqua, he points to a handful of key issues that affect the farming industry in Guam. Competition with imported goods, cost of land, water, resources, and labor, pests and weather issues, and little government support. Bevacqua stated that the island has adapted to the ‘import heavy model’ since World War II, “and we are dependent on the ships to come to feed our population.” Further, he cited that along with 90-percent of our goods being imported, we also see a lot of invasive species that ‘farmers are in the frontlines in fighting them off.”

More though, Bevacqua talked about little support from the government, which he said has only helped a few people start farms on lands through entities like the Chamorro Land Trust Committee. “Farming today is the least profitable job in the world, but it is one of the most important in society.” He pointed to the United States where many farms are subsidized, not like in Guam.

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FEATURE STORY

Bevacqua spoke about the impact COVID has had on farmers. He stated how farmers have had to adapt in selling their produce to third parties or worked on social media to work with clients. He added how in the beginning of the lockdown, farmers had a lot of produce, but nobody to buy them. This produce ended up with the Farmers Co-Op and GU Sustainable and doing Community Supported Agriculture (CSA) boxes. “Farm to Table has been doing their CSA Program for years, a model that they adapted from Agriculture communities in the States,” Bevacqua stated.

“Farming is important,” stated Cassie Brady of Farm to Table Guam Corp. “Oftentimes it gets overlooked; where your food actually comes from, not just a grocery store.”

Farm to Table Guam Corp is a non-profit organization, which provides a comprehensive look at produce farming on island. This includes recipes, educational opportunities, applying to their Community Supported Agriculture (CSA) program, and a wealth of knowledge about, well, farming.

Through their CSA program, residents are connected directly with the people who grow their food. On the CSA Application page, it describes a simple system geared toward having consumers know exactly where their food is coming from, how their food is grown, being educated on the seasonal produce being sold, and eating healthier.

“Farmers can expect increased income and profitability, decreased waste, and ultimately more jobs in the way of expanding existing farms or new growers entering the market,” it states on their website.

According to Brady, “The demand for local produce among families has increased.” Brady cited several reasons from customers as to why they’re looking toward more local produce, including avoiding large supermarkets; others are looking to ‘build their immunity and eat healthier’; and people avoiding shortage of produce at stores typically buy locally. She added, “which in hindsight is a great opportunity for our community to understand the importance of food security and supporting the local farmers, which we continue to see a rise in.”

For Bevacqua, the community is being more conscientious about healthy eating choices. He cited how COVID-19 is ‘amplified by bodies with bad health’.

According to the Centers for Disease Control website, obesity “increases the risk of severe illness from COVID-19.” Because people are more concerned about what they’re eating, he stated farmers haven’t had much of a problem selling straight to customers.

However, farming also took a hit because of the pandemic. Brady stated that the pandemic created the obstacle

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OCTOBER2020 | 13

FEATURE STORY

CONSTRUCTION NEWS BULLETIN

of changing markets to get produce to the public. Brady added how hotels and distributors were the main buyers of local produce on island. “Since Covid, they have had to adapt to other market channels, such as smaller orders to restaurants, roadside stands, farmers markets, CSA (Community Supported Agriculture) and curbside farms.”

Great ideas come with a price and figurative hoops to jump through. Some pre-conceived notions about the farming industry, according to Brady, are “that growing plants is easy”. She commented on the science behind it: “soil health, planting techniques, microbes and conversions,” and how dealing with the earth can bring about other challenges. Wind and rain, plant diseases, equipment failure, and pests are some of the reasons why farmers might not have anything to sell.

Looking toward the future of the industry requires people to have some semblance of hope for it. It’s not toxic positivity, but an outlook that goes beyond the notion of “we’ll get through this together.” Brady started that notwithstanding the pandemic, “what we do expect is for more of the community to grow their own food.” It is a move toward being more sustainable ‘and less reliant on imports.’ She pointed to how people have spent time ‘hobby gardening’ during the pandemic, and how it might be the catalyst to get people to try out a small garden potentially a business, even.

Bevacqua added to Brady’s sentiments regarding home gardening. “While this may sound like a bad thing for farmers, it’s actually a good thing,” started Bevacqua.

“Growing your own produce gives an appreciation to having fresh produce around,” he stated. This goes in line with buying more local produce, he added. He continued that sometimes it’s a package deal with produce, plants, and seeds, which allows for home gardeners to make new additions in their own gardens.

Brady added, “Everyone relies on farmers,” and stated the need to encourage more people to get into the industry for sustainability. “Hopefully more people are becoming aware of this during times where shipments are delayed or there is a shortage of imported produce.”

She emphasized just getting into it - “Start getting your hands dirty, and see what happens!” Like most things starting out, there are bound to be a few hiccups, but Brady encourages to do research as the gardening projects start rolling along. “We don’t believe that people have a ‘brown thumb,’ just need more education.” She continued that the farming is all about making the mistakes and learning from them. “Perseverance is key.”

As a farmer himself, Bevacqua spoke about several pieces of advice for people interested in the industry. He talked about building relationships with the customer, having a variety of crops, but, more importantly, learning.

He talked about working with and learning other farmers, researching grants and government programs, learning about the seasons and what crops thrive during the year.

He emphasized, “grow what you like...this will be your livelihood, you need to love it.”

Whether it is an extension of a quarantine hobby, or a way to pad or start an income, give yourself the time to explore what farming is for you. It might not happen right away, but as Brady stated, it’s all about persevering. It may be October, but it’s never too late to start some goal setting for the new year, which will hopefully be a lot better than this one. Exclamation point.

Bevacqua pointed to the history of the profession on the island. “Farming is a huge part of Chamorro and Guam history,” he stated. Far from the ‘slash-and-burn’ techniques, Moore discussed in her essay, more and more people are looking at ways to grow their gardens, start their own business producing local goods, or even just supporting farmers. “Supporting local farmers is super important,” began Bevacqua. “This encourages them to continue as they are more or less a small business.” He continued by pointing to wasted fruit - that ‘happens every year’, which can be dried, or dehydrated.

It is only just an example of the opportunities Bevacqua says there are in an industry rooted in our island’s history. But, it’s a start.

14 | OCTOBER2020

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SMALL BUSINESS NOTES

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join our SB Community!

• 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?

L-R: James Martinez, Joe Roberto, Adam Baron, Bill Bernardo, Theresa Crisostomo, Tom Roberto, Jaylene Kent, Gerardine Mendiola, Jane Ray, Philip Leddy, Ken Lujan.

HELP US HELP YOU BY JOINING US AT OUR MONTHLY MEETINGS OR CONTACT: Lucia Wood (Chair) Theresa Crisostomo (Vice-Chair)

(671) 777-8425 lucia.wood@aptim.com (671) 588-5972 theresac@jwsguam.com

GUAM PTAC FREE Live Webinars 10/22 2020

The Guam Procurement Technical Assistance Center (PTAC) is offering FREE webinars to the public for August 2020.

FAR Clauses Explained Confused by all the FAR clauses referenced in government solicitations? The Guam PTAC will demystify these Federal Acquisition Regulations. Join us as we explain many of the common FAR clauses found in Federal solicitations.

Webinars run from 10am-11:30am and will be conducted via Zoom. Links to the live webinar and the webinar evaluation will be emailed to all registered attendees 15 minutes before the start of the webinar.

Procurement Integrated Enterprise Environment (PIEE)

10/29 2020

Do you have a DOD contract and need to get paid? The Guam PTAC will explain DOD invoicing procedures using the Wide-Area Workflow (WAWF) module in the Procurement Integrated Enterprise Environment (PIEE) system.

FREE Live Webinars for October 2020 Every Thursday in October!

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

Guam SBDC Training Schedule Financial Management for your Business

Register at: pisbdcn.ecenterdirect.com/events/ For more information, contact: (671) 735-2590 16 | OCTOBER2020

Basic Taxation for Small Business

Friday, October 30, 2020 8:30am – 11:00am

Friday, November 13, 2020 8:30am – 11:00am

Managing other people effectively depends on managing yourself. Better business performance will therefore flow from improving your self-management skills. We have identified 8 different aspects of managing a business.

This workshop will cover various tax requirement and deadlines that applies to small business. It will cover several areas related to payroll taxes, gross receipts, and income taxes.

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The FAR Council Issues Proposed Rule to Implement Executive Order on Significant Buy American Changes Halloween is coming up and, right on cue, the FAR Council has released a proposed rule that has potentially frightening implications for contractors. Last year, on July 15, 2019, the president signed Executive Order 13881 (the E.O.), Maximizing Use of American-Made Goods, Products, and Materials (84 FR 34257, July 18, 2019). As we noted in our previous post on this topic, the E.O. mandated significant changes to Federal Acquisition Regulation (FAR) clauses implementing the Buy American statute by substantially increasing both domestic content requirements and price preferences for domestic products. As we also pointed out, the E.O. contained several ambiguities as to how the desired changes would be implemented. At long last, we have (proposed) answers. On September 14, 2020, the FAR Council issued a proposed rule designed to implement the requirements of the E.O. (85 FR 56558, Sept. 14, 2020). While this proposed rule incorporates the overarching objectives of the E.O., it also adds a fairly unsettling spin in that it expands on the E.O.’s mandate by reintroducing the domestic content test for commercially available off-the-shelf (COTS) items as it pertains to iron and steel products.

As an initial matter, the proposed rule would amend the FAR’s existing domestic component cost threshold to effect a massive increase – from 50% to 95% – for end products or construction materials that consist wholly or predominantly of iron or steel or a combination of both. The new threshold for “domestic construction material” or a “domestic end product” that does not consist wholly or predominantly of iron or steel or a combination of both would rise from 50% to 55%.

In addition, the proposed rule would expand domestic pricing preferences for acquisitions of foreign end products or construction material. If 18 | OCTOBER2020

the potential awardee is a large business offering domestic end products, the price of an offer consisting of non-domestic end products would be increased by 20% (up from the 6% factor currently in the FAR) for evaluation purposes.

Small businesses offering domestic end products receive even greater preferential treatment, such that offers including foreign end products would be comparatively increased by 30% (up from 12%). This brings the price preference provision closer to the current Defense Federal Acquisition Regulation Supplement requirements, which apply a 50% increase to the price of foreign end products.

But that’s not all. In a harrowing expansion of the E.O., the proposed rule would reconstitute a seismic compliance burden on contractors by restoring the domestic content test for all iron and steel COTS items with the exception of fasteners. Since 2009, the domestic content test of the Buy American statute has been waived for COTS items. The proposed rule notes that the waiver was “in part due to the complexity and cost of keeping track of components in a world of global sourcing where the Government is not a market driver.”

Although the “complexity and cost” of such an effort have not changed, the proposed rule nonetheless eliminates the waiver for most iron and steel COTS items, opining that “the domestic content test for the iron and steel items does not require tracking of all components, only a good faith assurance that not more than 5 percent of the iron and steel content is foreign.” The proposed rule also notes that the “bulk of iron and steel products acquired by the Government are primarily COTS items, used as construction material” and that preserving the waiver of the domestic content test for these items would mean that “the E.O. 13881 requirement with regard to iron and steel construction material would have www.guamcontractors.org

very little effect.” We appreciate the conundrum faced by the FAR Council in attempting to reconcile the intent of the E.O. with the reality of the Government supply chain, but the proposed solution offers cold comfort to contractors who will be facing future Government demands regarding compliance with the ominously vague “good-faith assurance” standard introduced by the proposed rule.

While these requirements alone may strike fear in the hearts of contractors, the fear of the unknown is perhaps the greatest fear of all. The proposed rule acknowledges that the Government does “not have any data on how many currently domestic products would [now be evaluated as foreign],” and further makes clear that Uncle Sam “lack[s] data” regarding the expected economic impacts on contractors. Thus, it will be incumbent on the contractor community to educate the FAR Council as to how to implement a rule that both complies with the E.O. and which does not cause catastrophic disruptions of Government supply chains at the punishing expense of industry.

Comments on the proposed rule are due on or before November 13, 2020, and we expect that a final rule will be published in the ensuing months.

While the proposed rule may be amended around the margins as a result of input from industry, the policy intent of the E.O. is clear, and we do not expect to see many tricks or treats in the form of substantive changes. Thus, contractors of every variety should carefully examine their existing supply chains now to ensure that they are prepared to meet the impending requirements. Without question, this is the best way to keep the noncompliance goblins at bay.

By Franklin Turner & Cara Wulf

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MATSON’S BERNIE VALENCIA PUTS GUAM ON THE MAP BY RECEIVING SUPPLY & DEMAND CHAIN EXECUTIVE’S WOMEN IN SUPPLY CHAIN AWARD Leading B2B publication releases inaugural list of top female professionals worldwide GUAM, September 29, 2020 – Supply & Demand Chain Executive Magazine has recently announced that Bernadette “Bernie” Valencia, Matson Vice President and General Manager for Guam and Micronesia, has been recognized as one of its inaugural Women in Supply Chain Award winners. The Women in Supply Chain Award honors female supply chain leaders and executives from around the world whose accomplishments, mentorship, and examples set a foundation for women in all levels of a company’s supply chain network.

Supply & Demand Chain Executive, the only magazine in the supply chain industry covering the entire global supply chain that focuses on ROI, professional development, and change management, celebrates its 20-Year Anniversary with the introduction of a new award designed specifically for women leaders in the supply chain industry.

“We received over 300 entries for this new award, entries that were submitted from a combination of men and women. This proves that our industry needed an award like this, especially in conjunction with Supply & Demand Chain Executive’s 20-year anniversary,” says Marina Mayer, editor-in-chief of Supply & Demand Chain Executive and Food Logistics.

Valencia said, “I appreciate the SDCE for establishing this award to recognize the contributions of women in the shipping and supply chain industries and creating awareness that these industries welcome and need more female professionals. Congratulations to Bindiya Vakil, the SDCE’s Woman of the Year, and my fellow award winners throughout the globe. I am fortunate to have been able to grow my career with a wonderful organization such as Matson, and I hope to see more women from our region consider careers in shipping and supply chain management.”

Mayer added, “According to Gartner’s 2020 Women in Supply Chain Survey, 17% of chief supply chain officers are now women – a 6% increase compared to 2019. It represents growth, evolution, and community. And, that future shows that it’s a great time to be a part of the supply chain industry. So, congratulations to these top female leaders. I look forward to seeing what else you do to grow the supply chain industry.”

Valencia was recognized for her work in the Western Pacific and Micronesia regions, which includes Guam, Commonwealth of the Northern Mariana Islands, Republic of Palau, Federated States of Micronesia, Republic of the Marshall Islands, and Okinawa, Japan. Valencia helped to establish the Okinawa route, Matson’s newest service route, in 2017.

Her team’s excellent on-time service record and Matson’s commitment to the region and the communities they serve for almost 25 years gained a mention in the magazine.

The SDCE specifically recognizes Valencia’s work at the start of the COVID-19 pandemic and the company’s work to reassure residents in Guam and Micronesia that their weekly shipment of goods would continue, uninterrupted and on-time. This public service campaign is recognized as helping to reduce panic buying and placing the well-being of the island’s residents as a top priority.

Valencia noted how she takes great pride in supporting and helping to grow island economies through the reliability of Matson’s transportation networks. As a resident of Guam and daughter of Micronesia, Valencia stands behind the company’s core mission of improving the quality of life in the communities they serve.

Supply & Demand Chain Executive received more than 300 entries for its newly launched Women in Supply Chain award.

Check out Supply & Demand Chain Executive’s website at www.sdcexec.com for the full list of all of the 2020 Women in Supply Chain winners. The 2020 Women in Supply Chain award appears in the SDCE’s September issue, which was recently distributed.

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OCTOBER2020 | 19

NAWIC NEWS

CONSTRUCTION NEWS BULLETIN

Re-Introduction of NAWIC Guam & Introduction of 2020-2021 Board of Directors

IMMEDIATE PAST PRESIDENT

PRESIDENT

PRESIDENT- ELECT

VICE PRESIDENT

TREASURER

Margaret (“Peggy”) Denney Denney Environmental Consulting i*Recycle Program Administrator

Selina Ashland Island Equipment Company General Manager

Joanne Messier Architectural Painting Services, LLC Operations Manager

Lucia Wood APTIM Project Manager

Rebecca (“Becky”) Ann Chiguina Dewitt Guam Business Development Coordinator

SECRETARY

DIRECTOR

DIRECTOR

DIRECTOR

PARLIAMENTARIAN

Christen Clark Black Construction Corp.

Project Controls Engineer

Crystal Cruz AmOrient Engineering Civil Engineer

Maiko Nakamura Pacific Federal Management, Inc Project Coordinator

Doyon Ahn Morato North Wind Operations Manager, Guam

Irene Hicks America’s Best Electricmart, Inc President/General Manager

who secured gainful and gainful immediate and immediate and resource and resource to its members to its members and andwho secured Hafa Adai!

Hafa October Adai! October marks the marks official the official employment employment after completion after completion the localthe construction local construction industryindustry and and start of start NAWIC of Guam’s NAWIC Guam’s 2020-2021 2020-2021 of her trade-program of her trade-program at the GCA at the GCA community. community. year, and year, we are andexcited we are and excited ready and ready Trades Academy.

Trades Academy.

NAWIC Guam NAWIC Guam to beginto our begin yearour strong! year The strong! The Over theOver years, theNAWIC years, Guam NAWIChas Guam hasalso makes alsoitmakes a priority it a to priority give back to give back NationalNational Association Association of Women of Women in in been recognized been recognized for its value for its tovalue to to our island to ourcommunity, island community, throughthrough Construction Construction (NAWIC),(NAWIC), established established its members its members and its community and its community volunteer volunteer work and work selecting and selecting in 1955, in is 1955, a professional is a professional association association involvement.

Each year, Each NAWIC year, NAWIC community-improvement community-improvement projectsprojects comprised comprised of women of women who work who work involvement.

Guam itshosts free building its free building block block throughthrough its Hugeits Hearts Hugewith Hearts with in all sectors in all sectors of the construction of the constructionGuam hosts competition, ‘Block Kids’, ‘Block forKids’, for Hard Hats Hard (“4H”) HatsProgram. (“4H”) Program.

Last Last industry,industry, from tradeswomen from tradeswomen and andcompetition, elementary-aged elementary-aged studentsstudents that that year’s 4H year’s Program 4H Program Project was Project was professionals professionals to business to business owners.owners. sparks earlyan interest early interest in STEMin STEMthe renovation the renovation of the exterior of the exterior and and NAWIC and NAWIC our and Chapter’s our Chapter’s core core sparks an and the and construction the construction industry.industry. interior of interior our island’s of our island’s only family only family purposepurpose is to enhance is to enhance the success the success Furthermore, NAWIC Guam NAWICannually Guam annually homeless homeless shelter, shelter, the Guma theSan Guma San of women of women in the construction in the construction Furthermore, awards thousands awards thousands of dollars of in dollars in Jose Homeless Jose Homeless Shelter in Shelter Dededo. in Dededo. industryindustry by providing by providing supportsupport and and scholarships to support to support individuals individuals to serveto asserve a valuable as a valuable resourceresource scholarships to help advance to help advance women’swomen’s careers careerspursuingpursuing higher or higher technical or technical Recognizing Recognizing the value the ofvalue of relationships, relationships, NAWIC Guam NAWIC Guam in construction, in construction, by building by building their their education education in industry-related in industry-related fields. fields. fosters productive and cooperative and cooperative technical technical skills, growing skills, growing networks networks Last year Last during yearour during Women our Women in in fosters productive connections with other with local other local and inspiring and inspiring leadership. leadership.

NAWIC NAWICConstruction Construction Week proclamation Week proclamationconnections industryindustry groups, groups, such assuch the as the Guam Chapter Guam Chapter 381, a non-profit 381, a non-profit signing signing at the Governor’s at the Governor’s ComplexComplex Guam Contractor’s Association Association organization organization chartered chartered in Marchin March we werewe proud weretoproud celebrate to celebrate the the Guam Contractor’s and Guam andWomen’s Guam Women’s Chamber Chamber of of 2012, has 2012, been has anbeen active anchampion active champion successsuccess of a scholarship of a scholarship awardee, awardee, 20 | OCTOBER2020

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MEMBER

SPOTLIGHT

By Joanne Messier

Christen Clark This month’s featured National Association of Women In Construction (NAWIC) member is Christen Clark. We’d like to recognize her for her accomplishment of receiving a certificate as a Construction Industry Technician (C.I.T.).

Curriculum in the C.I.T. Course covers types of construction, forms of business ownership, contractual arrangements, contract documents and the whole construction process.

This certification shows that the bearer understands the business behind construction, and how to make it lucrative.

She is currently working for Black Construction Corporation as a Project Controls Engineer. She got her start in construction 20 years ago on a Ground Equipment

Maintenance Facility for American Airlines at Dallas-Fort Worth (DFW) International Airport. Before she moved to Guam, she had reached a point where she was helping engineer’s fresh out of college understand and do their jobs. When asked why she felt the need to attain her C.I.T., seeing as she had so much experience in the field already, her story panned out as one many in construction have experienced.

Starting with no construction experience, she had a manager willing to train her in all aspects of the construction industry. As she had been in Construction in Texas for 17 years, she had developed a good network that came looking for her when they needed something done. She didn’t need a resume stating her degrees as her experience was well documented in Texas. Fast Forward to Guam, 2016.

Her husband, who is an attorney, has taken a job on Guam and she has moved here. When she tried to get a job in construction, her

interviewers were surprised at the salary she expected. She attributes this to not looking as good on paper as in real life. To correct that image, she is going through courses to get the appropriate accreditations, with the NAWIC Educational Foundation (NEF) helping her achieve that goal.

When looking at the fact that her husband was an attorney and she a construction worker, I asked her if there was an effect on the reversal in commonly perceived gender roles.

She in construction and he in law.

She laughed and said not that she noticed, but when they did get to meet up for lunch, she was the one in steel toes, while he was in dress shoes. When asked if her daughter encountered any issues growing up with her momma wearing steel-toed boots, she again laughed and said no. Well done Christen for breaking the mold, raising a child who doesn’t look to gender roles, and going after what your worth as a Woman In Construction!

Commerce and collaborates with ourwithexciting new growth development related business, such as such finance, related business, as finance, Commerce and collaborates our exciting new and growth and development island’s island’s educational and technical over theover nextthe years, stay tuned legal, insurance educational and technical nextsoyears, so stay tuned legal, insurance institutions, such assuch the Guam a member– we havewe a have and complementary industries, and other complementary industries institutions, as the Guam and become and become a member– a other Community College,College, University of productive and eventful year ahead are as well! as well! productive and eventful yearofahead ofwelcome are welcome Community University of Guam and the and GCAthe Trades us!

Guam GCAAcademy.

Trades Academy. us!

NAWIC Guam’s successsuccess and Want to Want knowto more about know moreNAWIC about NAWIC NAWIC Guam’s and continued progressprogress is a direct Biba NAWIC Guam orGuam join our organization?

Biba Guam!

NAWIC Guam! or join our organization? continued is aresult direct result of its professional relationships and of its professional relationships and Contact Contact us at nawicguam@gmail.com us at nawicguam@gmail.com the commitment of its members in construction the commitment of its members All women All working women working in construction or DM usoron DM Facebook us on Facebook (Nawic Guam) (Nawic Guam) to each to other, the industry and our and our are eligible membership, including each other, the industry are for eligible for membership, including or Instagram or Instagram (@nawicguam). (@nawicguam). island. island. women builders in the trades, women builders in the trades, project management, marketing, project management, marketing, NAWIC Guam proudisofproud its of its administration, and executive administration, and executive NAWICisGuam accomplished members, looks looks leadership.

Women Women in related leadership. in related accomplished members, forward forward to continuing its mission with industries who work onwork construction industries who on construction to continuing its mission with Like Us On Facebook

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OCTOBER2020 | 21

NEWSLINE

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NEWSLINE DOL Establishes Hotline and Issues FAQs Related to Executive Order on Combating Race and Sex Stereotyping On Sept. 28, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs issued a press release stating it launched a hotline and email address to receive and investigate complaints under existing Executive Order 11246 as well as Executive Order 13950, Combating Race and Sex Stereotyping, issued on Sept. 22 by President Trump.

to inculcate such views in their employees.”

The order states, “It shall be the policy of the United States not to promote race or sex stereotyping or scapegoating in the federal workforce or in the uniformed services, and not to allow grant funds to be used for these purposes. In addition, federal contractors will not be permitted

In addition, on Oct. 7, the OFCCP issued FAQs related to Executive Order 13950. ABC general counsel Littler Mendelson P.C. wrote an analysis of the OFCCP FAQs, stating, “The new FAQs offer limited additional guidance to federal contractors. As a practical matter,

The order enables employees to file complaints alleging that a federal contractor is “utilizing training programs in violation of the contractor’s obligations under those orders.” Learn more in the DOL press release.

federal contractors that provide diversity and inclusion training to their employees—either internally or by use of outside vendors—should consider reviewing their materials and training to ensure that they do not inadvertently violate the order.

For many, their training may already be compliant.” To learn more, read the Littler analysis.

The new OFCCP Complaint Hotline to Combat Race and Sex Stereotyping can be reached at (202) 343-2008 or via email at OFCCPComplaintHotline@dol.gov.

OSHA Issues New FAQs on Injury and Illness Reporting Requirements Related to COVID-19 The U.S. Department of Labor’s Occupational Safety and Health Administration issued new frequently asked questions and answers regarding the need to report employees’ in-patient hospitalizations and fatalities resulting from work-related cases of the coronavirus. The FAQs help employers apply the agency’s existing injury and illness recording and reporting requirements to COVID-19.

22 | OCTOBER2020

FAQs on Reporting: • How do I report the fatality or in-patient hospitalization of an employee with a confirmed, work-related case of COVID-19?

• An employee has been hospitalized with a work-related, confirmed case of COVID-19. Do I need to report this in-patient hospitalization to OSHA? • An employee has died of a work-related, confirmed case of COVID-19. Do I need to report this fatality to OSHA? www.guamcontractors.org

For information on recording cases of COVID-19, see OSHA’s revised enforcement guidance. ABC's general counsel, Littler Mendelson P.C., also published an analysis on new FAQ's on the Littler website.

Visit OSHA’s coronavirus webpage for updates. https://www.osha.gov/SLTC/covid-19/

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House Republicans Introduce the BUILDER Act to Modernize NEPA On Sept. 22, U.S. Rep. Garrett Graves (R-La.) introduced H.R. 8333, the Building U.S. Infrastructure Through Limited Delays & Efficient Reviews (BUILDER) Act. The legislation would codify much of the Council on Environmental Quality’s National Environmental Policy Act rulemaking, which ABC supports.

Developed with input from the House Transportation and Infrastructure, Energy and Commerce and Judiciary committees, the bill includes important provisions to create a more efficient NEPA review process and clarifies which projects require NEPA review. This will promote better agency coordination and set reasonable time limits for preparing environmental documents.

Following the release of the BUILDER Act, ABC Vice President of Legislative & Political Affairs Kristen Swearingen issued the following statement: “ABC applauds congressional leaders for introducing this legislation, which will go a long way toward eliminating unnecessary delays that cause budget overruns in construction.

Construction businesses recovering from the ongoing health and economic crisis caused by COVID-19 will surely benefit from these modifications, which will help reduce costs and speed up project approvals so that hardworking U.S. workers can get back on the job quickly and safely.

"The coordinated, predictable and transparent process to streamline permitting will also enable the industry to plan and execute even the most complex projects while safeguarding our communities, maintaining a healthy environment and being good stewards of public funds.”

ABC is a member of the Unlock American Investment Coalition, which focuses on modernizing NEPA and unlocking American investment in modern, efficient infrastructure, creating middle-class sustaining jobs while advancing good environmental stewardship. To learn more, see the coalition’s fact sheet on modernizing NEPA.

Federal Court Strikes Down Key Parts of ABC-supported 2020 Joint Employer Rule On Sept. 8, a U.S. District Court for the Southern District of New York judge ruled that parts of the U.S. Department of Labor’s joint employer final rule, which was issued on Jan. 16, 2020, are illegal. Associated Builders and Contractors had applauded the 2020 joint employer final rule, which promised to make the joint employment test more narrow and focused when it went into effect on March 16.

“The Trump administration’s joint employer regulation promised to bring additional clarity to a confusing area of the law, help alleviate unnecessary barriers to and burdens on contractor and subcontractor relationships throughout the construction industry, reduce needless litigation and encourage innovation in the economy,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs.

“We are disappointed that the

24 | OCTOBER2020

Obama-appointed judge misapplied precedent in failing to defer to the DOL’s guidance and refusing to uphold the new rule in its entirety. We believe the judge got it wrong on both procedural and substantive grounds, strongly suggesting the need for an appeal.”

The court struck down the rule as it applies to “vertical” employment, which occurs when an employee works for one company but may be economically dependent on or controlled by another company. The decision does not affect “horizontal” employment, which occurs when the employee has employment relationships with two or more employers and the employers are sufficiently associated.

“Unfortunately, vertical joint employment, which occurs when an employee works for one company but may be economically dependent on or controlled by another company www.guamcontractors.org

(staffing, contracting, franchising, etc.) is the type of relationship that caused so much confusion under the previous rule,” said Brubeck.

In February, 18 blue states sued DOL in federal court to strike down its final rule updating and clarifying its interpretation of joint employment, officially titled Joint Employer Status Under the Fair Labor Standards Act. A business coalition that includes ABC intervened in the case, in part to defend the construction industry against unwarranted attacks on the industry’s long-established methods of doing business by the state plaintiffs. ABC’s general counsel, Littler Mendelson P.C., handled the intervention filings.

Read ABC’s comments in support of DOL’s 2020 joint employer proposed rule.

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