GCA Construction News Bulletin March 2024

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Defense Base Act Insurance for U.S. Government Contracts in Guam

Are you aware that U.S. government contracts in Guam and other U S territories require Defense Base Act insurance?

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For over 35 years, Signal Mutual has served as the premier provider of Longshore benefits in the United States, meeting the demand for reasonable and stable workers’ compensation insurance rates. Our GovCon offering leverages the expertise of seasoned underwriting, claims, and safety teams to provide an efficient risk transfer model that’s tailored to meet the needs of U.S. government contractors

THEDIRECTORS THEEDITORIALS

PRESIDENT

James Martinez

Guam Contractors’ Association

PAST CHAIRMAN

Bill Beery

Tutujan Hill Group

CHAIRMAN

Joe Roberto East Island Tinting

VICE CHAIRMAN

Matthew Hunter

Dylan Mechanical Construction Services

SECRETARY/TREASURER

Kathleen David Pacific Rim Constructors

CONTRACTOR DIRECTORS:

Don McCann Black Construction Corporation

William Best SmithBridge Guam

AJ Perez Hawaiian Rock Products

Brian Holm Hensel Phelps

Soraya Vongjalorn Vertex Guam

ASSOCIATE DIRECTORS:

Mark Cruz

Mid Pac Far East

Jose Garcia First Hawaiian Bank

Camilo Lorenzo Matson Navigation

Geri Leon Guerrero

Adztech Advertising and PR

JOIN ONE OF OUR MANY COMMITTEES!

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.

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.

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.

Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 506 Mariner Ave., Barrigada, Guam 96913

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

Postmaster. Send address changes to Guam Contractors’ Association, located at 506 Mariner Ave., Barrigada, Guam 96913

THETEAM

PUBLISHER:

James Martinez

PRODUCTION TEAM

LEAD:

Geri Leon Guerrero

AD SALES:

Alyssa Roces

PRODUCTION:

Jason Davis

Alyssa Roces

Christopher “Taco” Rowland

PHOTOGRAPHY:

Alyssa Roces

EDITOR:

Adztech

CONTRIBUTING WRITERS:

Jenny Bowers

Myracle S. Mugol

Francine Taitague

Rodney “RJ” Ricarte

GCA STAFF:

Desiree Lizama

Elaine Gogue

Francine Taitague

Trevor Cruz

COVER:

Celebrating Guam’s EALS

Week at the annual Joint Membership Luncheon.

APPRENTICESHIP CORNER

By Francine Taitague Safety, Training and Education Coordinator, Guam Contractors Association

WOMEN IN

CONSTRUCTION

& APPRENTICESHIP PROGRAMS CAN GROW YOUR WORKFORCE

In the construction industry, diversity is not just a buzzword—it's a critical component of innovative, efficient, and successful companies. However, like many industries, construction has traditionally been male-dominated.

A diverse workforce brings a wider range of ideas, perspectives, and experiences to the table, leading to more innovative problem-solving. In addition, companies with a diverse workforce are often more appealing to a broader customer base.

Women in Construction

Women are still notably underrepresented in the construction industry. Women make up about 10% of the workforce in the construction industry in the United States. This statistic underscores the significant gender disparity that persists in this field. But it also represents an opportunity for your company to recruit.

The Role of an Apprenticeship Program at Your Company

Apprenticeship programs play a crucial role in the construction industry, serving as a primary gateway for those seeking to enter the field. It provides invaluable hands-on training, where apprentices can learn the practical skills necessary for the job directly from experienced professionals. Alongside this practical knowledge, apprenticeships also offer a secure and structured career path, allowing individuals to progress and develop their careers in a steady and supportive

environment. For women, these programs are particularly important. Given the historical underrepresentation of women in construction, apprenticeship programs present a significant opportunity to break into the industry, gain essential skills, and pave the way for a successful career.

More Examples, Role Models Everyday

Many women are leaders in the construction industry in Guam. Whether the industry be safety, plumbing, electrical supply, paint supplies or being the chief executive at a construction company with major construction projects, these women are role models for other women to join the construction industry.

Start Your Company’s Apprenticeship Program Today!

Promoting diversity and recruiting more women in the construction industry is about strengthening the industry as a whole. Apprenticeship programs can play a vital role in providing opportunities for women to kickstart their careers in construction.

The Guam Contractors Association keeps track of hours worked and the education progress of the apprentices in your program. We can guide your company through the whole process. What have you got to lose?

Join the list of companies that have, or are in the process of, creating an apprenticeship program to enhance the skills of its workforce.

Interested in learning more? I can help you! Please contact me at (671) 647-4841 or francine.taitague@guamcontractors.org.

Guam Contractors Association (GCA) Engages Students at Marcial A. Sablan Career Week

Hagåtña, Guam - March 1, 2024

Marie Babauta-Balbin, school counselor at Marcial A. Sablan, extended a warm invitation to the Guam Contractors Association (GCA) to participate in their Career Week, held from February 26th to March 1st, 2024. GCA's Emerging Leaders Members, Camilo Lorenzo of Matson, and Trevor Cruz of GCA, were honored to contribute as guest speakers on Friday, March 1st, 2024, addressing students from Grades 3rd, 4th, and 5th.

Camilo and Trevor delivered an inspiring session highlighting the significance of learning from educators, counselors, and staff in subjects like reading, comprehension, math, and science, and how these foundational skills directly translate into the workforce. They encouraged students to explore their dream professions, emphasizing the importance of understanding the requirements and steps needed to turn those aspirations into reality.

The Guam Contractors Association's Emerging Leaders Program is a platform tailored for professionals in the construction industry. It aims to provide participants with a deeper understanding of the sector, equipping them with the skills and mindset necessary to take on leadership roles within the community and GCA membership.

"We were thrilled to be part of Marcial A. Sablan's Career Week and engage with the students," said Camilo Lorenzo. "It's crucial for young minds to understand the connection between their education and future career paths. We hope our session has inspired them to explore the diverse opportunities available in the construction industry."

Trevor Cruz added, "As members of the GCA Emerging Leaders Program, we are committed to fostering the next generation of industry leaders. Initiatives like Career Week provide an excellent platform to share insights and encourage students to pursue their passions with determination."

The Guam Contractors Association extends its gratitude to Marie Babauta-Balbin and the staff at Marcial A. Sablan for the opportunity to participate in this meaningful event.

For more information about the Guam Contractors Association and its initiatives, please visit  guamcontractors.org.

Contact: Trevor Cruz info@guamcontractors.org

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Letitia Lujan Asst. General Manager

FHP Health Center offers comprehensive Occupational Health Services for Your Employees

By Rodney “RJ” Ricarte

FHP Health Center offers a comprehensive suite of Occupational Health Services designed to ensure the well-being and productivity of your employees, whether they're in the office or at the job site. The dedicated team of physicians and certified physician assistants are committed to delivering high-quality medical services that are customized to the specific needs of your team members.

Each individual and job role has unique health requirements and challenges, and we strive to address these with a tailored approach. The goal of the Occupational Health Services department is to safeguard the health and efficiency of your workforce, thereby contributing to the success of your company.

Here is a run down of how FHP Health Center’s Occupational Health Services department can assist in keeping your company’s employees healthy and safe.

HEALTH CHECK-UPS … a variety of physical examinations including pre-employment, annual check-ups, fitness assessments, driver certifications, vision and dental screenings, military sealift evaluations, pre-deployment evaluations, and exit physicals prioritizing your workforce's health and fitness would be professionally conducted for your employees.

DRUG SCREENINGS … random and pre-employment drug tests, contributing to the safety and health of your workplace to promote your drug-free workplace.

WORKERS’ COMPENSATION … includes managing workers' compensation cases, providing treatment for affected employees, handling necessary reporting, and submitting claims to your Workers’ Compensation Carrier.

RESPIRATORY HEALTH … providing Spirometry, an essential tool in evaluating and maintaining respiratory health. Spirometry is a common type of pulmonary function test that measures how much, and how quickly, you can move air in and out of your lungs. It is often used to diagnose conditions that affect breathing such as asthma or chronic obstructive pulmonary disease (COPD).

IMMUNIZATION SERVICES … special immunizations such as Tetanus, PPD/Tuberculin Skin Tests, Hepatitis A/B Series, Flu Vaccines, and Travelers' immunizations, enhancing your workforce's overall health protection.

HEALTH CERTIFICATION … providing health certificates to meet the requirements of the Department of Public Health and Social Services.

Operating from the FHP Annex in Tamuning, FHP Health Center's Occupational Health Services is open from 8:00 a.m. to 3:00 p.m. If you need more information about the services or have any inquiries, please don't hesitate to call, 671-646-5825 and press 1. Prioritize the health and safety of your team members by booking an appointment with FHP Health Center's Occupational Health Services.

Your employees' well-being is crucial to their productivity, and by extension, the success of your company. Take a proactive approach to fostering a supportive and productive work environment.

A healthy workforce is a happy and efficient one. Stay safe and healthy at the office and at the job sites.

Rodney “RJ” Ricarte is the TakeCare account executive for GCA. He can be contacted at (671) 487-7121 or rodney.ricarte@takecareasia.com.

A Tribute to Engineering Excellence

By: Jenny Bowers, EXP US Services, Guam Pacific Society of American Military Engineers Guam Post, 1st Vice President

In the heart of Tumon, where the Philippine Sea waves wash the shores of Guam, professionals from diverse backgrounds converged to celebrate Guam’s Engineering, Architects, and Land Surveyors (EALS) Week at the annual Joint Membership Luncheon. This annual event, held during the national celebration of Engineers Week, and sponsored by the Society of American Military Engineers Guam Post, serves as an opportunity for all professional organizations to come together for knowledge exchange, collaboration, and information sharing.The theme of this year’s EALS week event mirrored that of Engineers Week, “Welcome to the Future”, echoed the SAME Guam Post’s embodiment of the spirit of collaboration by inviting multiple AEC organizations to celebrate EALS Week. Military engineers, architects, surveyors, contractors, and other business professionals met to learn about the professional engineering, architect, surveying, and construction organizations and societies that support our island and to learn about the upcoming military construction efforts for three of the military installations on Guam.

KEY HIGHLIGHTS

During the EALS Week, our island community came together to celebrate and recognize outstanding achievements in engineering, education, and resilience. Here are some of the highlights:

PROCLAMATION & RESOLUTION

With the active involvement of the Guam Governor’s Office, Governor Lou Leon Guererro and Lt. Governor Joshua Tenorio proudly presented Proclamation 2024-15. This official proclamation designates the period from February 18th to 24th as Guam Engineers, Architects, and Land Surveyors Week.

Meanwhile, the Guam Legislature, represented by Senator Roy A.B. Quinata and Senator Jesse Anderson Lujan, and Senator Chris Barnett jointly presented Resolution 310-37 (COR). This resolution acknowledges the invaluable contributions made by Engineers, Architects, and Land Surveyors within our island community during the celebration of “EALS Week”. It is a commendation for their remarkable efforts in enhancing the quality of life for all residents of our beautiful island.

Through this declaration, we underscore the vital and pivotal role that engineers and architects play in shaping the future of Guam. Their expertise, unwavering dedication, and visionary outlook serve as the bedrock upon which our resilient community thrives and shapes our island’s destiny.

SCHOOL PRESENTATIONS

Members of the SAME Engineering, Architecture, and Land Surveyors (EALS) Committee actively engaged with students from various schools. During these interactions, they imparted valuable insights into the captivating realms of engineering, architecture, and construction. These exchanges served as inspiration for the upcoming generation of innovative problem solvers.

CHARLIE CORN SCHOLARSHIP

The revered SAME Guam Post Charlie Corn Scholarship has been bestowed upon a meritorious student dedicated to pursuing studies in STEM (Science, Technology, Engineering, and Mathematics). This prestigious scholarship pays homage to the enduring legacy of Charlie Corn, a visionary Guam Businessman whose profound impact resonates throughout our community. The deadline for the application process ended 24 February 2024.

MATHCOUNTS

Students showcased their mathematical prowess in the MathCounts competitions, solving complex problems and demonstrating analytical skills. Chapter competitions occurred on February 24, 2024, with the Guam State Competition to be held on Saturday March 23, 2024.

MILITARY INFRASTRUCTURE UPDATE

Captain Troy Brown, PE, the Commanding Officer of NAVFAC Marianas and the Joint Region Marianas Regional Engineer, and Captain Robert D. Stiles, PE, Commanding Officer, Officer in Charge of Construction (OICC), Marine Corps Marianas DPRI Guam, both in Guam, emphasized the pivotal role that military infrastructure plays in ensuring regional stability. In their address, Captain Brown meticulously outlined ongoing strategic initiatives, such as the Pacific Deterrence Initiative (PDI), Guam Defense System (GDS), Polaris Point Area Development, and the Republic of Singapore Air Force (RSAF), and other ongoing initiatives for Guam and the surrounding Pacific Nations. Captain Brown also touched on the Guam Construction Capacity Study and the development of energy-efficient facilities (because even military bases care about their carbon footprint). The Guam Construction Capacity Study, which was led by NAVFAC Marianas, aims to assess and enhance the construction capabilities and infrastructure readiness on the island.

The unwavering commitment of the SAME Guam Post to bolstering our armed forces resonated profoundly and underscored their steadfast dedication. The Naval Facilities Engineering Systems Command (NAVFAC)

Marianas plays a crucial role in overseeing and managing construction initiatives in the Guam region. One notable endeavor is the Guam Construction Capacity Study, which is led by NAVFAC Marianas. This study aims to assess and enhance the construction capabilities and infrastructure readiness on the island.

While Captain Stiles touched on the Defense Policy Review Initiative (DPRI), which plays a pivotal role in shaping the future force structure of the United States in Japan and facilitating the realignment of the United States Marine Corps (USMC) in the Pacific. As part of this initiative, the creation of Marine Corps Base Camp Blaz (MCBCB) on Guam marks a significant milestone—it is the first new permanent USMC base established in over 70 years. MCBCB provides essential infrastructure to support operations and training, securing a USMC posture in the Indo-Pacific that is geographically distributed, operationally resilient, and politically sustainable.

Both Captain Brown and Captain Stiles also took a deep dive into the challenges related to the development and implementation of these critical projects.

Labor and H2B Visas: Securing a skilled workforce is crucial. Guam’s labor market can be tight, and the need for specialized workers—especially in construction and infrastructure—is high. The H2B visa program plays a vital role in bringing in temporary workers, but managing this process effectively is essential.

Munitions and Explosives of Concern (MEC): Guam’s history as a military hub has resulted in a legacy of unexploded ordnance (UXO) and munitions. Ensuring the safe location, handling, removal, and disposal of MEC during construction and development is a significant challenge.

Timelines to Support USMC Force Flow: The clock is ticking. The USMC force flow to Guam needs to happen smoothly and on schedule. Coordinating logistics, infrastructure readiness, and personnel movements within tight timelines is no small feat.

Supply Chain / Logistics: Getting materials, equipment, and resources to Guam involves intricate logistics. The island’s remote location and reliance on sea and air transport add complexity. Efficient supply chains are essential for timely project execution.

Common Components for Critical Systems: Integrating various systems—power, water, communications, security—across different projects requires standardized components. Ensuring compatibility, reliability, and scalability is a technical challenge.

Facility Commissioning and Turnover: As projects near completion, commissioning facilities become critical. Testing, verifying, and ensuring that everything works as intended is essential. Proper turnover for operational teams ensures seamless functionality.

These challenges present opportunities for innovation, collaboration, and strategic planning. Successfully addressing them will contribute to Guam’s long-term security and readiness. As part of this initiative, NAVFAC Marianas collaborates closely with various stakeholders, including the SAME Guam Post and other industry partners. Through strategic planning, design, and execution, they address critical aspects such as military facilities, base operations support, and expeditionary engineering systems.

In conclusion, we ended the SAME Guam Post Joint Session Event with renewed determination. EALS Week exemplified the spirit of innovative collaboration, knowledge-sharing, and resilience that defines our island community. The EALS Week ignited our passion for Guam Infrastructure. As we return to our respective roles, let us carry forward the spirit of global excellence. Whether you’re a surveyor, architect, or engineer, our collective efforts contribute to a brighter, more resilient world. Together, we continue to build an exemplary future for Guam and across the Pacific.

This is our Post. This is our Society. This is our Community. Together, WE , are the Society of American Military Engineers!

Thank you for being part of this astoundingly memorable week and for your continued support.

Joint Membership Luncheon

February 22nd, 2024

Hyatt Regency Guam

Mastering the Ride:

The Wins of WOSB and EDWOSB Certi ed Businesses

By: Myracle S. Mugol

Do you remember learning how to ride a bike? The sun beating down, your heart racing with excitement and nerves? I remember it like it was yesterday. With my dad's hand steadying me, I pushed off, wobbling down the driveway. Slowly, the wobbles lessened, and I found my balance, exhilaration replacing fear.

As an entrepreneur, I often draw parallels between the journey of learning to ride a bike and the intricate path of entrepreneurship. Just as mastering a bicycle involves facing numerous challenges and moments of struggle, so too does navigating the complexities of entrepreneurship. However, amidst these hurdles lies the undeniable thrill of success, serving as a beacon of motivation to persevere through the toughest of times.

This analogy holds particular significance when considering the experiences of Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs). These certifications symbolize far more than mere labels; they stand as tangible evidence of fortitude, unwavering dedication, and an unyielding pursuit of excellence.

During the ongoing economic recovery on our island, the narratives of businesses such as ADZTECH, America's Best ElectricMart (ABE), and Advance Management, Inc (AMI) shine brightly. Through their sheer perseverance and relentless dedication, these certified enterprises are not only rewriting the script of women's empowerment in the realm of business but also embodying the metaphorical journey of mastering the bicycle. Each milestone achieved by these remarkable women-owned businesses serves as a testament to the boundless potential and unwavering determination residing within the entrepreneurial spirit.

Geri Leon Guerrero of ADZTECH, a pioneering force in Guam's business landscape, reflects on the transformative power of certification. "As a business owner for the past 18 years, I have stayed committed to our island’s business community through my own version of island pride, culture, and women

empowerment," she shares. For Leon Guerrero, obtaining WOSB and EDWOSB certification was not merely about gaining a label but about accessing a platform for growth and inclusivity.

While reflecting on this tumultuous period these past few years, Leon Guerrero, who proudly is one of the few WOSB and EDWOSB certified businesses on the island, emphasized the significance of perseverance and creativity in navigating through uncertain times. As the island grappled with issues of inequity and disparity, the passing of Bill 71 into PL 36-26 marked a significant milestone towards fostering diversity and equality within the business community. She appropriately describes certification not as a handout but as a mechanism designed to increase visibility and opportunities for women in business.

The journey towards certification is like the initial wobbles on a bicycle, filled with challenges and uncertainties. Irene Hicks, from America's Best ElectricMart (ABE), reflects on the demanding certification process, likening it to navigating a labyrinth. "The application process itself proved to be a struggle, filled with frustration," she concedes. Adding to the challenges, Monty McDowell of Advance Management, Inc (AMI), recounts the extensive efforts required to overhaul the company's legal framework. McDowell explains, "Completely revising our legal structure was a time-consuming and costly endeavor," noting the outdated information on the SBA WOSB site necessitating direct calls to the Small Business Administration's Washington DC office. Despite the numerous obstacles encountered, their determination ultimately paid dividends, positioning ABE with a competitive advantage in the local market and in securing government contracts on Guam. Advance Management's certification marked a milestone, with the company among the first on Guam to achieve this recognition. However, not all rides are smooth. McDowell highlights the lack of opportunities and the bureaucratic red tape hindering the growth of certified enterprises. Despite the challenges, AMI remains resilient, nurturing a diverse

workforce and embracing innovation to stay ahead in the game. He indicated that the certification “has increased our ability to employ more females due to their vision in seeing greater than average opportunities with AMI.”

Like a cyclist pushing through fatigue to reach the summit, WOSB and EDWOSB certified businesses on Guam are driven by a sense of purpose and determination. Geri Leon Guerrero emphasizes the importance of passion and commitment in the face of adversity. "No matter what our aspirations are, or what led us to the place we are today, we must continue to focus on building a path that brings passion and commitment," she asserts. For Geri, success is not merely a destination, but a journey marked by perseverance and resilience.

In the realm of business, certification acts as a catalyst for growth and inclusivity. Irene Hicks highlights the advantages of WOSB and EDWOSB certification, providing federal contractors with another reason to do business with certified enterprises. Despite the challenges of competing with larger corporations, Irene emphasizes the significance of deep-rooted knowledge and logistical expertise in navigating Guam's unique business landscape.

While the road ahead may be fraught with challenges, Monty McDowell remains optimistic about the future of WOSB and EDWOSB certified businesses on Guam. "We

hope and pray that the Federal Government begins procuring opportunities via WOSB, enabling AMI to qualify to bid," he shares. Hicks looks forward to the future, she explains, “We continue to reach out to new companies and new projects on Guam. Additionally, we continue to broaden our support to the rest of Micronesia, the Marshalls, and American Samoa.

The successes of WOSB and EDWOSB certified businesses on Guam serve as a testament to the power of perseverance and resilience. Like learning how to ride a bike, the journey towards success is marked by falls and triumphs. Both experiences teach valuable lessons determination. Whether conquering the pavement or the federal contracting process, the journey may be tough, but the rewards make it worthwhile. Through certification, women entrepreneurs are not only breaking barriers but rewriting the narrative of inclusivity and empowerment in the business world. As they pedal towards a brighter future, their journey serves as an inspiration, reminding us that with willpower and perseverance, anything is possible. If you are interested in becoming WOSB or EDWOSB certified, visit www.WOSB.certify.sba.gov for more information, or visit with your local Small Business Development Center.

NEWS LINE

ABC Expresses Concerns to DOD on Cybersecurity Maturity Model Certification Program Proposed Rule

On Feb. 26, ABC joined the U.S. Chamber of Commerce and eight other groups in submitting  comments to the U.S. Department of Defense on its Cybersecurity Maturity Model Certification (CMMC) Program proposed rule, which would require federal contractors and subcontractors competing for DOD contracts to demonstrate continued compliance with a range of cybersecurity measures in order to maintain eligibility for performing and winning new federal awards.

The organizations called for more clarity (e.g., definitions), expressed concerns about costs and asked questions regarding capacity and other process and organizational issues.

The comments urged flexible implementation of CMMC program requirements. The comment letter pointed out that, “According to the proposed rule, the defense industrial base, or DIB, consists of 221,286 entities. Of these, the DOD expects that 76,598 will be subject to a Level 2 Certification Assessment, of which 56,789 (74%) are small businesses. The complex CMMC Program would apply to all these entities. Our associations believe that it is essential that DOD builds in flexibility in the administration, application, oversight, and enforcement of the proposed rule. Such flexibility would benefit DOD and the thousands of businesses subject to the CMMC Program. The circumstances of every business differ. The CMMC Program contemplates applying one complex rule, with even more complex accompanying documentation to all these businesses.”

The letter further discussed avoiding harm to small defense contractors. The letter states, “Our associations believe that the proposed rule would discourage many small and disadvantaged businesses from bidding on DOD construction projects. We are concerned about the likely adverse economic impact of the CMMC Program on promoting (sub)contracting between small businesses in the construction industry and DOD.”

In addition, it states, “The decline in small business participation in federal contracting directly correlates with increasing federal regulatory burdens.  Surveys of ABC’s membership have found that small business contractors often choose to bid on private sector and state or local government contracts that feature more regulatory clarity and less regulatory burdens, which mitigate expenses related to compliance.”

Background on the Proposed Rule

On Dec. 26, 2023, the DOD published a proposed rule that would require federal contractors and subcontractors competing for DOD contracts to demonstrate continued compliance with a range of cybersecurity measures in order to maintain eligibility for performing and winning new federal awards.

The new requirements would apply to all contractors and subcontractors that process, store or transmit information on contractor servers that meet the standards for Federal Contract Information or Controlled Unclassified Information. Requirements vary from a

self-assessment of compliance with cybersecurity measures to triennial assessment and certification of compliance by third-party contractors or the DOD, dependent on the data involved in a specific contract. More than 200,000 companies in the DIB could be affected by the rule.

On Jan. 30, 2024, ABC urged the DOD to extend the current 60-day comment period deadline of Feb. 26 in order to provide adequate time for ABC to analyze the substantial proposed rule, solicit member feedback and provide meaningful input on the proposal. ABC argued a 30-day extension from the current deadline will be vital to ensure that the DOD can receive thorough input from all stakeholders affected by this proposed rule.

On Feb. 8, Inside Cybersecurity  reported that the DOD “turned down a request from industry groups to extend the comment period” for 60 days. Thereafter, on Feb. 9, ABC joined a coalition letter urging the DOD to reconsider its publicly reported decision to not extend the comment period and to instead extend it either 30 or 45 days—a middle-ground approach. The DOD did not issue a response.

DOL Overtime Rule Sent to OIRA for Final Review

On March 1, the U.S. Department of Labor sent its Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees final rule to the Office of Information and Regulatory Affairs at the Office of Management and Budget for final review. The rule would alter overtime regulations under the Fair Labor Standards Act. The review at the OIRA is usually the final step in the process before a rule is officially published in the Federal Register. ABC will be meeting with the OIRA to express its serious concerns about the rule.

On Nov. 7, 2023, ABC submitted  comments to the DOL in opposition to the proposed overtime rulemaking,  which would increase the minimum salary threshold for exemption by nearly 70%, from the current $35,568 annual salary level to $60,209 annually. The DOL also proposes to significantly raise the total annual

compensation needed to qualify for exemption under the streamlined test for highly compensated employees from the current total annual compensation of $107,432 to $143,988. Finally, the DOL proposes to automatically update the standard salary level and the HCE total annual compensation threshold every three years.

ABC issued a press release stating, “ABC called on the DOL to withdraw the new proposed rule, which is unlawful, inconsistent with historic norms and will specifically harm small businesses,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “ABC has consistently told the DOL that there is no compelling reason for an adjustment to the minimum salary threshold for exemption since it was increased roughly four years ago. Most importantly, the DOL should recognize that the construction

industry, as well as multiple other industries, is currently up against increased geopolitical uncertainty,  high materials prices, inflationary pressures and workforce shortages. Specifically, ABC estimates that the construction industry needs to hire  more than half a million workers in 2023 alone. Regrettably, the DOL’s proposed salary level increase  will further complicate the current economic outlook.”

As a steering committee member of the Partnership to Protect Workplace Opportunity, ABC also signed onto  coalition comments criticizing the overtime proposed rule, joining 244 national, state and local organizations representing employers from a wide range of private industry and public, nonprofit and education sectors. The PPWO also created a grassroots toolkit for members to respond to the DOL’s overtime proposed rule.

ABC Unveils AI Resource Guide for Contractors

Associated Builders and Contractors today announced it has released an artificial intelligence technology guide for the construction community, which includes definitions, construction use cases and considerations. The purpose of the guide is to provide a level of knowledge to ensure contractors can be active participants in the construction AI conversation.

“ABC helps members realize the potential of AI, which helps contractors complete projects on time, minimize staffing challenges, save money and improve health and safety,” said Matt Abeles, ABC vice president of construction technology and innovation. “The construction industry is faced with a steep worker shortage of more than half of a million in 2024, and promising technologies like AI can help address this challenge. As younger workers

become industry leaders, we must approach AI in construction as beneficial with a balanced view that includes continuous evaluation, developing ethical guidelines and increasing awareness about what AI can and cannot do.”

“The possibilities of AI technology may sound endless, but we must first educate ourselves on the basics, and this resource is a starting point to understand AI and its potential impact on the construction industry,” said ABC Director of Construction Technology and Innovation Patrick Scarpati, who authored the guide. “The industry has immense opportunities to evaluate how we can better deliver projects, and we can lean on AI in achieving essential goals like upskilling, workforce development, knowledge transfer, supply chain optimization, enhanced safety design and planning and much more.”

The guide describes uses of AI during the construction project lifecycle, including preconstruction, construction and building maintenance. It also provides definitions of terms, such as deep learning and predictive AI, as well as best practices in drafting office AI policies.

ABC creates the conditions for construction companies to innovate, differentiate, and attract and educate their top talent, ultimately to win and deliver that work safely, ethically and profitably for the betterment of the communities in which they work. ABC continues to invest in helping its members select and understand high-quality construction technology available to them through its Tech Report, Tech Alliance, Tech Marketplace and Safety Tech Guide.

Visit abc.org/ai.

10 CYBER SECURITY TIPS FOR SMALL BUSINESS

Broadband and information technology are powerful factors in small businesses reaching new markets and increasing productivity and efficiency. However, businesses need a cybersecurity strategy to protect their own business, their customers, and their data from growing cybersecurity threats.

1. Train employees in security principles

Establish basic security practices and policies for employees, such as requiring strong passwords, and establish appropriate Internet use guidelines that detail penalties for violating company cybersecurity policies. Establish rules of behavior describing how to handle and protect customer information and other vital data.

2. Protect information, computers, and networks from cyber attacks

Keep clean machines: having the latest security software, web browser, and operating system are the best defenses against viruses, malware, and other online threats. Set antivirus software to run a scan after each update. Install other key software updates as soon as they are available.

3. Provide firewall security for your Internet connection

A firewall is a set of related programs that prevent outsiders from accessing data on a private network. Make sure the operating system's firewall is enabled or install free firewall software available online. If employees work from home, ensure that their home system(s) are protected by a firewall.

4. Create a mobile device action plan

Mobile devices can create significant security and management challenges, especially if they hold confidential information or can access the corporate network. Require users to password-protect their devices, encrypt their data, and install security apps to prevent criminals from stealing information while the phone is on public networks. Be sure to set reporting procedures for lost or stolen equipment.

5. Make backup copies of important business data and information

Regularly backup the data on all computers. Critical data includes word processing documents, electronic spreadsheets, databases, financial files, human resources files, and accounts receivable/payable files. Backup data automatically if possible, or at least weekly and store the copies either offsite or in the cloud.

6. Control physical access to your computers and create user accounts for each employee

Prevent access or use of business computers by unauthorized individuals. Laptops can be particularly easy targets for theft or can be lost, so lock them up when unattended. Make sure a separate user account is created for each employee and require strong passwords. Administrative privileges should only be given to trusted IT staff and key personnel.

7. Secure your Wi-Fi networks

If you have a Wi-Fi network for your workplace, make sure it is secure, encrypted, and hidden. To hide your Wi-Fi network, set up your wireless access point or router, so it does not broadcast the network name, known as the Service Set Identifier (SSID). Password protect access to the router.

8. Employ best practices on payment cards

Work with banks or processors to ensure the most trusted and validated tools and anti-fraud services are being used. You may also have additional security obligations pursuant to agreements with your bank or processor. Isolate payment systems from other, less secure programs and don't use the same computer to process payments and surf the Internet.

9. Limit employee access to data and information, limit authority to install software

Do not provide any one employee with access to all data systems. Employees should only be given access to the specific data systems that they need for their jobs, and should not be able to install any software without permission.

10. Passwords and authentication

Require employees to use unique passwords and change passwords every three months. Consider implementing multi-factor authentication that requires additional information beyond a password to gain entry. Check with your vendors that handle sensitive data, especially financial institutions, to see if they offer multi-factor authentication for your account.

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