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Guam Contractors’ Association


Vol.54 Issue 4 APRIL 2013

























Feature Story



Member Benefits

Gut Busters Did you know this is Guam’s 1 green building? It was even built in 19-tinaky. st

Fo reals?

Fo reals.

*Ding* Oh, here’s the elevator

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13-HRP-054 GCA Magazine 5K

THEDIRECTORS PRESIDENT James A. Martinez, GCA PAST CHAIRMAN William “Bill” Beery, Tutujan Hill Group CHAIRMAN Robert Salas, Landscape Management Systems VICE CHAIRMAN Tom Anderson, Black Construction SECRETARY/TREASURER Art Chan, Hawaiian Rock CONTRACTORS DIRECTORS: Tom Nielsen, Maeda Pacific Corporation Juno Eun, Core Tech International Mike Venezia, Hensel Phelps John Robertson, AmOrient Louis De Maria, dck pacific guam LLC ASSOCIATE DIRECTORS: Patty Lizama, Individual Assurance Company Paul Calvo, Calvo’s Insurance Carlo Leon Guerrero, M80 Office Systems Inc. Ray Yanger, Matson Navigation

THEEDITORIALS 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 of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, 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 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. 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: Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

THETEAM PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Tom Mendiola June Maratita PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland Tanya Robinson PHOTOGRAPHERS: Marty Leon Guerrero Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson David F. Macaluso

Dr.Noel Silan DPM, ABMSP P.C.

Grace Donaldson Dean Higuchi Shawn Gumataotao Ted Garrison GCA STAFF: Francine Arceo Desiree Lizama COVER: We’re in Control



The 35th Annual Charlie Corn Scholarship Golf Tournament Saturday, May 18, 2013 STARTS Guam Golf Resort



250 scholarships to aspiring engineers and architects on Guam and the Commonwealth of the Northern Mariana Islands. CHARLIE CORN SCHOLARSHIP 1) High school seniors planning to pursue a full-time undergraduate technical degree at a university with an accredited engineering or architecture program, or 2) A current Engineering or Architecture Major enrolled at a university with an accredited program.


For more information, please contact Scholarships Director Tor Gudmundsen at 6 | APRIL2013


Few people are familiar with Charlie and his position in Guam’s history as one of the grandfathers of Guam’s post WWII business community. His full story can be found at

Charlie Corn is shown at the far right in this photograph taken in the Skinner; Washington Representative Antonio B. Won Pat; Senator Jesus Okiyama, businessman Bill Conway, and Charlie.

In 1918, Charlie Corn immigrated to Angeles City in the U.S. Commonwealth of the Philippines. He eventually came to manage a snack bar at Clark Field that later became Clark Air Base. In 1922, he married Esperanza Elwick, the daughter of an American Army Sergeant and a Filipina. He became very successful serving the American military in the Philippines. Unfortunately, his life and business became severely disrupted in the early 1940’s by the horrors of World War II. His ties to the U.S. military made him subject to intense Japanese scrutiny.

launched and managed many businesses, including the Harmon Field Restaurant, U.S. Military Food Catering 1956 and started the Far East Trading Company. By the mid 1960’s Corn and Murray Entrprises employed 220 people on Guam, having operations in Okinawa, the Philippines and California. Charlie Corn led the rest of his life as a successful businessman on Guam and was known as a man who generously contributed to community activities. He was a very active member of SAME and contributed heavily to and proplace in his hometown in China. He was survived by his wife, Esperanza, a son, Anthony, and two daughters, Helen and Josephine. He also had a son, Alfred Chan from another marriage in China. Charlie Corn was given the distinction of being named Busi-

To join SAME Guam Post, log on to and click on “Membership” at the top of the home page.


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Military, Government and Labor Relations Committee Update – April ‘13 U.S. Defense Rebalance to the Asia-Pacific Region

On Monday April 8th, U.S. Deputy Secretary of Defense Ashton B. Carter delivered a speech at the Center for Strategic and International Studies (CSIS) in Washington, DC. It was a major policy address titled “U.S. Rebalance to the Asia-Pacific Region” and will be of interest to all who do business with the Department of Defense and especially those in our region. It was rebroadcast on C-Span Tuesday evening April 9th Guam time. It is repeated below in full text. Although lengthy, it is well worth reading. Elements of the speech have been heard before but this speech provides the clearest indication lately of plans by the U.S. Government and especially the DoD for Asia-Pacific. Guam is mentioned specifically a number of times but is alluded to throughout. Secretary Carter was introduced by CSIS President and CEO John Hamre.

By John M. Robertson



As a bipartisan think tank, CSIS strives to provide a platform for Congressional leaders to interact with the broader policy community on issues affecting our national security. For more than 50 years, as one of the nation’s leading bipartisan institutions, the Center for Strategic and International Studies (CSIS) has prioritized outreach to members of Congress and their staff to provide targeted, useful, and timely support from the world’s top experts in defense and security policy, global challenges, and regional studies. Those of us on Guam can recall that this organization provided a report last summer to the U.S. Senate with clear message of why the military buildup on Guam should proceed without further interruption. Unfortunately, Senator John McCain and others were unmoved and the realignment of forces in our region is still stalled. Ashton Baldwin Carter (born September 14, 1954)[1] is a United States national security professional serving as the United States Deputy Secretary of Defense. Prior to that, He served as Under Secretary of Defense for Acquisition, Technology, and Logistics (AT&L). He is currently on leave from his post as Co-Director (with former Secretary of Defense William J. Perry) of the Preventive Defense Project, a research collaboration of Harvard and Stanford universities. He is also on leave from the International Relations, Security, and Science faculty at Harvard's John F. Kennedy School of Government. Carter served as Assistant Secretary of Defense for International Security Policy in the Clinton Administration from 1993 to 1996, and was nominated to join the Obama Administration on March 18, 2009. Carter served as a member of the Defense Science Board from 1991–1993 and 1997–2001, the Defense Policy Board from 1997–2001, and Secretary of State Condoleezza Rice's International Security Advisory Board from 2006-2008. In 1997, Carter co-chaired the Catastrophic Terrorism Study Group with former CIA Director John M. Deutch, which urged greater attention to terrorism. From 1998 to 2000, he was deputy to former Secretary of Defense William J. Perry in the North Korea Policy Review and traveled with him to Pyongyang. In 2001-2002, he served on the National Academy of Sciences Committee on Science and Technology for Countering Terrorism and advised on the creation of the Department of Homeland Security.

U.S. Department of Defense Office of the Assistant Secretary of Defense (Public Affairs) Thank you, John (Hamre), for giving me the opportunity to be here at this wonderful institution that you run so ably. I’ve learned so much from John throughout my career, and I have an even greater appreciation today, in my current role, for what John accomplished as Deputy Secretary of Defense. John, you made it look easy. Thank you for inviting me to be here. I also want to thank Rick Inderfurth, CSIS’s chair for U.S.-India Policy Studies, who made this event possible and from whom I’ve learned so much about this region for so long. Thank you, Rick. As John mentioned, I did recently return from a trip to Asia that took me to Japan, South Korea, the Philippines, and Indonesia, where I attended the Jakarta International Defense Dialogue. The purpose of my trip was to visit with our troops of course, who are performing superbly, and also to make sure that our forces, our allies, and our partners in the region understand that we are serious about our defense commitments there – that we are going to walk the walk, not just talk the talk. This was my second trip to Asia since President Obama announced a new strategic concept for the United States. And it followed recent visits to the region by President Obama, Secretary Clinton, Secretary Panetta, and National Security Advisor Donilon – all of whom were emphasizing the very same thing: the central importance of the Asia-Pacific to the United States and our

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I say all of this because I think it’s important to point out how much time, energy, and intellectual capital, as well as resources we are investing in our rebalance to Asia – across the breadth of our government. As the President has said, our investment in the region will continue to grow in the years to come. Now in this connection, our rebalance to Asia is mostly a political and economic concept, not a military one. But given my role as Deputy Secretary of Defense, I’m naturally going to concentrate on its security aspects today.

NORTH KOREA First, I’d like to briefly address the evolving security situation on the Korean Peninsula: The North Koreans have been determined of late to create a crisis atmosphere. But just because they have a habit of indulging in extreme rhetoric doesn't mean that we don't take the situation seriously. As we have demonstrated through our actions in the past few weeks, the United States is committed to maintaining peace and security on the Korean Peninsula and throughout the Asia-Pacific region. We are vigilantly monitoring the situation, and we are in close contact with our South Korean civilian and military counterparts, as well as with the governments of Japan, China, and Russia. Our position has been, and remains, that North Korea should cease its provocative threats immediately. North Korea’s nuclear activities are in clear violation of U.N. Security Resolutions and its international commitments, and we believe that North Korea should live up to these commitments and refrain from its provocative behavior. To this end, we are working with our friends and allies around the world to employ an integrated response to these unacceptable provocations, which include United Nations Security Council Resolutions with unprecedentedly strong sanctions and additional unilateral sanctions of great effect, the result of which will be to leave North Korea further isolated from the international community. In the security sphere, the United States remains steadfast in its defense commitments to the Republic of Korea. Together, we are taking important steps to advance the alliance’s military capabilities and enhance homeland and alliance security.

In particular, we will continue to provide the extended deterrence offered by the U.S. nuclear umbrella and will ensure that all of its capabilities remain available to the alliance. As Secretary Hagel announced, we are also taking actions to strengthen our missile defenses in order to keep ahead of North Korean ballistic missile development. These include the deployment of 14 additional ground-based interceptors at Fort Greely, Alaska, and the planned deployment of a second TPY-2 radar to Japan, which will provide improved early warning and tracking of any missile launched from North Korea towards the United States or Japan. In recent weeks, we have also moved the guided missile destroyers U.S.S. John S. McCain and U.S.S. Decatur to locations in the Western Pacific, where they are poised to respond to any missile threats to our allies or our territory. Last Thursday, we announced that we will be deploying a Terminal High Altitude Area Defense System ballistic missile defense system to Guam in the coming weeks as a precautionary move to strengthen our regional defense posture against a North Korean missile threat. In addition to these measures, we recently signed a new joint “counter-provocation plan” with the Republic of Korea to enhance our coordination and response in the event of a North Korean provocation and mitigate the risk of miscalculation. And we are participating in annual military exercises with South Korea, including FOAL EAGLE and KEY RESOLVE, to make sure that our alliance is operationally ready to meet the security challenges that confront us in the region. As the President has made clear, there is a path open to North Korea to peace and economic opportunity. But to get on that path, North Korea must abandon its pursuit of nuclear weapons and abide by its international commitments.

IMPLEMENTING THE REBALANCE With that, let me return to the broader theme of today’s discussion, which is how we are implementing our defense rebalance across the Asia-Pacific region. And I’d like to begin by providing some strategic context: We in the United States are currently embarked upon a great strategic transition. After a decade of necessary and very intense preoccupation on two wars of a particular kind in Iraq and Afghanistan—one that has finished, and one that will wind down to an enduring presence over the next two years—we are turning a strategic corner, and focusing our attention on the challenges and

opportunities that will define our future. We know what many of those challenges are: continued turmoil in the Middle East, enduring threats like weapons of mass destruction, and a range of new threats in new domains like cyber. We also see great opportunities—the most consequential of which is to shift the great weight of the Department of Defense—both intellectual and physical—to the Asia-Pacific region to reinforce our longstanding commitments here. The logic of our rebalance is simple: the AsiaPacific theater has enjoyed peace and stability for over sixty years. This has been true despite the fact that there is no formal, overarching security structure—no NATO—to make sure that historical wounds are healed. And during that time, first Japan rose and prospered, then South Korea rose and prospered, then many nations in Southeast Asia rose and prospered. And now, China and India rise and prosper. All this has been welcomed by the United States. But none of this was a foregone conclusion when you consider where the Asia-Pacific region was at the end of World War II. While the Asian political and economic miracle was realized, first and foremost, by the hard work and talent of the Asian people, it was enabled by the enduring principles that the U.S. has stood for in the region, which we believe are essential to peace, prosperity, and security. These include a commitment to free and open commerce; a just international order that emphasizes rights and responsibilities of nations and fidelity to the rule of law; open access, by all, to the shared domains of sea, air, space, and now, cyberspace; and the principle of resolving conflict without the use of force. It was also enabled—and this is the theme of my remarks today—by the pivotal role of U.S. military power and presence in the region. We believe that our strong security presence in the Asia-Pacific has provided a critical foundation for these principles to take root. And we intend to continue to provide this foundation for decades to come. Our partners in the region welcome our leadership and our robust engagement, and we are committed to answering their call. It’s good for us, and it’s good for everyone in the region. And it includes everyone in the region. It is not aimed at anyone – no individual country, or group of countries. With this background, I’d like to explain the various features of our defense rebalance to the Asia-Pacific region. Our rebalance is reflected in: Force structure decisions we have made and are making – that is, what we keep and what


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commitment to making sure that the region remains safe, secure, and prosperous. Later this week, Secretary Kerry will be visiting Seoul, Tokyo, and Beijing for the first time as Secretary of State. And later this spring, Secretary Hagel, who as a Senator led the first U.S. congressional delegation to the Shangri-La Dialogue, will attend the Dialogue for the first time as Secretary of Defense. Our forces out there are superbly commanded by Sam Locklear and J.D. Thurman.


we retire; • Presence and posture – that is, where we put things and what we can do with them – the most visible part of our rebalance; • Investments—not just in technology and new weapons systems— but in human capital as well; • Innovations in our operational plans and tactics; • And perhaps most importantly, the work we are doing to strengthen our alliances and partnerships in the region.

FORCE STRUCTURE I’d like to begin by describing how we are shifting our force structure to the Asia-Pacific region. And I’ll start with the Navy. As we draw down from Afghanistan, the Navy will be releasing naval surface combatants, and eventually carriers, as well as naval intelligence, surveillance, and reconnaissance, and processing, exploitation and dissemination capabilities: Already, EP-3 signals reconnaissance aircraft have moved from CENTCOM to PACOM. • The Navy will also be releasing Firescout Unmanned Aerial Vehicles from Afghanistan, and several electronic surveillance aircraft will be available for redeployment. • In addition, Navy P-3s, a type of maritime patrol aircraft, which have conducted maritime surveillance missions in the Middle East for the past decade, will return to PACOM. • And the Navy is also adding a 4th Forward Deployed Naval Force SSN to Guam in fiscal year 2015. The Navy is also shifting its overall posture to the Asia-Pacific region. Secretary Panetta announced last year that 60 percent of our naval assets would be assigned to the Asia-Pacific region by 2020 – a substantial and historic shift. The Navy is accomplishing this in three main ways: First, the Navy will be permanently basing four destroyers in Rota, Spain, to provide ballistic missile defense to our European allies. Previously, this mission was performed by ten destroyers that rotated from the U.S. to the Mediterranean. The six destroyers that will now be released will be able to shift their deployments to the Asia-Pacific region, while the four ships in Spain continue providing the same amount of missile defense coverage for our European allies. Second, destroyers and amphibious ships that have conducted security cooperation and humanitarian assistance missions in Africa, South America, and Europe, will be replaced for these missions by new Joint High Speed Vessels and Littoral Combat Ships under con-

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struction, freeing destroyers and amphibious ships to deploy to the Asia-Pacific region. Third, the Navy will generate more forward presence by fielding ships—such as the JHSV and LCS, which I mentioned, as well as new Mobile Landing Platforms and Afloat Forward Staging Bases— that use rotating civilian or military crews. The Air Force, capitalizing on its inherent speed, range, and flexibility in the region, will also shift capacity from Afghanistan to the Asia-Pacific, including intelligence, surveillance, and reconnaissance assets like the MQ-9 Reaper, the U-2, and the Global Hawk. In addition, the Air Force will be able to allocate space, cyber, tactical aircraft, and bomber forces from the U.S. to the Asia-Pacific region with little new investment, as 60 percent of its overseas-based forces are already stationed there, including 60 percent of combat-coded F-22s. Our ability to strengthen the ongoing continuous bomber presence missions in the region will also benefit from reduced presence in Afghanistan. As operations in Afghanistan end, for example, more B-1s will become available, augmenting the B-52s already on continuous rotational presence the region, and the capability to provide forward strategic presence with round-trip missions by the stealthy B-2 will remain a valuable option. The Army and Marine Corps also have an important role to play in our rebalance. Both services are making the most titanic transitions coming out of Iraq and Afghanistan because they’ve been so deeply involved in both conflicts. The Army has about 91,000 soldiers and civilians assigned to the Asia-Pacific and it maintains a forward presence of eight active component Brigade Combat Teams, twelve batteries of Patriots, and numerous theater enabling units. The Army is ensuring that, after a decade of using PACOM assets in the CENTCOM area, the PACOM commander regains command and control of the other 60,000 Soldiers assigned to the broader Asia- Pacific region. As part of this regionally-aligned rotational concept, Army units assigned to PACOM will focus during their training cycle on specific PACOM mission profiles, such as bilateral and trilateral training exercises and building partnership capacity. I should also add that during these months of sequestration and beyond, the Army is preferentially protecting the readiness and modernization of the more than 19,000 Soldiers we have in South Korea so that they are able to decisively respond to any North Korean provocation. The Marines also have a pivotal role to play in the Pacific as well. Roughly 18,000 Marines are forward-deployed in the region, split between Iwakuni, where a fighter squadron is based;


Okinawa, where III Marine Expeditionary Force operates from; and Darwin, which has a Marine rifle company. The Marines have also put an additional two infantry battalions (for a total of three) on the ground in Okinawa and will put another there this fall. These are rotational battalions that will move in and out of the Western Pacific every six months. All of this will be accompanied by an EA-6 Prowler squadron in Iwakuni this fall, along with more heavy lift and attack helicopters on Okinawa. I should also mention that there are 5,000 Marines on Oahu in Hawaii. So in reality, the Asia-Pacific region will soon see more of our Army, Marine Corps, and Special Operations Forces, now that they are coming home to the Pacific from Iraq and Afghanistan.

FORWARD PRESENCE In addition to shifting our own force structure, we are modernizing and enhancing our forward presence across the region in cooperation with our allies and partners. Let me start with Northeast Asia: I’ve already mentioned the work we are doing with South Korea. In Japan, we have added aviation capability with the MV-22 Osprey deployment, we have upgraded our missile defense posture as I mentioned earlier with the deployment of a second TPY-2 radar, and we are working to revise the Defense Guidelines with Japan to meet the challenges of the 21stcentury. And, as announced by Secretary Hagel last week, the United States and Japan have achieved an important milestone in our effort to realign our Marine Corps presence in Okinawa. Moving forward on this initiative sends a clear signal that our posture in Northeast Asia will be operationally resilient, geographically distributed, and politically sustainable for the foreseeable future. In addition to strengthening our presence in Northeast Asia, we are enhancing our presence in Southeast Asia and the Indian Ocean region as well. In this regard, it’s important to underscore that we are not only rebalancing to the Asia-Pacific but also within the Asia-Pacific, in recognition of the growing importance of Southeast Asia to the region as a whole – emphasizing humanitarian assistance and disaster relief, maritime domain awareness, capacity building, and multilateral exercises. In Australia, for example, our first company of Marines rotated through Darwin last year – a key first step towards using this presence to engage in bilateral and multilateral exercises with partners in the region In the Philippines, we are working with our full and equal partner

These are but a few examples of how we are expanding our presence in the region.

INVESTMENTS Next, we are giving priority in our investments in our budget to the development of platforms and capabilities that have direct applicability to the Asia-Pacific region, all the while preserving and integrating the counter-insurgency and special operations capabilities that we have worked so hard to develop over the last decade in Iraq and Afghanistan. These investments include the Virginia-class nuclear powered submarine –including the submarine itself and the new payload module for cruise missiles—as well as the P-8 Maritime Surveillance Aircraft and the anti-submarine MH-60 helicopter. Together, these investments will help the Navy sustain its undersea dominance. The Navy is also fielding the Broad Area Maritime Surveillance sensor aboard the Global Hawk Unmanned Aerial Vehicle to expand the range and capacity for ISR in the region; additional EA-18G electronic aircraft, and a Next Generation Jammer with extensive frequency range and increased agility. These provide extensive electronic warfare capability. In the Air Force, while we have made some reductions in tactical air squadrons worldwide by removing some of the older or single-purpose aircraft to make way for newer aircraft, we have made no significant changes in our tactical air posture for the Asia-Pacific region. In addition, we have continued to invest in the fifth-generation Joint Strike Fighter, a new stealth bomber, the KC-46 tanker replacement, and a host of ISR platforms. The Army, for its part, continues to invest in Ballistic Missile Defense capabilities that are being deployed and improved as I noted. At the enterprise level, we are also protecting our investments in future-focused capabilities that are so important to this region, such as cyber, certain science and technology investments, and space. In addition to investing in technical capabilities, we are also investing in our people: in language and culture skills, regional and strategic affairs – to ensure that we cultivate the intellectual capital that will be required to make good on our rebalance.

And with regard to our military installations, we are making critical investments in training ranges and infrastructure – including in Guam, which we are developing as a strategic hub—as well as in Marianas, Saipan, and Tinian. We are focused on delivering capacity, managing resources, and following-through on our investments. Secretary Gates and Panetta both held regular videoconferences on Iraq and Afghanistan – where the commanders and all the key players in the Pentagon would work on those very urgent problems associated with both theaters. Given the priority of our rebalance, Secretary Panetta decided to use this same model for PACOM – a model that Secretary Hagel has now adopted as well – to provide continuous and focused attention on the region. In fact, I just came from such a meeting. And to support the Secretary, I have been convening a series of working sessions of the Deputy’s Management Action Group – the principal management forum of the Department – that are specifically focused on our rebalance to the Asia-Pacific. We are watching every dollar, every ship, and every aircraft to implement the rebalance successfully.

OPERATIONAL PLANS We also recognize that as the world is changing quickly, our operational plans need to change. And we're changing them accordingly. We are therefore taking into account new capabilities and operational concepts, advanced capabilities of potential adversaries and global threat assessments.

PARTNERSHIPS These many U.S. elements of our rebalance are only part of our strategy. We also seek, as we have for decades, to build partnerships in the region that leverage the unique strengths of our various partners and allies to confront critical challenges and realize emerging opportunities. I’ve already mentioned the work we are doing with allies Japan, Korea, Australia, and the Philippines, but we’re building partnerships with many others also. For example, last November, we worked with our treaty ally Thailand to update the U.S.-Thailand Joint Vision Statement for the first time in 50 years.’ With New Zealand, the signing of the Washington Declaration and associated policy changes have opened up new avenues for defense cooperation in areas such as maritime security cooperation, humanitarian assistance and disaster relief, and peacekeeping support. In Burma, we

have resumed limited military-to-military relations and are working to ensure the Burmese military supports Burma’s ongoing and dynamic reforms. With the Vietnamese, we are expanding our cooperation – as set forth in a new memorandum of understanding – in maritime security, search-and-rescue, peacekeeping, and humanitarian assistance and disaster relief. In Malaysia and Indonesia, we are similarly working to build partner capacity to conduct maritime security and humanitarian assistance and disaster relief. With China, we have invited the Chinese to participate in the RIMPAC exercise which we host, and we are delighted that they have accepted. We seek to strengthen and grow our military-to-military relationship with China, commensurate with our growing political and economic relationship. Building and sustaining a positive and constructive relationship with China is essential to the success of our rebalancing strategy. Finally, India – a key part of our rebalance, and, more broadly, an emerging power that we believe will help determine the broader security and prosperity of the 21stcentury. Our security interests with India converge on maritime security and broader regional issues, including India’s “Look East” policy. We also are working to deepen our defense cooperation – moving beyond purely defense trade towards technology sharing and co-production. Multilaterally, we recognize the importance of strengthening regional institutions like ASEAN that play an indispensable role in maintaining regional stability and resolving disputes through diplomacy. In this regard, we have made attendance at key ASEAN ministerial meetings a priority for our secretaries, especially the ASEAN Defense Ministers’ Meeting Plus. We strongly support ASEAN unity and we applaud the efforts of ASEAN member nations to develop a binding code of conduct that would create a rules-based framework for regulating the conduct of parties in the South China Sea and would welcome China's active participation in negotiations on it. Our position is clear and consistent: we call for restraint and for diplomatic resolution; we oppose provocation; we oppose coercion; and we oppose the use of force. We don’t take sides when it comes to competing territorial and historical claims, but we do take the side of peaceful resolution of disputes in a manner consistent with international law. We are also deeply engaged in ASEAN exercises planned this year, including a humanitarian and disaster relief exercise that will be hosted by Brunei, a counterterrorism exercise that we are cosponsoring with Indonesia, and a maritime security exercise co-chaired by Malaysia and Australia. As we work to build these partnerships in


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to enhance the capacity of the Philippines Armed Forces, increase our rotational presence, and capitalize on other opportunities for cooperation. In Singapore, the first of our four Littoral Combat Ships will be arriving later this month, providing a key capability to work bilaterally and multilaterally with our partners in the region.


Asia, we will complement them with critical new investments in our alliance and in our partnerships in Europe. I mentioned the forward-basing of Aegis destroyers in Rota, Spain. We have established an aviation detachment in Poland to more closely train with our allies’ Air Forces, we will place land-based missile defense systems in Romania in 2015 and in Poland in 2018, and will redefine our presence in the NATO Response Force with a steady rotation of U.S. Army forces to Europe to maintain our transatlantic military links, and cement tremendous interoperability gains we have made with allies and partners over the last decade of operations. As we rebalance, in other words, our transatlantic bonds actually become even more important as we face common challenges outside Europe.

You may also be wondering whether the sequester will change these facts in a significant way. It won’t, and here’s why: Sequester was never intended to be implemented and is very disruptive because it gives us very little managerial flexibility in where we take budget adjustments this year. But wherever we have flexibility, we are favoring and protecting the rebalance. We continue to review and revise our plans for executing the FY13 budget in the face of sequester, increased costs of the Afghanistan campaign, and the fact that we only recently got an appropriation. Back in January I gave direction about what is exempt from or protected from sequestration, and the Services and components are applying that guidance. It explicitly directs the protection, wherever possible, of activities related to the rebalance this year.


The main point is that the arbitrary cuts that sequester imposes under the Budget Control Act are temporary, lasting through October of this year. In other words, sequester is an artificial, self-inflicted political problem, not a structural problem. Hopefully, the turmoil and gridlock will end and the U.S. can get back to normal budgeting. When it does, Congress and the President will decide what DoD’s budget will be in the years beyond fiscal year 2013. The President has been clear about holding defense spending steady in the long run or reducing it by a few percentage points, including especially by improving efficiency of defense spending. If the drastic cuts that began with sequester this year were extended for a decade, U.S. defense spending would be cut somewhere around ten percentage points. This is the range under debate today.

So there is so much that goes into the rebalance. Let me close by noting that there are those who have concerns about, and perhaps some who have hope for, a theory that our rebalance will not be lasting, or that it’s not sustainable. I’m a physicist, and I therefore put facts against theory, and let me tell you why this theory doesn’t fit the facts. The rebalance will continue, and in fact gain momentum for two reasons: First, U.S. interests in the region are enduring, and so also will be our political and economic presence. This presence is accompanied by values of democracy, freedom, human rights, civilian control of the military, and respect for the sovereignty of nations that America has long stood for, and that human beings welcome and I think relate to. So our interest in staying a pivotal force in the region will, we believe, be reciprocated. Second, we have the resources to accomplish the rebalance. Some who wish to question the rebalance to the Asia-Pacific theater point to the current, seemingly endless debate in Washington about the U.S. budget, and wonder whether all this can be accomplished. I’m interested to hear this because I’m more accustomed to listening to people question why the U.S. spends more on defense than the next 16 largest militaries in the world combined. This statistic is true and won’t change much in coming years. It’s also worth noting that most of the rest of the money that the world spends on defense is spent by countries that are allies and friends of the United States. These levels of defense spending are a reflection of the amount of responsibility that the U.S. and its friends and allies share for providing peace and security.

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None of these political scenarios changes the math I described earlier: the U.S. defense rebalance to the Asia-Pacific is not in jeopardy.

STRATEGIC CHOICES AND MANAGEMENT REVIEW That said, there is obviously considerable uncertainty about where an overall budget agreement, which is needed to end the current turmoil, will lead. And what is clear to us in DoD is that we need to think and act ahead of this uncertainty, and not in reaction to it. Moreover, it’s not the budget but strategic necessity that requires us to examine and reexamine our defense in a fundamental way: strategically, we are turning a corner after ten years of war, and we need to master the security challenges that will define the future. And, as you know I believe deeply, we need to improve the way we spend the taxpayer’s defense dollar, always striving for what I’ve called Better Buying Power since I was Under Secretary of Defense for Acquisition, Technology & Logistics.


For all these reasons, Secretary Hagel asked me to lead a Strategic Choices and Management Review, working with Chairman Dempsey, to examine the choices that underlie our defense strategy, posture, and investments, including all past assumptions and systems. The Review will define the major strategic choices and institutional challenges affecting the defense posture in the decade ahead that must be made to preserve and adapt defense strategy and management under a wide range of future circumstances that could result from a comprehensive deficit reduction deal or the persistence of the cuts that began with this year’s sequester. The results of this Review will frame the Secretary’s guidance for the Fiscal Year 2015 budget and will ultimately be the foundation for the Quadrennial Defense Review due to Congress in February 2014. As Secretary Hagel said last week at NDU, the goal of the Review is to ensure that we can better execute the strategic guidance set out by the President – including our rebalance to Asia.

CONCLUSION Finally, it is important to stress that the strength of our rebalance is not measured only by comparing defense budget levels. The end of the war in Iraq and the reduction in Afghanistan allow us to shift the great weight of effort from these wars to our stabilizing presence in the Asia-Pacific region. Next, this weight has accumulated over decades of U.S. defense spending, so you have to consider a nation’s defense investments over time. It takes decades to build a military capability of the kind the U.S. has. And probably most importantly, another feature of the U.S. military today is that its operational experience is unrivaled, including such attributes as the ability to work constructively with partners, fuse intelligence and operations, to operate jointly among services, and to support forces with logistics – all of these skills honed in Iraq and Afghanistan. For these reasons – enduring values and increasing military power – the United States can and will succeed in rebalancing to the Asia-Pacific in the years to come. Thank you.


Black Construction Corporation

Telephone 671.646.4861/5



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Controlling Factors by David F. Macaluso

Johnson Controls Incorporated (JCI) is a global company which offers products and solutions to optimize energy and operational efficiencies of buildings, lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles, electronics and interior systems for automobiles. This Wisconsin based company began when Professor Warren S. Johnson from the State Normal School in Whitewater, Wisconsin, received a patent for the first electric room thermostat. This invention helped jump start a building control industry and the beginning of Johnson’s new company, Johnson Electric Service Company which was formed in 1885. In 1974, almost a hundred years later, the company was renamed Johnson Controls Incorporated. Between 1885 and 1911, Professor Johnson ventured into many other areas which includes; electric storage batteries, steam and gas powered automobiles, huge pneumatic clock towers and wireless telegraph communication. But after his death in 1911, the company decided to focus solely on its temperature control business for nonresidential buildings. From that humble beginning in 1883, as of 2012, JCI’s total revenues were over $41.9 billion with a net worth of $1.65 billion. It is also listed at 67th in the Fortune 500 and 251st in Global 500. Johnson Controls currently has over 170,000 employees worldwide in 150 countries. And it still uses the same successful philosophy, looking out for their customer’s best interests as it continues to make essential contributions to the modern world. Johnson Controls has been doing business on Guam for nearly twenty years and decided to permanently set up an office on island about three years ago. This company promotes hiring local employees, which eventually will help the local economy. JCI also hires local contractors and people who are capable of doing the work. In the past they have used Black Construction, Fargo Pacific and DCK. Those companies all have workers here so JCI will subcontract the work out, this is another way money will stay within the community. As a matter of fact, Johnson Controls Project Manager Andre Leon Guerrero was the first local hire when the company

opened its doors nearly three years ago. Leon Guerrero adds, “The intention was to set up JCI on Guam and to hire local people. This company prefers to hire local workers compared to hiring people from the mainland. Right now we have eight full time employees and there are also between 5-7 temporary workers. Should the company continue to flourish and grow even more, we might make some of those temporary jobs become permanent.” JCI is currently upgrading and fixing the air conditioning system at Guam International Airport. This project has been ongoing since June 2012 and it is currently 75 85% complete. When this job is done, the company will have changed out and replaced all the cooling towers, all the chillers, changed the lighting to be more efficient, installing a HVAC system (ventilating and air-conditioning system) and it will all be connected to a Building Management System (BMS). Everything will then be controlled by a little computerized workstation and it will have its own server. This will allow the maintenance staff to see if everything is running right. They can easily look at this system online to see what is working and what’s not running right. If there are any problems or if something needs to be adjusted, this system will allow the maintenance staff to find out where to make those changes. It will also takes a snapshot every 15 mins, so it will keep an accurate record if there are any power outages or if the system has been tampered with. “Every air handler throughout the airport will be tied into a main computer, cooling towers and chillers,” said Leon Guerrero. “We will be able to monitor all the different air handlers at the different locations at the same time throughout the airport. The computer will help us monitor everything so we don’t have to go out and physically be there if there’s a problem. The system will tell us if there’s a problem such as it is not putting out enough cool air in certain areas. And then we will take care of it” In the past, the airport had an old cooling system, there were certain areas at the airport that were very cold and other areas that were warm. When Johnson Controls started replacing the VAV’s at the airport, they found a lot of units were shut closed and inoperable. So essentially no air was coming out and the other units were working harder to keep the airport cool. That's why the cooling system was unbalanced. SInce June 2012, JCI replaced 4 cooling towers. The airport is currently still very

cold, but that because none of the cooling towers are connected to the main computer. Leon Guerrero said, “We still need to install the controls with all the different air handling units. Once this happens, we will be able to control the set point temperature so the airport will be at a constant temperature.” The completion date for the airport is expected to be this June (2013). After this $11.9 million system is in place, it will potentially save the airport close to $4,000 in power usage a day. And if you do the math, that’s close to $1.5 million a year. After 8 years, this system will have paid for itself and it will save Guam’s taxpayers money. “We at Johnson Controls guarantees savings, that is what we sell to our customers. Its up to us to meet those savings and if we don’t meet that savings, then we will end up paying the difference. It really depends on what the existing system is in place. We will also have our team of engineers conduct an audit and provide all the calculations showing the potential saving." Three years ago, Johnson Controls worked with the Navy on their $13 million Energy Savings Performance Contract (ESPC). The scope of work involved the installations of interior lights, reduction street lights, temperature sensors, return sensors, duct static pressure sensors and controls in 42 buildings. This project covered 105 air paneling units and then they were all wired together to the server where it can monitor the 42 buildings. All these different sensors talk to each other, so they will work together in harmony to make sure a building maintains the proper climate. The Navy project also included the first ever solar panel field on Guam. This 250kw solar panel field could power 42-44 homes and is tied into Navy’s grid, so it doesn’t actually go directly into a home, it will be available for their main distribution. According to Leon Guerrero its been working really well. From November 2011 to April 2012, Johnson Controls was one of two companies that worked closely with Guam Power Authority to upgrade twelve GovGuam agencies. This was made possible by $8.1 million in ARRA Funds given to GPA by the United States Department of Energy. Johnson Controls helped retrofit 44 facilities belonging to 12 GovGuam line agencies. Those agencies were The Department of Public Health, the


APRIL2013 | 19


Increasing energy efficiency and to lowering operational costs for its clients is Johnson Controls main goal. This client-focused company which provides great service has been helping customers succeed for nearly 130 years.


Department of Mental Health, the Department of Public Works, Guam Fire Department and its stations, the Guam Library and its island satellites, the Guam Police Department, Department of Agriculture, Department of Parks and Recreation, Department of Youth Affairs and the Department of Administration. JCI helped change out the lights and when needed completely changed out and put in new fixtures. In other words, it was a complete retrofit of the entire lighting system throughout these GovGuam agencies. In addition to the lighting upgrades, the ARRA Funds were used to replace inefficient air conditioners that were installed in the 1960's with newer cost efficient units that will save GovGuam money and energy. Other items which were replaced were refrigerators, urinals, floor restrictors, sinks and showers, electrical work, and roofing. In some cases windows were tinted to make rooms cooler. After all these changes, an energy audit estimated that those Twelve GovGuam agencies are expected to have nearly 50 percent savings in their utilities bills. Another GPA and JCI collaboration was the LED street light replacement project funded by $2.5 Million of ARRA Grants. JCI did a one to one replacement, so they didn’t put up new street lights, they only replaced the existing fixtures. JCI only

20 | APIRL2013

worked on the main roads such as Route 1, 4 , 8, 10 & 16 and some of the roads within the villages. GPA later added five additional buildings which included Adelup, the Government house, Chamorro village, the street lights in Paseo, Finagayan Elementary School and KGTF. According to GPA, the average cost to power an average private street light is $38 per month. But with the introduction with all these new energy efficient LED lights, it will save GovGuam money. JCI has a number of new jobs in their pipeline and a number of projects they would like to do in the coming years. When asked, Leon Guerrero prefered not disclose them at this time because they are currently in the process of bidding on those potential future jobs. Leon Guerrero adds, “For JCI, its all about getting together with the customers and bring the solution to the table. We are here to help make Guam better place and to show the people how they can save energy.

fluorescent lamps in your house and get rid of the incandescent lamps,” said Leon Guerrero. “While growing up on Guam, my family always left the rice cooker on warm. A rule of thumb, if anything that gives off heat it is using power, so if its hot you are using power. Shut off your rice cooker when you are not using it, you can always warm up your rice later. Also unplug any appliance you are not using. And if possible, you should paint your house a light color, preferable white. This will make your house cooler. By doing some of these simple changes you might see a difference in your power bill.” JCI’s goal is to help reduce the cost in electricity and save on its client’s power. When they do this to government agencies, all that savings will eventually make its way back to the local people. At the end of the day, if this 130 year old company can help reduce a power bill and lowering operational costs it could eventually produce a more comfortable, safe and sustainable environment for the island and for everyone.

Although JCI is a company that is temperature control business that solely works on nonresidential buildings, Leon Guerrero gives a few tips on how to be efficient at your home. “There are a few ways of you can cut back and saving energy and money in your own home. Make sure you run compact


151 W. HARMON INDUSTRIAL PARK RD., TAMUNING, GUAM 96913 TEL. NO.: (671) 646-5231/5268 FAX NO.: (671) 646-5258

Authorized Distributor for Guam, CNMI and Micronesia


GCA Luncheon March 2oth, 2013 Hyatt Resort Guam

Guam Chamber and GCA Small Business Mixer April 4th, 2012 AK Lexus Showroom

22 | APRIL2013




APRIL2013 | 23



lighting by Shawn Gumataotao

products, including LED lighting. It is a little known fact that lighting accounts for nearly 15 percent of the energy consumed in buildings across America's 50 states and five territories. This has pushed building owners to seek out more energy efficient lighting systems for their respective facilities. This places the spotlight on light emitting diode (LED) lighting. Why? According to a recent report by global corporate research and growth services firm Frost & Sullivan, due to its reasonable cost, technology improvements and long life the LED lighting market is poised to grow significantly over the next five years. In their analysis of the North American LED Lighting Market, Frost & Sullivan found that the market earned total revenues of $1.15 billion in 2012 and estimates this to reach $3.63 billion by 2017. The market is primarily segmented into indoor and outdoor LED lighting. Analysts surmised that the need to conserve energy by upgrading older systems to LED lighting is a key driver for the market and found that there is higher adoption of energy efficient lighting in the outdoor segment due to government funding for lighting upgrades in exterior applications. Additionally, the report noted that the North American LED lighting market has also got a leg up from supportive legislation, such as the Energy Policy Act of 2005 and Energy Independence and Security Act of 2007, which mandates greater energy efficiency of general service incandescent lamps. The legislation also pushes the market introduction of efficient and high performing solid-state lighting (SSL)

24 | APIRL2013

While the U.S. federal government is pushing hard to incorporate these upgrades in buildings from Pennsylvania to Guam, the higher initial costs of LED lighting products compared to that of competing technologies are beating back full implementation. Not helpful as of late, is the economic downturn of the last few years that has tightened the grip on funds by building owners as they demand cost effective systems that also offer energy savings.

as ongoing research helps lower costs of production, making LED lighting more affordable. If we can continue to educate customers, including those reading this blog, about the lifecycle cost benefits of installing an LED lighting system and demonstrating the energy savings that are achievable with these systems-there will be market success. To learn more about the LED products that GET, LLC provides, please check out our website at or call us to discuss solutions for your important lighting needs.

There is an upside. The Frost & Sullivan report noted that while the operating costs of an LED lighting system are low, the capital expenditure or "first cost" of LED lighting products is often prohibitive to end users that do not have a clear vision of the short- to medium-term return on investment from energy savings. In the islands where $0.26 per kWh is the norm and rising, this idea is certainly turning heads of even the most conservative of owners here and across the Pacific. We can take away from all of this that the technology will experience wider acceptance



Pacific Human Resource Services, Inc.

Your full service human resource consultant Offering: • Federal compliance service provider • Temporary and permanent staffing services • Drug testing, Training and Policy Services • Development of employee handbooks, AAP and HR policies • Training and Development Services • HR Management and Consulting Services

For more information contact or call 671-637-6906/7/8 fax number: 671-637-6909 Website: Suite 307, ParaOceana Business Center 674 Harmon Loop Road Dededo, Guam 96929

We are EEO compliant


Affirmative Action Plan - Why, What and How

Some employers assume that all employers are required to have a formal affirmative action plan (AAP) in place to comply with the requirements of the equal opportunity laws. In reality, not all employers are required to implement a formal AAP. Employers with no federal contracts are not required to have a formal AAP in place. However, many contractors and subcontractors, as a condition of doing business with federal and some state offices are required to adopt and implement a formal AAP. Note though, that Title VII of the Civil Rights Act of 1964, later reaffirmed by Civil Rights Act of 1991, prohibit most companies from discriminating on the basis of race/color, age, national origin, gender, genetic information, and disability. While Equal Employment Opportunity Commission (EEOC) is tasked to enforce certain federal laws such as Title VII of the Civil Rights Act of 1964, Age Discrimination in the Employment Act (ADEA), American with Disabilities Act (ADA) and the Equal Pay Act (EPA), the Office of the Federal Contract Compliance Programs (OFCCP), is responsible for the enforcement, "... for the benefit of job seekers and wage earners, the contractual promise of affirmative action and equal employment opportunity required of those who do business with the Federal government."

503 of the Rehabilitation Act of 1973, as amended, and 3) Executive Order 11246 as amended. These overlapping laws require that covered employers have goals and take targeted action to recruit and promote women, individuals with disabilities and covered veterans. Additionally, any financial institution and paying agents for U.S. savings bonds and notes in any amount must develop and maintain a written affirmation action plans. WHAT: VEVRAA requires employers with contracts entered before December 1, 2003, with 50 or more employees, and with contracts with $25,000 or more would be required to take affirmation action. Those with 50 employees or more and with $100,000 or more contracts would need a written AAP. Section 503 of the Rehabilitation Act of 1973 requires contractors and subcontractors with contracts that exceed $10,000 take affirmative action to hire, retain and promote qualified individuals with disabilities. Additionally, covered employer must include a specific equal opportunity clause in their nonexempt contracts and subcontracts.

As part of its toolbox, the OFCCP may use any number of tools i.e. offer technical assistance to help companies understand regulatory requirements, or monitor contractors/subcontractors' adherence to EEO laws. The ultimate enforcement tool for violations of discrimination laws is debarment - the loss of company's ability to conduct business with the federal office.

Executive Order 11246 requires federal contractors and subcontractors with 50 or more employees who have entered into at least one contract of $50,000, prepare and maintain a written AAP that is updated annually. Additionally, the AAP must be in place within 120 days of the start of the contract and cover the recruitment and promotion of women and minorities. Institutions that issue U.S. Savings bonds and saving notes must all develop and maintain AAP as well.

WHY: Three federal laws require certain employers to implement affirmation action plans. They are 1) Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, 2) Section

HOW: Affirmative action plans, at the very minimum, should include a policy statement of compliance with equal employment and affirmative action laws. Policy should be incorporated in

26 | APRIL2013


the employers' recruitment procedures, training activities and personnel policies. AAP must be updated on an annual basis and communicated to all employees, includinag supervisors, at least annually. A designated person responsible for implementation of the AAP should be also be indicated in the AAP. The AAP should maintain records that include an analysis of the percentage of women and minorities in each job group, and a comparison against availability of qualified minorities and women, placement goals for job groups and action orientated programs that correct identified problem areas. Last, but not least, internal audits need to be conducted to determine the effectiveness of these programs. While formal, written AAP need not be filed with the OFCCP, it must be readily available to OFCCP in the event of an audit. While a written, formal AAP is not required of all companies, best practice dictates that employers, regardless of contracting arrangements with the federal or state governments, should have a non-discrimination policy that states the company prohibits discrimination on the basis of race, color, national origin, gender, age, genetic information, disability, marital status, sexual orientation, military status and other protected status in regards to its employment activities, including but not limited to recruitment, termination of employment, promotions, demotions, compensation, and other conditions of employment. Policy should also include a statement of status as an equal opportunity employer. Sources:, and Grace Donaldson is the General Manager at Pacific Human Resource Services, Inc. and may be contacted at or



APRIL2013 | 27


FOR IMMEDIATE RELEASE: April 10, 2013 MEDIA CONTACT: Dean Higuchi, 808-541-2711,

***NEWS BRIEF*** U.S. EPA issues permits requiring upgrades to Northern District and Agana sewage treatment plants HONOLULU - The U.S. Environmental Protection Agency today announced it has reissued Clean Water Act permits to the Guam Waterworks Authority (GWA) for the Northern District and Agana Sewage Treatment plants. The permits require both plants to upgrade to full secondary treatment and establish wastewater quality levels consistent with secondary treatment requirements. As part of this issuance, GWA will need to ensure effluent limitations designed to protect Guam's beaches are met, and that controls are implemented to reduce sewage spills from fats, oils, and grease. EPA is engaged in discussions with GWA regarding its plans to comply with the new permits. The final permits, issued under the National Pollutant Discharge Elimination System, fact sheets, and response to comments are available on EPA's website: mits.html ### Follow the U.S. EPA's Pacific Southwest region on Twitter: and join the LinkedIn group: Dean Higuchi []

28 | APRIL2013



2013 Guam Contractor’s Association Basketball Tournament Schedule OPEN Division (OD) 18+ & Over 1. Black Construction Corp. “BCC” 2. Blue Phoenix 3. Guam Contractor’s Assoc. “GCA” 4. Hensel Phelps/Granite “HPG” 5. Jungle Juice 6. GSI Pacific 7. GTA 8. Guam Waterworks Authority “GWA” 9. Payless Supermarkets 10. Team FSM

MASTERS Division (MD) 45+ & Over 1. GMBA 50+ Mix 2. GMBA 55+ Mix 3. GMBA 60+ Mix 4. GMBA 65+ Mix 5. GMBA 70+ Mix

All games played at the Harmon Sports Complex (HSC) Game Results Sunday, April 7, 2013


30 | APRIL2013

HOME TEAM 10:00am

BCC (55) Tuazon (11pts)


Team FSM


GSI Pacific (42) Lopez (15pts)

loss to

GWA (50) Duenas (26pts)


GCA (40) Lloyd (25pts)

loss to

Hensel Phelps/Granite (41) Williams (15pts)


GMBA 50+ Mix (39) Palomo (15pts)

loss to

GMBA 70+ Mix (44) Benitez (12pts)


GMBA 60+ Mix (34) Tyquiengco (9pts)

loss to

GMBA 65+ Mix (44) Taimanglo (13pts)




Payless Supermarkets (53) Capanang (17pts) GTA



Dr.Noel Silan, DPM ABMSP Arthritis of the foot can be of different causes due to the genetic make of people. Arthritis is a very broad term and many different joint diseases can pre-dispose someone joint inflammation. Under arthritis you can have osteoarthritis, gout, pseudo-gout, sero-negative disease, rheumatoid and many other forms that are rare but can afflict the joints. First before I proceed let me discuss a few truths and myths about arthritis. People with arthritis can actually tell if its about to rain or if the weather gets colder. Known changes in the barometric pressure/cold weather can actually cause pain in the joints.

Cartilage replacement vitamins must be used with discretion. Cosamin DS is the only one I recommend to my patients. It has gone thru a mini-study actually tested on over 200 patients with good results. Even at that, cartilage supplements can help only in early stages of arthritis. With really advanced stages especially with the knee it is best to discuss with an Orthopedist.

any weight bearing parts of the lower extremity. Hips, knees, ankles and foot. The severity and impairment of the patient like in most cases is dependent on the stage of the disease. Here in asia/pacific arthritis tends to afflict the knees more so than the hips. There is a reversal in the united states however in where it affect the hips more than the knees.

Over the counter ointments have no clinical study to support their use in arthritis. The one I often prescribe now is Voltaren gel/ointment. This is FDA approved and it penetrates the skin and helps with joint inflammation. The best oral anti-inflammatory by prescription for arthritis is Celebrex. It also has less GI irritability than other NSAIDS. Exercising is always key, especially when older walking alone helps reduce joint stiffness and pain.

The next on my list would be gout especially since it is more common on Guam. Gout is a form of arthritis but diet plays more of an important role here especially on Guam. I usually see these patients with pain in the big toe joint, ankle and sometimes 2nd toe joint. This usually occurs in males from mid 30’s up until the elderly. Excruciating pain is usually felt early in the morning , sometime with a low grade fever with the inability to sleep.

Although red meats/fatty foods have been known to cause more inflammation in joints, there is no known diet that can increase joint cartilage or take away pain.

Arthritis/joint inflammation can occur in any joint. Hand, back, shoulder, elbow or in the lower extremity it is best to consult first with your Family physician. Do this before seeking alternative treatment. Remember unless remedies are FDA approved , treating oneself will end up frustrating, time consuming and more expensive in the long run.

The first I would like to talk about is osteoarthritis. I liken this to the brake pads of a car. There is the rubber component and the metal component. In our joints the rubber is the cartilage and the bone is the metal. Once the cartilage is worn down then you have bone to bone rubbing then joint swelling and pain sets it. This can happen in

Guam Foot Clinic

Express Med Pharmacy Bldg138 Kayen Chando St. Dededo, Guam 96929 • (671)633-3668 wk • (671)647-0027 fax Dr.Noel Silan DPM, ABMSP P.C.

D ia be t i c F o o t Prob l ems • Go u t • S por ts/W or k Related Injur ies • Skin Disea s es • Sur ger y

32 | APRIL2013



BLUE OCEAN CONTRACTING Earlier this year, Garrison Report #2013-1 provided eight questions that contractors and designers should ask themselves about whether their company needs a new strategy. If you haven’t read that report, I strongly suggest you review it before reading this one. While many companies within the construction industry have adopted innovative approaches to their businesses, it is still true that virtually every contractor and designer could further improve its performance and profitability by putting to use the practices found in Construction 3.0 ™ Strategies. To assist in this effort, the Garrison Reports from #2013-3 through 2013-6 will discuss each of the four critical practices that make up Construction 3.0™ Strategies. These four practices and their scheduled reports are as follows: • • • •

Blue Ocean Contracting (TGR #2013-3) Integrated Project Delivery (TGR #2013-4) Lean Construction (TGR #2013-5) Best-Value Procurement (TGR 2013-6)

Blue Ocean Contracting W. Chan Kim and Renée Mauborgne coined the expression “Blue Ocean Strategies,” which is the title of their best-selling book. Blue Ocean is a euphemism for uncontested market space. The opposite is a “red ocean” that Kim and Mauborgne define as an environment where existing industries and markets have boundaries that are clearly defined and accepted and where the rules of doing business are established. The construction industry’s highly competitive low-bid process is a red ocean. In essence, it has reduced the construction business to a commodity where many of its customers buy based totally on price. Many contractors want to argue that that contracting isn’t a commodity, but it doesn’t matter what they think; only what the customer thinks matters, and clearly many customers’ actions indicate they think constructions services are a commodity. This has created a bloody price war, which Kim and Mauborgne refer to as a Red Ocean. Worse, this approach hasn’t produced happy results for clients either. Instead, clients experience cost overruns, excessive change orders, scheduling delays and performance issues, all of which often lead to litigation. The good news is this provides opportunities to do something different. Blue Ocean Strategy explains that companies need to create a business where there is less competition. Sun Tzu wrote in the Art

34 | APRIL2013

of War it’s essential to develop a superior strategy. Both books are suggesting that businesses must outthink their competition instead of attempting to outmuscle them. In construction this means avoiding the low-bid environment. How to Create a Blue Ocean within the Construction Industry There are two different ways to create a Blue Ocean. The first is to create a new industry. At first blush that might seem difficult for contractors. However, time is a critical factor that impacts the client’s value. By rethinking the construction process, it’s possible to significantly increase construction speed. H. B. Zachary was able to build the 485-room Palacio del Rio hotel in San Antonio in only 12 months by using a modular design. The rooms arrived on the site with the furniture already installed. The Starr Electric Company builds super skids, prefabricated electrical rooms that they can drop into place quickly. The Chinese are talking about prefabricating a 220-story building with only a seven-month construction schedule. So yes, the construction industry could be redefined as a totally different industry than the built-in-place approach most common today. However, in construction the most likely approach to create a Blue Ocean would be to merely redefine the construction process. We need to avoid thinking of the construction process existing from the time the contractor breaks ground until the keys are turned over to the owner. Instead the construction process needs to be defined as beginning at the inception of a project and lasting until the project is torn down. The cost during the short period of actual construction represents about 10 to 20 percent of a building’s total lifetime cost, only a sliver of the total lifetime of the building. By expanding the definition of construction, there are many more opportunities to add value and, therefore, differentiate oneself from the competition. The construction industry needs to avoid focusing on how to do the construction cheaper and instead seek ways to do it better and even ensure it’s building the right project. For example, three general contractors were competing on a factory project. Their initial bids were all over the budget. Two of the contractors went back to their offices and attempted to value engineer savings out of the factory’s design. The third thought that was a waste of time. Instead,


this contractor hired a lean-manufacturing expert to go into the prospect’s current factory. The consultant came back and said they didn’t need a 100,000-square-foot building. They needed only 90,000 square feet and he could layout the factory work so the operation would be more efficient and profitable going forward. In addition to saving the client construction costs with a smaller building, the contractor generated a savings over the life of the building that probably exceeded the cost o f the factory. How much work could you generate if the savings you created exceeded the cost of your services so you were essentially constructing the building for free? The concept of Blue Ocean Contracting is about how to increase value for the client in such a way as to differentiate your business and eliminate the competition. There are probably thousands of approaches, but that allows contractors and designers to focus on areas where they have an advantage. This allows them to compete based on value instead of price. To get the process started, businesses in the construction industry should ask five questions: 1. What can we reduce to add value by lowering the cost? 2. What can we eliminate to add value by lowering the cost? 3. What can we change or substitute that would add value? 4. What can we increase that would add value? 5. What new service would add value? There are probably thousands of answers to these questions. However, if you want to create the highest impact, you need start by talking to your clients and prospects to determine their problems and needs. Once you have identified the client’s problems, you begin to work on finding superior solutions that will differentiate you from your competitors. If you offer better solutions than your competitors, you will be able to compete on ideas and value instead of price. Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. Contact Ted at 800-861-0874 or Further information can be found at"

Benefiting Special Olympics Guam

A Fun-Filled Day for the Entire Family.

Sunday â&#x20AC;˘ April 28, 2013

th 6 Annual

GCA Construction News Bulletin April 2013  

Guam Contractors' Assn. Monthly Construction News Bulletin is Guam's official construction news publication.

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