GCA Construction News Bulletin August 2011

Page 1

Guam Contractors’ Association


Vol.52 Issue 08 AUGUST2011

GCA Trades

Power Training Needs

Polyphase Systems Inc. Success Secrets

Your one-stop location for Real Estate Development & Business Consulting. www.lms-guam.com 671-647-2617

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Feature Story



Feature Story


Update C ommittee S.A.M.E.

12 16

C ommittee Update Story: F eature GCA Trades


Story: F eature Polyphase

24 26 28 30

P hoto Highlights S mall Business C rane Critique Corner A round the Bench

The Chamorro word for “Hot!” is: Maipe (My-pe)

brought to you by "Learn Chamorro" www.learnchamorro.com

2 | AUGUST2011



No job is too big or small. Ready-Mix Concrete • Asphaltic Concrete • Paving Materials • Sand & Aggregates Keystone Retaining Wall Systems • Concrete Pipes • Precast Manholes • Concrete Paver Road Paving Contractor • Concrete Pump Rental • Concrete Blocks & Shapes

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Contact Art Chan to help you with your building needs.

2008 Business Laureate

Building The Marianas Since 1958

1402 Route 15, Mangilao, Guam 96913 • Tel: (671) 734-2971/8 • Fax: (671) 734-0990 • www.hawaiianrock.com


THEDIRECTORS PRESIDENT James A. Martinez, GCA CHAIRMAN William “Bill” Beery, Tutujan Hill Group VICE CHAIRMAN Robert Salas, Landscape Management Systems PAST CHAIRWOMAN Chit Bathan, Ace-Builders SECRETARY/TREASURER Tom Anderson, Black Construction ASSOCIATE DIRECTORS: Edward Untalan, First Hawaiian Bank Paul Calvo, Calvo’s Insurance Vincent Davis, Hawthorne Pacific Corp Ray Yanger, Matson Navigation CONTRACTORS DIRECTORS: Tom Nielsen, Maeda Pacific Corporation Juno Eon, Core Tech International Robert Piper, Hensel Phelps John Robertson, AmOrient Art Chan, Hawaiian Rock Louis De Maria, dck pacific guam LLC

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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 adztech@teleguam.net. 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 Chantel Cruz, Guam Contractors’ Association at (671)647-4840/41, or fax (671) 647-4866 or email to gca@teleguam.net. Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.


PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Marc Mendiola PRODUCTION: Geri Leon Guerrero Christopher Estioca Christopher “Taco” Rowland PHOTOGRAPHERS: Marty Leon Guerrero Debbie Retuyan EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson Dave Barnhouse Gennette Quan Simmons Robert Francis Mendiola Nora Santos GCA STAFF: Chantel Torres-Cruz Francine Arceo Desiree Lizama COVER: GCA Trades presentation at GPA PPA Conference.



Base Operations Support Contract on Guam from Contractors Perspective The July meeting of SAME Guam Post featured a presentation on the Navy Base Operations Support (BOS) Contract including a brief history of the past 12 years and discussion of the scope and extent of services provided. The scheduled speaker was Wayne Cornell, President of DZSP 21 LLC and Project Director for its BOS activities on Guam. Because of a last minute personal conflict, he had to delegate the task to Mark Lopez PE, the DZSP 21 Public Works Director.

protests against the award by other offerors, full performance of services was delayed until 1 October 2005. BRAC 2005 mandated joint military basing on Guam. Joint Region Marianas (JRM) assumed responsibility for installation support management and administration functions at Andersen AFB with transition activities beginning early in 2009. Under this authority, JRM added logistics services at Andersen AFB to DZSP 21’s contract, which began 1 October 2009.


DZSP 21 LLC and its Contract

Prior to the year 2000, Navy Base Guam was operated and maintained by military and civilian employees of the Public Works Center. Since 1967, the U.S. Government (OMB Circular A-76) has required the military to consider outsourcing services that could be managed by the private sector as a means of reducing cost and improving operational efficiencies. In the late 1990’s, an A-76 process was launched for Navy Base Guam Public Works Center. Proposals were solicited from interested contractors that competed against each other as well as against the Public Works Center’s Most Efficient Organization. The competition resulted in a firm fixed price contract awarded to Raytheon Technical Services Guam or RTSG. That firm performed as the BOS Contractor from 2000 through September 2005. The contract proved to be imperfect because of insufficient flexibility and flaws in the prescribed scope of services. While cost savings were realized, expectations from the various military commands were not always met and the Navy decided to recompete the contract after four years. In recognition of flaws in the contract, the Navy sought industry input before issuing a solicitation for new offers. A solicitation was issued and proposals were received by the Navy in 2004; DZSP 21 LLC was awarded the second BOS Contract in December 2004. Because of multiple

DZSP 21 LLC is a Limited Liability Company incorporated in Delaware. It was formed specifically for the Base Operations Support (BOS) Services Contract. It is owned by a joint venture of DS2 (51%), First Support Services, Inc. (24.5%) and Parsons Infrastructure & Technology, Inc. (24.5%). DZSP 21’s contract with the Navy is a Cost Plus Award Fee and Award Term Contract with a Base Period (of three months) plus four Option Years and the potential for five award terms of one year each. Options are generally awarded for Satisfactory performance and award terms for Very Good or Exceptional Performance. BOSC performance is evaluated monthly for each Annex and overall every four months (trimester basis) by a government Award Fee Determination Board. Award fee is ostensibly 5% of contract value (one tenth of which is reserved for small business subcontracting/ utilization) but because of ineligible expenses (equipment leases, travel, labor escalation, etc.) is approximately 4% of sales.

BOS Contract Services are divided among 16 Annexes Annex 0200 is Program Management and Administration Consists of nine departments: Project Leadership (Director, Deputy/Business Director, Office Managers (2)), Project

Safety, Project Quality, Human Resources, Finance, Management Information Services/Information Technology, Contracts Administration, Government Property, and Procurement Fleet Support Annexes 0600 –Port Operations 0700 –Ordnance Operations 1700 –Transportation (Base Support Vehicles & Equipment) Operations & Maintenance Other Support 0300 –Public Affairs 0403 –Contingency Operations or Emergency Management 0404 –Navy Safety and Occupational Health Program Administration 1300 –Naval Hospital Food Services 1800 –Environmental Services and Programs Operations’ Service Support Center Public Works’ Annexes 1501 –Facilities Management (Engineering) 1502 –Sustainment, Restoration and Modernization 1503 –Facilities Services (Refuse Collection, Landfill Operations, Street Sweeping) 1602 –Primary (High Voltage) Electrical Systems 1605 –Wastewater Operations, Treatment and Maintenance 1606 –Steam and De-mineralized Water 1607 –Potable Water Production, Operations, Treatment, and Maintenance BOS Services other than by DZSP 21 Other Base Operations Support Services are Small Business Set Asides: Housing Operations and Maintenance; Grounds Maintenance; Custodial Services; Pest Control; Morale, Welfare & Recreation; Fleet and Family Support Center; and Supply Services DZSP 21 Gained AAFB Logistics through Joint Regionalization (BRAC 2005) Andersen Air Force Base Logistics began 1 October 2009 Annex 1000 -Materials Management Annex 1700A -Base/Mission Support

To join SAME Guam Post, logon to SAME.org and proceed to New Membership. 8 | AUGUST2011



2010 Calendar Year – 97.3 Adjectival Scoring: 91-100 = Exceptional, 81-90 = Very Good, 71-80 = Satisfactory

BOS Contractor Evaluated on a Trimester Basis:

Award fee is the only profit available to the BOS Contractor. The Navy’s award fee plan is skewed to reward a contractor for improving performance in the exceptional range. Therefore, a 97 earns only 91% of award fee pool (a 98, 94%; a 99, 97%; and a 100, 100%). As a result of a diminished

award fee pool (~4%) and the published award fee plan, after tax ROS < 2%. To increase the amount of earned profit, a contractor must increase contract value by growing the contract. Contract growth is a function of exceptional performance in the areas of cost control, technical services, responsiveness, program management & administration, and customer service.

DZSP 21 Performance at a Glance, Inception until Now

Embedded Subcontractors The DZSP 21 team supplements its workforce with approximately 130 additional employees from embedded subcontractors: • Cruz Alliance Pacific (CAP) supports Ordnance Operations • PACSEA supports Port Operations with Piloting and Boat Ops • AMI provides facilities maintenance services/personnel • CCD provides materials support primarily to infrastructure maintenance • BISNES MAMI provides NAPA parts support to transportation annexes • Kloppenberg provides bus services at AAFB • JTC provides temporary employees Professional Services Providers • Local Accounting Firm –Ernst & Young • Local Banking –Bank of Hawaii • Local Payroll Provider –STG • Local Insurance Company –Cassidy’s • Local Healthcare Provider –StayWell


• Local 401 (K) Provider –ASC Trust • Local Equipment Leasing Company –Bank of Hawaii • Procured New Vehicle Fleet locally –Triple J Ford

it comes, constructed facilities and infrastructure will need to be incorporated into the BOS contract • Effect of the current U.S. economy on the Defense Budget is an unknown

The Way Ahead for DZSP 21 • DZSP 21 has earned all Option Years and Award Terms; through 31 December 2014 • DZSP 21 will continue to be the “Navy’s Contractor of Choice” • DZSP 21 intends to compete for and win the follow on contract • Although Guam has been funded at 90% of CNIC’s Facility Sustainment Model in the past, sustainment dollars are expected to be ≤ 80% FSM in 2012 and probably beyond • Missions will continue to grow o More submarine visits o More carrier groups o Increased squadron deployments at AAFB • The Military Build-up is an unknown; if


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Vehicles & Equipment Andersen Air Force Base Other: Facilities Maintenance Services, Environmental Services and Miscellaneous Average (of three trimesters and small business utilization) Award Fee Scores by DZSP 21 from Contract Assumption through the end of 2010 Transition/Base Term – 78.9 2006 Calendar Year – 88.9 2007 Calendar Year – 91.8 2008 Calendar Year – 95.9 2009 Calendar Year – 97.4


Military, Government and Labor Relations Update (August 2011)

A Congressional Snag Impacts the Military Buildup on Guam

By John M. Robertson The Current Situation: Now that the silent majority on Guam has found its voice through Para Hita Todu and other progressive groups, we are �inally beginning to see balanced coverage in the press in relation to the military buildup and less negative comment from our Legislature. With the prospect of delay in implementing major construction projects, Guam law makers and the Calvo Administration are having to take account of the impact of lost tax revenue should the military buildup not go ahead as previously scheduled. Contractors and others in the private sector have already taken a hit as result of delayed implementation of the program. Contractors have invested in new plant and equipment, refurbishment of existing equipment and construction of new or expanded workforce housing and of�ice space. Off-island DB-MACC �irms have established themselves in local Guam of�ices by transferring key personnel and building or leasing facilities. Equipment dealers have brought in signi�icant inventories of plant and equipment for sale or lease to contractors. Businesses of all categories including professional and other service organizations have geared up to be ready for a surge in business activity. The military had also staffed up to deal with a fast-track construction program. They have now started to reassess requirements for a slower paced program and made adjustments to staf�ing patterns accordingly. So What is Going On: It has been known for some time that the buildup would be stretched out over a longer term with completion in 2018 or beyond. This will, according to the announcement, allow the island’s infrastructure to be improved in advance of an in�lux of a large number of contractor personnel and workforce followed by the additional military personnel slated to move to Guam from Okinawa. That is not the only reason or the 12 | AUGUST2011

primary reason for delayed implementation. The situation is far from clear at this stage but some of the causes are beginning to emerge:e of the causes are beginning to emerge:

a.) The National Defense Authorization Act for Fiscal Year 2012 has not been passed into law. It has cleared the House but the Senate Armed Services Committee has not yet concluded an overall position for this bill. However, they have established that no U.S. funds can be spent on DPRI (Defense Policy Review Initiative) projects until the military has developed a Master Plan and overall budget for the military buildup on Guam. b.) The military has developed a notional master plan for Guam but it has not yet been signed off by the new Secretary of Defense. It is understood that the military did provide a brie�ing to the House of Representatives on its plans for Guam but not the Senate Armed Services Committee. c.) Award of the Japanese funded contract for the new Apra Harbor Medical Clinic was postponed in early August. Funding for the project was already in place. It is understood that the DoD and Navy may decide not to pursue DPRI projects, including Mamizu projects, until after the National Defense Authorization Act and the National Defense Appropriations Act for FY 2012 have been agreed. However, one $80 Mil+ Mamizu contract was awarded on 12 August for the new gate into Andersen AFB and utility replacements at Apra Harbor. This project is not in direct support of the Marine Corps relocation. The conference committee for House and Senate members to resolve differences has not yet been scheduled. d.) Everyone in the world with a radio or TV is aware of the contentious debate that went on in Washington, DC during July and early August in relation to the debt ceiling and the budget bill. A temporary solution was agreed to at the eleventh hour for taxing and spending. It was agreed that a ‘super


committee’ would be appointed by the Democrat and Republican leadership in the Senate and House. Three Republicans and three Democrats from each legislative body will decide on the way forward in terms of tax revenue and spending. Everything is supposed to be on the table for discussion and decision making. They are tasked with cutting $4.0 Trillion of de�icit over the next 10 years through spending cuts or revenue enhancements. This super committee has until about 20 November to agree on a plan for rati�ication by both houses of Congress. If they are unable to agree, there will be an automatic $1.0 Trillion cut in military spending over the 10 year period. The House and the Senate are to resolve the FY2012 budget by Christmas. That will include convening the Conference Committee of Senate and House Armed Services Committees to iron out differences. e.) There was prior agreement in Washington that cutting $350.0 Billion in military spending over the next 10 years is consistent with DoD goals. This amount is similar to what the military had developed for consideration if needed. Cuts are expected to be in the area of operation and maintenance more than in MILCON expenditures. In fact, there appears to be no cuts in MILCON projects other than those projects associated with the Marine Corps relocation from Okinawa to Guam. f.) There remains the possibility that the realignment will be delayed for a signi�icant period of time while the economy rebounds. There is also the possibility that it could be cancelled altogether. There are senators, especially freshman senators, that do not understand the importance of the realignment of forces in the Paci�ic and see no need for the major expenditures in faraway Guam. There are others that believe they have a better idea for realignment at less cost. However, all such ideas will be costly and will require new EIS actions that will further delay the program. www.guamcontractors.org

There are Reasons for Optimism in the Long Term. 1. Guam’s location in the western Paci�ic makes it the obvious choice for a strategic military base of operation. The ideal time to enhance necessary military strength is when there are no hostilities in the immediate region – as at present. 2. The Obama Administration and the House of Representatives fully support the military buildup on Guam. President Obama set out a clear policy statement recently in which he cited Guam and Bahrain as essential elements in the global defence of the United States and its international interests. 3. There has been an Agreed Implementation Plan (AIP) between Japan and the United States for more than 15 years to close Futenma Marine Corps Air Station in Okinawa. In 2005, Guam became the agreed destination for about 8,600 Marines and family members. The Japanese government took time recently to reassess its position and concluded that the previously agreed plan is the best alternative from their perspective. 4. Bilateral agreements such as this

have to be honoured ahead of unilateral U.S. actions. The agreements were rati�ied by the Japanese and American governments at the 2+2 meetings held in Washington in June.

5. Members of the Guam Chamber of Commerce Armed Forces Committee (AFC) that visited Washington in June found strong support from congressional leaders for the Guam military buildup. In fact, they did not �ind pushback from anyone they visited.

The foregoing is based on information received from the Washington of�ice of Congresswoman Bordallo on 11 August. There was no time for veri�ication of information with the military prior to publication. It is important for contractors and others to have this information soonest. Any corrections, if there are any, will be included in next months’ report. will be included in next months’ report.

According to information provided by NAVFAC in May the following MILCON spending was planned as of that date: Appropriated 2010 = 1.2 Billion • Marine Corps Relocation • NAVHOSP Replacement • Other MILCON Appropriated 2011 = $677 Mil • Marine Corps Relocation • Other MILCON

$1,027 Mil (DPRI) $158 Mil $70 Mil $627 Mil (DPRI) $50 Mil

President’s 2012 Budget = $368 Mil • Marine Relocation $156 Mil (DPRI) • Other MILCON $212 Mil

Unfortunately, this report does not bring a lot of cheer. Note that our committee will be seeking ways in the months ahead to put pressure on Congress, and especially in the Senate, to prioritize the military buildup on Guam as being important to national security and commitments made in the region. on Guam as being important to national security and commitments made in the region.

The Government and Labor Relations Committee is open to all members of the association. Contact the GCA office for time and place of meetings.

Senseramente, John M Robertson, Committee Chairman


g.) There is little chance of a budget agreement in the Congress before 31 December 2011. In all likelihood, there will be another Continuing Resolution in effect after 1 October 2011. Resolution in effect after 1 October 2011.


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GCA Trades Academy

Addresses Guam Power

Industry Training Needs by: Gennette Quan-Simmons

The minimal amount of professional training opportunities for power utility workers on Guam has prompted the GCA Trades Academy to help the industry by offering a nationally recognized curriculum geared towards energy. Earlier this month the academy added The National Center for Construction Education and Research’s (NCCER) Energy Curriculum to its list of nationally accredited programs. Practitioners, students and professionals successfully completing the curriculum will earn industry recognized credentials that are verifiable through NCCER’s Automated National Registry. NCCER is a not-for-profit 501 (c)(3) education foundation created by the construction industry to develop standardized curriculum with portable credentials and to help address the skilled construction workforce shortage. NCCER is recognized by the industry as the

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training, assessment, certification, and career development standard for the construction and maintenance craft professional. The energy curriculum is comprised of three areas: generation, transmission and distribution, and alternative energy use. All “designed by the nation’s power industry professionals and educators,” Bert Johnston, education director for GCA Trades Academy, said. The first session began on Monday, August 8 and is off to a promising start. “We have 11 GPA employees registered, Johnston said. He further added, “The energy curriculum has a total of nine modules and the modules don’t have to be taken in sequence.” This enables others to register for the curriculum beyond the initial start date.


Power Industry Fundamentals The foundation for the energy program is the Power Industry Fundamentals curriculum. It consists of NCCER’s basic construction skills course, Core: Introductory Craft Skills and a newly developed introductory module on the power industry. This full-color module titled Introduction to the Power Industry sets the stage for students entering into the electrical energy production field. It describes many ways in which electricity can be produced, the economics involved in energy production and the environmental impacts of distributing electrical power. NCCER worked with subject matter experts representing construction companies from across the country to introduce relevant industry topics. Power Industry Fundamentals is a


The Power Industry Fundamentals Module is broken down into the following areas: - Power Generation Maintenance Electrician - Power Generation I&C Maintenance Electrician - Power Generation Maintenance Mechanic - Power Line Worker Distribution - Power Line Worker Transmission - Power Line Worker - Substation According to the NCCER, this module sets the stage for trainees entering the electrical energy production and distribution field. It describes the many ways in which electricity can be produced, from burning fossil fuels such as coal and natural gas, to harnessing nuclear energy, and using renewable energy sources such as wind, geothermal, and solar energy. The module explains energy and distribution and transmission and briefly explores the economics involved in energy production and delivery. Finally, the module describes the environmental impacts of producing and distributing electrical power, as


well as the methods that are employed to mitigate those impacts. GCA Trades grams



ciency, but also provide a solid learning foundation. “Hands on experience won’t provide mastery but will provide competency,” Johnston said. Program Sessions

The GCA Trades Academy is a non-profit, non-government organization established to provide construction related craft training opportunities on Guam. While incorporated by the Guam Contractors Association in September 2006, the GCA Trades Academy is a separate and distinct organization governed by its own board of trustees. It is an accredited training unit and assessment center with the NCCER. “We started Trades Academy not to make money. We started it because we found it necessary. What we’re trying to do is make people competitive,” Johnston said. GCA Trades Academy programs are not only knowledge based, but provide hands-on training. According to Johnston, the objective is not only to provide profi-

Training opportunities at GCA Trades Academy are divided by core areas designed to meet industry needs. These areas are comprised of: craft training, apprenticeship training, and assessment and certification. Craft training entails classroom instruction and hands-on training. On-the-job requirements are not essential in the craft training program. Participants are referred to as craft trainees. They enroll in classes, receive a transcript (if enrolled in an NCCER class), and upon successful completion of all classes in a craft level, receive a certificate of level completion. The apprenticeship training combines craft training with on-thejob experience. Apprentices enroll in classes in their given craft as required by their apprenticeship standards, work as an indentured


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prerequisite for the Power Generation Maintenance course designed for traditional power plants; and a Power Line Worker course to support the installation and maintenance of overhead power systems.


apprentice under the supervision of an employer who reports on-the-job hours of completions to the apprentice sponsor. Graduates receive, in addition to their craft training certificates of level completion, a US Department of Labor journeyman certificate and earn their journeymen status. Assessment and certification provides industry-recognized credentials based upon prior knowledge and experience. Participants take a standardized computer-generated test to measure their knowledge and/or complete a series of tasks to determine skill mastery of a given craft. Participants are required to have at least four years of documented experience in the craft being assessed. Upon successful completion of an assessment, participants receive a certificate of competency. For those who fall short of passing, a training recommendation is generated. Meeting Construction Training Needs on Guam For the most part, GCA Trades Academy classes are designed for working adults in the industry to include its instructors who themselves are not only certified through the GCA Trades Academy, but are full-time professionals in their respective construction fields.

instructors helps to keep the money local,” Johnston shared. Currently GCA Trades Academy has an estimated 200 students and 120 instructors; 2 of which provide instruction for the newly added energy curriculum. In addition to providing training for the local trade force, Johnston also provides instructor training for military personnel in the construction fields. “Most are heavy equipment operators, carpenters, and electricians, and welders,” Johnston said. At the end of the day GCA Trades Academy aims to provide craftsmen and professionals a competitive edge when competing for jobs globally through top-notch training programs that earns them accredited credentials. Furthermore, the academy hopes to “get more and more companies to recognize the benefits and importance of what the Academy offers, and appreciate the value of these courses,” Johnston shared.

“All instructors are local and they’re all practitioners with day jobs. The academy also seeks out retired employees of the industry to become instructors by incorporating their skills and knowledge. This approach in seeking local 18 | AUGUST2011




Polyphase Systems Inc. secrets to success! by: Gennette Quan Simmons

Polyphase System Inc, (PSI) is a woman-owned corporation providing sub-contractual electrical services for the gamut of Guam’s customer base to include the military, privately owned businesses and GovGuam. The company specializes in a variety of electrical projects ranging from medium to low voltage jobs. Their team is comprised of knowledgeable field personnel experienced in a wide-range of electrical work systems, communication and data systems, fire alarms systems, power substation, underground transmission and distribution power systems. “We do all electrical work from power substation, transmission and distribution all the way to the electrical outlet, lights and switches to your home. We also do cathodic protection, fire alarm system and CCTV. Whether the work is small or big, we’ll do it,” Ronald C. Carolino, vice president and general

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manager shared. The business was started by Ronald Carolino in 2006. “I am the founder of PSI and never thought of being a contractor myself since I already have a supply company. The idea of being a contractor started sometime in 2005 when my former employer, Mr. Manuel D. Crisostomo, owner of MD Crisostomo Inc. had asked me to get a contractor’s license in Rota so he could sub-out his runway job to me as he didn’t want to go to the CNMI anymore,” Carolino explained. What began as a small family operation grew into a successful company. “I had the business as a sole proprietorship from 2006 thru 2007. Later in June 2007, my wife and I decided to convert the company to a woman- owned corporation with her as the majority stockholder. In June 19, 2007, the company went from Polyphase System (sole proprietorship) to Polyphase System Inc., as a woman-owned corporation. My wife, Glendalyn, is the president and treasurer while I am the vice-President and secretary,” Carolino shared.


The husband and wife team bring to the table a wealth of experience and knowledge necessary to sustain a successful electrical services business. “I am a licensed electrical engineer in the Philippines with a bachelor’s degree in electrical engineering. My wife, on the other hand, is a certified public accountant in the Philippines with a bachelor’s degree in business administration, majoring in accounting. Combining our qualities and expertise in our respective fields made it easier for us to manage our business more competently and effectively,” Carolino said. The company’s recent projects



included jobs for the United States Navy and GovGuam. “In July 2011 we just completed the area lighting at playgrounds in Lockwood Terrace family housing, Naval Base, Guam. The job details consisted of the installation of stand alone solar powered playground lighting subcontracted to us by Keum Yang Corp which is one of the nine (9) DBMACC contractors in Guam. In January of 2011 we completed the electrical work of repair fence/gate at the Joint Region Marianas Headquarters in Nimitz Hills. The work included electrical & communication work including stand alone solar powered lightings at parking and perimeter fence of the headquarters. This project was done with Serrano Construction, another DBMACC contractor. We also just finished the Guam Power Authorities (GPA) underground duct line and riser conduits for their 13.8kV line in Agana and replaced GPA’s old hand holes with concrete hand holes & manholes in Latte Heights and GHURA 506 Ababang Loop, Yigo,” Carolino described.

contractor that worked on GCC’s Technology Center Generator,” Carolino said. The scope of the “project was to supply and install a 500kVA self-attenuated generator for the school’s technology center and its enclosed concrete building. The project was completed on time with zero accident recorded on file. As a young, small business, we have proven that we are not just an electrical contractor but that we could also do general construction of which we’re also licensed to operate as such,” Carolino added. As with any successful company doing business on Guam, getting supplies from abroad in a timely manner often poses an issue. “One of the major challenges that our company has experienced is the delivery of long lead-time special items like transformers, switchgears & switchboards which are all

manufactured/fabricated in the U.S. mainland. We have to push the designers and the submittals approving authority just to expedite the fabrication and delivery of these special equipments. Keeping an open communication as well as having a well organized record of all these communications with our suppliers and with everyone we’re dealing with for each of our projects enables us to overcome our challenges in completing our projects on a timely manner,” Carolino said. PSI is anticipating more projects once the military build up comes to fruition. They are also aware of the importance of sustaining its personnel base of experienced employees. “As we are preparing for the influx of the upcoming electrical projects due to the military build-up, we highly believe that we need to have the right

Among the many projects PSI has completed, the Guam Community College (GCC) job is considered one of their biggest accomplishments. “PSI was the primary www.guamcontractors.org


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personnel for the jobs and the proper tools and equipments for these jobs. We need to keep our well-experienced electrical engineers and estimators who have experience in military projects who are also certified Quality Control Managers and also know all about safety programs. We also have to maintain skilled workers who are well-rounded type certified electricians meaning those who are knowledgeable in all aspects of electrical work both the inside and outside works. We have already invested on various necessary testing equipments and utility bucket truck. We will continue to invest on our workers skills development by sending them on various trainings to enhance their

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skills and knowledge on their field,” Carolino explained. The company attributes its competitive edge to having direct contact with its suppliers and a skilled and experienced team. “Being a wholesaler and retailer of electrical materials and supplies ourselves, we have a direct contact with various electrical manufacturers and distributors in the U.S. This helps us make our bid more competitive and ship over special electrical items that are not available on island more expeditiously. In addition, the combined experience of our management and staff in various electrical construction which includes, but not limited to, power transmission & distribution lines, substations, installation of off-grid photovoltaic system and solar powered playground lightings for


military bases and all other electrical field sets us apart from our competitors. The company’s success is credited to every member of our team’s dedication and excellent workmanship, all with God’s guidance and blessings. We highly uphold to honesty and integrity in all our dealings, giving God the glory for His work in us and through us. We’re determined to continue to excel in all our undertakings, serving our customers beyond their expectations and contribute to the growth and success of our island,” Carolino said.





July Luncheon July 20th,2011 IECO Agat Plant

24 | AUGUST2011




GPA Hilti Inc. July 25th Grand Opening of its new facility on Taitano Rd. in Harmon.

GCA Trades Bert Johnston & GCA Pres. James Martinez, presented to the GPA Public Power Association on July 29, 2011 at the Westin Resort to 300 attendees from across the region.

Robert Piper Farewell Robert A. Piper, LEED AP BD+C Chief Estimator, Hensel Phelps Construction Company GCA Small Business Committee Member GCA Contractor Member Board of Directors 3 years on Guam, relocating back to Hensel Phelps in California



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TRAININGS/SEMINARS The Guam SBDC is one of seven SBDC’s serving the Micronesian region, collectively known as the Pacific Islands Small Business Development Center Network (PISBDCN). We offer free, confidential, one-to-one counseling in all areas of business management, including pre-venture feasibility, business planning, marketing, and financial management. We also offer small business training programs at low to no cost. • August 18, 2011, 8:30am-11:00am “How to Prepare a Marketing Plan” • August 25,2011, 12:00pm-2:30pm “Women In Business Workshop (WIB): Planning for a Profitable Business” • August 26, 2011, 8:30am-11:00am "Quickbooks: Setting Up Inventory”

To register, call the Guam SBDC at 735-2590 or email Georgette Reyes at g.reyes@pacificsbdc.com. For more information, please visit www.pacificsbdc.com (click on workshops/calendar) or call 735-2590. Requests for reasonable accommodations for persons with disabilities must be made 72 hours in advance. For arrangements, please call Guam SBDC at 735-2590. Services are extended to the public on a non-discriminatory basis.

August 25, 2011, 9:00 a.m. – 11:00 a.m.

Teaming and Joint Ventures

Presented By: Vera Topasna, Program Manager This workshop provides an opportunity to learn more about teaming arrangements and joint ventures and when you can use them. We will look at the federal regulations related to these arrangements and discuss ways to use these tools effectively. September 8, 2011, 9:00 a.m. – 11:00 a.m.

Responding to RFP's

Presented By: Vera Topasna, Program Manager Are you interested in government contracting, but are not sure how to respond to advertised Request for Proposals (RFPs)? This workshop will focus on the content of an RFP and will walk participants through the common sections and clauses of the document. Focus will also be on technical and evaluation factors that will contribute to responding to RFPs. Join us for this interactive, hands-on workshop that will cover: •Reviewing the solicitation package for the selected RFP •Examining the details of the document •Explaining common contract clauses •Identifying common mistakes •Providing tips on the process of developing a proposal September 22, 2011, 9:00 a.m. – 10:00 a.m.

8(a) Application Process

Presented By: Boris Hertslet, Procurement Counselor The SBA's 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market. The Guam PTAC will help you navigate the forms and requirements of the 8a program. Location of Workshops: UOG School of Business & Public Administration Bldg. Classroom 131 Register now with the Guam Procurement Technical Assistance Center (PTAC). Visit www.guamptac.com or call 735-2552.

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HOW TO START A BUSINESS FREE Date: Fri, August 19, 2011 & Mon, September 19, 2011 Time: 9:00a to 11:30 a.m. Location: Guam Department of Labor - 3rd Floor Conference Room For many people, a business is the culmination of a dream or ambition based on specific skill or interest. You may know the type of business that you have always wanted to open, but because of lack of finances, resources, time, or self-confidence, you have never been able to put that plan into action. To start a business, you will need a lot of information, but the basics are simple. This workshop will discuss the basics of starting a small business! HOW TO WRITE A BUSINESS PLAN FREE Date: Fri, August 19, 2011 & Mon, September 19, 2011 Time: 1:00 to 3:30 p.m. Location: Guam Department of Labor - 3rd Floor Conference Room Writing a business plan can be an intimidating task. But it doesn’t have to be if you take it one step at a time. This workshop will help guide you through the steps needed to write a business plan. Remember…a written business plan will help you avoid mistakes and save you grief, time and money! To sign-up for the workshops, call the Guam VBOC at 475-4900 or the Guam Department of Labor One-Stop Career Center at 475-7000. Or register at http://sba-vboc.ecenterdirect.com/ Conferences.action?CenterID=1




This month’s topic:


A monthly crane and rigging informative column for all personnel directly or indirectly involved with crane safety. Each month we will attempt to explain a different technical issue pertaining to crane operations here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike, by Dave Barnhouse The answer to the above question is likely NO. As of November 8, 2010 there are new requirements for daily, monthly, and annual inspections of mobile crane wire rope. Though I have addressed these requirements in previous articles and taken considerable time in explaining the inspection issues to mobile crane opera-tors in classroom refresher classes, there is still reluctance to comply with the new OSHA rules, (1926.1413 Wire Rope - Inspection). Types of wire rope inspections: SHIFT (previously daily). The shift inspection must be performed by a competent per-son, OSHA considers the operator as competent. We can only assume the operator is performing the required shift inspection of the wire rope, as this is one item checked on his daily checklist. Most of the cranes inspected on island do have current daily checklists available for the crane inspector’s confirmation during the annual inspection, whether or not the operator is performing the shift inspection properly is another question. A proper shift inspection requires visual inspection only, no tools required, and involves the wire rope easily seen from the ground. In other words, booming down or running all the wire off the drum is not necessary. The operator must be aware of the three category types of deficiencies as this will determine as to whether the deficiency constitutes a safety hazard.

Monthly: This inspection is basically the same as the shift inspection with these differences: It must include any deficiencies determined to be monitored during the annual inspection, (such as corrosion). It must be noted if there is any corrective action required. And the number one deficiency noted during my annual inspections, the monthly inspection must be documented, signed by the person conducting the inspection, and retained for a minimum of three months.

Annual: This inspection must be per-formed by a qualified as opposed to a competent person and involves a more thorough inspection covering the entire length of the wire rope. This requires booming down for inspection of all pendants, boom hoist and areas of reverse bends and equalizers. Types of Deficiencies: Category I. Deficiencies in this category are general, including distortion such as kinking, crushing,

This month’s test quiz addresses: Duty Cycle Cranes:

If a lift crane is configured to perform duty cycle work such as clam shell or dragline, what are the load capacity requirements? 28 | AUGUST2011




Answers to last month’s test quiz: If delivering construction items such as lumber to a construction site with an articulating boom truck, does the new OSHA regulation apply regarding the crane use and the operator qualifications? Does it also apply to bundles of sheet rock? Fabricated roof trusses or structural steel members such as beams or decking? Answer: OSHA 1926.1400(c)(17) Material Delivery Articulating boom trucks used to deliver and transfer building supply sheet goods or building supply packaged materials such as bags of cement, sheets of plywood, lumber, sheetrock, etc., from the truck to the ground are not included in the new crane standard scope. This is not to say the operator is not required to be trained and found competent. This merely means he does not have to be certified as per the new standard nor the

birdcaging, signs of core failure or protrusion. Significant corrosion, improperly applied end connections, or damaged end connections. If Category I deficiencies are identified the options are to replace the rope, or if damage is localized the damaged part may be cut off and the undamaged portion resocketed provided there is ample length of wire left. Often this will require configuration with less part line to assure ample length. Ample length is described as having a minimum of two wraps on the drum remaining with the boom at its highest angle and length with the hook at its lowest position. Category II. Deficiencies in this category are visible broken wires or reduction of diameter of more than 5% from nominal diameter. The broken wire criteria is as follows: Running ropes: (Regular strand wire) Six randomly distributed broken wires in one lay or three in one strand of one lay. Rotation Resistant ropes: Two randomly distributed broken wires in six rope diameters or four randomly distributed broken wires in 30 diameters. Broken wires should be identifiable visually but the 5% reduction of diameter will require calipers and measure-


crane inspected to the new inspection standards. When an articulating boom is handling pre-fabricated components such as structural steel members, roof trusses, or pre-cast concrete panels, etc.,

or used to position or stabilize ma-terial to facilitate a construction activ-ity, the new OSHA standard is applica-ble.

ments are only required monthly. The 5% diameter reduction is from nominal and not actual. As an example, a 3/4" wire rope will not measure .750" but rather close to .770"or more. Constructional stretch will reduce the diameter when the rope is first put into service but will soon stabilize slightly over the nominal diameter. It is the rapid decrease of diameter that is of greatest concern. This may indicate loss of core support or inner wire failure. In the 3/4" rope example a loss of .0375" below nominal diameter or measurement of .7125" would be cause for rope to be taken out of service. As in Category I, Category II deficiencies may be removed if localized and the rope remain in service.

Documentation of Inspection: Again, the monthly inspection must be documented and signed by the person conducting the inspection and retained for three months. When I conduct an annual inspection I should have seven inspections handed to me for review: the last shift inspection, the last three months of the monthly wire rope inspections, and the last three months of the crane’s monthly inspection. In the future I will not be issuing annual certification of compliance for cranes without this documentation. Please ad-vise your crane personnel before your next scheduled annual inspection to as-sure OSHA compliance and certification.

Category III. These are the most severe deficiencies and include: In rotation resistant rope, core protrusion or other indications of core failure. Electrical contact with a power line. A broken strand. As with Category I and II, if the core damage or broken strand is localized the wire may remain in service if the damaged areas can be removed from the rope, however, contact with a power line is cause for replacement even if damage is not evident.

Dave Barnhouse resides in Yigo and has been involved with operations, maintenance, operator training, and/or inspections,of cranes since 1969. He is a Certified Environmental Trainer, CHST, NCCCO certified crane operator and practical examiner for all types of mobile cranes and the only OSHA accredited crane inspector on Guam.


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by: Robert Francis Mendiola



The hammer, which dates back to 30,000 BCE, has been on the top five list of man's tool inventory since prominent foreheads were common. One of the world's oldest hand tools appeared to us shortly after the club and spear and was composed of nothing more than a stone, a stick and a strip of fur taken from the previous night's dinner. The hammer could have been used as a weapon, a construction tool, or for culinary preparation. The hammer has definitely come a long way. It is still used for a variety applications ranging from a delicate jeweler's hammer to a steam driven pile driver that never yields and pounds repeatedly until its goal is achieved. In Norse mythology, the hammer of Thor the god of thunder has a name: Mjolnir. Thor's hammer may need some extra vowels so the average English speaking person can pronounce it, but it carries incredible destructive power. But even Thor's hammer pales in comparison to the one my mother used to get me to do what ever she wanted. Yes, it's true: MAMA'S HAMMER! Mama leaves Mjolnir in the dust! Following are other types of hammers and each has a name and purpose: SOME HAND POWERED VARIATIONS -Ball peen hammer or mechanics hammer

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-Carpenters hammer (framing or claw) -Construction hammer (sledge or mason) -Drilling hammer (sledge but with a shorter handle and less weight) -Gavel (The jury is still out on whether it is the judge's bench or your life being struck) -Tinner’s hammer -Upholstery hammer SOME MECHANICALLY POWERED VARIATIONS -Hammer Drill -Jackhammer -Steam hammer The above examples take the amount of energy delivered to a target via the hammer point of impact which equates to half the mass times the square of the head's speed at the time of impact. 2

(E= mv ) by increasing the head's mass 2 the increase is linear; by adding speed the increase is geometric. Food for thought: if you take a titanium head and attach it to a longer handle the effect is the titanium head produces less recoil than steel. The longer handle as opposed to short lets you achieve higher speeds before impact. Using high grade material of course affects the price of the hammer.

efficiency, and applications. There's the old story about a father and son who can't get their hammer to do its job. The father tells his son to go back to the tool box and get a bigger hammer! New technologies can help avoid injury: Dead On Tools makes hammers that hold the nails to the head and take the pain out of starting a nail. Craftsman has two battery operated models that take the swing of things; one of the models offers a swivel head and a lithium ion power pack that can be recharged in three minutes. I must say that the mac daddy of them all is the Hilti DX460 nail gun that not only automatically feeds your 22 cal. loads but your nails as well. Simply place it on your mark and shoot. The hammer should be put in the Inventors Hall of Fame along with Thomas Edison for the telephone and Ben Franklin for electricity. But who would we say is the father of the hammer? Unga Bunga from the Gung Gung tribe? Wait there’s always MAMA!!!!!

The hammer is constantly being refined and tweaked for less user fatigue,



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