GCA Construction News Bulletin June 2011

Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Vol.52 Issue 06 JUNE2011

S ENT

FEDERAL ACQUISIT IO N R E G U L A T IO N

SEM TS BUR AC REIM TR ON BC SU ST RA TE GI ES

Government Contract Expert Shares Insight

KFC’s Facelift

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18

Feature Story

CONTENTS JUNE2011

16

Feature Story

8 12

C ommittee Update Headline C onstruction National Defense Act

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Story: F eature Brian Darst

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Story: F eature RIM Architect

20 24 26 29 30

P hoto Highlights S mall Business O n Guard N ew Members C rane Critique Corner

The Chamorro word for Hammer is: Matiyu (Ma-tee-zu)

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

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CONSTRUCTION NEWS BULLETIN

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THETEAM

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.

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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 Christopher “Taco” Rowland Paul Mendiola EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson Dave Barnhouse Gennette Quan Simmons Allison Rutter Greg Sablan GCA STAFF: Chantel Torres-Cruz Francine Arceo Desiree Lizama COVER: Federal Contract Insights

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COMMITTEEUPDATE

Military, Government and Labor Relations Update (June 2011)

LOCAL SUPPORT for the Military Buildup on Guam

By John M. Robertson This report is in follow up to what was reported last month relative to local Guam support for the military buildup. Military buildup construction is now slowly getting under way. This is a good news story that finally addresses the concerns raised in recent issues of the Construction News Bulletin about unbalanced news coverage regarding the military buildup. The silent majority has found its voice and has a local grass roots organization around which to rally. It is an organization of local concerned citizens from all walks of life, some of whom may incidentally have jobs in the construction industry.

The non-profit organization, Para Hita Todu (meaning “FOR All Of US”), is led by elected village mayors and other respected community leaders. Much of the information for this report was provided by that organization.

Para Hita Todu Mission Statement Para Hita Todu’s mission statement is to build a vision of a brighter future through proactive community engagement by embracing the opportunities presented by the Guam buildup and the future it will create.

About the Organization Para Hita Todu (PHT) is a Community Development Corporation (CDC) that has been formed to demonstrate to all Guamanians how the power of the community can make Guam better. PHT is a private apolitical organization with a community focus. Its immediate focus will be to engage the community in the development of a vision for a better future - a future that will be strongly affected by the military buildup. Its genesis is the need to bring the community together to develop a vision for a better Guam – a vision not based on politics but one that will come from the community itself. Its mission is based on embracing the opportunities presented by the Guam military buildup and creating progress now from the economic

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development activity that is already underway in the private sector. The buildup is not a handout but a hand up to a better future. Para Hita Todu has been created to grab that opportunity now and to engage our community in actively participating in a better future and not waiting to see what comes as a result of the military expansion.

Leadership Chair – Mayor of Dededo, Melissa Savares Vice Chair – Tricee Limtiaco, President of Guam Cornerstone Treasurer – Carl Peterson, President of Money Resources, Inc. Petition Drive To achieve this vision, a number of clear and tangible initiatives have been launched during the formation of the organization. The first is to make clear to the federal government and Congress that the people of Guam support the military buildup. It represents the largest and most immediate source of economic development available. Regardless of what impressions may have been developed, PHT wishes to clearly establish that the people of our island support the Guam buildup. In order to accomplish this, PHT is circulating a petition and hopes to garner 15,000 signatures from residents throughout the island.

Economic Benefits Derived from the military buildup 1) If only $10 Billion is invested in construction for the buildup by the military that means in gross receipts taxes alone the island will receive $400 million. This revenue can be used for paying tax refunds, building new schools, infrastructure and general government of Guam operations.

2) All of the income taxes paid by people employed by the military (active duty or otherwise) or the local economy will stay on Guam. This is because of Section 30 clause in our tax code. Other locations in the U.S. do not enjoy that benefit because their income taxes go directly to the federal government.

3) Economists have indicated that the “mulitiplier effect” of additional economic activity created by the buildup could range from a factor of 1.4 to 2.0. Assuming a conservative 1.5 multiplier effect the effective revenue impact of the buildup will be approximately $1.5 billion a year in additional revenues to businesses and individuals on Guam, if the buildup takes 10 years to complete. Given that currently our economy circulates approximately $6 billion a year in revenue that means 25% increase in overall revenue.

4)

At the end of the construction of the

Email PHT at contact@parahitatoduguam.com if you would like to receive a copy of the petition for your signature or if you would like to assist the organization with collecting signatures.

The website is at www.parahitatoduguam.com Call three locations to collect (or receive by fax) and drop off (or return by fax) a copy of the petition: DEDEDO MAYOR’S OFFICE Tel: 632-5203 Fax: 637-1129

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HAGATNA MAYOR’S OFFICE Tel: 477-8041 Fax: 477-6686

AGAT MAYOR’S OFFICE Tel: 565-2524 Fax: 565-4826

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5) Because of the buildup it is expected that Guam’s unemployment rate will drop dramatically. An estimated 10,000 to 15,000 construction jobs will be created. Of those jobs about 30% will be entry level positions that have to be filled locally by law. That means that within the construction industry alone 3,000 new jobs will be created that local people can qualify for. That is why enrollment at GCC has increased significantly. That is why the Guam Contractor’s Association Trades Academy has already out grown its facilities. The buildup will not just create construction jobs. The entire economy will grow and with that growth, the demand for skilled workers will increase. The lack of employment opportunities have severely stressed Guam’s families, people have been struggling to make ends meet and the

buildup will be an important hand up on the road to a better quality of life for all those that want to get involved.

6) At the end of the buildup, the island ' s water and waste water system will meet all U.S. standards. That means there will be no more septic systems, all households will have a sewer connection. New waterlines and storage facilities will be built ending low water pressure issues throughout the island.

The power system will be upgraded and Guam’s road system will be expanded and improved. All of these improvements will be paid for by agencies of the Federal Government and the Government of Japan. This is better than the rate payers (you and I) being burdened with paying for these necessary upgrades.

7) In addition, Congress has taken steps to provide additional funding for more schools, the expansion of the hospital and airport improvements in addition to the $10 billion already committed.

advisory group has already begun addressing issues of importance to the people of Guam as the buildup continues. This will help enhance cultural programs for our people.

The GCA Board of Directors voted to support this community initiative and has already committed $10,000 as seed money which is being added to the financial support provided by other community associations, business establishments and individuals.

During the coming months, Para Hita Todu will be initiating further actions beyond the ongoing petition drive. That will include launching a website and sponsoring a professional in-depth opinion survey. All of these actions require funding and the cost is projected at ±$100,000. All readers of this article are encouraged to give generously to this non-profit organization to ensure that the right message is being sent to the U.S. Congress, the Pentagon, local Government officials and to our local citizens. Let the truth prevail.

8) The military has for the first time engaged with the community for long term assessment and mitigation of issues and concerns that will evolve in the development of the buildup. A joint military and civilian

The Government and Labor Relations Committee is open to all members of the association.

Contact the GCA office for time and place of meetings.

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COMMITTEEUPDATE

Marine Corps Base, the transient carrier wharf and the ABM installation about 7,500 permanent new jobs are expected to be added to the economy. That’s about as large as the workforce for the hotels on Guam. That’s 70% of the total workforce of the Government of Guam. That does not include the jobs that will be created by all of the other construction and improvements planned. This is a great opportunity for the people of Guam to get good paying jobs.

CONSTRUCTIONHEADLINE

by: Kathleen Garrity ABC of Western Washington

House Passes

National Defense Authorization Act for Fiscal Year 2012

Congresswoman Madeleine Z. Bordallo today announced that the U.S. House of Representatives has passed H.R. 1540, the National Defense Authorization Act for Fiscal Year 2012 by a vote of 322 yeas to 96 noes. The Senate Armed Services Committee is expected to begin debate on their version of the Defense Authorization Bill in mid-June. Eventually the House and Senate bills will be reconciled in Conference Committee.

H.R. 1540 authorized spending and sets policy for the Department of Defense for fiscal year 2012. The bill provides $367 million to DoD for military construction projects on Guam and allocates $33 million in federal assistance to Guam for infrastructure improvements as requested in the President's budget.

Servicemembers will receive a 1.6% pay increase, and DoD would be required to assess the structural integrity and infrastructure improvements needed for strategic seaports to meet national security and readiness requirements.

Congresswoman Bordallo also sponsored several amendments to the NDAA. These amendments include providing an additional $10 million for operational facilities within the Army National Guard; $983,000 for the Navy Sea Cadet Corps; and $2 million for a study on renewable and alternative energy applications for military installations and operations.

Congresswoman Bordallo also sponsored an amendment that requires the Department of Defense to update a report on strategic seaports to determine the true costs of improving infrastructure at seaports and what future legislative changes may be necessary to fund such improvements.

The NDAA fully authorizes all military construction on Guam totaling $367 million; however the fuel systems maintenance hangar project at Andersen Air

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Force Base will be incrementally funded over two years. Thus, the actual appropriated funds for military construction are reduced to $303 million in fiscal year 2012. The Committee will generally incrementally fund military construction projects that are large and will take several years to complete.

The FY12 NDAA eliminates a 33% voting share of the Department of the Navy on the Consolidated Commission on Utilities as part of authority to transfer the Navy's water and wastewater assets to the Government of Guam. This amendment was offered by Congresswoman Bordallo during last week's mark-up of the Readiness Subcommittee, where she serves as the Ranking Member of the subcommittee. The bill leaves intact a provision included in the FY11 NDAA that authorizes the use ofunreimbursed Compact-impact to off-set the fair market value for the transfer of these assets. In discussions with the Governor and the Legislature, local leaders reached a consensus that keeping this Compact-impact offset provision could be of value to Guam and helps to make the case for a federal obligation.

"The House today passed the National Defense Authorization Act for Fiscal Year 2012," said Congresswoman Bordallo. "The bill contains important provisions to ensure that the military build-up on Guam benefits our community. The House passed bill authorizes $33 million for civilian infrastructure improvements and $367 million for military construction projects on Guam. The bill removes the 33% voting share of the Department of the Navy on the CCU as part of an agreement to transfer the Navy's water and wastewater systems to GovGuam. DoD would also be required to assess essential improvements to strategic seaports,

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which will certify infrastructure needs at Apra Harbor to support the build-up.

We now wait for the Senate to take action on their legislation and eventually begin the Conference Committee."

A table of the President's budget request and a summary of Congresswoman Bordallo's requested and supported provisions included in the National Defense Authorization Act for Fiscal Year 2012 are listed below: ·Eliminates language enacted in the National Defense Authorization Act for Fiscal Year 2011 that provided for the Department of the Navy to hold 33% voting representation on the Consolidated Commission on Utilities as a condition of transferring the Navy's water and wastewater assets on Guam to the Government of Guam; ·Provides the Department of Defense with authority to transfer operations and maintenance funding to state and local governments, including the Government of Guam, or federal agencies to fund and support infrastructure improvements through 2018; ·Requires the Navy to establish a Lead Systems Integrator for work force health care for Guam military construction projects. The LSI would provide a coordinated and comprehensive solution to the health care needs of H2-B workers; ·Require the Secretary of Defense to certify the national security interests for training ranges on Guam. The certification would establish why it is critical for training facilities to be constructed on Guam to support the Marine relocation to the island; · Reauthorizes travel reimbursement authority for the National Guard for one year and separate language

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prohibit the retirement of the C-23 "Sherpa" aircraft until the Department of Defense develops a plan to address homeland security, homeland defense, and humanitarian missions in the pacific; ·Provides servicemembers with a 1.6% increase in pay; ·Prohibits the Department of Defense from increasing the enrollment fee for TRICARE prime through fiscal year 2012; ·Establishes the position of Vice Chief of the National Guard Bureau. The Vice Chief will be a general officer with a grade of lieutenant general; ·Amends the Sikes Act to include state owned National Guard Facilities and add provisions for funding integrated national resource management plans. The Sikes Act authorizes the Secretary of Defense to develop cooperative plans for conservation and rehabilitation programs on military reservations and to establish outdoor recreation facilities as well as extending coverage of Sikes Act to the CNMI and American Samoa; ·Provides an additional $983,000 to the Navy O&M accounts to fully fund

the requirements of the Navy Sea Cadet Corps program. The Navy Sea Cadet Corps is a critical program that assists the Navy in meeting recruiting goals; ·Provides an additional $2 million to the Office of Naval Research for a study of renewable and alternative energy applications for military installations and operations in the Pacific region; ·Provides an additional $10 million for operational facilities within the Army National Guard for military constructions projects. ·Requires the Economic Adjustment Committee to report on ways that Defense Access Roads funding and authorities can be expanded to meet defense growth community's needs; ·Requires the Department of Defense to assess and report on the structural integrity of DoD designated strategic seaports and required infrastructure improvements necessary to meet national security and readiness requirements.

Fiscal Year 2012 Military Construction Authorizations for Appropriations Marine Corps Marne Corps Air Force Air Force Air Force Air Force Air Force Air Force Air Force

North Ramp Utiities Finegayen Water Utilities Air freight Terminal Complex Guam Strike - Clear Water rinse Facility Guam Strike Conventional Munitions Maintenance Facilities Guam Strike - Fuel Systems Maintenance Hangar PRTC - Combat Communication Support Facility PRTC - Red Horse Cantonment Ops Facility PRTC - Combat Comm Transmission System

TOTAL

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$77,260,000 $78,654,000 $35,000,000 $7,000,000 $11,700,000 $64,000,000 $9,800,000 $14,000,000 $5,600,000 $303,514,000

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CONSTRUCTIONHEADLINE

provides the services with authority to establish pilot programs to test alternative methods for performing and reimbursing travel, for limiting the need for travel, and for reducing the environmental impact of travel; ·Enhances the Department of Defense's Legacy Resource Management Program for natural and cultural heritage preservation. The Program, guided under the principles of stewardship, leadership, and partnership, assists DoD in safeguarding, protecting, and enhancing resources for future generations while supporting military readiness; ·Enhances foreign ship repair report requirements to require the Department of the Navy to justify utilizing foreign ship repair facilities when conducting maintenance and repair work on U.S. Navy vessels; ·Urges the Department of Defense to enter into cooperative agreements with institutions of higher education for research and studies in support of the Defense Review Posture Initiative; ·Supports the President's budget request for 9 C-27J "Joint Cargo Aircraft."

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FEATURESTORY

GOVERNMENT Contract Expert Shares Insight with Local Businesses by: Gennette Quan-Simmons

Facilitating Small Business Teaming and Subcontracts

Author, presenter, and of Counsel Brian A. Darst conducted two small-business seminars on June 2 and 3 at the Westin Guam Resort to a group of nearly 60 business owners.

Darst possesses 24 years of experience in government contracting, 20 of which have been representing private industry in their dealings with the U.S. government and has been with Fairfax, Virginia firm, Odin Feldman & Pittleman for the last 10 years.

The 2-day event was sponsored by the Guam Procurement Technical Assistance Center (PTAC), Guam Contractors Association (GCA) and Small Business Development Center (SBDC).

Seminar topics included Facilitating Small Business Teaming Arrangements and Contracts, and Changes and Claims in Government Contracts.

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“The seminar familiarized attendees with the SBA’s joint venture and mentorprotégé programs, subcontracting rules, and regulations affecting how small businesses can team effectively with other small and large businesses to pursue federal contracting opportunities. “It also highlighted practical and legal challenges faced by small businesses and their teaming partners and the benefits that can be achieved by all parties through forming such relationships, whether they are benefits accruing to small businesses, large businesses, or the U.S. Government. Particular emphasis was given to recent changes to SBA’s Section 8(a) joint venture and mentorprotege program rules,” Darst said.

Attendees of the seminar took away “strategies small businesses and their large business partners can employ to draft and implement effective join venture agreements and subcontracts to perform U.S. Government contracts,” he added.

Changes and Claims in Government Contracts “This half-day seinar focused on postaward issues that are encountered by U.S. Government contractors and their subcontractors providing construction,

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services, shipbuilding, and supplies to their federal customers arising from the Government’s issuance of changes to a contract or otherwise altering the performance schedule. In exchange for this right, the Government must provide affected contractors with additional compensation and/or schedule relief,” Darst said.

He further shared that “the seminar was designed to introduce attendees to different theories of recovery available to them anytime they are issued a formal or constructive change, encounter a differing site condition, experience a delay, suspension, or acceleration of the contract’s completion date, or lose efficiency because of actions taken by Government officials during contract performance. This seminar provided an overview of the legal requirements needed to establish entitlement to additional money or time when the underlying cause is some action or inaction on the part of Government officials.”

Military Build-Up - Contractors Rights and Obligations

Darst explained that growth of military expenditures will likely continue despite some delays in the build-up. “Many Guam contractors have been awarded Multiple Award Construction Contracts (“MACC”) in anticipation of future work.

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Darst emphasized the importance of understanding that “practices taken for granted in the commercial world are often restricted or even prohibited in federal contracting, and if a contractor or its subcontractors fail to understand the current rules or simply “guess” incorrectly, it can have devastating effects on them from a business as well as a legal standpoint. This is nowhere more evident than in the small business arena. SBA’s rules impose certain ownership, management, and control requirements on joint ventures that ensure that the qualifying small business team member control the day-to-day activities of the joint venture and receive the benefits that SBA and Congress intended for Section 8(a) participants, HUBZone small businesses, service-disabled veteran owned small business, and womenowned small business concerns.”

Understanding Government Contracts “Government contracting is a very complex industry,” Darst said. While there is no foolproof checklist that can ensure a contractor will never encounter problems, here are a few tips that can protect your company: - Read the Government’s solicitation or contract. There is no such thing as an unimportant contract clause or provision.

- If a pre-proposal site visit is offered, take advantage of it to familiarize yourself with the conditions and visit any bidders’ library that the Government makes available to potential vendors.

- If you have questions or are uncertain about the Government’s requirements, take advantage of the pre-proposal question and answer phase of the procurement.

- Understand the lines of authority of those U.S. Government officials with whom your company deals – both before and after award. Only authorized contracting officials, acting within the scope of their authority may bind the U.S. Government. It is important that all formal notifications be made in writing to the Contracting Officer, even if certain administrative duties may have been assigned to other representatives of the customer.

Seminar Feedback

Adam Baron of Cassidy’s Insurance gained a better understanding of cost reimbursements - among other key points. “I really enjoyed the seminar and found the information very applicable and useful for Guam companies. There were so many highlights, but if I had to pick one item that topped my interest, it had to be the part regarding equitable adjustments and legal cost reimbursements, particularly when they cannot be reimbursed and when they can be,” Baron shared.

Joe Roberto of North and East Island Tinting added, “The GCA – SBC Seminar with Brian Darst was extremely informative. There was definitely useful information provided for my small business. One that stood out the most to me was how a small contractor from the Marianas Islands protested a DoD contract and won their protest on the grounds the other big contractor did not have a valid Business and Contractors’ License. This story was very interesting and intriguing.”

- Take advantage of contracting professionals and/or legal counsel to answer questions you may have about these complex regulatory requirements.”

He added, “It is equally critical for Guam contractors to understand their rights and obligations under the FAR’s remedygranting clauses mentioned earlier and the fact that, in order to present a viable REA or claim, the contractor must be able to prove entitlement, amount, and link the two together. Contractor’s must also following all statutory and regulatory requirements for initiating and pursuing the FAR’s disputes resolution procedures.” www.guamcontractors.org

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JUNE2011 | 17

FEATURESTORY

The key to remember is that Government procurement has been a significant part of the national economy for many, many years. It is critical for Guam contractors and their teammates to understand that the process by which the U.S. Government awards and administers its contracts has generated a substantial volume of regulatory requirements, as well as legal decisions. Over time these statutes, regulations, and standard Federal Acquisition Regulation (“FAR”) and FAR Supplement provisions, which appear in every federal solicitation and prime contract, have become longer and more detailed. The regulatory system is constantly changing and requires a keen understanding of not only the specifications or drawing requirements, but also what the contractor’s rights and obligations are vis-à-vis the procuring agency, the SBA, their team members, and their subcontractors/prime contractors,” Darst said.

FEATURESTORY

ft li e c fa a s t e g g in n m u a T C KF

by RIM Architects

by: Shierly Caceres

In

the heart of Tamuning surrounded by new restaurants, the 30-year old KFC Restaurant looked outdated. It was missing the new image that reflects KFC’s new direction to capture a younger demographic. Not willing to sit back, Guam Fast Foods invited local design firms to reinvent the restaurant’s identity. RIM Architects submitted three exterior concept designs reminiscent of contemporary KFC restaurants built globally. RIM Architects won the project and principals Phillip Noret and Christine Wolke were charged with completing the job.

RIM Architects was joined with Chugach World Services (civil, mechanical and fire protection engineer), Englekirk Partners (structural engineer) and Wixon & Associates (electrical engineer) in delivering this exceptional facility.

Through the design team’s collaborative effort, the new KFC restaurant in Tamuning gained a new identity parallel to KFC’s revamped corporate image.

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Design Concept

The exterior façade of the new restaurant may still be rectilinear in style, typical of concrete buildings in Guam, but it packs a lot of visual punch. Evocative of KFC “bucket” symbol is a twenty three foot high red concrete box surrounded by two layers of glassblocks on the roof and a prominent sign of Colonel Sanders in the front. Light fixtures on top of white overhangs illuminate the KFC signs at night. Exterior walls were painted in KFC red with splash of white balanced against planes of more neutral and sophisticated browns and grays. The overall exterior design commands attention, both day and night. Most importantly, it stayed true to KFC brand emulating youth, energy, and fun.

The former interior design, at best, can be described as generic “family style”.

The image was disconnected from KFC’s new brand identity. So, a major overhaul was envisaged.

Some of the most aesthetically intriguing gestures are found inside the restaurant. RIM Architects reinvented the interior space by creating a fun, warm, and social environment. The overall interior design reflects KFC’s core brand identity. Through the use of vibrant

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colors and dramatic shapes, wood accents in dining tables, counter areas, benches and chairs add warmth and make the space inviting.

The restaurant has many distinct focal points that guide guests into visually attractive graphic walls that further communicate KFC’s message.

A visually pleasing red wall adjacent to the front counter is graphic collage of KFC branding cues combined with representations of Guam’s culture and people.

Approximately three feet off the ground, is a camera on top of a computer monitor installed on the wall. Visitors are able to take pictures and view the images using the monitor. These pictures are saved and shown in a large flat screen TV installed in the upper middle corner of the wall. Customers walk away with a fun experience because while waiting in line, they can have fun with their pictures – engaging their sight and touch.

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Some of the interior’s most eye-catching elements are the two customized circular wood benches accented by wall art, red dining tables, and red circular chairs.

Overhead are two circular red ceiling fixtures with suspended light in the middle. This innovative dining space is inviting, welcoming and informal – an exciting place to hang out.

Green is the New Black

KFC is a huge supporter of the green movement and sustainable design methods were incorporated into the building.

Tall windows were used around the facility to maximize the use of daylight. Large windows essentially have more potential to gain heat than smaller windows. To counteract this, window glazing with low-emittance coatings were utilized to reflect heat back outside the building.

White overhanging light shelves provide shade during the summer and reflect light up into the ceiling spaces reducing the electrical lighting load required.

FEATURESTORY

Impossible to miss upon entry is a bright orange and brown eight panel rectangular ceiling that guides visitors into the “bucket” space. Customers sitting in this area will enjoy the soaring ceiling, attractive graphics, and suspended light sculpture.

descent lamps or bulbs.

To conserve on water usage, water efficient fixtures are used in restrooms.

The RIM Architects design team and Contractor Leading Tech Construction delivered a restaurant that is a true reflection of KFC’s revamped brand image. The dynamic, contemporary, and environmentally responsive architecture makes a bold, youthful, and inviting statement.

Through innovative design, an act as simple as eating in a fast food restaurant has become a heightened experience of energy and fun.

Restaurants generally use a lot of power.

To promote energy efficiency, solar plate collectors were installed on top of the roof for the restaurant’s new solar water heater. High-Intensity Discharge lamps are used for exterior lighting and Compact Fluorescent Light (CFL) light bulbs for interior lighting. These light fixtures will save 75%-90% of lighting energy with longer life span compares to standard incan-

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PHOTOHIGHLIGHTS

May Luncheon

May 18th,2011 Westin Resort Guam

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PHOTOHIGHLIGHTS

Safety for Small Business: Primer on the importance of safety for small business entities. Topics included Introduction to OSHA, Where is Safety in Your Company, Accident Investigation for Small Business, Recordkeeping 101 GCA held the 16th Annual GCA Island Wide Safety Conference on May 25-27 at the Holiday Resort and Spa in Tumon. Local Safety professionals were on hand to present a safety topics for construction, transportation, warehousing, and hospitality industries. Also included was professional development track for safety professionals who gained more information on safety knowledge and received CEU credits for their continuing education.

GCA President James Martinez swearing in ceremony as a member for the Guam Workforce Investment Board on May 25, 2011 at 3:00pm in the Governor's Conference Room, Adelup He was then voted Chairman for GWIB.

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PHOTOHIGHLIGHTS

Relay for Life

May 27th,2011 George Washington High School

Grainger Supplier Fair May 18th & 19th, 2011 Holiday Resort & Spa Guam

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SMALLBUSINESS

TRAININGS/SEMINARS

Developing a Capabilities Statement A capabilities statement is probably one of the most important marketing tools that you can use to promote your business in the federal/local market place. Join us in this workshop as we help you to develop a great marketing tool.

Don’t forget to check out Joaquin on the Table of Contents to learn the Chamorro Construction word of the month.

UOG-School of Business & Public Administration Bldg. Room 129 May 19, 2001, 9:00 a.m. – 11:00 a.m.

Presented By: Boris Hertslet, Procurement Counselor Register now with the Guam Procurement Technical Assistance Center (PTAC).

Visit www.guamptac.com or call 735-2552.

HOW TO START A BUSINESS FREE Date: Thursday, June 23rd and July 28th, 2011 Time: 9:00 9:00a to 11:30 a.m.

Location: Guam Department of Labor - 3rd Floor Conference Room The Guam SBDC is one of six 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. Upcoming training workshops are: • June 16, 2011 “How to Apply Work Ethics to Protect Your Business” • June 17, 2011 “How to Prepare a Marketing Plan” • June 23, 2011 “Women In Business Workshop (WIB): “Reaching the Market” • June 24, 2011 "Quickbooks: Entering Sales, Receiving Payment and Making Deposits” • July 01, 2011 "How to Start A Business" • July 08, 2011 "How to Write A Business Plan" • July 14, 2011 "Web Site Marketing Basics” • July 15, 2011 "Quickbooks: Entering and Paying Bills” To register, call the Guam SBDC at 735-2590 or email Laurine Sablan at laurine@pacificsbdc.com 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. For more information, please visit www.pacificsbdc.com (click on workshops/calendar) or call 735-2590.

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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: Thursday, June 23rd and July 28th, 2011 Time: 9:00 to 11:30 a.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 One-Stop Career Center at 475-7000 or sign-up directly via our website: http://sbavboc.ecenterdirect.com/Conferences.action?CenterID=1. This link can be found on our website at http://www.guamvboc.com/calendar.php via the eCONFERENCE button at the bottom of the page.

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ONGUARD

254 RHS Duty for Training (DFT) Article

St. Michaels Academy for Special Education, Window Rock AZ By: Lt Patrick Sanchez, 254 RHS In late March 2011, forty (40) men and women of the 254 REDHORSE Squadron, Guam Air National Guard were deployed to Window Rock, Arizona in support of the No. 1 Innovative Readiness Training (IRT) project for Air National Guard.

Window Rock is the capital of the Navajo Nation and home to St. Michaels Academy for Special Education (SMASE). It was here in north-east Arizona where our Airmen from Guam kicked off the construction of the new 3,200 square foot Adult Program Admin and Daily Life Skills (ADLS) Facility and multiple renovation projects throughout the school totaling an estimated $400K in community donations and an equivalent $400K in Air National Guard troop labor costs. A total of eight (8) units throughout the nation are scheduled to cycle through Window Rock from March to August to complete the project.

Our portion of the IRT project was to be the first team on the ground to execute a two-week Deployment for Training (DFT) that serves a dual purpose to help fulfill our Troop Training Project (TTP) AFI compliance. “We honestly felt when asked by ANG/A7XX to participate in this endeavor that this effort would help us check many blocks from AFI and OJT upgrade training requirements but more importantly, help our men and women prepare for future RH deployments as begin the initial stages of our partial

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mobilization for FY12 execution,” stated Lt Col Audie Artero, 254 RHS Commander.

The team of Guam Horsemen was tasked with the privilege as the team on the ground during the Groundbreaking Ceremony on April 5, 2011. The late morning ceremony was attended by numerous military and community dignitaries who shared their various perspectives with one common theme… this project is all about the students and the families. Throughout the morning this message echoed through our hearts and minds making it that much easier for our team to fully immerse ourselves in the project. Later that afternoon the team was allowed to finally break ground with the initial excavation that would kick off the construction of the ADLS Facility. Our task consisted of the foundation preparation, construction of the footer foundation, and the stem walls. This phase of the project literally sets the stage for every other team to follow for the project so it was important for our team to ensure that the design specifications for position and elevation were always at the forefront of our construction efforts. To meet this critical requirement, Team Guam brought three (3) Engineering Assistants (EA) for the project. The EAs led by SSgt Judy Montague expressed “…what a wonderful opportunity to truly obtain hands-on experience from design reviews prior to coming out to real life

CONSTRUCTION NEWS BULLETIN

boots on the ground experiences.” From majority of the team leads, “They had never undertaken a project of this size and complexity and served as a perfect stepping stone to fulfill what the DFT program is all about, to help provide invaluable hands-on training,” said SMSgt Delin, Team NCOIC. SMSgt Delin further stated, “This was a true testament to executing TTPs while we have much experience in all engineering efforts, establishing cradle to grave planning and execution is definitely a different experience that we can now but in our experience checkbook. However, their lack of TTP experience was no match for their enthusiasm and willingness to learn under the tutelage of MSgt Joseph Flores and MSgt John Delgado, who served as the Project Manager and Construction Foreman, respectively.

MSgt John Delgado stated, “Overall, our team was young with the majority of the Airmen just graduated from tech school within the last few years but their youth matched with the SNCOs was quickly honed into an efficient work force that approached each day with the same level of enthusiasm and dedication.” The mentoring provided by the seasoned veterans was quickly embraced by all as we watched them mature into savvy construction team applying the lessons learned throughout the DFT. Execution of our scope of work for the

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NGB/A7 and NGB/A3 sections to ensure we addressed myriad of issues from the timing of the project and the MILAIR rescheduling to many workaround concessions on the ground.” “Ultimately, our phase of this IRT project could not have been properly executed without the close coordination from key NGB POCs and we are thankful for their constant involvement to ensure the success of this project,” further commented by Capt Blaz. This was evident by NGB approving to keep a small 9-person continuity force behind an additional four (4) days after the main body departed to close the remaining required construction items of the phase and provide a solid turnover to the inbound rotation from the Utah Air National Guard. Now, this team effort from NGB combined through the tireless efforts of the forty members of the 254 RHS, Team Guam completed the task at hand and kicked off the 2011 Air National Guard IRT at the St. Michaels Academy for Special Education with a great attitude, commitment, and dedication that we are sure set the tone for every team to follow.

To meet our objective, the team worked continuously for almost two weeks to tirelessly meet our objective before our scheduled departure date on 16 April 2011 from Gallup, NM. Capt Frank Blaz, 254 RHS Director of Operations, DFT Team lead, pointed out, “We knew going into this DFT, we could not start until after the Groundbreaking Ceremony and from the beginning, we closely worked with

Capt Blaz also expressed, “I would be remiss if I failed to mention the tremendous support provided to the Guam Air National Guard during this undertaking.

Our efforts at Window Rock, Arizona, were greatly supported by SMSgt Leroy Rusk and MSgt Jacqueline Terry of the Durational Staff, SMSgt Danny Pelkey and MSgt Chip Stoyer at the National Guard Bureau, and CMSgt Les Watkins of the 240

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CEF, Colorado Air National Guard.” Without their outstanding commitment, this project would be a challenge to the units tasked to support this project from the Fifty-four states and Territories. Because of their dedication, we were able to address all our logistical, fiscal (days and dollars), and technical questions without a hitch. Their support was absolutely priceless making our participation in the 2011 IRT at SMASE, a Deployment for Training that we will never forget. Our troops gained truly valuable experience, AFSC-specific training, and memories that we were a part of a project that impacts many special people today and the years to follow. MSgt Joseph Flores said it best, “Team Guam was grateful to contribute their pieces to this construction project where we were blessed to meet the wonderful people of Gallup, NM and the Navajo Nation.” In addition, the team had the honor and privilege to learn about the great achievements and accomplishments to our military past but more importantly, to our American history by personally meeting many of the living legends today that participated to many great military victories because of the dedication, commitment from Navajo Nation Code Talkers. This was capped off by actually meeting a few Code Talkers culminating personally meeting the last living WWII Code Talker.

Projects like this at Window Rock, provides priceless opportunities to touch the lives of the community while gaining precious experience.

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ADLS Facility can be broken down into four main activities; Survey, Excavation/Backfill, Rebar Fabrication, and Forms erection. Each phase is interdependent on the previous and must be executed fully before truly moving forward to the next phase. TSgt Jimmy Tyquiengco indicated, “Our tight schedule and work requirements required a dynamic but structured organization of the troop labor to be able to seamlessly move from one project task to the next.” One highlighted theme that kept getting reiterated by each team member had their primary skill set as defined by their AFSC but contributed greatly to the other trades. “’This was particularly true when manpower requirements dictated additional support for the ground compaction, rebar tying, and forms erection,’ said MSgt Raymond San Nicolas, 254 RHS HVAC Superintendent. ‘This ability to work effectively outside of your primary AFSC is a key characteristic of REDHORSE units and was demonstrated daily during the project…simply OUTSTANDING!’”

Contractor: Armor Coatings Micronesia 215 Rojas St., Ste 122 Harmon, GU. 96913 GCA Contact: John Ananich Email: johnananich@hotmail.com Ph: 647-2650/1 Fax: 647-2652 Description: Protective Coating Applications G.C.Gozum Construction P.O.Box 11012 Tamuning, Gu 96931 GCA Contact: Francis Rey Gozum Email: gozum@gcgozum Ph: 477-1317 Fax: 477-6864 Description: Finishing Contractor

NEWMEMBERS

JUNE 2011

CRANECRITIQUECORNER

MOBILE CRANE WIRE ROPE

by: Dave Barnhouse

This month’s topic:

Extending Rope Service 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

How long will your rope last? There is not a simple answer but, rather, there are several factors involved, including: •The manner in which you install and "break in " your new rope •The operating technique and work habits of the crane operators •Physical maintenance of the rope throughout its service life •Physical maintenance of the sys-tem in which your rope operates Several recommended practices you may use to extend your rope's useful life:

Install your rope correctly. The pri-mary concern when installing a new rope is to not trap any twist in the rope system.

Proper handling of the rope from the reel or coil to your equipment will help avoid this situation. Another important step on smooth faced drums is to spool with wraps tight and close together on the first layer. This layer forms the foundation for succeeding layers. Finally, spool the remaining rope on the drum with tension ap-proximating 1% to 2% of the rope's minimum breaking force.

Break in your new rope properly. When you install a new operating rope, you should first run it for a brief period of time with no load. Then, for best results, run it under controlled loads and speeds to enable the wires and strands in the rope to adjust to them-selves. Unfortunately, some personnel are of the belief that the first thing one should do is ‘load test’ the wire rope. No standard, including ASME and OSHA, requires load testing of wire rope.

"Constructional" stretch. When first put into service, new ropes normally elongate while strands go through a process of seating with one another and with the rope core. This is called "constructional" stretch because it is inherent in the construction of the rope, and the amount of elongation may vary from one rope to another. For standard ropes, this stretch will be about 1/4% to 1% of the rope's length. When con-structional stretch needs to be mini-mized, ropes may be factory prestretched. Another type of stretch, "elastic" stretch, results from recover-able deformation of the metal itself.

Cut off ends to move wear points. If you observe wear developing in a local-ized area, it may be beneficial to cut off short lengths of rope. When severe abrasion or numerous fatigue breaks occur near one end or at any one con-centrated area such as drag ropes on draglines or

This month’s test quiz addresses:

How can you comply with the new OSHA ruling regarding your crane operator qualifications?

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Are wire rope clips permitted to be used to fabricate sling eyes?

Answer: Not normally. Fabricated slings with eyes or endless loop slings using wire rope clips for hoist-ing material or lifting are prohibited except where the application precludes the use of prefabricated slings. All slings fabricated using wire rope clips shall be designed by a RPE for the specific application.

closing lines in clamshell buckets, for example - the movement of this worn section can prolong rope life.

Wire breaks from vibration fatigue oc-cur at end terminations, so short lengths cut off there with reattachment of the socket may prolong the rope's life. When broken wires are found, you should cut off sections of rope. In the case of a socket, you should cut off at least five or six feet.

In the case of clips or clamps, you should cut off the entire length covered by them.

Where there is an equalizing sheave, such as that found in many overhead cranes, fatigue is localized at rope tan-gency points to the equalizing sheave. Rope life will be increased if you shift this point by cutting off a short length at the end of one of the drums. Be sure to make this cutoff before significant wear occurs at the equalizing sheave, and always do so at the same drum.

Reversing ends. Frequently, the most severe deterioration occurs at a point too far from the end or is too long to allow the worn section to be cut off. In such cases, you may turn the rope end for end to bring a less worn section into the area where conditions are most damaging.

This practice is beneficial for incline rope and draglines. The change must be made well before the wear reaches the removal criteria. When changing ends, be careful to avoid kinking or otherwise damaging the rope.

Lubrication. Wire rope is lubricated during manufacture so that the strands,

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Drip

Spray

as well as the individual wires in the strands, may move and adjust as the rope moves and bends. But no wire rope can be lubricated sufficiently dur-ing manufacture to last its entire life. That's why it's important to lubricate periodically throughout the life of the rope. The surface of some ropes may become covered with dirt, rock dust or other material during their operation.

This can prevent field applied lubricant from properly penetrating into the rope, so it's a good practice to clean these ropes before you lubricate them. The lubricant you apply should be lightbodied enough to penetrate to the rope's core. You can normally apply lubricant by using one of three methods: drip it on rope, spray it on or brush it on.

In all cases, you should apply it at a place where the rope is bending such as around a sheave. This will allow easily penetration because that's where the rope strands are spread by bending. In addition, there are pressure lubricators available commercially.

The rope's service life will be directly proportional to the effectiveness of the method used and the amount of lubricant that reaches the rope's working parts. A proper lubricant must reduce friction, protect against corrosion and adhere to every wire. It should also be pliable and not crack or separate when cold yet not drip when warm. Never apply heavy grease to the rope because it can trap excessive grit, which can damage the rope. Nor should you apply used "engine oil" because it contains materials that can damage the rope.

Brush

We will discuss the answers to these questions in next month’s edition of GCA Construction News Bulletin, please be sure not to miss it.

I will attempt to test your knowledge of crane operations each month in this column with a few questions relating to one of the mentioned topics. These questions will address the weak areas more frequently noted during my classroom operator training and/or the more common discrepancies noted during crane inspections. If your company or subs utilizes cranes whether as owner or renter I invite you to look for this column each month and test your crane knowledge.

Please e-mail any comments, questions, or specific topics you would like to see addressed in this column to certs@ite.net and we will certainly attempt to accommodate your requests

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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Answers to last month’s test quiz: Personnel