GCA Construction News Bulletin January 2012

Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Build up Hiccup

Vol.53 Issue 01 JANUARY2012

18

CONTENTSJANUARY2012

16

Feature Story

Feature Story

8

Update C ommittee S.A.M.E.

12 14

C ommittee Update Headline C onstruction RiMS & CDM Smith

16

Story F eature Paradis

18

Story F eature Build up Hiccup

22 26 28 30 31

P hoto Highlights A round the Bench C rane Critique Corner G arrison Report N ew Members

The Chamorro phrase for “Land” is:

Tano

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

2 | JANUARY2012

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Hawaiian Rock Products provides products and services to meet all your construction needs. With our large fleet of equipment, multiple batch plants and reliable workforce, your projects are sure to be met with unparalleled efficiency. No job is too big or small.

Fleet of Equipment: • 49 RMC Transit Mixers • 17 Dump Trucks • 8 Concrete Pumps • 11 Tractor Trailers • 6 Cement Tankers • 2 End Dumps

• 2 Low Boys • 4 Paving Machines • 8 Roller Compactors • 2 Cold Planers • 1 Asphalt Transfer Machine • and Many More

Batch Plants: • Agat Concrete Batch Plant produces 250 Cubic Yards per hour • Andersen Concrete Batch Plant produces 100 Cubic Yards per hour • Mangilao Facility houses two (2) of the most modern 300 Cubic Yards per hour Concrete Batch plants

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

11-HRP-038 GCA March Issue

THEDIRECTORS

THEEDITORIALS

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 Mike Venezia, 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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THETEAM PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Marty Leon Guerrero June Maratita PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland Paul Mendiola Bill Tenorio PHOTOGRAPHERS: Marty Leon Guerrero EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson Mar-Vic Carugugan David F. Macaluso Dave Barnhouse Ted Garrison Robert Francis Mendiola CDM Smith RIM Architects GCA STAFF: Chantel Torres-Cruz Francine Arceo Desiree Lizama COVER: Military Project Box

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JANUARY 2012

S.A.M.E. UPDATE

SMALL BUSINESS PROGRAMS

8(a) SET-ASIDE

Guest speaker at the October meeting of SAME Guam Post was Al Sampson, Small Business Advisor for NAVFAC Marianas. Mr. Samson began his presentation with a humorous quiz to test the audience which was enjoyed by all. Following the quiz, Mr. Samson provided an inside look at the Small Business Programs for NAVFAC Marianas. Key points from his presentation are outlined below.outlined below.

by-industry basis using North American Industry Classification System (NAICS) codes - Size standards are based on: • For manufacturing, number of employees • For services and construction, average annual receipts for three preceding accounting years

PURPOSE

SIZE STANDARDS

• Demonstrate NAVFAC Marianas’ commitment to increase contracting opportunities for small businesses.

• Federal Acquisition Regulations (FAR) Part 19.201(a): “It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, …”

• The purpose of a small business setaside is to award certain acquisitions exclusively to small business concerns.

DEFINITION

What is a Small Business?

- concern (including affiliates) that is independently owned and operated - not dominant in the field of operation in which it is bidding on Government contracts - qualified as a small business under the criteria and size standards in 13 CFR part 121 Size Standards: - Established by U.S. Small Business Administration (SBA) on an industry-

• 51% owned by socially and economically disadvantaged individuals • Certified by SBA • 8(a) Sole Source $4M in Construction & Other Services • 8(a) Competitive for > $4M in Construction & Other Services • 8(a) Mentor-Protégé Agreement JVs – SBA approved

Examples: NAICS 236220 238330 312113 327331 541310 541320 541330 541330 561210

Industry Description Commercial/Institutional Building Const Flooring Contractors Bottled Water Manufacturing Concrete Block and Brick Manufacturing Architectural Services $4.5M Landscape Architectural Services Engineering Services Marine Engineering and Naval Architecture Facilities Support Services

TYPE OF SMALL BUSINESS SET-ASIDES • 8(a) Set-Aside (FAR Subpart 19.8) • HUBZone Set-Aside (FAR Subpart 19.13) • Service Disabled Veteran-Owned Set-Aside (SDVOSB) (FAR Subpart 19.14) • Woman-Owned Small Business Set-Aside (FAR Subpart 19.15) Total Small Business Set-Aside (FAR Subpart 19.5)

Threshold $33.5M $14M 500 Empl 500 Empl $7.0M $4.5M $18.5M $35.5M

HUBZONE SET-ASIDE • Principal office located in a Historically Underutilized Business Zone • 51% owned and controlled by US • Citizens and at least 35% of employees must reside in a HUBZone • Certified by SBA • JV – all members must be HUBZone certified • HZ Sole Source $4M in Construction & Other Services

• HZ Competitive for > $4M Construction & Other Services To join SAME Guam Post, logon to SAME.org and proceed to New Membership.

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CONSTRUCTION NEWS BULLETIN

&

in

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S.A.M.E. UPDATE

SERVICE DISABLED VETERAN-OWNED SMALL BUSINESS (SDVOSB)

S m a ll B u s in e s s P ro g ra m

• Principal office located in a Historically Underutilized Business Zone

S m a ll B u s in e s s (S B )

• 51% owned and controlled by US

S m a ll D is a d v a n ta g e d

• Citizens and at least 35% of employees must reside in a HUBZone • Certified by SBA

N AVF AC

F e d e ra l

FY11

FY11

FY11

G o a ls

G o a ls

A c tu a l

D o lla rs

23%

3 6 .0 %

4 7 .9 %

$229M

5%

2 3 .0 %

4 0 .4 %

$194M

5%

6 .5 %

6 .6 %

$32M

W o m e n -O w n e d S B (W O S B ) H is to ric a lly U n d e r-u tilize d

• JV – all members must be HUBZone certified • HZ Sole Source $4M in Construction & Other Services • HZ Competitive for > $4M Construction & Other Services

B u s in e s s (S D B )

S ta tu to ry

B u s in e s s Z o n e (H U B Z o n e SB)

3%

1 0 .0 0 % 2 4 .6 0 %

$118M

S e rv ic e -D is a b le d V e te ra n -O w n e d S B (S D VO SB)

3%

2 .5 0 %

1 .3 %

$6M

in

WOMAN-OWNED SMALL BUSINESS SET-ASIDE • 83 industries by North American Industry Classification System codes in which WOSBs are underrepresented or substantially underrepresented • WOSBs and EDWOSBs must selfcertify their status • 51% owned, controlled & managed by one or more women • Effective February 4, 2011 • Competitive solicitations up to $6.5M in manufacturing and $4M in other services.

TOTAL SMALL BUSINESS SET-ASIDE • Open to all small businesses including 8(a), HUBZone, SDVOSBs, WOSB, etc.

• Self-Certifying Program • JVs may be formed with other SB concerns

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CONSTRUCTION NEWS BULLETIN

JANUARY2012 | 9

COMMITTEEUPDATE

Military, Government and Labor Relations Update (January 2012)

By John M. Robertson Things in Washington continued moving very fast during the second half of December and early January. The full Senate and House concluded deliberations on the National Defense Authorization Bill without regard to the language opposed to by the Department of Defense. The President signed the NDAA into law on Saturday 31 December. It includes $83 Mil for projects at Andersen AFB, well short of the $300 Mil proposed by the military. As was announced on 5 January, the DoD is now finalizing its budget request for FY2013 and it will be submitted to the president before the end of January. It will not include specific plans for the realignment of forces in Asia and the Pacific region.

As a consequence, the idea of a military buildup on Guam is postponed until FY 2014 unless there is a future change in plan.

How Guam Shot Itself in the Foot Since this is an election year, it is only fair that we look back and review how Guam elected officials played an important role in bringing about this debacle. First, the Programmatic Agreement was to have been signed between DoD and GovGuam in September 2010 at latest. The 30th Guam Legislature, followed by the 31st Guam Legislature delayed signing of the PA by six months until March 2011 while they attempted to force agreement on issues intended to be resolved within the framework of the PA. Use of a portion of Pagat as a firing range was one of the key elements and it is of course still unresolved.

Had this delay not occurred, approximately a billion dollars in construction contracts that had been budgeted for FY2010 and FY2011 and already priced by contractors would have been awarded and momentum would have already been established by early 2011. The much studied buildup with approved EIS would then be off and running. Second, two U.S Senators 12 | JANUARY2012

made a courtesy call on the 31st Guam Legislature in late April 2011. Senator Carl Levin, Chairman and Senator Jim Webb, Member of the Senate Armed Services Committee were treated rudely by some members as they presented new demands for things of value to Guam in exchange for agreeing to proceed with the military buildup. During the same time frame, Senator John McCain, Ranking Republican Member of the SASC visited U.S. military bases in Okinawa and devised what he thought was a less expensive approach to the realignment of forces in the Asia Pacific Region. When the three returned to Washington, they began discussing an exit strategy for Guam. (See the June issue of Construction News Bulletin) A third and less direct issue was a visit by one or more members of the 31st Guam Legislature to the United Nations in a bid to end the “colonization of Guam”. The Government of Guam under Governor Eddie Baza Calvo has been supportive of the military buildup on Guam and for the right reasons.

It is time for the citizens of Guam and especially leaders in the business and professional community to act affirmatively in electing the right people to the 32nd Guam Legislature. First of all, we need to find candidates who want to work for all the people of Guam and not simply make a career in the Legislature. So many of our laws are reactionary and intended to resolve some real or perceived issue of the moment. If the legislature served part time, as is the case in Hawaii, Texas and a number of other states, the right people would be able to fulfill an important function without giving up a profession or a business. With the right people in our legislature, budgets would be passed and essential new laws put in place while the governor was able to govern without the relentless bickering we see almost every day. With the right people on the ballot, including some now in the 31st Legislature, we will need to get out the vote to be sure they are elected. This is an important call to action.

President Obama Announces Defense Strategy

President Barack Obama on 5th January announced a defense strategy he said will allow the military to defend the United States and its national interests while cutting military spending in a responsible, balanced manner. The president spoke about the conclusions of the defense strategy guidance at the Pentagon briefing room. The strategy guidance's bottom

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line is that the United States armed forces will remain the preeminent military force in the world. White House and Pentagon planners will use the strategy to fund the budget Obama will submit to Congress in February. The strategy will lead to about $487 billion in defense cuts over the next 10 years as previously agreed to. There was no mention of the $1.2 trillion dollar budget cuts, fifty percent of which was to be borne by the military under sequestration.

The president stressed that this is a moment of transition for the military; after 10 years of war, he said, now is the time to make these changes. He pointed to successes against al-Qaida as well as the withdrawal from Iraq and the beginning of the turnover of areas in Afghanistan to Afghan control as signs that the sacrifices American soldiers, sailors, airmen, Marines, Coast Guardsmen and civilians are having an effect. As the conflicts end, the U.S. military will regroup and focus on broader challenges, especially as they pertain to the Asia-Pacific region. President Obama had vowed to shift the focus during a trip to the region last year. The United States also will work to maintain progress in the Middle East, Central Asia and North Africa. “We are supporting political and economic reform and deepening partnership as to ensure regional security,” he said. The strategy is not limited to the Defense Department, Obama said. All aspects of the U.S. government must work together, including diplomacy, development, homeland security and intelligence.

The foregoing was obtained in part from www.whitehouse.gov

Panetta: Coming Budget Cuts Demand Careful Balance

The coming round of defense budget cuts will differ from previous drawdowns, “where the threat kind of went away,” Defense Secretary Leon E. Panetta said on 5th January as he and Joint Chiefs Chairman Army Gen Martin E. Dempsey joined President Obama at an unprecedented Pentagon briefing. Terrorism remains a danger, and Iran, North Korea, China and the Middle East pose key defense concerns. DOD must retain the power to counter these and other pressures while reducing redundant structures, trimming its force size, scaling back weapons modernization and adjusting compensation, the secretary noted.

The secretary added some detail to two topics emphasized during the strategy guidance rollout: increased emphasis on www.guamcontractors.org

the Asia-Pacific region, and acknowledgement that some risk comes with deep defense cuts. “What are the risks? When you're smaller and leaner, you're not going to have that large a presence throughout the world,” he noted. An effective smaller force will need to mobilize quickly, bring advanced technology to bear, and rely on partnerships, the secretary said. Mobilization demands both a strong logistics framework and a robust reserve component, Panetta said. But advanced technology demands ongoing research, innovation and implementation, all of which are costly, he added, and partner relationships require matching efforts from other nations, which also are resource-constrained. “So you can see the risks that are out there,” Panetta said. “We think they're acceptable, but they are risks.” But there is no risk that the U.S. military will become a one-front force, he emphasized.

“The United States has to have the capability to deal with more than one enemy … and win,” the secretary said. The Asia-Pacific region calls for increased U.S. military attention because many factors there could develop into challenges, Panetta said: possible instability on the Korean peninsula, free movement of maritime commerce, nuclear proliferation, humanitarian crises and disasters are all issues that could trigger U.S. power being invoked. “That's the reason we have got to focus an emphasis on the Pacific region,” he added. The secretary said that emphasis includes maintaining a strong naval presence in the Pacific, maintaining a military presence in South Korea, pursuing the rotational Marine deployment to Australia the president announced in November, and looking for other, similar opportunities “to enhance our presence, to … indicate that we are a Pacific power and we are there to work with the countries in that area to try to maintain the peace.”

The 2013 defense budget request to be announced in the coming weeks reflects “a lot of hard choices,” Panetta said. “When you cut a half trillion dollars from the defense budget, it affects almost every area in the defense budget,” he noted. During the strategic spending review leading up to this announcement, department leaders examined operations, modernization and procurement, compensation and force structure for possible savings, the secretary said. Panetta did not discuss the effects that could result from an additional half-trillion-dollar reduction in defense spending, as the Budget Control Act’s sequestration provision requires. “What I would ask people to do is … hold your judgment as to whether or not we ought to cut the defense budget a lot deeper, until www.guamcontractors.org

… you see the decisions we are going to have to make in order to be able to achieve $500 billion in defense savings,” he said.

The foregoing was obtained in part from www.defense.gov

Progress on Futenma

The central government of Japan has produced a crucial study on the plan to relocate the Marine Corps Air Station Futenma, which is an important step toward the military buildup on Guam.

Japan's final Environmental Impact Statement represents concrete progress toward relocating the much-debated facility. The shift of Futenma is a linchpin in the plan to bring Marines and their dependents to Guam. According to an article by Japan's Kyodo news service, the Japan Defense Ministry delivered the EIS to the Okinawa Prefectural Government early Wednesday morning on 28 December after its first attempt was blocked by angry residents.

Okinawa Gov. Hirokazu Nakaima, who has been a vocal opponent to the Futenma relocation plan, told Kyodo news that the prefecture has no choice but to receive the report now that it has been delivered.

An English translation of the Futenma EIS was not available.

Meanwhile, the Japanese government has dramatically reduced funding for the planned transfer of U.S. Marines from Futenma to Guam. Japan will allocate only ¥7.3 billion ($93.65 million) in the JFY 2012 budget, down from ¥ 51.8 billion ($664.54 million) that was earmarked in the JFY2011 budget which runs until the end of March. Tokyo’s decision, announced on 23 December, came two days after Japanese Foreign Minister Koichira Genba held talks with U.S. Secretary of State Hillary Clinton in Washington in which both sides said the transfer of troops remains unchanged.

So, What About Guam?

The foregoing briefings at the Pentagon were seen on CSPAN then followed up by downloading the online print versions. At no time was Guam mentioned by name although it is clear how bases on Guam are now key to the revised strategy for the Asia Pacific Region. The military threat in Europe and Atlantic Region was hardly mentioned. The role of the U.S. in NATO continues to be important but without the emphasis of the past. In hind sight, based on the foregoing, it is easy to understand the importance of the 2nd December “Priority Appeals” sent by the DoD to the Conference Committee. (It is quoted in the December issue of CNB) It is unfortunate that members of the SASC and the HASC did not take heed and try to understand the broad policy shift that was then emerging.

It appears that Guam will continue to be

COMMITTEEUPDATE important for the realignment of forces in the Pacific but perhaps not to the extent previously envisaged.

Positioning of Marines in Australia has already been announced. Other nations in the region such as the Philippines, Singapore and Thailand might be willing to host smaller military units.

The impact of what the U.S. Congress has done is far reaching in relation to the Guam buildup. The most expensive EIS ever developed by the U.S. military will now be shelved and may have to be redone. The lives of many civilian employees of the military on Guam have been disrupted.

It is too early to know what will be done with the 28 DB MACC contracts already awarded. Local and off-island construction contractors have invested heavily in the buildup program. Support industries such as suppliers of all types of equipment and materials have geared up for a multi-billion dollar program that has been placed on hold. Other businesses that are peripheral to the engineering-construction industry have done likewise.

So What Can We Do

There is no reason for us to give up now – the stakes are just too high and the original purpose of the realignment of forces in the Asia-Pacific region has not changed, just been reemphasized. The only effective thing we can do is to engage in a lobbying effort here locally and in Washington. The Armed Forces Committee of the Chamber of Commerce has been doing this in Washington for a number of years. Now, we in the engineering-construction community must take this to a new level in cooperation with the Chamber of Commerce and other business organizations. Caution: We must be prepared for major expenditures.

As mentioned above, the FY 2013 military budget has already been prepared without regard to the military buildup on Guam. It is expected to be approved by the President in February and sent to the Congress.

From there, we need to lobby the SASC and the HASC for reinstatement of the program on Guam. Locally, we need to focus on seating a Guam Legislature that supports business and the increased military presence.

Senseramente, John M Robertson, Committee Chairman 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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JANUARY2012 | 13

CONSTRUCTIONHEADLINE

CDM and Wilbur Smith Associates Proudly Serving Clients as CDM Smith

Two RIM Architects Employees Earn Revit 2012 Certifications by: Shierly Caceres

Tim Ridenour and Molly Logelin are two of 442 people in the U.S. who have earned the status of Revit Architecture 2012 Certified Professionals. This certification is an industry-recognized credential that affirms their skills and knowledge of Autodesk Revit 2012, the leading Building Information Modeling software tool.

BIM technology provides the design team, contractor and owner with 3-dimensional, information-rich imagery for use during design and construction, as well as ongoing building operations and maintenance.

RIM Architects is celebrating its 25th anniversary of providing excellence in comprehensive architectural design and client service. The firm’s philosophy brings “Results with IMagination” to every project and translates the client’s program, functional objectives and aesthetic aspirations into an appropriate and creative architectural solution. RIM Architects has offices in Alaska, California, Guam and Hawaii. As one of the leading architectural firms in Guam for design excellence and sustainable design, the firm has recently completed the award-winning Joint Region Marianas Headquarters. This facility received its LEED Silver certification in March 2011, making it the first LEED certified building in Guam.

14 | JANUARY2012

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New brand reflects emergence of a full service global leader What began in February 2011 with joining of two industry forces has culminated in a fully integrated provider of comprehensive water, environment, transportation, energy and facilities services united under the new brand CDM Smith.

According to Chief Executive Officer Richard D. Fox, “CDM Smith brings together CDM and Wilbur Smith Associates, two firms of rich heritage and world-wide reputation. With 123 years of combined cross-discipline expertise, our people bring a wealth of knowledge, experience and dedication to every client relationship and each project. While our name is different and our portfolio of services has expanded, we remain committed to doing what is right for our clients, our communities, each other and the future.”

Proving to be better together, CDM Smith represents almost 6000 employees excelling in 100 technical specialties, partnering with clients to solve challenges in 28 countries around the world.

CDM Smith provides lasting and integrated solutions in water, environment, transportation, energy and facilities to public and private clients worldwide. As a full-service consulting, engineering, construction, and operations firm, we deliver exceptional client service, quality results and enduring value across the entire project life cycle

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FEATURESTORY

10 Years of Service by: by: David David F. F. Macaluso Macaluso

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FEATURESTORY D windows, acoustic windows, curtain wall, storefront and sunshades.

Paradis said, "We take extreme pride in supplying Guam’s construction market with the highest quality and value of U.S. made construction materials directly from manufacturing to Guam job sites. Our Window Products are sold factory direct from Graham Architectural products."

This month GCA magazine is showcasing South Pacific International (SPI), a locally based company which has been serving Guam since September 2001.

According to General Manager and Owner Guy Paradis, SPI was one Guam‘s first wholesale and trader companies of construction materials to be certified as a small business hub zone firm for Guam in 2001.

South Pacific International is one of the islands leading suppliers to Guam’s commercial and military construction market. It offers a large scale of specialty products to cover all architectural and mechanical needs to their clients, such as fixed and operating windows, blast and impact mitigation military products (windows and doors), high performance typhoon rated EXP

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Why does Paradis use Graham Architectural products? For nearly 40 years Graham Architectural has a reputation for engineering expertise and provides a diverse mix of window and door products serving all facets of the industry. Its accurate reproductions of historical windows and doors have been installed in historical buldings, libraries, colleges and universities throughout the U.S. mainland. Since the U.S. Joined the War on Terror, Federal agencies have mandated that windows in public buildings meet GSA and UFC test criteria for bomb threats up to 33 psi. Graham Architectural developed a full line of products that complies with federal standards.

Paradis believes he offers two things that separates himself from the rest of the pack, a weath of knowledge in the construction industry and excellent customer service. " A hard days work can be made easy if you take care of your customer," said Paradis. “We provide full service from the time of the order to the time of delivery. SPI gives logistic updates, on site inventory service and local customer support. In addition I have

over twenty five years construction expericence which began prior to the opening South Pacific International.

I first started on Guam in 1989 and worked for 9 years for a major prime contractor, 5 of those years I was a project manager under the mechanical division. In 1998 I left the company to work for a large scale wholesaler. I was there for 2 years and I decided to start a quality full service trading firm which lead to the conception of South Pacific International in 2001."

SPI’s modest start began as sole proprietorship which lasted for eight years, from 2001 to 2009, and has been a S corporation since 2009. Despite his success, he continues to operate his company from a home office to keep the overhead expenses down.

"Why pass on the burden of all this overhead expenses to your customers? SPI prefers to provide full customer support directly at our contractors jobsite / office ! We simply pass on these saving to our customers making us more competitve," said Paradis. In addition, we are available to service customers 24/7 and it gives me controllable hours to spend time with my family."

With over 25 years of knowledge in the field, one of the key suggestions of advice Paradis would give to others starting a business in this industry is to not lose sight of your obligations to your customer from the date of order to delivery. He believes companies tend to forget the basics of good quality customer service.

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JANUARY2012 | 17

FEATURESTORY

The Department of Navy apparently gave the Guam business community a premature cue for celebration when it pronounced that the signing of the Record of Decision in September 2010 signaled the start of large-scale construction and creation of thousands of new jobs. It was the “transition point,” according to David Bice, then executive director of the Joint Guam Program Office. But cloud of doubts came to hover over the plan for the $16-billion relocation of 8,000 Marines from Okinawa to Guam due to a number of contentious domestic issues that beset both Washington and Tokyo.

remains hopeful, nevertheless, seeing the freeze on Guam construction spending as a mere hiccup. “While our members are disappointed with the outcome of the 2012 National Defense Authorization Act, we remain optimistic that this buildup will come to fruition, perhaps not in the way that we had first anticipated but at a slower pace and stretched over a longer period of time than anticipated,” GCA president James Martinez says. “What some people are not aware of is the fact that the NDAA is an annual event in Washington. There will be another NDAA for 2013, 2014, 2015.”

And eventually, the much-ballyhooed military buildup was placed in limbo on Jan. 1, when President Obama signed the 2012 National Defense Authorization Act that pegs defense spending at $662 billion and freezes the $300 million allocation for military construction on Guam. This was coupled with Tokyo’s recent decision to slash funding for the planned transfer of 8,000 U.S. Marines from Futenma Air Base on Okinawa from 51.8 billion yen ($664.54 million) to 7.3 billion yen ($93.65 million).

The NDAA provides $83.6 million to DoD for military construction projects on Guam, which is much lower than the $303 million approved by the House of Representatives for fiscal year 2012.

The Guam Constructors Association

18 | JANUARY2012

The final version of the defense spending measure also scrapped the $33 million proposed appropriation for civilian infrastructure projects through the Office of Economic Adjustment. It also prohibits the transfer of U.S. and Japanese military construction funding until certain conditions are met — a provision introduced by Sen. John McCain, (R-AZ), who raised serious

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concerns about U.S. force posture in the Pacific. During the floor debate on defense spending bill, Senate leaders also noted the lack of tangible progress over the Futenma Replacement Facility Sen. Judith Guthertz, chairman of the Guam Military Buildup Committee at the legislature, is equally confident that the funding freeze doesn’t spell the end of the massive program. She notes Congress’ continued demand for a buildup master plan from the Department of Defense and a variety of other pieces of homework, including a full lay-down plan for the future Marine deployment in Guam as well as a report on what will be required to fix local civilian infrastructure to handle it. “These aren’t new requirements,” Guthertz says. “Many of the problems identified by our people in the course of the DEIS process on the buildup would have been resolved if this work had been done in advance and I strongly regret that it wasn’t.”

David Leddy, president of the Guam Chamber of Commerce, acknowledges that the appropriation process is a perennial challenge. “Yes, we knew there were going to be some quirks to overcome and some real budgetary constraints,” he says. “Budgets and

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FEATURESTORY

Buildup Hiccup by: Mar-Vic Cagurangan

? making laws is like making sausage – it is not always pretty. Of course we wanted more things to go forward quicker but in the technical language it really only asks for some affirmations from the Navy/Marine Corps in terms of lay down and description of the facilities.”

The military buildup represented a gold rush for local and off-shore investors, who sought to grab investment opportunities on Guam, including the $4 billion multiple-award construction contract as well as the Japan-funded Mamizu contracts, which have yet to be awarded. But the plan did not accelerate at the rate initially expected. The Navy has opted for the implementation of the adaptive program management to adjust the pace of construction to stay within the limitations of Guam infrastructure. Several other determinants that triggered the delay in the Marines’ relocation process have prompted a number of companies to either scale down their operations on Guam or pack up altogether and send their workers back home. A number of housing projects designed for military personnel and workers came to a screeching halt, while several realty contracts are facing cancel at ions.

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“I believe that every company who had their sights set on this buildup are now making adjustments in their business plans to make the best of what they have or what is to come,” Martinez says. “Just as in any business, construction companies need to make business decisions that will keep them sustainable in tough times. They knew the risks and more than likely had a contingency plan to exit if there was no work to be found. ” But all is not lost for companies that cater to projects that not necessarily related to the Guam military buildup. “We still have other sources of construction that are earmarked for 2012 and 2013,” Martinez says.

In September last year, for example, the Consolidated Commission on Utilities presented a roster of capital improvement projects worth $500 million. “Most if not all these CIP programs are federally funded and will provide other opportunities absent the military construction piece,” the GCA president says.

tourism — to keep the local economy afloat.

“With the advent of the visa waiver program for citizens of Russia and, hopefully, later for China, the tourism industry should be flourishing,” Martinez says. “This translates to more construction activity in this industry sector as there will be a need for additional hotels, restaurants, recreational facilities and even shopping centers and malls. Even the current facilities will need to undergo renovation work and upgrading.”

Leddy notes that Guam, despite its isolation that limits its options, possesses natural resources that will allow local tourism to grow. “After the buildup, with certain things have economies of scale,” he says, “there may be opportunities for complimenting businesses/industries to keep building our economy but that goes beyond this question.”

With the military buildup currently in limbo, business leaders say Guam can still rely on its other major industry —

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JANUARY2012 | 19

TRENCH SHORING EQUIPMENT SALES & RENTAL

PHOTOHIGHLIGHTS

LMS Christmas Lights 2011 The Guam Visitors Bureau (GVB), a Guam non-stock, nonprofit membership corporation, solicited proposals from qualified firms or individuals to design, produce and install holiday illumination displays along areas of Pale San Vitores Road in Tumon and Governor Carlos Camacho Road in Tamuning. LMS Guam was the successful bidder and was awarded a contract which included 2 renewal options.

The purpose of the Holiday Illumination Project was to create an attraction to enhance the festive ambiance on Guam during the Christmas season by providing decorative holiday displays in Tumon and Tamuning. The project had good marketing appeal and was promoted with other planned events to attract more visitors to Guam during the month of December. The Holiday Illumination Project added to a memorable and eventful visit for tourist and benefited the people of Guam by providing an attraction to promote holiday cheer.

Sponsors Chugaach Guam Department of Public Works G4S Security Services Johnson Controls Inc. Mr. & Mrs. Jack Woo Perez Bros. Inc. Proa Restaurant Tropic Wear 22 | JANUARY2012

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PHOTOHIGHLIGHTS

Special Olypmics Golf

Dec 17th, 2011 Admiral Nimitz Golf Course

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IP

Are You Tired Of 7AITING &OR ! -AILBOX

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HAT CAFE

Drink good coffee & Have great talks.

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AROUNDTHEBENCH

Duck

or Duct Tape? by: Robert Francis Mendiola

In the late 80s early 90s, a problem-solver named MacGyver came on the evening line up on our local TV network. He was able to solve his sticky situations with a pocket knife, string, and a roll of duct tape. Since then this magic roll of hold it together, stop the leak, shut them up has for the most part become a must in anyone’s arsenal of “go to” adhesive tapes.

Duct or Duck Tape - which is it you ask? Developed initially for the army in 1942, Duct or Duck Tape was used to keep water out of what ever they wanted to keep dry; namely ammo, electronics, and moisture sensitive equipment. Amazingly, it also patched up jeeps, tents, and aircraft. Developed by Permacel formerly of Johnson & Johnson during World War II, its original color was olive drab green. So any WWII Vet would call it Duck tape for its water proofing properties. Its long and passionate history still continues to this day. The name, color and uses may have changed but is still remains on the U.S. DOD supply list.

likelihood of the tape failing; not to mention the fire hazard and poisonous fume the tape produces if burned. A study at Lawrence Berkeley Labs confirms this.

The constructive make up of the tape consists of one layer of water resistant pressure sensitive adhesive, one layer of fabric mesh like cloth, and one layer of polyethylene coating making it user friendly.

Scissors not required, so this tape is ready to use out in the field.

Believe it or not, this roll of fix it made its way on some of the Apollo missions so I guess it is on NASA’s supply list as well. Since we are listing some appearances in major publications, let me mention NASCAR, Fashion Week, and Guns and Ammo Magazine. I’m sure everyone on the island has seen it used to secure the legs of a canopy to the ground by staking a two foot piece of rebar in to the ground near the legs

then duct taping them together, or the fittings to the frame pipes, when the fitting screws are missing. With the consequences of canopies being tied down to a masonry hollow block known to all of us, I think the duct tape method poses less dangers. However if you should go with the rope and block, and God forbid you should experience a mishap, you could use the duck tape to close the wound temporarily until the medics arrive.

Once again, like the Hammer, the roll of Duck tape earns its presence in the Honey Dew It Tool Box. "Oops !! Coming darling!" Got to go. Till next time - see you around the bench.

So what’s up with the name Duct?

The truth of the matter is you will never professionally use duct tape on any duct work because of the

26 | JANUARY2012

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CRANECRITIQUECORNER

RIGGING: SHACKLES 101 ARE YOUR RIGGERS USING THEM PROPERLY? This month’s topic:

by: Dave Barnhouse

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

Though shackles are simple devices used in the rigging industry, I find riggers using them improperly often.

There are several different types of shackles used for different applications and numerous ways each of these can be used improperly. Let’s take a look at them.

Round Pin Shackles can be used in tie down, towing, suspension or lifting applications where the load is strictly applied in-line. Round pin shackles should never be used in rigging applications with multiple sling legs, or where side loading conditions may occur. A cotter pin must always be used and round pin shackles must not be used as a collector ring, (this would create side loading).

Screw Pin Shackles are used for pick and place applications: pick (move) a load and place as required. Screw pin shackles can be used for applications involving side-loading circumstances such as when used with a bridle sling and each sling is loaded at an angle.

Reduced working load limits are required for single line side loading applications. Most U.S. made shackles such as Crosby have cast marks at 45° to assist user in deter-mining angle.

As an example of reduction, Crosby shackles capacity at a 45° angle of side load from vertical with a single line is rated at 70% of capacity, at 90° it is reduced to 50%. Shackles symmetrically loaded with two leg slings having a maximum included angle of 120° can be utilized to full Working Load Limit.

While in service, do not allow the screw pin to be rotated by a live line, such as a choker application, by assuring the sling eye is on the shackle pin. Always 28 | JANUARY2012

Bolt Type Shackle

Screw Pin Shackle

Wide Bodied Shackle

Round Pin Shackle

Flat bodied shackle for synthetic sling use Use Bolt-Type Shackle with a permanent or long term connection Use screw pin shackles when it will be a temporary connection.

hand tighten screw pin before each pick and do not back off, regardless what the ‘old timers’ tell you.

When used in long term or high vibration applications a bolt type shackle is rec-om mended, however, mouseing the screw pin shackle is a

secondary securement method used to secure the screw pin from rotation or loosening. Annealed iron wire is looped through hole in collar of pin and around adjacent leg of shackle body with wire ends securely twisted together.

This month’s test quiz addresses:

What is the maximum allowance of a crane hook throat opening in relation to the original dimensions and how is this determined?

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CRANECRITIQUECORNER Answers to last month’s test quiz: Wire Rope Safety Factors Different wire rope usage requires different minimum safety factors.

What are the safety factors for the following wire rope? Rigging - ?:1, Mobile Crane Boom Hoist - ?:1, Mobile Crane pendant line - ?:1, Mobile Crane hoist line - ?:1, Overhead hoist line ?:1, Personnel Elevator - ?:1.

Bolt-Type or Safety Shackles can be used in any application where round pin or screw pin shackles are used. In addition, they are recommended for permanent or long term installations such as when used on spreader bars and not required to be disconnected regularly. Also, where the load may slide on the shackle pin causing the pin to rotate, a bolt type shackle is re-

The factor to provide a margin of safety between the applied tensile forces and the breaking strength of the rope is defined as the safety factor. Slings and other rigging attachments have a safety factor of 5:1 due to general rough usage.

Mobile Crane Boom Hoist- 3:1, Mobile Crane Pendant Lines- 2.5:1, Mobile Crane

Main and Auxiliary Hoist Line- 3.5:1, Overhead Hoist Line- 5:1, Personnel ElevatorEurope- 12:1, USA and Japan- 10:1

quired as the bolt is free to rotate without concern. The bolt-type shackle’s secondary securement system, utilizing a nut and cotter also eliminates the requirement to tighten the pin before each lift or movement of load.

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.

Example of situation requiring 50% reduction of screw pin shackle capacity.

Improper use of screw pin shackle

A few Shackle Do’s and Don’ts: DO use shackle with diameter greater than wire rope diameter if no thimble in eye. Wide bodied shackles are available to provide required D/d ratio.

DO use shackle large enough to avoid pinching of synthetic slings.

DO NOT back out screw pins. Screw pin shall be fully engaged.

DO apply load in center of the bow to prevent side loading. If side loaded, the rated load shall be reduced according to manufacturer.

DO NOT apply multiple sling legs to the pin.

DO NOT exceed 120° included angle with a bridle sling hitch.

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DO use bolt type and screw pin shackles ONLY with bridle slings.

DO know the load weight and shackle capacity.

DO NOT over load any rigging component.

DO NOT interchange any pins or screw pins with different shackles.

DO use safety or bolt type shackles for applications such as a man basket suspended from a crane DO NOT use shackle if pin does not turn into shackle easily by hand.

DO know proper inspection procedures for shackles and acceptable limit criteria.

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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JANUARY2012 | 29

GARRISONREPORT

The 2011

Year In Review by: Ted Garrison

Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and

speaker

he

provides

breakthrough

strategies for the construction industry by focusing on critical issues in leadership, project management, alliances

strategic

thinking,

strategic

and marketing. Contact Ted at

800-861-0874 or Growing@TedGarrison.com.

Further

information

can

www.TedGarrison.com."

be

found

at

Typically, in this annual report, I highlight what has happened during the year, but during 2011, not much occurred within the construction industry. So I have decided to identify the obstacle to improvement.

The construction industry has had another tough year in the United States with 2011 annual volume hovering around the $800 billion mark all year. The employment numbers reveal the pain. Residential construction employment is down to about 560,000 workers from a peak of around 1,000,000 in 2006. This is a drop of 46 percent. The good news is that the 560,000 level has been stable since about mid 2010.

Nonresidential construction is down from a peak of around 825,000 to 668,200, according to the latest Bureau of Labor Statistics report. This is a 19 percent drop since 2007.

Unfortunately the news isn’t getting better as November 2011 saw another 12,000 industry jobs lost.

What makes this disturbing is that despite a huge backlog of infrastructure work, we can’t seem to get our act together. It has been suggested that we need an infrastructure bank, but we are bogged down in arguing over the shape of the table. Some want a national bank, others want state banks, and some don’t want any banks. The result: as a nation, we flounder. Actions such as shutting down the gas line project from Canada are disturbing.

In contrast, the Gulf Cooperative Council (GCC), consisting of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman and Bahrain, are expected to have higher construction volumes in 2012 than the United States. In part, their investment in infrastructure has stimulated their economies. Most people seem to understand the limitations of the government, whether at the national, state or local level, to fund all the necessary infrastructure work. Considering the current economic situation, our government leaders should being doing everything possible to bring in private capital, but instead they have been acting like petty bureaucrats who can’t get out of their own way.

Worse, the government is crippling the industry. Only yesterday I was told a story about an OSHA inspection. After the examination, the inspector informed the contractor that he couldn’t really find anything wrong, but he had to write up something so it would appear he was doing his job. The contractor then had to negotiate a fine so the inspector looked good. This is insanity. The list of regulations that are crippling productivity with no benefit are staggering because they have been created by people who have no idea how things work.

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Professor and historian Walter Russell Mead wrote, “The more complex a society and the more rapidly it is changing, the more need it has need for multi-disciplinary, synthesizing (thinkers) who are focused on communicating serious ideas to a large audience.” Yet we have groups off behind closed doors writing rules and regulations that have no touch with reality.

Our nation is more polarized than ever because each group feels they have the unique answer. Dave Maney, publisher of Economaney.com, says that neither the right nor the left has the answer. What’s been missing is what Roger Martin, the dean of the Rotman School of Management at the University of Toronto, calls integrative thinking. This is defined as “the ability to constructively face the tensions of opposing models, and instead of choosing one at the expense of the other, generating a creative resolution of the tension in the form of a new model that contains elements of both models, but is superior to each.”

Applying this concept to construction, we get integrated project delivery, which produces some outstanding results. For example, the Department of Energy just completed its National Renewable Energy Laboratory in Golden, Colorado. It’s the most energyefficient building in North America. Its cost is at the 25th percentile. All the technology in the building is at least 10 years old. When asked how this was possible, the answer was collaboration. In an NCS Radio interview with Philip Macey, I asked why they went with design-build. He responded because when they tried the design-bid-build approach, it came in over budget. The integrated approach saved the day.

We are desperately missing leadership in Washington. Sure, some are trying very hard, but they have little to show for it. No one asks a coach how hard he is trying to win games; if he doesn’t win, he gets fired. Well, if those in Washington can’t get the job done, they should be fired. However, if they want to save their jobs, they need to embrace integrative thinking. Get the people who know what to do and create solutions in there instead hiding behind ideology whether on the right or left. The construction industry deserves better; the public deserves better; we all deserve better from our government.

In essence, lead, follow or get out of the way.

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NEWMEMBERS

DECEMBER 2011

JANUARY 2012

Contractor:

Contractor:

Milers General Construction 766 Marine Corps Drive, Route 2 Agat, GU 96928 GCA Contact: Pepito C. Lim; President, Felipe C. Lim; Vice President Email: milersguam@yahoo.com, felipelim@yahoo.com Ph: 671-565-1128 Fax: 671-565-1128 Description: General Contractors/ Horizontal & Vertical Civil

Herzog Environmental Inc. P.O.Box 170291Inarajan, GU 96917 GCA Contact: Norm Kivett Email: tpangelinan@herzog.com Ph: 671-828-5264 Fax: 671-828-5266 Description: Environmental/Landfill Operations

Associate: Docomo Pacific 219 S. Marine Corps Drive Ste. 206, Tamuning, GU 96913 GCA Contact: Tom Valderrama; Chief Commercial Ofc., Vince Mafnas; Director of Sales Email: elujan@docomopacific.com Ph: 671-688-2355 Fax: 671-649-7247 Description: Telecommunications

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Associate: Inspire Ad Agency 414 West Soledad Ave, Ste 500 Hagatna, GU 96910 GCA Contact: Jessie Rosario Email: info@inspireguam.com Ph: 671-477-1389 Fax: 671-477-1077 Description: Advertising & Marketing Sorensen Media Group 111 Chalan Santo Papa #800 GCA Contact: Rex Sorensen Email: rex@spbguam.com Ph: 671-477-5700 Fax: 671-477-3982 Description: Broadcasting

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