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Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Vol.51 Issue 07 JULY2010

BRANCHING OUT Feature Story:

Military opportunities with local small businesses.


CONTENTS CONTENTS

4

8

11

14 16 20 23 26 31

P resident’s Message C ommitte Update: S.A.M.E.

JULY 2010

11

Guam’s Future

G uam’s Future C rane Critque Corner F eature Story: Small Business

S mall Business P hoto Highlights G arrison Report Memeber Benefits

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Feature Story

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PRESIDENT’SMESSAGE PRESIDENT’SMESSAGE

Hafa Adai! GCA Members: Welcome to GCA’s first ever DoD Small Business Forum. Big kudos goes out to the GCA Small Business Committee and to the Procurement Technical Assistance Center (PTAC) for providing a forum in which our small business members can showcase their products and services. The forum also offers workshops to assist our small business community in doing business with the federal government. Speakers from the Small Business Development Center (SBDC), Small Business Administration (SBA) Naval Facilities Engineering Command Marianas (NAVFAC), Department of Defense and PTAC will present to the participants, the importance of the small business community in the upcoming military buildup. They will offer guidance and expertise on how small businesses can participate in the buildup. During the forum, there will also be a small business trade fair where a number of small businesses will showcase their products and services and answer questions on their capacity as a small business subcontractor, supplier or service provider. This is the one-stop venue where general and prime contractors can visit with and meet with some of their potential small business partners. This is just one of the events planned and coordinated by the GCA Small Business Committee. If you’re interested in participating in this committee or any of the GCA standing committees, please call the GCA office at 647-4840 or email to gca@teleguam.net .

Matson and the Pacific Daily News. Our Hole-in-one sponsors include Mid Pac Far East (Doosan 3-ton forklift), Horizon Lines ($10,000 cash prize), Takagi & Associates ($10,000 cash prize) and South Pacific Petroleum Company SPPC ($7,600 in gas + $2,400 cash prize). Other game holes include the “Longest Drive” sponsored by HFP Industrial and the “Blindfold Drive” sponsored by Stelstar Productions. I want to also thank our numerous hole sponsors for their support. The funds raised for this annual event benefit the GCA Trades Academy by offering scholarships to those interested in pursuing a career in construction or to those who want to upgrade their skills at the GCA Trades Academy. A portion of the proceeds is also used to reward our graduating indentured apprentices who have earned their journeyman certificates from the US Department of Labor Bureau of Apprenticeship Training. You don’t want to miss this event. If you haven’t signed up for the Annual Golf Tournament yet, please call Annmarie at the GCA office. Have a great and pleasant summer! Senseramente, James A. Martinez

In the month of July, we observe Independence Day on July 4th and Liberation Day on July 21st. We would like to wish all members a safe and happy holiday. The GCA office will be closed on these days or whenever the official holiday is recognized on our calendar. July also marks the 23rd Annual GCA Golf Tournament which will be held on July 17th at the Onward Talofofo Golf Club. Showtime is at 7:00 am with a shotgun start beginning promptly at 8:00 am. This is a 3-man best ball modified scramble format. There will be a tailgate-style BBQ sponsored by Parker Bros. who will bring out their HUGE BBQ pit for this event. Naturally, we can’t have an event like this without your favorite cold beverage. I would like to thank the GCA Golf Tournament Committee for planning and coordinating our 23rd Annual GCA Golf Tournament and to our co-sponsors for their continued support including Shell Guam, Hilti, IT&E, 4 | JULY2010

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THETEAM

THEDIRECTORS PRESIDENT James A. Martinez, GCA CHAIRMAN Chit Bathan, Ace Builders LLC VICE CHAIRWOMAN Bill Beery, Construction Management Services PAST CHAIRMAN Tom Perez, Perez Bro., Inc. SECRETARY/TREASURER Robert Salas, Landscaping Management Services ASSOCIATE DIRECTORS: Edward Untalan, First Hawaiian Bank Michelle Quidachay, Horizon Lines Adam Baron, Cassidy's Associate Insurers (Alternate) CONTRACTORS DIRECTORS: Tom Perez, Perez Bros. Inc Tom Nielsen, Maeda Pacific Corporation Joshua Tenorio, Core Tech International Ana Lisa Reed, L.A. Painting & Construc tion Co. Armando Acosta, Orion Construction Corporation Guam Narci Dimoala, Amazon Construction Ron Young, Parker Bros

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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 Ann Marie Pelobello, Office Manager, 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 CREATIVE DIRECTOR: Christopher Estioca GRAPHIC ARTIST: Geri Leon Guerrero Christopher “Taco” Rowland PHOTOGRAPHERS: Christopher “Taco” Rowland Marc Mendiola EDITOR: Adztech CONTRIBUTING WRITERS: Jac Perry - Guzman John Robertson Ted Garrison Rynette DeCastro Dave Barnhouse Vera Topasna Catherine Cruz Norton GCA STAFF: Ann Marie Pelobello Chantel Torres-Cruz Francine Arceo COVER: Branching Out - Military Contracts for Small Businesses

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COMMITTEEUPDATE By John M Robertson

Port Modernization and Expansion Program Guest speakers at the June meeting of SAME Guam Post were Enrique J. S. Agustin, General Manager of the Port Authority of Guam, Monte Mesa, Board Chairman of the Port Authority of Guam and Matthew P. Smith, Deputy Project Manager for Parsons Brinckerhoff. They provided, among other things, an overview of the Port Modernization and Expansion Program. The Port Modernization and Expansion Program as authorized by the Guam Legislature spans a 30-year planning horizon and is valued at a little more than $260 million. Phase IA and Phase IB of the program should be accomplished over the next 5 years and is focused on critical maintenance and repair of waterfront facilities and the dredging and uplands expansion needed to handle near-term cargo demands of the military buildup. Phase II of the program will occur as much as 30 years into the future and focuses on the expansion needed to address the cargo demands of the long-term organic growth of Guam and our neighboring islands. A terminal plan layout is shown below.

Master Plan. Phase IA, Upland Efficiency Improvements, of the master plan was well underway. Potential funding for this phase had been identified and is shown below.

Status in late 2009 and Basis for Approval of Bill No. 178-30 In September 2009, the 30th Guam Legislature passed Bill No. 178-30, granting full approval to the Port Authority of Guam’s

In an effort to replace ARRA funding, the Port Authority of Guam coordinated with Joint Guam Program Office (JGPO) to help the military investigate alternate sources of surplus FY 2010 Department

The funding requirement had been established but the source had yet to be identified for Phase IB – Berth rehabilitation, security, acquisition of cranes and additional equipment as well as Phase II – Construction of new Berth F7 and Yard Expansion after the 20 year planning horizon. Developments in Early 2010 In early 2010, the Port Authority of Guam was not awarded the targeted $50 million Federal TIGER grant for Phase IA. Public Law 30-100 directed the Port Authority of Guam to continue seeking $50 million in federal funding required for Phase IA. It further prescribed alternatives for the modernization program in the event that funding was not available. Finally, it required the Port Authority of Guam to report back to the Speaker of the Guam Legislature by June 2010.

ITEM

$ (millions)

Federal Funding (TIGER grant):

50.0

PAG Loan Financing (USDA & ANZ Bank): USDA Community Facility Direct Loan $25.0 Million ANZ Bank Guaranteed Loan $25.0 Million ANZ Bank 2009 Equipment Loan $3.5 Million

53.5

Equipment Loan

1.0 104.5

Total Capital:

of Defense funding. The Government of Guam held meetings with federal officials including the Deputy Defense Secretary, William J. Lynn, Economic Adjustment Committee Group and others. Source of Alternate Funding Identified In an April 5, 2010 letter to the Speaker of the House, President Obama proposed to amend the FY 2010 Department of Defense budget by transferring $50 million to the Department of Transportation’s MARAD Port of Guam Improvement Enterprise Fund to increase the Port’s capacity. In May 2010, the proposed amendment was placed on the Senate’s legislative calendar under General Order No. 276. The bill is scheduled to be voted on prior to the end of this fiscal year, or September 2010. Program Development Detail The Port Authority of Guam contracted Parsons Brinckerhoff last year to act as the Port’s Owner Agents/Engineer. Parsons Brinckerhoff had under an earlier master plan contract begun the site investigations, environmental documentation, terminal development planning and preliminary engineering and design work needed to fully define the modernization program. Parsons Brinckerhoff is now close to finalizing the preliminary design work for the initial phase of the massive modernization program. The work conducted by Parsons Brinckerhoff, in conjunction with the Port Authority of Guam, was unveiled recently. The Final Preliminary Design will be fully completed for Phase IA by early July of this year. The preliminary design for Phase IA will be handed over to EA Science and Technology, Inc who will continue with what has already been started. EA Science and Technology, Inc

To join SAME Guam Post, logon to SAME.org and proceed to New Membership. 08 JULY2010

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COMMITTEEUPDATE was recently hired by the U.S. Maritime Administration (MARAD) to act as the Program Management Team to finalize the design and oversee construction of the modernization program. Parsons Brinckerhoff will continue their role as the Port Authority of Guam’s Owners Agent/Engineer to initiate the Phase IB design. Phase II plans have been deferred beyond the 20-year planning horizon. Supporting Investigations and Analysis Supporting Investigations and Analysis includes Terrestrial Ecology Survey, ESA Phase 1, Unexploded Ordinance Survey, Hydrosurvey, Topographic Survey, Geotechnical, Geology & Seismic Services, Water Quality Assessment, Benthic Mapping, Essential Fish Habitat Assessment, Wetland Delineation, Terminal Analysis – Development & Operations Plan, Gates and Terminal Operating Systems along with the JGPO Construc-

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tion Cargo Forecast. Phase IA – Site Development Existing conditions require some buildings and structures (in use and not in use or abandoned) to be removed to accommodate the new site plan. The demolition project under Phase IA includes 11 buildings, 2 gates, light poles, fencing, concrete slabs and curbs. The site civil works include clearing and grading of the expansion area, TESC, paving, perimeter fencing and gates, parking, storm drainage, traffic control, and miscellaneous structures. The water system includes potable water, fire water and sanitary sewage. The electrical power system includes an additional load center, emergency generator, reefer power, site lighting, lightning protection system, grounding system, and utility infrastructure. New buildings include Admin Building West Annex, MSR Building, Terminal Gate Admin Building, Terminal Gate Complex, OCR (Optical Charac-

ter Recognition) Canopy for both Inbound and Outbound traffic, Breakbulk Guard Shack and Load Center #5. The security and communications system includes connectivity for port wide data collection to a central point security and communications infrastructure. Phase 1B – Waterfront Improvements: This phase will have separate funding and will focus on upgrading the existing Berths including the acquisition of new container cranes. For additional information contact Matthew Smith at “SmithMat@pbworld.com” or (671) 988-4554.

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GUAMSFUTURE

GUAMSFUTURE

By Catherine Cruz Norton Naval Facilities Engineering Command Marianas Public Affairs Office

Secretary of the Navy Recognizes NAVFAC Marianasfor Acquisition Excellence U.S. Naval Facilities Engineering Command (NAVFAC) Marianas was among the distinguished list of Navy acquisition teams honored with Department of the Navy (DoN) Acquisition Excellence awards for improving Department of Defense acquisition processes, during a ceremony June 14 in Washington, D.C. hosted by the Secretary of the Navy Ray Mabus. NAVFAC Marianas received a Field Acquisition Activity award for its work in preparing for the Guam Military Buildup. The command was recognized for its outstanding resource management, enhanced competition methods, personnel development and retention, small business support and achievements, and its demonstration of excellence in bringing supplies and services to the customer

at the right place and the right time. “During the 2008 fiscal year, we experienced an enormous workload surge executing 710 actions and more than $320 million in obligations,” said NAVFAC Marianas Director of Acquisition, Andy Wall. “This is a 24 percent jump in comparison to the previous year, and is anticipated to increase over the next several years.” NAVFAC Marianas’ acquisition team managed large initiatives such as jointregionalization, surges in military construction projects, and on-going planning for the heavy workload anticipated in the Guam Military Buildup. All the while, it maintained its focus on a proactive push to encourage acquisition personnel to develop their skills.

“Our acquisition team is a shining example of the best and the brightest,” said Capt. Peter Lynch, NAVFAC Marianas commanding officer. “This is a dynamic group that will be vital to our acquisition efforts for current military construction requirements and for the Guam Military Buildup. I am confident that their “Can-Do” spirit will continue to keep us in this league of top performers.” NAVFAC Marianas maintains a vibrant internship program with approximately 46 contract specialist interns, and provides tremendous training and skillsenhancement opportunities toward the development of top performers.

WASHINGTON (June 14, 2010) - NAVFAC Marianas Director of Acquisition Andy Wall (left) and NAVFAC Marianas Commanding Officer Capt. Peter S. Lynch (center) accept the Field Acquisition Activity award from Navy Secretary Ray Mabus (right) during a ceremony June 14 at the Pentagon. (Photo by MC2 (AW) Kevin O’Brien, official photographer to the Secretary of the Navy)

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CRANECRITIQUECORNER CRANECRITIQUECORNER

This month’s topic:

Crane contact with power lines:

Should the operator jump? A monthly crane and rigging informative column for all personnel directly or indirectly involved with crane safety. Each month we will attempt to explain a different technical issue pertaining to crane operations here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike, by Dave Barnhouse The decision to address this important subject is the result of a discussion with an operator during a recent operator classroom quiz on close proximity to power line work and what to do if any part of the crane or load contacts a power line. The specific question was ‘Should the operator jump immediately after contacting power lines’. The answers received created a very interesting discussion as it was revealed that a few of the operators just recently completed a general crane safety class and they were instructed to jump as far as possible from the crane when power line contact is made. It is very critical that these operators are instructed NOT to jump unless they are intent on committing suicide. Power line contact is the number one killer of crane ground workers, not operators. This is because the riggers or workers on the ground in direct contact with or in close proximity of the load or crane

can become part of the completed circuit to ground. The operator will be completely safe in the cab and should not panic but attempt to move the crane away from the power line if possible and instruct all ground workers to keep a safe distance from the crane. If the crane cannot be moved free from the power line there is a possibility of a fire and then and only then should the operator jump if he feels his life is in danger. In all probability the circuit will be open before a fire starts and the operator can safely exit the crane once confirmed the power is off. The new OSHA proposed rule, soon to become law, addresses required training when operating equipment near power lines and specifically states in 1926.1408 (g) (1) (i) (B) ‘The importance to the operator’s safety of remaining inside the cab except when there is an imminent danger of fire, explosion, or other emergency that necessitates leaving the cab’.

To reduce the number of fatalities resulting from electrical contact with power lines, the new standard provides a variety of employer options for assembly, disassembly, travel, and operation of cranes near power lines— for example, de-energizing and grounding power lines; taking encroachment measures—for instance, a dedicated spotter or proximity alarm; or maintaining minimum clearance distances depending on the circumstances. Additional requirements exist depending on the options chosen. In conclusion: Instructors must assure they are clearly understood when training operators on procedures to follow in the event of electrical contact with a power line, DO NOT PANIC, DO NOT JUMP. Think of the birds sitting on a power line.

This month’s test quiz addresses wire rope issues:

1) Everyone is familiar with rotation resistant rope. Since it resists rotation why isn’t it used on all applications? Why does it have a different safety design factor? 2) What is the difference between Lang Lay and Regular Lay wire rope? Can they be used in the same applications?

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CRANECRITIQUECORNER CRANECRITIQUECORNER

Answers to last month’s test quiz: Capacity Load Charts 1) What is required on a rubber tired truck crane before a load is permitted to be lifted over the front quadrant? Answer: A 360° or Over the Front Load Chart. Not all truck cranes are designed to pick over the front, therefore no need for a 360° chart nor a front outrigger. If so, it is important the operator knows what designates the front quadrant. It may be a pie-shaped quadrant determined by lines from the rotating pin through the front outriggers or it may be the entire front half radius of the crane swing. Crane load charts will specify the quadrants applicable to the crane. Bottom line, no ‘over the front chart’, no lifts over the front.

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.

2) Rated capacities listed in the load charts are based on either structural strength or stability. How are these capacities differentiated in the load charts?

3) If making a lift with a boom length in between the boom lengths listed in the load chart, what capacity should be used, the next shorter, or next longer boom length capacity?

Answer: By dividing the chart with a bold line, using asterisks, or shaded areas. The rated capacity of mobile cranes are based on both stability and structural strength. Depending on the configuration of the crane and the load radius, it will either overturn, (stability failure) or overstressed and/or break (strength failure) if sufficiently overloaded.

Answer: Usually but not always the next longer boom. This is because the next longer boom length on the chart is usually the boom length with the lower gross capacity and the correct capacity to use is always the safer or lower number. On some crane models the boom sections location in relation with each other or the higher boom angle of the longer boom may actually have more structural strength or be more stable than the next shorter length, in these cases use the gross capacity rating for the next shorter boom length listed on the chart.

Structural / Stability Line

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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FEATURESTORY FEATURESTORY

According to members of the Guam Contractors Association Small Business Committee (GCA SBC), US Congress requires the Military to specifically "ear-mark" contracts to be awarded to small businesses. Because of this, opportunities are very real if small businesses are willing to go the distance. The focus on small businesses applies to all federal contracts and not just "military contracts." The Federal Acquisition Regulations (FAR 19.201(a)) state that: "It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, veteranowned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small

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business concerns. Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance." During the acquisition planning phase for any project, part of the market research conducted includes a determination if there are small businesses capable of performing the required work. If so, then the project is set aside for small businesses. If the project is beyond the capabilities of small businesses, then it is open to all interested contractors, large and small. In their proposal, large contractors are required to provide a subcontracting plan wherein they would detail the extent to which they will subcontract work to small

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businesses. Guam-based businesses have an advantage over those from off-island primarily because "local" businesses are familiar with the business environment and how business is conducted on Guam. The pending military buildup has caught the attention of many off-island contractors, large and small. Many are seeking to establish offices here or develop relationships with "local" points of contact with which they can share information and/or resources with. Many large businesses are conducting outreach events in order to build their pool of small businesses they can possibly partner with or subcontract to on upcoming projects. In summary, utilization of small businesses

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"Core Tech-AMEC-SKEC, LLC clearly recognizes that small businesses play an important role in both NAVFAC's mission and Guam's economic future. The inclusion of small businesses in these as part of the military contracts awarded not only makes good business sense, but it is the right thing to do. Therefore, it is of utmost importance that we use the opportunity presented to us with the award of a Guam MACC contract to develop small businesses through subcontracting, mentoring, the provision of meaningful work, and long-term strategic partnering. Once these contracts are completed, it is critical that large businesses like us have had a positive impact on the small business community as well as the workforce on Guam." Joseph Farrell Core Tech-AMEC-SKEC, LLC Small Business Liaision Officer is a factor in federal contracting because regulations require consideration of small businesses in the procurement process. Large businesses are always looking for qualified, competent small businesses to work with in order to be successful in a very competitive business environment. The GCA SBC explained there is an overwhelming effort not only by the military to focus on small businesses, but large counterparts as well. There is opportunity for military business for large and small conglomerates, and several federal agencies on Guam are available to offer assistance. The Guam Procurement Technical Assistance Center, Pacific Islands Small Business Development Center, Guam Small

Business Administration Office and the Naval Facilities Engineering Command have representatives that specifically tasked to assisting the development of new or expansion of existing small businesses. GCA SBC members added the US Military as the customer to large contractors that win some of the bids for large projects are required by certain percentages to subcontract work to small businesses. This

while the "military build-up" is soon to become a realization, small businesses must ensure planning and preparation are to some degree well defined. There are people, companies, federal and local agencies that exist for the specific purpose and mere existence for small business. GCA SBC offers special thanks to Capt. Peter Lynch for pushing the committee to plan, prepare and execute a fairly large event that will take place at the Hyatt Regency Guam on July 7, 2010. The GCA sponsored DoD Outreach Forum is an event all local businesses should take advantage of. GCA SBC also thanks Al Sampson from NAVFAC Marianas; Vera Topasna from PTAC; David Leddy, President of the Guam Chamber of Commerce; Bert Johnson of the Guam Trades Academy; Narci Dimaoala, member of the GCA Board of Directors; and James Martinez, President of the GCA. The Guam Contractors Association is proud to say its membership is more than 500 strong.

"Our project teams rely heavily on the subcontractors and suppliers who make up our Small Business Plan. These companies are an integral component of our team and their contributions are essential for the success of the project. We look forward to watching them grow as a result of working with dck-ecc pacific guam, llc." Joseph P. "Gerry" Majkut, Chairman of the Management Board of the LLC requirement allows for small businesses to be focused upon. The military also breaks down smaller tasks within projects to further opportunity and segment projects to provide opportunity for more small businesses While these requirements that provide opportunity are well-known, it becomes the responsibility of local small businesses to make sure they are in a position to take full advantage when a prospect arises. At the same time, GCA small business committee members explained, small business must make sure they do what is necessary to market their businesses to the large contractors. In the last couple months, there have been several outreach sessions to provide the opportunity for small businesses to make themselves known for absolutely no cost. GCA SBC members further added that

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How Military Bids Are Awarded to Small Businesses Contracts are generally awarded through a competitive process or as a sole source. In a competitive award, a number of companies are allowed to compete for a project. A project may be competed on an unrestricted basis; that is, both large and small businesses may participate in the process. A project may also be competed as a small business set-aside wherein only small businesses may compete within a small business category. The small business categories generally used are Small Business, 8(a) Business Development Program, Historically Under-utilized Business Zone Small Business (HUBZone SB), ServiceDisabled Veteran-Owned Small Business (SDVOSB). Federal Acquisition Regulations (FAR) allow a contracting officer to award a contract directly (sole source) to a small business under certain conditions. After conducting market research and certain requirements can be met, a contracting officer may award a contract to an 8(a), HUBZone SB, or SDVOSB firm based on mutually agreeable terms and conditions. Sole awards may not exceed $3.5M for 8(a) and HUBZone SB firms or $3M for SDVOSB firms. WHAT EVERY SMALL BUSINESS SHOULD KNOW ABOUT DOING BUSINESS WITH THE FEDERAL GOVERNMENT Most small businesses know that doing business with the Federal Government can be an arduous task. There are several resource partners on island who can assist businesses as they navigate the Federal procurement arena. The first step in entering the federal marketplace is to obtain a

Dun & Bradstreet (DUNS) number and register in the Central Contractor Registration (CCR). Your DUNS number is an important “identifier”, used for a variety of purposes by the Government in the Contracting arena. The CCR database holds information related to procurement and financial transactions. The CCR also provides the process for fast electronic payment of your invoices. You must register in CCR to be awarded a Federal Contract. To learn more on DUNS and CCR, visit www.dnb.com to obtain a DUNS number and www.ccr.gov to register in CCR.

Business Opportunities (FEDBIZOPPS) site at www.fedbizopps.gov/. The site is the designated government wide point of entry and the exclusive official source for public access to notices of federal actions over $25,000. Once you have identified agencies/buying offices that purchase your product or service learn more about their organizations by visiting their procurement offices or websites. Another important process in the federal marketplace is to understand Federal contracting procedures. Firms should familiarize themselves with the Federal Acquisition Regulations (FAR) www.acqnet.gov/far and the Defense Acquisition Regulation Supplement (DFARS) www.acq.osd.mil /dpap. You can also access other Federal Agency FAR supplements by visiting their respective websites. Don’t forget to explore subcontracting opportunities. It is important that you explore your secondary market, Subcontracting Opportunities with Federal Prime Contractors. Visit www.sba.gov/aboutsba /sbaprograms/gc/contacts/gc_subcontract s_opportunities.html. The SBA/GC Subcontracting opportunities directory lists, by State, large business Federal prime contractors along with the name and telephone number of each firm’s Small Business Liaison Officer (SBLO). The SBA’s SUB-Net web.sba.gov/subnet) is another valuable source for obtaining information on subcontracting opportunities.

Businesses should also identify their product or service. Some helpful resources are the Federal Supply Classification code (FSC), and the North American Industry Classification System (NAICS) for your product or service. Visit FSC site at http://www.dlis.dla.mil/h2/ and for detailed information regarding your NAICS can be found at www.sba.gov/services /contractingopportunities/sizestandardsto pics/naics/index.html. Note that Small Business Size Standards for all Federal Government programs formerly associated with Standard Industrial Classification (SIC) codes were replaced by those that the U.S. Small Business Administration (SBA) has established for industries as described in the NAICS. SBA has established a new table of small business size standards based on NAICS. Visit www.sba.gov/size/ Firms should also identify current procurement opportunities by visiting the Federal 18 | JULY2010

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Guam small businesses should seek additional assistance/resources from local program offices. Guam offices providing services and support to small businesses include: Guam Procurement Technical Assistance Center (GUAM PTAC): www.guamptac.com Procurement Technical Assistance Centers provide a wide range of assistance -- most free of charge -- to businesses through one-on-one counseling sessions, classes, seminars and matchmaking events. Guam PTAC is dedicated to assisting businesses seeking to compete successfully in federal and local government contracting.  Contact your Guam PTAC for help in these and other areas: • Determining Suitability for Contracting • Securing Necessary Registra tions • 8(a), HUBZone and other certifications • Researching Procurement Histories • Networking • Identifying Bid Opportunities • Proposal Preparation • Assistance in Contract Performance Issues: • negotiating and interfacing with the agency • developing a cost-accounting system • bonding and interim financing • environmental, quality control and accident prevention plans • Preparing for Audit

“According to the SBA, Small businesses make up 99% of all the employer firms in the US and employ just over half of the work force. It does make sense then to appeal to the 99% of the firms as independent military contractors due to their broad range of expertise. Also, responsible small business military contractors are not highly structured and are more flexible to accommodate the needs of its customers. These are also the firms that would need some help from federal government since statistically; these firms have a much lesser likelihood of surviving for more than 5 years.” William Alicar, President - Allied Pacific Builders, Inc. UOG Pacific Small Business Development Center Network (PISBDCN) www.pacificsbdc.com/ The mission of the PISBDCN is to support the growth and economic development of the US affiliated islands in the western pacific region by providing free one-onone confidential counseling and high quality training in all areas of business management, including pre-venture feasibility, business plan development, marketing, record keeping, financial and human resource management, operations management, and access to capital (loans & investors), as well as specialized areas such as international trade. Services available to all existing and/or potential small business owners/managers that are US citizens, green card holders or citizens of the Freely Associated States. For more information contact SBDC at 735-2590. U.S. Small Business Administration (Guam Branch Office): www.sba.gov/localresources/district/gu/ind ex.html One important resource for small business is the U. S. Small Business Administration (SBA). Through the local Guam SBA, firms can visit the local office which offers a wide variety of programs and assistance for small businesses considering the federal marketplace. Firms should also visit www.sba.gov/businessop/index.html for more information.

benefits in the Federal marketplace. Call the Guam SBA office at 472-7419. Guam Veteran Business Outreach Center: www.guamvboc.com The mission of the Guam Veterans' Business Outreach Center (VBOC) is to help create, develop, and retain veteran-owned small business enterprises. The VBOC provides entrepreneurial training through workshops and the internet, counseling, technical assistance, and resource utilization services to Veterans, Service-Disabled Veterans, Reservists, National Guard Members, and Active Duty business owners and start-up entrepreneurs. Contact the Guam VBOC office at 475-4900. Lastly, each resource office will encourage you to Market, Market, Market!!! These are the three key words to remember in order to be successful in the Federal Procurement Arena. After you have identified your customers, researched their requirements, and familiarized yourself with the Governments’ procurement regulations/processes, it is time to market your product or service. Present your capabilities directly to those buying offices that purchase your products or services. If the match is a good one you can provide them with a cost-effective, quality solution to their requirements and the contract could be yours. Good luck and remember you are not alone, seek out your local resources!

While visiting the SBA website determine if your business qualifies for one of SBA’s Certification programs. Formal certification by small business concerns is not required to bid on Federal contracts. Firms can self certify that they are indeed small at the time of bid/proposal submission. Currently SBA has 2 contracts-related certification programs. The 8(a) Business Development Program assists eligible small businesses to compete through business development assistance. There are certain federal contracts that are restricted to certified 8(a) firms. Second is the Historically Underutilized Business Zone (HUBZone) program entitles qualified firms to certain bidding

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SMALLBUSINESS SMALLBUSINESS

GUAM CONTRACTORS ASSOCIATION SMALL BUSINESS COMMITTEE ‐ 2010 Members To advocate and encourage small business members to develop a stronger presence within GCA and to develop a stronger relationship with other GCA members in order to nurture business development and growth.

Joseph P. Roberto EAST Island Tinting LLC, Managing Member NORTH Island Tinting, Inc., President itint@ite.net Chair, GCA Small Business Committee

Nora DLR. Santos Administration Manager Allied Pacific Builders, Inc. nora@alliedpacificbuilders. com Vice‐Chair, GCA Small Business Committee

Narcisca Dimaoala President Amazon Construction, Inc. narcid@amazonguam.com Contractor Member GCA Board of Directors

Armando T. Acosta Vice‐President Orion Construction Corporation (Guam) atacosta@orionguam.com Contractor Member GCA Board of Directors

Adam Baron Bond Manager Cassidy's Associated Insurers, Inc. adamb@cassidysguam.com Associate Member GCA Board of Directors

Michael Ady President M80 Systems Inc. mike@m80systems.com

Paris JM Blas General Manager Guam Manpower Resources Inc. guammanpower@teleguam.net

Michael Cassidy General Manager Cassidy's Associated Insurers, Inc. mcassidy@cassidysguam.com

Theresa Crisostomo Office Manager LMS Guam lms@guam.net

Grace C. Donaldson Solutions: Human Resources Management & Recruiter hr_solutions@teleguam.net

Louise Salas Harper Senior Partner International Consolidated Contracting, LLC lharper@iccguam.com

Boris Hertslet Procurement Counselor Guam Procurement Technical Assistance Center (PTAC) boris@guamptac.com

Irene Hicks President America's Best ElectricMart Inc. irene@abemart.com

Jaylene Kent, Ph.D., C.I.T. President, Owner Isla Paint and Roofing Supply jaylenekent@earthlink.net

Kathleen D.K. Lewis Small Business Liaison Officer ‐ Pacific Region dck pacific guam, LLC kdklewis@dckww.com

Albert C. Sampson Small Business Advisor, NAVFAC Marianas Naval Facilities Engineering Command Marianas albert.sampson@fe.navy.mil

Karen M. Storts Small Business Outreach Coordinator dck pacific guam, LLC kmstorts@dckww.com Liaison between GCA and Guam Chamber of Commerce Small Business Committees

Vera Topasna Program Manager Guam Procurement Technical Assistance Center (PTAC) vtopasna@guamptac.com

Nathan Taimanglo Marketing Manager ASC Trust Corporation nathan.taimanglo@ascpac.com

Ann Marie M. Pelobello Administrative Manager Guam Contractors' Association gca_annmarie@mail.com

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CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


SMALLBUSINESS SMALLBUSINESS

The Guam Chamber of Commerce Small Business Focus & Development Committee in cooperation with Guam Small Business Development Center presents the 2010 Small Business Management Seminar Series: TAX ISSUES FOR SMALL BUSINESS Friday, July 16, 8:30 a.m. – 10:30 a.m. Presented by Joe Arnett, Deloitte & Touche CUSTOMER SERVICE & HANDLING COMPLAINTS Friday, August 20, 8:30 a.m. – 10:30 a.m. Presented by Toshie Ito, Motiva Training & Consulting Registration Information Chamber Member Admission: $10.00/person Non-member Admission: $20.00 Tel: 472-6311/8001• Fax: 472-6202 Email: gchamber@guamchamber.com.gu

The Winning Solution for ALL your Professional Needs Professional Development Courses: • Presentation Success: How to Plan, Prepare and Deliver Effective Presentation, July 6 – 12 • Finance & Accounting for Non‐financial Managers, July 13 – 19 • Communication Skills for Managers, July 22 – 28 • Performance Management, July 26 – 30 • Intro to Business Writing, July 28 & 30 Technology Courses: • Intro to Microsoft Word, July 13 • Advanced Microsoft Powerpoint, July 14 & 15 • Intermediate Microsoft Word, July 29 & 30 For more information, call 735-2600-2 or email cepeda@uguam.uog.edu or visit www.uog.edu/pip

UNIVERSITY OF GUAM Professional & International Programs

The Military Buildup is happening NOW! Get your company registered to do business with the Federal Government. • Do you have a DUNS? • Are you in the CCR? • Did you register in the DSBS? • Have you updated your ORCA? If you said NO to any of these, then you might miss a once in a lifetime opportunity. Don’t be left behind! Register now with the Guam Procurement Technical Assistance Center (PTAC) and we will help you get started, so you can do business with the Federal Government. Sign up for our First steps to Federal Contracting on July 13, 2010 from 9am‐12pm, Room 129 at the UOGSchool of Business and Public Administration Building. Please register at our website http://guamptac.ecenterdirect.com/Conferences.action or contact Therese at 735‐2552.

www.guamcontractors.org

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: • July 15, 2010: Leading the organization • July 16, 2010: How to write a business plan • July 23, 2010: How to market your business • July 30, 2010: Customer service for small business owners For more information, please visit www.pacificsbdc.com (click on workshops / calendar) or call 735-2590.

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No longer a WASTE of time


PHOTOHIGHLIGHTS PHOTOHIGHLIGHTS

GCA June Luncheon National Center for Construction Education and Research Certificate Presentation

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Survive the Recession? Should You Venture into New Niches to

The worst construction industry recession that anyone in the trade has experienced is causing many companies to seek new types of work. But is that the right decision for your company? There is no definitive answer to that question because every situation is different. For example, if 30 years ago you were building nuclear power plants, you would have had to change niches no matter what. But for most contractors, it’s not that simple. Doug Woods, president and cofounder of DPR Construction, said in an interview, “I think it’s important to stick with what you are good at. I think oftentimes as contractors we all have big egos, and we think we can go do something different that you haven’t done before. We may take chances during economic crisis or downturns, and that path has gotten a lot of us in trouble. Stick to what you are good at!” In How the Mighty Fall, Jim Collins wrote the mentality that “we’re so great, we can do anything!” leads to disaster. While he was referring to how companies fall even during good times, this type of attitude is even worse during a recession because there is virtually no margin for error. Obviously if the niche your company operates in totally dries up in your region of operation and it’s not feasible to expand to other regions or the other regions are no better off, then drastic action will be required. This situation offers three basic options. The first is to shut down before losing a bunch of money. Several companies did this in the late 1980s in New Orleans. The second option is to shrink to a size that will allow your company to survive the economic crisis. The first two choices are painful and not the solution most companies are seeking. The third choice is to shift into a new niche, which is what this report is about. A common mistake in this situation is to chase what appears to be the industry’s most attractive opportunity. The problem is that in a severe recession, there probably aren’t any truly great opportunities, and those that

26 | JULY2010

appear attractive get lots of attention and experience hypercompetition. For example, this past year has seen an excessive number of bidders with some bids going for below cost. That doesn’t sound like a great opportunity to me. The recession notwithstanding, any time a contractor is considering entering a new niche, it needs to consider the facts. The rules of economics will apply whether in a recession or during a boom, except during a recession the competition will almost always be greater. Therefore, the decision to enter a new niche must be based on sound economic reasons, not desperation. The contractor must find a niche not only where the economic conditions don’t work against it, but also where the contractor offers something that the other competitors don’t. If the contractor can’t differentiate itself, it will be forced to compete solely on price, and in a recession that is a formula for financial disaster. Entering a new niche will often create additional costs, including the following: Additional marketing expense to establish business in the new niche Additional investment in technology Lower margins than originally anticipated because its entry in the market increased competition and lowered prices Subcontractors and vendors might give you the lowest prices Unanticipated problems can occur The recession might suppress the volume of work in the niche Michael Porter in his classic book Competitive Strategy identified five competitive forces: entry cost, bargaining power of suppliers, bargaining power of buyers, substitution and rivalry. Historically the entry costs into the construction industry have been fairly low, which has contributed to a significant increase in the number of contractors and the

CONSTRUCTION NEWS BULLETIN

corresponding decline of profit margins in all segments of the industry. However, moving to a new niche may still incur additional costs than found in your original niche. The bargaining power of the various subcontractors and vendors might be less than normal since they are under pressure too, but if you are the new kid on the block, you might not have as much clout as other competitors. In a recession, owners certainly have tremendous power, and many are bashful about squeezing contractors. Depending on what kind of work you perform, substitution may or may not be a major factor. If you’re a general contractor, obviously it doesn’t matter what the building is made of, but the owner does have the option of buying an existing building instead of constructing one. Subcontractors often face substitution issues. For example, a concrete subcontractor must not only compete against all the other concrete contractors, but he must deal with structural steel contractors. Finally the rivalry is the host of other contractors, so the idea is to select a niche where the competition is at least reasonable.

In the end the decision about whether you should move into a new niche, whether in a recession or not, depends on the sound economic principles. If you attempt to move into a niche that doesn’t fit your company’s strengths, then it will probably result in an economic disaster, whether it’s during a recession or not. In fact, it might be worse in a recession because the margin of error is less. Do your homework before jumping because the grass may not be greener in that other niche. By: Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. He can be reached at 800-861-0874 or by email at Growing@TedGarrison.com. For further information see his web page at www.TedGarrison.com. www.guamcontractors.org


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Look for  a  niche  that  might  help  other  aspects  of  your  business.  For  example,  if  you  are  a  mechanical/plumbing contractor, you might enter the service niche on the types of projects that you build

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Your experience and reputation should be an asset and minimize your effort in establishing yourself in the  new niche.

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The level of the competition should be less skilled than you, so you can bring superior management skill  to bear. However, be careful; some projects might run very well with limited management and, therefore,  not allow your more sophisticated management approach to pay dividends.

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Bring something special to the niche. This could be a special skill you developed in your prior niche that  can now be applied to the new one. This is probably the most important point because no matter what  niche you are in, if you don’t have something that gives you a competitive advantage, you will be forced to  compete almost solely on price. You must be able to ask the question, “What makes us different than our  competitors?” If you can’t answer that question and back it up, you will be forced to compete on price.

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A few suggestions include the following:

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If you are considering entering a new niche, especially during a recession, you must look for a niche where you  can minimize the above forces. 

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HOW HIGH DO YOU WANT TO GO? SCISSORS FROM 15’ TO 43’, BOOMS FROM 30’ TO 126’!!! CALL US TODAY!

EAST-WEST RENTAL CENTER 958 N. MARINE CORPS DRIVE, UPPER TUMON PHONE: 646-1463 * FAX: 649-9069 WWW.EASTWESTRENTAL.COM


MEMBERBENEFITS MEMBERBENEFITS

by: Rynette DeCastro, CDM, CFPP

HEART ATTACKS & STROKES

WARNING SIGNS & WHAT TO DO Everyone knows that the best defense against heart attacks or strokes is practicing a healthy lifestyle: adopting healthy eating habits, exercising daily, and refraining from smoking or excessive drinking. Healthy habits also lower your risk for high blood pressure, high cholesterol, diabetes, and obesity, which are additional risk factors for heart disease. Sadly, though, statistics show that heart attacks are the number one cause of death in this country, and stroke is the number three cause of death. So what do you do when you or someone you know is exhibiting symptoms of a heart attack or stroke, and how can you tell? Although some heart attacks do occur suddenly and no one can doubt what’s happening, most heart attacks start slowly and are often mistaken for less serious conditions. Unlike heart attacks, stroke symptoms occur more suddenly. It’s important to learn these signs, as heart attacks and strokes strike when least expected. Keep in mind, however, that even if you’re not sure it’s a heart attack or stroke, get seen immediately before it’s too late. Heart attacks and strokes are life threatening emergencies in which every second counts. Calling 9-1-1 immediately is the best and fastest way to get the life-saving treatment needed, as EMT staff can begin treating you before you even reach the hospital. Immediate action also ensures that you receive the proper medications to reduce disability and prevent permanent damage. For more information, see you doctor or visit the American Heart Association Website at www.americanheart.org. www.guamcontractors.org

Here are the warning signs for a heart attack: Discomfort in the center of the chest (pressure, squeezing) that lasts more than a few minutes, or that goes away and comes back Discomfort in one or both arms, the back, neck, jaw, stomach, or other areas of the upper body Shortness of breath (with or without chest discomfort) Cold sweats, nausea, or lightheadedness

Here are the warning signs for a stroke: Sudden numbness or weakness in the face, arm, or leg, especially on one side of the body Sudden confusion, or trouble speaking or understanding Sudden trouble seeing in one or both eyes Sudden trouble walking, dizziness, loss of balance or coordination Sudden, severe headache with no known cause

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7” ½ x 4” 7/8.


GCA Construction News Bulletin July 2010  

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

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