Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Vol.52 Issue 07 JULY2011

Setting Sail

CAPT Lynch’s change of post

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19

Feature Story

CONTENTS JULY2011

16 8

Feature Story

Update C ommittee S.A.M.E.

12

Headline C onstruction Luncheon Briefing

16

Story: F eature Capt Lynch

19

Story: F eature Aloka

20 24 27 28 31

P hoto Highlights S mall Business G arrison Report C rane Critique Corner N ew Members

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2 | JULY2011

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your vision our reality At Hawaiian Rock Products, we are always ready to meet your construction needs. We have a fleet of over 200 construction vehicles and a workforce of over 400 employees. We operate state of the art facilities, strategically located throughout the island with the capacity to fulfill any project size requirements. Our vast fleet of equipment continues to expand along with the growing needs of the industry. We are here to provide you with the quality products and services you need, when you need them. 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

Venue: Date: Time:

IECO Agat Plant July 20, 2011 11:30 AM

151 W. HARMON INDUSTRIAL PARK RD., TAMUNING, GUAM 96913 TEL. NO.: (671) 646-5261 FAX NO.: (671) 646-5258 www.iecoguam.com

THETEAM

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

6 | JULY2011

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.

CONSTRUCTION NEWS BULLETIN

PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Marc Mendiola PRODUCTION: Geri Leon Guerrero Christopher Estioca Christopher “Taco” Rowland PHOTOGRAPHERS: Marty Leon Guerrero Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson Dave Barnhouse Gennette Quan Simmons Todd Thompson Nora Santos GCA STAFF: Chantel Torres-Cruz Francine Arceo Desiree Lizama COVER: CAPT. Peter Lynch, a farewell to Guam.

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COMMITTEEUPDATE

DEPARTMENT OF DEFENSE

ANTICIPATED 2011-2012 SPENDING ON GUAM

Guest speaker at the May 2011 meeting of SAME Guam Post was CAPT Peter S. Lynch, USN, Commanding Officer, NAVFAC Marianas. He provided a current status brief on the U.S. Department of Defense project expenditures for the remainder of FY 2011 and for FY 2012. It includes funding from the Government of Japan as well as the U.S. Department of Defense. The budget briefing is normally provided each year in April or May to a joint meeting of SAME Guam Post and Guam Contractors Association. The briefing this year was complicated by several factors: The National Defense Authorization Act for FY 2011 was not approved by the Congress until March 2011; The military was operating under a continuing resolution from October 2010 until March 2011 and spending was limited to prior budget authorizations; the full budget for FY 2011 was required to be spent during the last six months of the fiscal year or be carried forward to FY 2012; the Record of Decision in relation to the EIS was signed on schedule in September 2010 but the Programmatic Agreement was not signed until March 2011; Thus, approved FY 2010 and FY 2011 DPRI projects could not commence on schedule and spilled over to FY 2012; Protracted discussions between the DoD and GovGuam resulted in an agreement to shrink the military foot print of military bases over what was originally planned; This required a return to the drawing board before projects could be released for construction; The FY 2011 budget when approved included a larger amount for operation and maintenance of bases than was anticipated. For these reasons, this report is based on anticipated expenditures rather than budget projections alone. Key points from CAPT Lynch’s presentation are outlined below. NAVFAC – MILITARY FACILITY MANAGEMENT • Infrastructure and services in support

of operational units, service members, and families assigned to military installation, e.g: – Public works (utilities, services, maintenance, Repairs) – Construction – Environmental – Transportation • Not including ships, subs, and aircraft. • Big business for SRM projects: – Average $500M/year, with ~ $470M/year in contracts – 580 personnel (+/-) – Hundreds of contractors CONSTRUCTION OPERATIONS & MAINTENANCE, NAVY (O&M,N) • $164M in Sustainment, Restoration & Modernization (SRM) FY11 – $68M targeted for Naval Base Guam – $96M targeted for Andersen Air Force Base • SRM projects generally include: – Roof Repairs – Runway and Assorted Paving – Building Maintenance/Repair

• Expected projects for FY11 (not a complete list): – Repair roofing system Bldg 150, NBG – Replace 13.8KV PILC Cables and Circuits – Repair Pavement and markings at North Ramp 2 – Repair and Paint Exterior of 7 Facilities – Repair Air Conditioning Systems • Expect FY12 SRM Controls will be about $140M CONSTRUCTION PROJECTS Appropriated 2010 = $1.2 Billion • Marine Relocation $1,027M • NAVHOSP Replacement $158M • Other MILCON $ 70M Appropriated 2011 = $677 Million • Marine Relocation $627M • Other MILCON $50M 2012 President’s Budget = $368 Million • Marine Relocation $156M • Other MILCON $212M

PROGRAM OF RECORD MILITARY CONSTRUCTION FISCAL YR TITLE PA $(000) 2011 Combat Comm Operations Facility AAFB 9,200 2011 Commando Warrior Barracks AAFB 11,800 2011 Red Horse HQ/Engineering Facility AAFB 8,000 2011 Guam Strike Ops Group/Tanker Task Force AAFB 9,100 2011 Guam Strike South Ramp Utilities AAFB 12,200 2011 GUARNG Barrigada - Combined CSMS/OMS Facility 17,834 2012 Air Freight Terminal Complex AAFB 35,000 2012 Guam Strike Clear Water Rinse Facility AAFB 7,500 2012 Guam Strike Conventional Munitions Maint. Fac. AAFB 11,700 2012 Guam Strike Fuel Systems Maintenance Hangar AAFB 128,000 2012 Combat Comm Combat Support Facility AAFB 9,800 2012 Combat Comm Transmissions System Facility AAFB 5,600 2012 Red Horse Cantonment Ops Facility AAFB 14,000 2012 Red Horse Cantonment Ops Facility AAFB 14,000

STATUS Pending award Pending award Pending award Solicitation Solicitation RFP development RFP development RFP development RFP development RFP development RFP development RFP development RFP development RFP development

To join SAME Guam Post, logon to SAME.org and proceed to New Membership. 8 | JULY2011

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Project Name

Cost ($M)

JFY09 (Government of Japan) Guam U&SI - Phase 1 NCTS GOJ $250-500 FY10 (US MILCON) Apra Harbor Wharf Improvements, Ph. I $127 Working Dog Relocation NBG $14 AAFB North Ramp Utilities, Ph. I $22 AAFB North Ramp Parking, Ph. I $89 FY10 DAR Improvements, Ph. I ** $40 JFY10 (Government of Japan) Apra Harbor Medical Clinic -GOJ $25-100 Apra Harbor Waterfront HQ -GOJ * $10-25 U&SI Phase II NCTS -GOJ $250-500 Finegayan Fire Station -GOJ $10-25 FY11 (US MILCON) Apra Harbor Wharf Improvements, Ph. II * $40 FY11 DAR Improvements, Ph. 2 ** $67 JFY11 (Government of Japan) Finegayan Base Admin Facil -GOJ $25-100 Finegayan MLG Admin Facil -GOJ $25-100 Utilities SPE (Water & Wastewater) $415 FY12 (President’s Budget Submission - MILCON) North Ramp Utilities - Increment 2 - AAFB $78 Finegayan Water Utilities $77 • JFY09/10/11 projects in solicitation phase • Programmatic Agreement signed & governs ongoing contracting actions • Total of $1.3B of GOJ funding is in the procurement process • SPE = Special Purpose Entity * Seed project for Mamizu MACC **DAR (Designated Agency Representative) Projects not awarded/managed by NAVFAC GUAM BUILD-UP – UTILITIES (by GWA and GPA with DoD funding) • GOJ Budget: JFY11 Submit Total • Wastewater: $274M $420M • Water: $141M $160M • Power: $ 0M $160M $415M $740M • Wastewater: $420M planned for JFY 11 and JFY 13 • FY11: $273.9M for NDWWTP Primary & Secondary Treatment, Collection System Improvements, and Hagatna WWTP FOG & Septic Receiving Station • Water: $160M planned for JFY 11 and JFY 12 • FY11: $141.6M for Water Production, Treatment and Transmission • Power: $160M Funding planned for

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Scheduled Award Planned Award Jun 2011 AWARDED (9/10) AWARDED (9/10) AWARDED (4/11) AWARDED (4/11) Planned Award Sep 2011 Planned Award Aug 2011 Planned Award Jan 2012 Planned Award Jun 2012 Planned Award Oct 2013 Planned Award Aug 2011 Planned Award Jun 2012 Planned Award Oct 2013 Planned Award Oct 2013 Planned Award Feb 2012 Summer Budget Churn Summer Budget Churn

JFY12 • Reconditions 3 combustion turbine units to provide 60 MW of reserve/peaking capacity • Provides new transmission infrastructure to support USMC requirements at Finegayan, AAFB and Orote

FY 2011 SMALL BUSINESS • FY 2011 Small Business Projection $250M • Proactive Outreach Program • Partnering with PTAC in various workshops • Active in Small Business seminars & expos • Member of Guam Contractor’s Association Small Business Committee • Member of Chamber’s Small Business Focus and Development Committee • Future transfer of NAVSUP authority to NAVFAC to include FISC Small Business Program NAVFAC CONTACTS • For acquisition information contact: • NAVFAC Marianas Acquisition Director, Andy Wall at phone (671)339-6148 or e-mail: Andrew.Wall@fe.navy.mil • NAVFAC Marianas Small Business Advisor, Al Sampson at phone (671)339-7090 or e-mail: Albert.Sampson@fe.navy.mil • CDR Keith Barton, Assistant Operations Officer at phone (671) 333-2162 or e-mail: Keith.Barton@fe.navy.mil or • Federal Business Opportunities: http://www.fedbizopps.gov/

ACQUISITION AND CONTRACTS • Multiple Award Construction Contract (MACC): Establishes standing relationships with a group of “pre-qualified” contracting teams • We have awarded several types: • Small Business Design/Build MACC • HUB Zone Design/Build MACC • 8(a) MACC • Open Competition Design/Build MACC • Design / AE IDIQ contracts • Other contract opportunities • Housing Operation and Maintenance • Demolition • Pest Control • Material Handling • Water Blasting • Consolidated Vehicle Lease Solicitation: proposals due 9 June 2011

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JULY2011 | 9

COMMITTEEUPDATE

GUAM BUILD-UP – MILCON/MAMIZU

by: Todd Thompson

At GCA’s June 15, 2011 membership meeting, attorneys from the law firm of Mair, Mair, Spade & Thompson briefed members on recent Guam court cases of interest to contractors. Dana Gutierrez discussed the importance of ensuring that subcontractors are properly licensed by the Guam Contractor’s Licensing Board in order to avoid construction delays and monetary penalties.

Todd Thompson briefed members about a looming Supreme Court decision on the “economic loss doctrine,” which could serve as a “how to” guide for drafting contacts that minimize damages in the event of delays and mishaps. He also discussed recent developments in Guam’s mechanics lien law which generally make it easier for contractors to perfect liens.

Joephet Alcantara addressed pitfalls of the Guam Government Claims Act, emphasizing the importance of filing a claim as soon as practicable in order to avoid the risk of it being barred by the statute of limitations. Finally, Aaron Jackson reported on a recent Guam case that seemingly signals a trend towards inflated jury verdicts on Guam.

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FEATURESTORY

Captain Peter Lynch moves to next post Captain Peter S. Lynch CEC USN, after serving as Commanding Officer of NAVFAC Marianas for the past two years, will be relieved by Captain John Heckmann on 20 July. He in turn will relieve CAPT Paul Fuligni as Vice Commander of NAVFAC Pacific in Honolulu later this month. CAPT Fuligni served as Commanding Officer of NAVFAC Marianas from mid 2007 until mid 2009 and will now be retiring from the military after 30 years of service to the nation. For the past twelve months, CAPT Lynch has additionally served as President of the Guam Post of the Society of Military Engineers. During that period, the number of corporate Sustaining Members grew from 35 to 43 and overall membership increased from 216 to 256. CAPT Lynch is a first generation career military officer. CAPT Lynch grew up in Thousand Oaks, California, attended the Naval Academy and graduated in 1986 with a degree in Naval Architecture. He subsequently secured a Masters Degree in Civil Engineering from Penn State University and became a Registered Professional Engineer – Civil Branch in that state. He intended originally to enter the Marine Corps but one of his professors at the Academy encouraged him to pursue a civil engineering career based on his performance in the engineering sciences. This ultimately led him toward a career in facilities engineering in the Navy. ENS Lynch’s first duty station was in Long Beach, CA where he

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gained experience in Construction Administration. He was next assigned to Public Works in Sasabo, Japan and then to the Seabees on Guam in 1994. After Guam, he set aside his Navy career long enough to pick up that Masters Degree at Penn State. Thereafter, he reported to the Civil Engineer Corps Detailer Shop in Washington, DC. From 1997 until 2000 he was assigned to the European Command where he participated in contingency operations and training in the Balkans, Macedonia, Eastern Europe, Africa, Poland, including engagement with former USSR countries. The Berlin Wall came down in 1989 and Eastern Europe was still in a state of flux during those days. He was involved in Joint Exercises with Russia and the Ukraine where he witnessed power being generated by three men shoveling coal into a furnace. Projects included bridge repairs with replacement of 30-ft to 40-ft spans. Also, human assistance projects such as repair and construction of orphanages. He next reported to Naval Station Mayport in Florida where he was the Public Works Officer. From 2004 until 2006 CDR Lynch was Deputy Regional Engineer for Navy Region Southeast encompassing 19 Navy installations along the eastern seaboard from South Carolina to the Texas-Mexico border plus Guantanamo Bay. He then went back to Washington, DC to work for CNIC (Commander Navy Installations Command) as the Program Director for the Navy’s Sustainment, Restoration and Modernization (SRM) Program. CAPT Lynch’s last two assignments before Guam was first as Operations Officer, then fleeted up to Executive Officer for NAVFAC in Naval District Washington the "The Quarterdeck of the Navy." It includes 9 Navy Installations including the Naval Academy in Annapolis, National Naval Medical Center in Bethesda and the Washington Navy Yard. In June 2009, CAPT Lynch became

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FEATURESTORY

Commanding Officer of NAVFAC Marianas. Surprisingly, based on his accomplishments here, Guam was his first posting as Commanding Office. He stated recently that the Navy Hospital in Bethesda was a big deal for him but Guam was even bigger and more robust. CAPT Lynch is married to Melanie and they have three sons, Sean (age 15), Daniel (age 11) and Kevin (age 7). Although the family had never been to Guam, they were all open and excited about the change. In spite of a heavy travel schedule over the past two years and responsibilities of his office, he has found time to accompany his sons to soccer practice and other activities. The family has been able to enjoy all the benefits of living on Guam including year around outdoor activities.

NAVFAC MARIANAS COMMAND – CRITICAL TIME AND HIGH POINTS CAPT Lynch was excited to be returning to Guam after having been here earlier as a junior officer. With the focus and attention on Guam due to the upcoming military build-up, this is a good place to be for any officer in the Civil Engineer Corps. During his time at the helm, the EIS was completed followed by release of the FEIS. This was a major undertaking involving NAVFAC in the lead with other federal agencies together with specialist consultants. There has nothing like this done before in terms of magnitude and complexity. The Record of Decision was signed by Assistant Secretary of the Navy (Energy, Installations & Environment)

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Jackalyne Pfannenstiel in September 2010. This was intended to trigger the start of construction on FY 2010 and FY 2011 projects. However, signing of a Programmatic Agreement covering DPRI projects with the State Historic and Preservation Office was not signed until March 2011. This event permitted DPRI projects to proceed. The start of some other approved projects is being delayed pending reconfiguration to allow building within a smaller footprint. CAPT Lynch indicated that he can recognize three high points in what he has been able to achieve while in Guam on this tour of duty. First, was securing a Memorandum of Agreement (MOA) between the Navy and the Guam Power Authority and Guam Waterworks Authority as represented by the Consolidated Commission on Utilities (CCU). There had been a strained relationship with limited communication taking place and no trust between the parties. The MOA provides for regular meetings and structured communication at regular intervals. It will facilitate a number of Capital Improvement Projects for the local utility agencies with none of the CIP (Capital Improvement Project) cost being paid by local rate payers. These projects will over a relatively short period of time yield state of the art power, water and wastewater systems for Guam both inside and outside the military fence lines. In the current proposal funding for improvements to selected Guam utilities may be provided by a Japanese bank as a loan. The loan will be repaid by the utility agencies using DoD funds derived as a surcharge on military utility customers. Thus, the cost is over time being paid by

DoD and not local rate payers. This coordinated effort by CAPT Lynch, his team of engineers and GovGuam partners will surely prove to be significant in achieving the One Guam vision. Second highlight: during Governor Felix Camacho’s administration, NAVFAC Marianas began to take part in the “Energy Task Force”. A good relationship was built with energy players from the Guam Power Authority, University of Guam (especially Dr. Underwood), Guam Energy Office, Guam Environmental Protection Agency, the Guam Legislature, and others. The island of Guam is dependent on fossil fuels which are limited and expensive. CAPT Lynch together with NAVFAC Marianas was pleased to help spread the word on the importance of conserving and reducing consumption of energy on the island of Guam. The task force is considering various options leading toward sustainability in the islands energy supply for both the military and local community. The combined effort brings synergy and economies of scale to the equation. It was noted that the cooperation continues under the Calvo administration. A third and final highlight is the small business objectives and goals program. NAVFAC Marianas remains attentive to small businesses and continues to identify and award contracts set aside for small businesses. NAVFAC Marianas continues to keep the Department of Defense happy with work done by small businesses in Guam. Over the past two years, NAVFAC Marianas has met or exceeded its goals for utilization of small businesses.

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JULY2011 | 17

FEATURESTORY

NAVFAC MARIANAS COMMAND – PROGRAM GOING FORWARD NAVFAC Marianas in October 2009 took on responsibility for maintenance of Andersen AFB under the joint basing concept and this is continuing. Going forward, NAVFAC Marianas will take on similar responsibility for the CDC and FISC. Geopolitical realities are now front and center in relation to the Guam military buildup and other priorities of the U.S. Congress. The leadership at Department of Defense and Department of State must make the tough decisions about the way ahead in concert with their counterparts in the Government of Japan. NAVFAC Marianas meanwhile continues to proceed on course with the program as previously outlined and agreed to. Although the pace is now proceeding slower than previously envisioned, this may be good for Guam with more time to upgrade local infrastructure. There is now over $415 Mil allocated for infrastructure projects. The President’s FY 2012 budget now before Congress includes $156 Mil for the Marine Corps relocation and $212 Mil for other MILCON projects. It is not clear what lies beyond 2012, as there is no good vision yet on what will be decided as the decision lies within Washington DC. There is granularity of the whole program including the basic question in the minds of some over the strategic importance of such an expensive facility in Guam. The Department of Defense has yet to convey to the Congress a comprehensive estimate of cost and timeline for the military buildup and this is under preparation. Over the past few years, notional designs and estimates have been presented but now is not the best time to develop firm estimates of cost in view of the status of design and implementation because of the many moving parts in the equation.

long-term vision of turning over the Navy’s water and wastewater utilities to GovGuam is challenging because of the strategic importance of potable water for the military bases and visiting ships. Loss of water for even a short time would be catastrophic for the fleet. He and RADM Bushong escorted members of the Legislature to Fena Reservoir and the water treatment facility and they seemed to have come to an understanding of why a handover of responsibility for operation and maintenance of these facilities is not possible at this time. It may be feasible at some time in the future so no one in the military is saying never, but mission takes priority.

NAVFAC MARIANAS COMMAND – NEW COMMANDING OFFICER The incoming Commanding Officer for NAVFAC Marianas is CAPT John Heckmann. He will be accompanied by his wife, Lisa and their two daughters of High School age. CAPT Heckmann entered the Civil Engineer Corps at the same time as CAPT Lynch and they both attended the basic Civil Engineer Corps Officer School at the same time. Their career paths have been parallel and similar. They were in California and Japan at the same time. CAPT Heckmann has been Operations Officer for the Mid Atlantic Region. He has been Commanding Officer at two postings: Djibouti in the Horn of Africa and Camp David, the President Retreat in Maryland. The foregoing was prepared by John M Robertson PE, Treasurer, Society of American Military Engineers – Guam Post.

CAPT Lynch expressed appreciation for the level of cooperation enjoyed with the Guam Governor and members of his administration. This is especially so with the utility agencies. He stated that the

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Aloka’s Home Improvement believes that a cleaner place to live or work is a healthier and happier place. The company is committed to providing homeowners and commercial companies the services necessary to help improve structural appearance resulting in better working and living conditions. And let’s face it, all it takes is a five-minute drive up and down Marine Corps Drive to notice just how badly mold and mildew have taken over many of Guam’s business and residential structures. 32-year old owner and licensed contractor Justin Galindez Aloka started his business in 2004 after picking up the trade while working for a family member. “My uncle has a small business doing ground maintenance, and I took on the trade and skills from that and decided to start my own company,” Aloka shared. The company provides water blasting, ceiling and roofing repair, interior and exterior painting, water proofing/roof

coating, commercial water blasting, epoxy injection, crack repairs, and other home and business improvement services. No job is too small for this 7-year old company. Aloka’s services extend to plumbing, yard work, appliance removal and replacing home fixtures. Currently Aloka regularly services a bridal company and several residences. As a sole-proprietor his mission is to “deliver quality and detailed service along with supporting other local small businesses by purchasing their products,” he said. Some of his recent accomplishments include the completion of roofing jobs for Green Park and San Vitores Garden condominiums using 100 percent silacon roofing material. He not only stayed within the client’s budget but met the company’s completion timeline. “Because I am a sole-proprietor, I have learned to use time management, stay within a client’s budget and still provide quality service while building a relationship with them,” Aloka said. Like any sole-proprietor striving to sustain business, Aloka faces day-to-day challenges. “Most is the weather conditions. I mainly work outdoors so it being a sunny day plays a big role in my abilities to complete each project.” He describes his biggest challenge as extremes of workload. “When it’s busy it’s really busy. And when it’s slow it can last for some time,” Aloka said The key to his small business success is consistency in learning about his trade. “I look forward to more improvements. It is the only way for my company to expand. “Currently I spend most of my time with the Small Business Development Center

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getting advice on business expansion. I also attend the Guam Contractors association meeting when my time permits,” he said. In addition to business Aloka seeks opportunities for community involvement. “Eventually, I would like to expand my business so I can make that time to get involved with the community. I’m interested in joining Guam Chamber of Commerce, American Red Cross and the Guam humanity groups that support building homes for low income families. Aloka looks to secure more contracts in the future. “My projects are month-tomonth and I would like to lock more contracts and connect with large companies as a sub-contractor. This will enable me to help the community by hiring local people on a part-time basis that would eventually work up to a full-time position,” Aloka stated. As the island continues to prepare for the military build-up, more and more skilled workers and small-business owners compete for work. Aloka is no exception. What sets him apart is not only the desire to succeed, but the insight on the importance of continued learning and improving on his current capabilities. “I am young, driven and always looking to further my education and skills,” he said. Aloka attributes his 7-year success to his respect for the client. "I take care of my client as best as possible with ease and in a timely manner. I always look at explaining what the process is and why I am doing it a certain way, what type of products I am using and what is best. Also, being honest is very important. I strive to give the customer the up-most respect and consideration,” Aloka said.

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JULY2011 | 19

FEATURESTORY

by: Gennette Quan-Simmons

PHOTOHIGHLIGHTS

June Luncheon

June 15th,2011 Fiesta Resort Guam

CARQUEST of Guam Opening

June 24th, 2011 Dynasty Building Tamuning, Guam

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REFINERY/ENVIRONMENTAL 320 South East Santa Rita Industrial Dr. Santa Rita, GU 96915 Tel: (671) 565-7474 Fax: (671) 565-7575 L.P. GAS DIVISION 330 Chalan Pale Ramon Lagu Yigo, GU 96929 Tel: (671) 653-4888 Fax: (671) 653-4889 WASTEWATER DIVISION 213 Dulce De Maria Anigua, GU 96910 Tel: (671) 472-8280 Fax: (671) 472-8282 GRESCO ITI 482 Route 10 Vietnam Veterans Hwy. Mangilao, Guam 96913 Tel: (671) 734-4886 Fax: (671) 734-4889 CNMI / FSM REGIONAL DIVISION PMB 327, Box 10000 Saipan, MP 96950 Tel/Fax: (670) 234-2000

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SMALLBUSINESS

TRAININGS/SEMINARS July 28, 2011, 9:00 a.m. – 10:00 a.m. Pricing Matters Presented By: Boris Hertslet, Senior Procurement Counselor Do you know the difference between price and cost when it comes to Federal Contracting? The Guam PTAC will explain how correctly pricing your product or service is extremely important in Federal Contracting. Topics discussed will include: types of contracts, types of costs, and accounting systems. August 11, 2011, 9:00 a.m. – 10:00 a.m. HUBZone Application Process Presented By: Boris Hertslet, Senior Procurement Counselor The purpose of the HUBZone Program is to provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones. While the entire island of Guam has been designated a HUBZone, firms must apply for certification with the US Small Business Administration. PTAC will take you through the application process and help you address follow up requirements from SBA. Location of Workshops: UOG School of Business & Public Administration Bldg. Classroom 131 Register now with the Guam Procurement Technical Assistance Center (PTAC). Visit www.guamptac.com or call 735-2552.

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 28, 2011, • August 5, 2011, • August 12, 2011, • August 18, 2011, • August 25,2011, • August 26, 2011,

“Women In Business Workshop (WIB): Building the Organization and Team” “Introduction to Financial Statements” “How to Prepare a Financial Plan” “How to Prepare a Marketing Plan” “Women In Business Workshop (WIB): Planning for a Profitable Business” "Quickbooks: Setting Up Inventory”

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

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HOW TO START A BUSINESS FREE Date: Thursday, July 28th, 2011 Time: 9:00 9:00a to 11:30 a.m. Location: Guam Department of Labor - 3rd Floor Conference Room For many people, a business is the culmination of a dream or ambition based on specific skill or interest. You may know the type of business that you have always wanted to open, but because of lack of finances, resources, time, or self-confidence, you have never been able to put that plan into action. To start a business, you will need a lot of information, but the basics are simple. This workshop will discuss the basics of starting a small business! HOW TO WRITE A BUSINESS PLAN FREE Date: Thursday, July 28th, 2011 Time: 9:00 to 11:30 a.m. Location: Guam Department of Labor - 3rd Floor Conference Room Writing a business plan can be an intimidating task. But it doesn’t have to be if you take it one step at a time. This workshop will help guide you through the steps needed to write a business plan. Remember…a written business plan will help you avoid mistakes and save you grief, time and money! To sign-up for the workshops, call the One-Stop Career Center at 475-7000 or sign-up directly via our website: http://sbavboc.ecenterdirect.com/Conferences.action?CenterID=1. This link can be found on our website at http://www.guamvboc.com/calendar.php via the eCONFERENCE button at the bottom of the page.

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Need TOTAL MANPOWER MANAGEMENT?

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For More Information Contact: Pacific THM Guam Corporation, Guam Licensed Manpower Service Provider

Tel No: (671)647-0172/73 Fax No: (671) 647-0174 Email:info@pacificthm.com

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GARRISONREPORT

5

Ways to Improve Your Effectiveness

Last month’s Garrison Report discussed effective leadership. If you didn’t listen to it or read it, then I suggest you go back and review it at www.jackstreet.com/jackstreet/WCON. GRMarch2011.cfm because the recommendations in this issue are consistent with effective leadership. Using the following techniques will improve your leadership effectiveness and allow you to deliver a lot more value to your organization. Have a list of people to whom you can delegate certain issues. We all have challenges, opportunities, problems or important tasks that need to be addressed. Unfortunately it is usually very difficult to do everything yourself. Just like the manager who brings in the lefty from the bullpen to face the left-handed slugger in the ninth inning, you need to know which of your people is ideal for certain situations. In other words, you need to be able to place the right person in the right position when an issue comes up. Only by tracking the performance of your people in various situations will you know the best person to assign to the case. Write it down because it’s hard to remember everyone’s performance in all situations. Keep in mind that your best overall person may not be the person in a particular situation; you might need a specialist. Also, just like a manager with a 10-run lead in the ninth doesn’t bring in his best pitcher to close out the game, if a situation isn’t that critical, you can move down the bench a little. This will give someone a chance to develop and grow. If you don’t give them opportunities when the pressure isn’t very high, they will never learn, which will have long-term negative impact on your organization. Shorten meeting times by half. The person you are assigning a task is qualified, in essence, an expert on the situation. After all, if the worker isn’t qualified, why are you assigning the task to that individual? That person understands the situation, can process the information and will apply it and if necessary change to achieve the desired results. Most meetings spend too much time going over the details that qualified people know and understand. Let the expert do his job. Instead focus on what’s most important. Make sure the delegate understands the deliverables and

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by: Ted Garrison how they will be measured. Identify any critical issues or limits the situation has. But don’t get bogged down in the how-to details. This frustrates the expert because you come across as talking down to them. Besides, if she is the expert, she probably understands what needs to be done better than you. This simple suggestion will increase the productivity of both the delegator and delegate. Improve your systems. Much of the work performed by organizations is routine. Assigning such routine tasks to someone highly qualified who could be doing something more valuable and complex is very unproductive. The solution is systems. Developing systems that less-qualified people can follow improves the organization’s performance and allows you to delegate many more tasks without having to spend all your time supervising the individuals performing them. The workers simply need to be taught the system then allowed to follow the system’s procedures. The worker no longer has to make decisions; instead the worker simply follows the process. However, educate your people that when variations in the process occur, they should ask for help, not simply respond, “We can’t do that.” As variations occur, you can always add modifications to the system for those situations. The system should be an active process, changing with conditions and not set in concrete. The workers should also be encouraged to make recommendations on how to improve the system. This is important because the people performing the work after a while become the experts on the system and often see ways to improve it that those not immersed in it don’t see. Respond to problems more forcefully. Too often people respond to a problem or crisis with the minimum they believe will solve the problem. This is a situation where business could learn from the military. When any general must go in to battle, he attempts to use overwhelming force. In any crisis, the situation is no different. Use overwhelming force to crush the problem. A perfect example is Japan’s nuclear plant problems resulting from the earthquake and tsunami. Of course, the Japanese had their hands full due to the overall impact of everything that happened. But they could have asked for help immediately. It’s dangerous to “think” we have things

under control. As soon as they lost power, which they knew could cause problems, they should have considered the worst possible scenario and responded accordingly then done everything possible to deal with that situation immediately. It took a week to get the emergency generators there to start operating some pumps. If they had asked the world community for generators immediately, the world would have provided them in 24 to 48 hours and many of the eventual problems could have been averted. In essence, this is about getting ahead of the crisis instead of trying to keep up with crisis. In the end the overwhelming-effort approach is less costly and more productive because it minimizes the problem, instead of attempting to control the problem. Keep your word. How does keeping your word improve your efficiency? If you promise only what you can deliver, you don’t have to waste time on stuff you can’t do or spend time trying to justify why you didn’t do it. That doesn’t mean you don’t stretch. You can say, “I guarantee that I will have this done by the end of the month. I will try to have it to you sooner, but I can’t guarantee that because there are variables I don’t control.” We all are under tremendous pressure today to be more efficient. These five suggestions will help you do just that while making you a more effective leader. "Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. Contact Ted at 800-861-0874 or Growing@TedGarrison.com. Further information can be found at www.TedGarrison.com."

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CRANECRITIQUECORNER

HOW TO READ A CRANE LOAD CHART

by: Dave Barnhouse

This month’s topic:

A monthly crane and rigging informative column for all personnel directly or indirectly involved with crane safety. Each month we will attempt to explain a different technical issue pertaining to crane operations here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike, by Dave Barnhouse Each crane has a load chart that, in short, specifies the crane's capabilities - detailing its features and how its lift capacity varies when considering distance and angle. Just like the old saying 'if you fail to plan, you plan to fail', failing to consult a crane load chart before renting or employing a crane for a specific job could leave you with too much or too little capacity for your job. Before a crane is rented, transported, employed or purchased, the crane chart must be consulted. Everyone from the crane operator, to the job supervisors, to even the riggers and safety personnel have to know how to read a crane chart. Here's how: To illustrate how to read a crane chart, I've chosen the chart for the Terex RT345XL, a rough terrain crane with a maximum lift capacity of 45 tons. 1. DIMENSIONS and WEIGHT - The chart shows the crane dimensions. It includes data for operation with the outriggers extended, transport weight, and steering dimensions. Knowledge of this information is especially critical if the crane will be working in a confined space, as the lifting capacity varies depending on whether the outriggers are extended. The transport weight (below) determines the trailer to be used, how to load the crane on the trailer, the route to take, and what permits are required to get it to the job site.

2. LIFT CAPACITY - This is where you determine the actual gross/net capacity. In the legend at the top of the chart, you can see these ratings apply when using 6.5 tons of counterweight, with the out-riggers extended to 22 x 22.3 feet. Here, you'd graph out the specific lift the crane is needed for. The 'ft.' indicator on the left axis represents the radius, the distance from the center pin to the center of the load. EXAMPLE: You need to lift a load of 15 tons (30,000 pounds) a distance of 25 feet. The distance is measured from the

center pin of the crane to the center of the load. Once you determine the distance, look on that line for the largest capacity; that will indicate how many feet of boom must be extended. In this case, it is 45 feet. It's important to note that the maximum capacity is always measured by the shortest lift, usually over the rear of the crane, and with the outriggers fully extended. While the Terex RT345 has a maximum capacity of 45 tons, lifts at any distance or height drops the maximum capacity dramatically.

This month’s test quiz addresses: Articulating boom truck use:

If delivering construction items such as lumber to a construction site with an articulating boom truck, does the new OSHA regulation apply regarding the crane use and the operator qualifications? Does it also apply to bundles of sheet rock? Fabricated roof trusses or structural steel members such as beams or decking? 28 | JULY2011

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How can you comply with the new OSHA ruling regarding your crane operator qualifications? Answer: Until November 10, 2014, all operators must be qualified by a competent trainer. His crane operating experi-

ence may be considered when evaluating his competence. After November 10, 2014, all operators must be qualified by an accredited agency such as NCCCO. Qualification testing shall consist of written and practical tests. Different levels of certification shall be based on

equipment type and capacity. Please call 888-8999 for written exam prep class, coordinating of your operators proctored written tests, and practical testing by an NCCCO accredited practical examiner.

3. LIFT RANGE - Just as important as lift capacity is lift range. For that, a range diagram is usually included in every chart which illustrates how much boom length is needed to pick up and lift a load both at a distance and at height. EXAMPLE: You need to pick up a load at 25 feet and lift it to the top of a five story, 65 foot building. Consulting the range diagram, 69 feet of boom is required to make the lift. 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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CRANECRITIQUECORNER

Answers to last month’s test quiz:

7” ½ x 4” 7/8.

NEWMEMBERS

JUNE 2011 Contractor: Double JJ Construction, LLC P.O.Box 22107 Barrigada, Guam 96921 GCA Contact: Joseph D. Lopez Sr. Email: doublejj@guamcell.net Ph: 671-888-5495 Fax: 671-477-2807 Description: General Contracting

Marnes Incorporated P.O.Box 32144, GMF Barrigada, Guam 96921 GCA Contact: Ted Perez Email: mar-nes@sbcglobal.net Ph: 671-777-3638 Fax: 671-646-0785 Description: General Building Construction

RLS Services, LLC P.O.Box 5296 Hagatna, Guam 96932 GCA Contact: Raymond A. Cruz Email: ray_pls@yahoo.com Ph: 671-969-3763 Description: Professional Land Surveying Services

YWA Pacific P.O.Box 3609 Hagatna, GU 96932 GCA Contact: Niko Yu Email: admin@ywapacific.com Ph: 671-988-8868 Fax: 671-649-0889 Description: Human Resources

Associate: Construction Testing and Engineering, Inc. 288 B. West Obrien Dr. Hagatna, Guam 96910 GCA Contact: Greg Gay Email: busdev@cte-inc.net Ph: 671-477-0950 Fax: 671-477-0952 Description: Engineering/ Materials Testing Eddie Cruz LLC P.O.Box 11353 Yigo, Guam 96929 GCA Contact: Eddie Cruz Email: eddiecruzllc@gmail.com Ph: 671-989-7645 Description: Hard Fill Facility and Topsoil Sales

Law Office of Georgette Bello Concepcion P.O.Box 20054 Barrigada, GU 96921 GCA Contact: Georgette Bello Concepcion Email: gconcepcion@guamlawfirm.com Ph: 671-477-8305 Fax: 671-477-7344 Description: Legal Services Onward Beach Resort 445 Governor Carlos G. Camacho Road Tamuning, Guam 96913 GCA Contact: Cris Gamboa Email: cris@onwardguam.com Ph: 671-647-777 Fax: 671-647-7793 Description: Hotel & Restaurant

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