GCA Construction News Bulletin May 2013

Guam Contractors’ Association

NEWS BULLETIN Vol.54 Issue 5MAY 2013

Feature Story18

On Guard28

S.A.M.E.

COMMITTEE UPDATE

CONSTRUCTION HEADLINE

CONSTRUCTION HEADLINE

FEATURE STORY

PHOTO HIGHLIGHTS

AROUND THE BENCH

ON GUARD

GARRISON REPORT

MEMBER BENEFITS

MEMBER HEADLINE

TRADE NEWS

THE HAPPENINGS

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2 | MAY2013 CONSTRUCTION NEWS BULLETIN www.guamcontractors.org

your visionour realityAt 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 300 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.

Building The Marianas Since 19581402 Route 15, Mangilao, Guam 96913 • Tel: (671) 734-2971/8 • Fax: (671) 734-0990 • www.hawaiianrock.com

2008 Business Laureate

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 correc-tions as needed. Opinions and edito-rial 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 [email protected]. 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 Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: [email protected]

Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

PUBLISHER:James Martinez

SALES & MARKETINGDIRECTOR:Geri Leon Guerrero

AD SALES:Tom MendiolaJune Maratita

PRODUCTION:Geri Leon GuerreroChristopher “Taco” RowlandJaceth Duenas

PHOTOGRAPHERS:Jaceth DuenasChristopher “Taco” Rowland

EDITOR:Adztech

CONTRIBUTING WRITERS:John RobertsonDavid F. MacalusoDr.Noel Silan DPM, ABMSP P.C.Skip BourgeoisSusan MorganShawn GumataotaoTed GarrisonCPT. Kenneth Ola

GCA STAFF:Francine ArceoDesiree Lizama

COVER:6th Annual GCA ConstructionRodeo benefiting Special Olympics Guam.

THETEAMTHEDIRECTORS THEEDITORIALSPRESIDENTJames A. Martinez, GCA

PAST CHAIRMANRobert Salas, Landscape Management Systems

CHAIRMAN - ELECTTom Anderson, Black Construction Corporation

VICE CHAIRMAN - ELECTArt Chan, Hawaiian Rock Products

SECRETARY/TREASURERJohn Sage, WATTS Constructors

CONTRACTORS DIRECTORS:Narci Dimaoala, Amazon Construction

Juno Eun, Core Tech International

Tom Nielsen, Maeda Pacific Corporation

Tom San Nicolas, dck pacific guam LLC

John Robertson, AmOrient Contracting

ASSOCIATE DIRECTORS:Paul Calvo, Calvo’s Insurance Underwriters

Carlo Leon Guerrero, M80 Office Systems Inc.

Patty Lizama, Pacific Isla Life

Ray Yanger, Matson Navigation

-

-

,

Dr. Mary Okada, GCC President, was April’s guest speaker for SAME General Membership Luncheon. She presented to the group a synopsis of the island’s thriving community college , it’s role in our community and plans for future campus devel-opment projects.

SAME Guam Post General Membership LuncheonApril 18, 2013

CAPT John Heckmann with Dr. Mary Okada, GCC President

-

campus also provides a Continuing Education program to help those who need to further their current skills as well as an Adult Education program to help individuals obtain their GED.

-sion for Community and Junior Colleges, Western Association of Schools and Colleges (ACCJC) for another six

“...to be a leader in career and technical workforce development by providing the highest quality education and job training in Micronesia.”

GCC Mission Statement...

www.guamcc.edu.

American Military Engineers

Society ofS.

A.M

.E.U

PDAT

E


To join SAME Guam Post, log on to SAME.org and click on “Membership” at the top of the home page.

Building Achievements...

AALG ALLIED HEALTH CENTER

LEARNING RESOURCE CENTER

STUDENT CENTER

FOUNDATION BUILDING

-vice library complete with computer labs, meeting rooms and study areas. Built in 2010, it became

featuring photovoltaic panels, digital temperature controls, lighting, recycled furniture and tiles.

Opening in 2009, the Allied Health Center is home to the campus’s Practical and Pre-Nursing

also allows for science labs and is looking to be expanded with EMT, paramedic, medical coding and billing programs in the near future.

opened December 2011, features a computer lab, health center, student lounge, student gov-

College Access and Project AIM rooms.

�e most recent of additions, the Foundation Building, opened in November 2012. Additional classrooms, the campus bookstore and the

Building also has LEED features such as a rainwater catchment system, a recycling area, eco-friendly lighting features, and photovoltaics just to name a few and is in the process of obtain-

GCC’s Campus Physical Master Plan for future work includes upgrades such as adding additional stories to single-story buildings, upgrading facilities and making network and technology improvements.

www.guamcontractors.org CONSTRUCTION NEWS BULLETIN MAY2013 | 7

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ment by about 750,000 jobs. Most agen-cies have just gotten started.

Private economists say that budget office estimate is probably on the high side because government managers will be looking to generate whatever savings they can by temporarily furloughing workers and cutting back hours – before resorting to outright layoffs – in order to hit their 5.1 percent sequester savings mandates. "The extent to which it's done through hiring or through furloughs is pretty hard to get handle on," said Chad Stone, chief economist at the Center on Budget and Policy Priorities. "Either way, there certainly will be less hiring than would otherwise take place." That means Uncle Sam's belt-tightening will weigh on the job market through the rest of the government fiscal year, which ends Oct. 1. Though the cuts officially took effect March 1, the impact is expected to build through the summer as federal agen-cies work to meet the Oct. 1 deadline. "The way the sequester is designed, it's gradual in its nature," said Gregory Daco, an economist at IHS Global Insight. "You cut budget authority, but that doesn't mean you immediately cut spending. So the actual cuts to outlays take time to material-ize." Those cuts will also hit other spending programs that will bring indirect pressure on non-government hiring, economists say. Cuts to federally funded, state-managed unemployment insurance programs will be concentrated in the summer months. Those cuts will hit hardest in later in the summer in states that delay implementing them.

The hit to consumer spending is expected to ripple through payrolls of industries from leisure and hospitality to retailers. "They're going to take a secondary hit from lower disposable income from people that are receiving benefits like unemployment compensation and other federal payments," said Brian Kessler, an econo-mist at Moody's Analytics. The biggest wild card in the forecast remains the ongoing political standoff over the budget. Many agencies that have yet to announce furlough plans are still scrambling to avoid service cuts. Some may be hoping to win a "carve out" from the sequester. The Federal Aviation Administration, for example, was recently granted a budget reprieve after air traffic control tower furloughs began snarling the nation's airports with delays. Note that most mem-bers of Congress are also frequent flyers.

The IRS recently announced furloughs that could delay tax refunds. While that piece-meal process may help the agencies winning a reprieve, it could slow progress on a wider solution, Stone said. "Carving out the squeaky wheels probably reduces in the impetus to get a deal," he said. "And it doesn't change the cuts that have to be made. It just focuses them on a narrower set of programs with less visibility or political interests."

If no deal is reached, the budget cuts will continue into next winter – and beyond. The current cuts are part of a 10-year "budget control" law that caps federal spending through 2022. But those future cuts won't be as painful. Though they slow the growth of federal spending, they don't reduce outlays like the current round of cuts. That means they'll have less impact on future economic growth and hiring. "This year, the change in (federal) spend-ing is going to tap the breaks on job creation and the recovery," said Kessler. "Next year is sort of a lighter tap on the gas. So adjusting to that move down is what slows growth and kills jobs."

The hope, of course, is that the private sector economy can fill in the spending gap by creating jobs faster than the govern-ment is shedding them. But the political gridlock over the sequester may be holding back hiring there as well. Many small business owners complain that it's just too risky to take on new workers until they get more certainty over issues like tax reform and health care spending.

White House Recalculates Spending Cuts

According to an Associated Press 3 May article, the White House budget office is recalculating how to apply automatic spending cuts for a handful of agencies, freeing up almost $4 billion for the Penta-gon and another $1 billion or so for other agencies like the Homeland Security Department and NASA. Capitol Hill aides familiar with the White House changes say the administration has identified almost $5 billion in cuts that can be restored under its reading of the arcane budget rules govern-ing the across-the-board cuts, known as sequestration.

The calculations differ from earlier ones because a partial-year funding bill was replaced in March with a more detailed measure. After administration number crunchers redid their math they were able to restore about $5 billion of the scheduled $85 billion in automatic sequestration cuts

under a complicated, previously unused mechanism that dates to a 1985 budget law. An administration official confirmed the calculations Friday but declined to comment further because the process is ongoing. The official and congressional aides spoke on condition of anonymity because they were not authorized to discuss the changes publicly.

The cuts officially began in March after Congress and Obama could not reach an agreement on a broader budget deal. The automatic cuts had been imposed under a hard-fought 2011 debt and budget pact. They require a 5 percent cut to domestic agency operating budgets and an 8 percent cut to the Pentagon. Social Secu-rity was exempted and cuts to Medicare were limited to a 2 percent cut to health care providers. Safety net programs like Medicaid, food stamps and school lunches for the poor were exempted, too. The cuts have so far failed to live up to the dire warn-ings issued earlier by agencies, in part because agency budget officers working with Congress have been permitted to transfer money between accounts. That allowed the Justice Department, for instance, to avoid temporary layoffs called furloughs. But budget experts warn that the grip of sequestration will grow tighter as weeks and months pass, leading to teacher layoffs, reduced funding for infrastructure and economic development projects, and a host of other cuts across the budget.

At issue in the latest recalculation are accounts that were cut more deeply under a full-year funding bill enacted in March than they would have been under the across-the-board cuts. They get funds restored. It's up to the White House Office of Management and Budget to calculate the across-the-board cuts. The recalcula-tion surprised many people on Capitol Hill, but Republicans atop the budget commit-tees declined to criticize the move. Repub-licans like Sen. John McCain of Arizona have sought to reverse cuts to the Penta-gon — and it benefits the most from the new math. The State Department was a big winner and said Friday that it would be able to avoid furloughing workers, in part because of the new calculations.

Meanwhile, the Food and Drug Administra-tion said Friday that it would not have to curtail inspections of food processing plants. It had earlier warned that 2,100 plant inspections would have been cancelled.

Sequestration is now here and appears to be here to stay for the foreseeable future. The fallout from the draconian measures being implemented cannot be understood at this moment as we go through a transi-tory period of uncertainty. On the one hand, the United States Government cannot continue the high level of deficit spending of the past few years under both Republican and Democrat leadership. On the other hand, essential services such as national defense, internal security, energy research, education, health care and public safety must be preserved. Our country has prospered most during periods of economic growth. Sequestration will throttle growth and exacerbate efforts to add good paying jobs in the private sector. Artificial stimulation using massive amounts of tax dollars will not produce the long lasting results needed. Unfortunately, the Congress and our best economic gurus have not been able to figure out how to balance these opposing demands. There must be ways to reduce spending in an intelligent manner both in the military and the rest of government. A high ranking military official stated recently in a Congressional Hearing that some procure-ment processes take far too long and cost far too much. He advised that correcting that situation will require “breaking some valuable dining room china”.

Contrary to concerns for the nations’ economy as fallout from sequestration and hope for the future, joblessness fell to 7.5% in April, its lowest since December 2008, in news that pushed the Dow Jones Industrial Average past 15,000 briefly and saw Standard & Poor's 500-stock index pass 1,600 for the first time. Figures from the US labor department came after a week of worrying signals for the US's fragile economic recovery as the Federal Reserve warned that Washington's budget

cuts were holding back the economy. The private sector added 176,000 new jobs last month. Professional and business services added 73,000 jobs in April and have added 587,000 jobs over the past year, according to the BLS. The manufacturing sector, a closely watched gauge of broader economic strength, was unchanged in April, while government employment fell by 11,000.

Military Contractors Seek Clarity on Pentagon Cuts

The so called “Military-Industrial Complex” is in line for change more drastic than any in modern time. On Monday 29 April, Defense Secretary Chuck Hagel met with 50 industry leaders, according to a 1 May article in Wall Street Journal. He was reaching out to military contractors anxious about looming budget cuts, telling dozens of defense-industry executives that he would work to cushion the blow. We can only hope that Secretary Hagel takes a similar stance with regard to A&E firms and construction contractors involved with land based military infrastructure.

The Pentagon has proposed closing military bases, cutting its workforce and shelving unnecessary military programs as it contends with several rounds of budget cuts. The changes would require approval from Congress. Pentagon officials have warned that some companies aren't likely to survive as the U.S. ends the war in Afghanistan and shifts reduced resources toward East Asia. Industry leaders expressed their frustrations with the state of fiscal uncertainty they said has made it difficult for contractors to adapt. "The industry recognizes that the world has changed—and we understand perfectly well the need to adjust to a new reality," said Stan Soloway, president of the Profes-sional Services Council, a trade group representing government contractors. "The problem is that we don't have any clarity." Mr. Soloway and others at the meeting told Mr. Hagel they need a better road map of where the Pentagon is head-ing.

Monday's gathering was dubbed "the First Supper" by some industry leaders—a phrase borrowed from a 1993 Pentagon dinner widely known as "the Last Supper." At that meeting, a few years after the end of the Cold War, then-Defense Secretary Les Aspin warned defense executives that the industry was bloated and had to be pared down. The meeting paved the way for industry consolidation, including the creation of Lockheed Martin Corp., now

the nation's largest military contractor.

Twenty years later, Mr. Hagel faces similar shifts. However, the earlier mergers mean there is now less space for consolidation among the top defense contractors. Smaller firms with less ability to adapt are expected to be hit hardest by the budget cuts.

Winding down the wars in Iraq and Afghanistan has opened the door to reduc-ing military spending. The government has already agreed to cut nearly $500 billion in projected spending increases over the next 10 years. Now, the Pentagon is planning to eliminate up to $41 billion from its current year's budget as part of govern-ment wide spending cuts known as the sequester, which began kicking in March 1. Defense contractors had aggressively lobbied Congress and President Barack Obama to craft an alternative spending plan to replace the broad sequester cuts. Chip Sheller, a spokesman for the Aerospace Industries Association, which hosted Monday's meeting at its office in Arlington, Va., said executives left with "renewed confidence" in Mr. Hagel and the Pentagon leadership. "There is a shared concern that protecting the defense indus-try base is an imperative that goes hand -in-hand with protection America's national security," he said.

Mr. Hagel was joined at the meeting by his deputy, Ashton Carter, and other Pentagon officials who deal regularly with the indus-try. Wes Bush, chief executive of Northrop Grumman Corp.; Marion Blakey, president of the Aerospace Industries Association; Linda Hudson, chief executive of BAE Systems Inc.; and other top industry leaders also attended the meeting.

Impact on the Civilian Job Market

More job cuts are on the way as the river of government spending flowing through the U.S. economy continues to slow. The $85 billion federal spending squeeze – part of a doomsday budget package originally approved last summer to force a more rational spending plan – has now lopped more than a full percentage point from gross domestic product over the past six months and eliminated tens of thousands of federal jobs. Most economists are expecting the April jobs report to show a net gain of 145,000 jobs, according to the economists polled by Reuters. The pace of layoffs is expected to pick up speed this summer. The Congressional Budget Office estimates that for the full year, federal spending cuts will reduce overall employ-

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Military, Government and Labor Relations Committee Update – May ‘13

By John M. Robertson

ment by about 750,000 jobs. Most agen-cies have just gotten started.

Private economists say that budget office estimate is probably on the high side because government managers will be looking to generate whatever savings they can by temporarily furloughing workers and cutting back hours – before resorting to outright layoffs – in order to hit their 5.1 percent sequester savings mandates. "The extent to which it's done through hiring or through furloughs is pretty hard to get handle on," said Chad Stone, chief economist at the Center on Budget and Policy Priorities. "Either way, there certainly will be less hiring than would otherwise take place." That means Uncle Sam's belt-tightening will weigh on the job market through the rest of the government fiscal year, which ends Oct. 1. Though the cuts officially took effect March 1, the impact is expected to build through the summer as federal agen-cies work to meet the Oct. 1 deadline. "The way the sequester is designed, it's gradual in its nature," said Gregory Daco, an economist at IHS Global Insight. "You cut budget authority, but that doesn't mean you immediately cut spending. So the actual cuts to outlays take time to material-ize." Those cuts will also hit other spending programs that will bring indirect pressure on non-government hiring, economists say. Cuts to federally funded, state-managed unemployment insurance programs will be concentrated in the summer months. Those cuts will hit hardest in later in the summer in states that delay implementing them.

The hit to consumer spending is expected to ripple through payrolls of industries from leisure and hospitality to retailers. "They're going to take a secondary hit from lower disposable income from people that are receiving benefits like unemployment compensation and other federal payments," said Brian Kessler, an econo-mist at Moody's Analytics. The biggest wild card in the forecast remains the ongoing political standoff over the budget. Many agencies that have yet to announce furlough plans are still scrambling to avoid service cuts. Some may be hoping to win a "carve out" from the sequester. The Federal Aviation Administration, for example, was recently granted a budget reprieve after air traffic control tower furloughs began snarling the nation's airports with delays. Note that most mem-bers of Congress are also frequent flyers.

The IRS recently announced furloughs that could delay tax refunds. While that piece-meal process may help the agencies winning a reprieve, it could slow progress on a wider solution, Stone said. "Carving out the squeaky wheels probably reduces in the impetus to get a deal," he said. "And it doesn't change the cuts that have to be made. It just focuses them on a narrower set of programs with less visibility or political interests."

If no deal is reached, the budget cuts will continue into next winter – and beyond. The current cuts are part of a 10-year "budget control" law that caps federal spending through 2022. But those future cuts won't be as painful. Though they slow the growth of federal spending, they don't reduce outlays like the current round of cuts. That means they'll have less impact on future economic growth and hiring. "This year, the change in (federal) spend-ing is going to tap the breaks on job creation and the recovery," said Kessler. "Next year is sort of a lighter tap on the gas. So adjusting to that move down is what slows growth and kills jobs."

The hope, of course, is that the private sector economy can fill in the spending gap by creating jobs faster than the govern-ment is shedding them. But the political gridlock over the sequester may be holding back hiring there as well. Many small business owners complain that it's just too risky to take on new workers until they get more certainty over issues like tax reform and health care spending.

White House Recalculates Spending Cuts

According to an Associated Press 3 May article, the White House budget office is recalculating how to apply automatic spending cuts for a handful of agencies, freeing up almost $4 billion for the Penta-gon and another $1 billion or so for other agencies like the Homeland Security Department and NASA. Capitol Hill aides familiar with the White House changes say the administration has identified almost $5 billion in cuts that can be restored under its reading of the arcane budget rules govern-ing the across-the-board cuts, known as sequestration.

The calculations differ from earlier ones because a partial-year funding bill was replaced in March with a more detailed measure. After administration number crunchers redid their math they were able to restore about $5 billion of the scheduled $85 billion in automatic sequestration cuts

under a complicated, previously unused mechanism that dates to a 1985 budget law. An administration official confirmed the calculations Friday but declined to comment further because the process is ongoing. The official and congressional aides spoke on condition of anonymity because they were not authorized to discuss the changes publicly.

The cuts officially began in March after Congress and Obama could not reach an agreement on a broader budget deal. The automatic cuts had been imposed under a hard-fought 2011 debt and budget pact. They require a 5 percent cut to domestic agency operating budgets and an 8 percent cut to the Pentagon. Social Secu-rity was exempted and cuts to Medicare were limited to a 2 percent cut to health care providers. Safety net programs like Medicaid, food stamps and school lunches for the poor were exempted, too. The cuts have so far failed to live up to the dire warn-ings issued earlier by agencies, in part because agency budget officers working with Congress have been permitted to transfer money between accounts. That allowed the Justice Department, for instance, to avoid temporary layoffs called furloughs. But budget experts warn that the grip of sequestration will grow tighter as weeks and months pass, leading to teacher layoffs, reduced funding for infrastructure and economic development projects, and a host of other cuts across the budget.

At issue in the latest recalculation are accounts that were cut more deeply under a full-year funding bill enacted in March than they would have been under the across-the-board cuts. They get funds restored. It's up to the White House Office of Management and Budget to calculate the across-the-board cuts. The recalcula-tion surprised many people on Capitol Hill, but Republicans atop the budget commit-tees declined to criticize the move. Repub-licans like Sen. John McCain of Arizona have sought to reverse cuts to the Penta-gon — and it benefits the most from the new math. The State Department was a big winner and said Friday that it would be able to avoid furloughing workers, in part because of the new calculations.

Meanwhile, the Food and Drug Administra-tion said Friday that it would not have to curtail inspections of food processing plants. It had earlier warned that 2,100 plant inspections would have been cancelled.


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Two years ago Mr. Paulsen made it a mission and promise when he pledged to bring assistance and support to the Guam Fire Department and People of Guam. Through his efforts and working closely in Guam with Lt. Governor Ray Tenorio and Guam Fire Chief Joey San Nicolas this undertaking by Mr. Paulsen is now a reality in Guam. Mr. Paulsen has been coming to Guam since 2008. He met then Senator Tenorio at a veteran’s event in Asan and a friend-ship was made almost instantly. During many discussions and meetings with Lt. Gov Tenorio and Mr. Paulsen personally reaching out to get involved and help make a difference, Mr. Paulsen pledged to assist through his vast network back on the main-land. Coming back to the Chicago area Mr. Paulsen was in contact with a friend, U.S. Navy LT Ed Garza who put Mr. Paulsen in touch with a gentleman who was with a local fire department in a very small community north of Milwaukee, Wisconsin (two hours from where Mr. Paulsen resides and Paulsen Production headquarters). Through Lt. Garza, Mr. Paulsen was introduced to a Lt. Wayne Merkle of the Grafton, WI Fire Department. Working closely with Mr. Garza and Lt. Merkle an awareness was created among several of the area volunteer fire departments to see if they had any gear or items that could be donated to the Guam Fire Department. Mr. Paulsen drove countless times over the last year working with Lt. Merkle and

the Grafton Fire Department and all the area fire departments that were extremely generous and openly gave items to support fellow firefighters. Over a 6 month period of time approximately $250,000.00 worth of firefighter gear and equipment was col-lected to donate and Paulsen Productions contributed approximately $50,000 to this effort. Mr. Paulsen has worked closely with the Guam Fire Department and through the efforts of Lt. Governor Tenorio, Matson Navigation became involved to assist in transporting the more than 6 tons of gear and equipment to Guam. Through Fire Chief Joey San Nicolas, Approved Freight Forwarders of Guam also stepped in to assist with arranging in transporting the 19 huge containers of gear and equipment and assist with the logistics of transporting everything from Wisconsin to California to get put on a ship to Guam. Mr. Paulsen’s tireless pursuit and promise to help the people of Guam and the Guam Fire Department is being realized with the arrival of all the gear and equipment in Guam. There was a ceremony to officially turn the gear and equipment over to the Guam Fire Department and People of Guam on Friday April 26 at 2:00 pm at the old GFD headquarters (across from Triple B Forwarders) in Tiyan. This is very exciting and as Mr. Paulsen continues to support the people of Guam and the Guam Fire Department, another drive is now underway as more fire departments have come forward and are volunteering to assist with supplying even

more equipment for their fellow firefighters. Another shipment of gear and equipment is now being planned by Mr. Paulsen for the fall of 2013. Mr. Paulsen knows firsthand what the needs and pressures are faced in the fire service as he was a firefighter in the Chicago suburbs before beginning Paulsen Productions and becoming an en-trepreneur. Paulsen Productions currently has offices in Elgin, Illinois; Hangzhou, China; São Paulo, Brazil and Guam. In ad-dition to Paulsen Productions, Mr. Paulsen is President of Guam Business Discovery, is co-founder of MariCher, LLC, in Nevada; is a Founding Managing Partner of Pacific Alliance Group in Oregon, and is a JV partner with Accelera Global in Illinois. There are so many people who have contributed to this enormous undertaking and everyone has done it out of kindness, generosity and willingness to help. Special thanks go to U.S. Navy Lt. Ed Garza; Cheryl Kaspar, Executive VP/CFO, Produc-tions, Josh Paulsen, Paulsen Productions, Jim Kacmarcik, President of Kapco Co; Mr. Len Isotoff & Ms. Bernie Valencia, Matson Navigation in Guam; Ms. Lori San Nicolas, and Mrs. Corine Bierking (GM) Approved Freight Forwarders, Kathleen Tolosa from the office of the Lt. Governor, and Lt. Ed Artero and Kevin Reilly of the Guam Fire Department. Our deepest and heartfelt thanks to all who have supported and assisted with this project.

The greatest thanks of all go to the efforts of Mr. Paulsen for his dedication to helping the people of Guam and the island he now calls his “second home”, Lt. Governor Ray Tenorio, the Guam Fire Department; Graf-ton Fire Department Lt. Wayne Merkle and the incredible members of five volunteer fire departments in Ozaukee County Wisconsin – Grafton Fire Department, Cedarburg Fire Department, Thiensville Fire Department, Saukville Fire Department and Belgium Fire Department. Additionally, Mr. Paulsen has worked closely with Mr. Mark Rolison, Founder of Globall Giving and has brought over 400 pounds of youth athletic equipment to be given to the young people of Guam and that presentation will be on Saturday April 2 and coordinated through the Lt. Governor’s office.

The Gear Has Arrived! The Gear Has Arrived!

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Sincerely,

Susan MorganEA to Gerald Paulsen, President/CEOph: 847.529.5200 I fax: 847-741-6343

"dedicated to personal and professional development for success"retired law enforcement / veteran owned small business SBA Veteran Business Champion of the Year USA ~ China ~ Guam ~ Brazil

Guam

more equipment for their fellow firefighters. Another shipment of gear and equipment is now being planned by Mr. Paulsen for the fall of 2013. Mr. Paulsen knows firsthand what the needs and pressures are faced in the fire service as he was a firefighter in the Chicago suburbs before beginning Paulsen Productions and becoming an en-trepreneur. Paulsen Productions currently has offices in Elgin, Illinois; Hangzhou, China; São Paulo, Brazil and Guam. In ad-dition to Paulsen Productions, Mr. Paulsen is President of Guam Business Discovery, is co-founder of MariCher, LLC, in Nevada; is a Founding Managing Partner of Pacific Alliance Group in Oregon, and is a JV partner with Accelera Global in Illinois. There are so many people who have contributed to this enormous undertaking and everyone has done it out of kindness, generosity and willingness to help. Special thanks go to U.S. Navy Lt. Ed Garza; Cheryl Kaspar, Executive VP/CFO, Produc-tions, Josh Paulsen, Paulsen Productions, Jim Kacmarcik, President of Kapco Co; Mr. Len Isotoff & Ms. Bernie Valencia, Matson Navigation in Guam; Ms. Lori San Nicolas, and Mrs. Corine Bierking (GM) Approved Freight Forwarders, Kathleen Tolosa from the office of the Lt. Governor, and Lt. Ed Artero and Kevin Reilly of the Guam Fire Department. Our deepest and heartfelt thanks to all who have supported and assisted with this project.

The greatest thanks of all go to the efforts of Mr. Paulsen for his dedication to helping the people of Guam and the island he now calls his “second home”, Lt. Governor Ray Tenorio, the Guam Fire Department; Graf-ton Fire Department Lt. Wayne Merkle and the incredible members of five volunteer fire departments in Ozaukee County Wisconsin – Grafton Fire Department, Cedarburg Fire Department, Thiensville Fire Department, Saukville Fire Department and Belgium Fire Department. Additionally, Mr. Paulsen has worked closely with Mr. Mark Rolison, Founder of Globall Giving and has brought over 400 pounds of youth athletic equipment to be given to the young people of Guam and that presentation will be on Saturday April 2 and coordinated through the Lt. Governor’s office.

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WASHINGTON - An interim final rule published in the Federal Register and effec-tive immediately will amend regulations to the U.S. Small Business Administration's Women-Owned Small Business Federal Contract Program allowing for greater access to federal contracting opportunities for women-owned businesses as a result of the National Defense Authorization Act of 2013 (NDAA) signed in January. The interim final rule removes the anticipated award price of the contract thresholds for women-owned small businesses (WOSB) and economically disadvantaged women-owned small businesses (EDWOSB) to allow them greater access to federal contracting opportunities without limitations to the size of the contract. The rule can be accessed at: http://www.gpo.gov/fdsys/pkg/FR-2013-05-07/html/2013-10841.htm and comments can be submitted on or before June 6, 2013, at www.regulations.gov, identified by the following RIN number: RIN 3245-AG55. As a result of the rule change, contracting officers will be able to set aside specific contracts for certified WOSBs and EDWOSBs at any dollar level which will help federal agencies achieve the existing statutory goal of five percent of federal contracting dollars being awarded to WOSBs.

The SBA is currently working on the changes to the Federal Acquisition Regula-tions. Prior to the rule change, the anticipated award price of the contract for women-owned and economically disadvantaged

women-owned small businesses could not exceed $6.5 million for manufacturing con-tracts and $4 million for all other contracts. Every firm that wishes to participate in the WOSB program must meet the eligibility requirements and either self-certify or obtain third party certification. There are four approved third-party certifiers that perform eligibility exams: El Paso Hispanic Chamber of Commerce, National Women Business Owners Corporation, U.S. Women's Chamber of Commerce, and the Women's Business Enterprise National Council. Additional information and links about approved third-party certifiers are available at www.sba.gov/wosb. To qualify as a WOSB, a firm must be at least fifty-one percent owned and controlled by one or more women, and primarily man-aged by one or more women. The women must be U.S. citizens and the firm must be

considered small according to SBA size standards. To be deemed "economically disadvantaged," a firm's owners must meet specific financial requirements set forth in the program regulations. The WOSB Program identifies eighty-three four-digit North American Industry Classifi-cation Systems (NAICS) codes where WOSBs are underrepresented or substan-tially underrepresented. Contracting officers may set aside contracts in these industries if the contract can be awarded at a fair and reasonable price and the contracting officer has a reasonable expectation that two or more WOSBs or EDWOSBs will submit offers for the contract. For more information on the Women-Owned Federal Small Business Contract Program or to access the instructions, applications or database, please visit www.sba.gov/wosb.

SBA Finalizes RuleAdopting Changes to

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197 Ypao Road, Tamuning, Guam 96913Tel: (671) 649-1946 • Fax: (671) [email protected]

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LOADERS/ROLLERS/BULLDOZERS• New Holland Dozer B95WT, encl. A/C Cab,

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GP Bucket. $ 14,900• 2009 New Holland B95.B 4WD Backhoe GP Bucket. $ 59,300• 2008 Bomag BW-AD 120 Ride-On 42 Inch Roller,

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Equipment For Sale Ad Tia Belau 2013_Layout 1 24/04/13 2:17 PM Page 1

by David F. Macaluso

NEW VISA REFORMCOULD STRANGLE GUAMʼS

FUTURE GROWTH

New immigration legislation is being proposed in Washington D.C. which could have a drastic impact on Guam’s economic growth and development in the years to come. The U.S. Chamber of Commerce and the AFL‐CIO (American Federation of Labor and Congress of Industrial Organiza-tions) agreed on advising Congress to limit the number of H‐2B visas nationwide which includes Guam.

Eight senators from both parties have been negotiating an overhaul of the nation’s immigration laws to limit H‐2B workers to about 85,000 per year nationwide, but out of that amount, it is expected that only 15,000 visas will be made available annually for construction workers.

The new program, if passed into law, would start at 20,000 visas and then it would gradually increase over the next four years. It is expected that 35,000 visas will be issued in the second year, 55,000 in the third and 75,000 for the fourth. But in the fifth year, the number of visas will either expand or shrink based on the national unemployment rate, the ratio of job openings to unemployed workers and other factors.

With this new program, one third of all visas available in any given year would go to small businesses that have fewer than 25 employees. Also, no more than 15,000 visas per year would go to construction occupations.

When this news reached Joe Bradley, Bank of Guam Senior Vice President and Chief Economist and Business Continuity Officer, he immediately thought to himself goodbye to future Guam construction booms.

Bradley said, “My first reading of this new program is that 85,000 visas are the floor and it will become adjustable year by year. At the initial stage, H-2 construction work-ers will be limited to 15,000 nationwide.”

If this proposed new program becomes law, it would start in 2015 and could gradually grow to a cap of 200,000 after five years. It would allow foreign workers to move from employer to employer, petition for permanent U.S. residency after a year, and eventually seek U.S. citizenship. The field of focus for these H-2 visas is primarily for health care for the elderly and the hospital-ity industry.

There are a lot of different categories for United States Visa’s. There are K Visas, which are for the purpose of marrying a U.S. citizen and immigrating or joining a U.S. citizen spouse in the United States while awaiting USCIS approval of Form I-130 for immigrant status. The B Visa is issued for Business visitors but these are temporary and brief. The E Visa is open

ended and geared towards a professional specialty and Treaty traders/treaty inves-tors. Then there is the H Visa, which is for skilled and unskilled workers. But these are temporary visas that expire after the contract is complete or after three years, whichever comes first.

Guam does not have a large construction labor force to accommodate the ongoing construction. There might be between three thousand to three thousand five hundred residential skilled construction workers on island. Efforts to train and recruit workers still doesn’t fill the void, so Guam’s construction industry needs to bring in more workers from off island.

In the late 1980’s, the Immigration and Naturalization Service (INS) later changed to the United States Citizenship and Immigration Services Citizenship (USCIS) was very leery about bringing H-2 workers to Guam. During that time, unemployment on the mainland was very high, particularly with construction workers. INS wanted Guam to not only advertise employment opportunities on Guam, but to also offer those jobs to the mainland. Unfortunately during that time, Guam construction com-panies spent a lot of money in advertising.

According to Bradley, Guam even had a recruiter that was from Guam who went to Texas to hire people. The recruiter brought back a couple hundred people, but they were miss match hires. Which means they had an expertise in another field and were hired for something else. There were forklift drivers brought to Guam, but they were hired to be plumbers and electricians but never had experience in that field.

Eventually Guam was allowed to have import H-2 construction workers from the Philippines and Korea. In the late 1980’s there were close to 11,000 H-2 workers on island. Guam heavily depended on these workers to get the construction done for the island to reach the next plateau. During this time there was a lot of economic activity. It helped raised income on the island. Historically Guam has been well below the lowest state in the nation in terms of per capita income. But during this time, the construction boom helped Guam reach the 25 percentile, putting the island’s income a head of 12 states, which includes Mississippi and Alabama.

“In the past the H-2 program has been very good for Guam,” said Bradley. “Historically Guam’s business cycle has been driven by construction. During construction booms, there has been a surge in employment that depends on temporary alien workers. There is not enough continuing work to sustain an adequate, permanent local construction workforce. An increased level of employment follows the construction

phase because the new buildings such as hotels, retail stores, malls, restaurants, etc. then these buildings create new jobs for the hotels industry, retail and in the restaurants. Once the boom goes bust, we have the luxury to export our unemployment.”

There are all sorts of requirements that are needed to bring in H-2 workers. First you need to advertise the position for all U.S. residents, which include all US citizens and green card holders. If the U.S. residents qualify for that position then they will get the job and there’s no need for H-2 workers.

The contractor needs to prove that there’s a no one willing to take the position before they will be allowed outside workers to come in. It’s then the contractor who petitions for the worker to come into the country. A petition is only used for one contractor and for one or more projects, but those projects need to be specifically stated in the petition. There also has to be proof that its a real project, so a copy of the contract is attached to the petition. Once the worker is here he can’t work for another contractor or start a new contract. A contractor can have the services of the H-2 workers up to three years or until the contract is complete then he must leave. Even if the contract is a ten year project, a worker only stay up to three years and then he has to repatriate for six months before he can come back on another H-2 visa. And when he does, it has to be a whole new petition.

“Guam’s economy today would not be at all like it is if we have not been able to bring in H-2 workers to build hotels or associated contractors projects back in the late 1980’s and early 1990’s,” said Bradley. “Our economy is not doing great today, but it would be doing much worse if it wasn’t from that boom.”

A cap of 15,000 H-2 construction workers is not a lot for the entire nation. That’s because it is likely that most of those visas will go to companies on the mainland with workers crossing the borders from Canada and Mexico.

Bradley adds, “Even if we only had 6,000 H-2 workers here in the late 1980’s, that would have only been 40 percent of our annual quota. And even if it was phased correctly using the 6000 H-2 workers, 2,000 new visas would need to come in every year, but that’s still 2/15 or 13.3% of the annual quota for the nation. You don’t think the State Department is going to issue all those visas for Guam; they will go to the mainland first. So our opportunities for a construction boom stops.”

Guam does have a USCIS waiver through the end of next year on allowing any limits of H-2 workers, but that was in place for


FEATURESTORY

the military buildup. So if we sooner or later have a military buildup of any magnitude, we will most likely get another waiver to bring in H-2 workers. That’s because the Department of Defense will not pay Hono-lulu Union scale on Guam. For example, an average union electrician in Hawaii makes $145,000 per year; now compare those wages to Guam’s non-union average of $14,000 to $15,000 per year. If this restriction on H-2 workers goes into place, and with labor and businesses backing it in the states then why would the senate not accept this recommendation to reform this program?

In 2010, the U.S. Chamber commissioned a study on The Economic Impact of H‐2B Workers. This 32‐page report outlined all of the great advantages H‐2Bs workers bring to the U.S. economy, including creating jobs of U.S. workers. The report also states, H‐2B visa program does not depress wages of U.S. workers in similar occupations, and H‐2B workers do not take jobs from their U.S. counterparts and temporary worker programs provide a legal workforce when U.S. workers are unavailable.

Bradley adds, “We already knew that.”

This reform is all in line with some of the laws President Barack Obama has been working on for some time. The immigration reform has been on top of Obama’s agenda for nearly five years.

“After dodging the issue for, oh, say, for-ever, the President has made immigration reform a priority and both Houses of the Congress have formed a Bipartisanship Committees to work out the details,” said Bradley. “ Obama has been pushing this

reform, but like most things, he been passive during this process. He wants the congress to do it for him, similar to the way he handled his Health Care Reform. Obama didn’t get involved and left the responsibility to congress to do it. And he’s doing the same with the Immigration Reform, he just doesn’t seem very involved with the process other than urging it along.”

In the meantime, the U. S. Chamber and the AFL‐CIO have recommended a new visa category, the W Visa for low‐skilled workers. It is not exactly clear whether these new proposed “W visas” would apply to construction workers, but it looks like they might. It also looks like the U.S. Cham-ber and the AFL‐CIO agreement would still apply the 15,000 limit on construction visas to this visa category too.

Guam relies heavily on H‐2 workers to fill the gaps during periods of growth. The islands business cycle is driven by construction, which then creates new temporary job opportunities. But once the buildings are built the structures will create permanent jobs.

Looking at our past history, Bradley feels, Guam cannot sustain a local construction labor force sufficient to meet our needs during the booms. It is necessary for the island to bring in temporary construction workers, whether from the States or elsewhere.

"This would not be good for you, and it most definitely would not be good for Guam," said Bradley.

He urges a Call to Action and feels Immigration Reform at this point is more a political issue rather than an economic issue.

“We all know how well the U.S. government handles economic issues or political issues, for that matter, at least recently,” said Brad-ley. “Call Madeliene, call your friends and associates in the States, write to your trade associations and push the buttons to get this aspect of immigration reform reformed!”

The proposed limits on H‐2B (or W) visas would inhibit construction activity and ultimately strangle our economic growth and development.”

On a side note, According to the USCIS web site, the H-1B visa program for high-skilled foreign workers hit its quota in early April into the application period. This is the fastest rate it reached its cap since 2008. This prompted a lottery and signaled to companies that they could be confident to hire more foreign workers.

The agency grants 65,000 H-1B visas and an additional 20,000 visas for foreign work-ers with advanced degrees like Master’s and Ph.D. graduates from universities in the United States. These visas will be used to fill positions such as engineering and technology related fields. Often U.S. employers have a difficult time filling with those positions with qualified American workers.


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Our Commitment to Guam, Micronesia and

the Philippines Runs Deep

2012 Excellence in Construction First Place Overall Project Award

2012 GCA CONTRACTOR OF THE YEAR!

Black Construction Corporation Telephone 671.646.4861/5 www.blackconstructionguam.com

GCA LuncheonApril 17th, 2013Hyatt Resort Guam

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[email protected] www.pacific.hawthornecat.com

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It appears that times are busy at the US Department of Energy (DOE). LEDs Magazine reported recently that the DOE, via its Municipal Solid-State Street Lighting Consortium (MSSLC), has released its model specification that municipalities and utilities can use as a template for procuring LED street lights with integral network and adaptive-control technology. The Tulsa, Oklahoma-based on-line media group said that the final specification is another step in the MSSLC's goal of helping cities, local agen-cies, and utilities accelerate the deploy-ment of solid-state lighting (SSL) technol-ogy for roadway and parking applications.You can download the "Model Specifica-tion for Adaptive Control and Remote Monitoring of LED Roadway Luminaires" document from the DOE SSL web site at http://www1.eere.energy.gov/buildings/ssl/. This new spec follows the original base-line model specification document for roadway luminaires, a financial analysis tool, and demonstration reports released by the MSSLC.

The same MSSLC Program also announced that at the parking structure of the U.S. Department of Labor headquar-ters in Washington, D.C., LED luminaires were installed in place of the incumbent high-pressure sodium (HPS) luminaires and evaluated for relative light quantity and

performance. On-line lighting giant Edison Report said that results showed energy savings of 52% from the initial conversion of HPS to LED—which increased to 88% by using occupancy sensor controls—and simple payback periods of 6.5 and 4.9 years for retrofit and new construction scenarios, respectively.

The reports from the MSSLC are very informative. The DOE Municipal Solid-State Street Lighting Consortium shares technical information and experiences related to LED street and area lighting demonstrations and serves as an objective resource for evaluating new products on the market intended for those applications. Cities, power providers, and others who invest in street and area lighting are invited to join the Consortium and share their experiences.

Take it a step further, the Consortium is now seeking to develop an inventory of the nation's street and highway lighting systems, enabling the development of national and local policies and programs to support the implementation of LED street-lights, which will contribute to the nation's conservation efforts and energy security while providing financial benefits to end users. It is estimated the nation's street-lights consume the energy equivalent of 1.9 million households and cost $6-8 billion annually for energy and maintenance, yet

conservation efforts in this segment have been limited. Guam is no different.

Since the installation of LED streetlights along the major numbered routes on Guam thanks to funds from the American Recovery and Reinvestment Act (ARRA), the effort to complete the job of retrofitting 20,000 street lights has ground to a halt. The Guam Power Authority and Depart-ment of Public Works are looking to the creation of a Special Purpose Entity (SPE) to make this a reality. The reality is that legislation will take time and procuring the SPE will be just as tedious. An LED lighting solution for our island roadways can save money and make for a safer driving experi-ence on Guam. Any effort to modernize Guam's streetlights should be supported. All efforts to inventory all of the Island's streetlights are equally as important. The savings can be used for other more impor-tant operational issues or to even purchase more streetlights.

Give us a call at 671-483-0789 or drop GET, LLC a line at www.get-guam.com to explore this issue further or to bring an LED lighting solution to your respective building or facility.

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by Shawn Gumataotao

Spec for LED Street Lightsand Report of Parking GarageLighting Released by DOE

Spec for LED Street Lightsand Report of Parking GarageLighting Released by DOE

A joint team of Soldiers and Airmen from the Guam National Guard’s 254th REDHORSE Squadron and 1224th Engineer Support Company worked alongside Armed Forces of the Philippines (AFP) Soldiers from the 564th Engineering Construction Battalion, 51st Engineering Brigade, and the 740th Combat Group, 710th Special Operations Wing of the Armed Forces of the Philippines to renovate the cafeteria. The mission was geared primarily to support the Armed Forces of the Philippines (AFP) Reserve Command through a Subject Matter Expert Exchange (SMEE) under the State Partnership Program (SPP).

School Principal Jovito M. Barcenas described the cafeteria as being dilapidated and needing critical repair, which was the reason he had suggested the building to the project planners.

“The project that happened in this school will be a great help on behalf of the pupils. As a school principal, my concern is our clientele, which really are the students,” Barcenas said. The school serves about 2,000 elementary school children.

Capt. Christian Cruz, Officer in Charge of the first team at the site, said these types of projects are valuable training opportunities for the Guard engineers.

“This was another excellent project for the Guam National Guard. Aside from getting outstanding training in preparation of our Contingency and State missions, our person-nel also felt fulfilled with being able to help out the community of Laguna.”

The school cafeteria was last renovated in 1992 and was showing evidence of a failing roof. The overall safety of the facility was nearing a point where there was concern whether it could remain serviceable, accord-ing to unit leaders and project planners.

Work done by the joint teams of Soldiers and Airmen included: renovation of the roofing network; replacement of all roof tin and drop ceiling construction; installation of new center support beam for roof truss network to include three metal column support systems; demolition of existing partition walls to create an open room concept and maximize the effective square footage within the 2,400 square foot building.

All Electrical work was coordinated with the city’s Department of Public Works to ensure safety and compliance during demolition, and when power was re-terminated to the

building after renovation. Other electrical work included: installation main distribution panel and low voltage distribution system to provide a total of 6 main circuits and one main breaker; seven electric wall outlets; eight ceiling fans and switches; 15 fluores-cent light fixtures controlled by five switches; a dedicated water pump circuit.

Other work also involved: re-commissioning of a water distribution pump and system; wall and floor masonry repairs for the entire building; application of epoxy protective coating for the entire floor; construction of a new storage area; fabrication of a new concrete sink and table; and renovation of serving window which involved lowering the serving counter by 18 inches.

The project timeline was over the course of 21 days in April and required almost 9,000 man-hours between the GUNG, and AFP engineers and their support personnel. The weather also posed a challenge for the Guam troops, as temperatures rose to over 90 degrees Fahrenheit, with high humidity. Maj Frank Blaz, 254th RHS director of opera-tions, said the execution of joint and combined operations within the construct of the SMEE project was fulfilling from a profes-sional and personal perspective, as the Guam National Guard provided much needed support to the AFP. “As an engineer, it is gratifying to use our skill sets to bring hope and confidence in the community that our military’s strive toward the continued prosperity of the people.” CPT Mel Pilarca, 1224th ESC commander, said the project provided a good training environment for his Soldiers. “Their primary jobs are horizontal construc-tion while the mission of the SMEE was vertical construction, which posed a challenge and at the same time an opportu-nity for training. Six of the Soldiers did possess a secondary (Military Occupational Specialty) or function, as vertical construc-tion engineers, which greatly assisted with the successful completion of the project.”

“The mission went well and according to plan. The knowledge and experience shared by all forces was excellent. In the end, it felt like we should all be wearing the same uniform from the partnership and brother-hood that we developed; a partnership that I will forever cherish and remember. Lastly, we got the opportunity to see the faces of the teachers and some of the students as we handed them their new canteen. They were very appreciative.”

This engineer civic action project was part of the SPP SMEE initiative. The SPP is a Depart-ment of Defense sponsored program admin-istered by the National Guard Bureau (NGB), partnering Guard units from different states with selected countries for nation building, among other projects. Missions like these through the SPP also help strengthen relations between the Republic of the Philip-pines and the U.S. The Philippines is the Guam Guard’s partner state.

AFP and Guam Guard Engineers Renovate School Cafeteria

(Binan, Laguna, RP) – Thousands of students at the Binan Central Elemen-tary School can now eat their lunches and hang out in a cleaner, better cafeteria when they return for the new school year next month.

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Guam Guard Airmen clear debris from the cafeteria wall shortly after the engineer units started work on the project. (GUNG Photo by Capt Chris Cruz)t

AFP Soldiers mix concrete while a Guam Guard Soldier chips old tile off the school cafeteria wall. (GUNG Photo by CPT Ken Ola)

A Soldier and Airman from the Guam Guard, along with a Soldier from the AFP, assess work that needed to the done on the roof and ceiling of the school cafeteria. (GUNG Photo by CPT Ken Ola)

views with three of the principles of the IPD Collaborative about how IPD works and the benefits for owners. You can listen to what Todd Andrew, president of Andrew General Contractors, Inc.; John Elsea, president of Peninsula Engineering; and Joe Territo, president of Territo Electric said by going to the following links:

Why does IPD work?

By shifting accountability for performance to the design/contractor team as a unit, they have an incentive to find the best solutions. Most waste in the construction industry is not in the individual tasks, but between the tasks. IPD attacks that waste by eliminating much of the duplication of effort so common in the construction industry. This is achieved by ensuring that the right people are involved in the project, which is something that will be discussed in greater detail in the upcoming report on best-value procurement. The other major contribution to eliminating waste is a more effective management of the supply chain, which studies on lean construction have identified as one of the biggest waste factors in the construction industry. By bringing everyone together on the project from the beginning, the process eliminates the silos that are so common in the construction industry. For years, management experts have been advocating the tearin g down of the walls between departments and between the company and its vendors, yet the construc-tion industry practices have maintained these barriers with a large negative impact on efficiency, resulting in higher costs and longer design and construction times.

IPD creates an environment where lean construction can flourish. As already stated, it helps reduce waste, but it also increases the reliability of planning. Reliable planning reduces risk for both the design/construction team and the property owner.

I asked Joe Territo during one of his presen-tations on IPD if the concepts of IPD could be helpful to contractors that are forced to compete in the design-bid-build arena. His response was yes. However, he added that his organization doesn’t participate in design-bid-build projects because the ben-efits to them and, of course, to their client are so much greater when IPD is applied to the entire design and construction process. My point is that if contractors are forced to compete on design-bid-build projects, by

improving the collaboration between the general contractor and its subcontractors and between subcontractors, the project could be made more efficient and more profitable for the contractors involved while delivering best value for the owner.

Do you need to get involved in IPD right now?

My answer to that question is an emphatic yes! Harvard professor Clayton Christensen talks about what he calls “disruptive innovation.” This refers to an innovation that creates a new market and disrupts the existing market. An example in construction is the sustainability move-ment. When the movement started out, almost any contractor could participate. Eventually, contractors need to be LEED accredited. Finally, to even bid on a LEED project, contractors had to prove they had successfully completed LEED projects of similar size and type. If your company waits until this point in the cycle, your company may suddenly find itself on the outside. Since you would not have a track record, you might find it difficult to find owners willing to allow you to participate.

In my opinion, IPD is going to work the same way. Once it reaches a tipping point, if you are not on board, you will be

left behind. So you need to get started immediately. Start with smaller projects, if necessary, but get started learning the process. Ed Anderson says you can’t learn to ride a bike without getting on the bike, and it’s no different with IPD. You will not learn it by reading a book or attending a seminar; you need to start practicing it. Maybe more important, you need to start building the necessary relationships because without them, you will not have IPD.

Next month I will explore lean construction.

Earlier this year, Garrison Report #2013-1 provided eight questions that contractors and designers should ask themselves about whether their company needs a new strategy. If you haven’t read that report, I strongly suggest you review it before read-ing this one. While many companies within the construction industry have adopted innovative approaches to their businesses, it is still true that virtually every contractor and designer could further improve its performance and profitability by putting to use the practices found in Construction 3.0™ Strategies. To assist in this effort, the Garrison Reports from #2013-3 through 2013-6 will discuss each of the four critical practices that make up Construction 3.0™ Strategies. These four practices and their scheduled reports are as follows:

• Blue Ocean Contracting (TGR #2013-3)• Integrated Project Delivery (TGR #2013-4)• Lean Construction (TGR #2013-5)• Best-Value Procurement (TGR 2013-6)

Integrated Project Delivery (IPD)

Why is IPD so important? For one thing, IPD is totally compatible with Blue Ocean Contracting because it enables contractors

to deliver unique solutions that maximize the value to their clients, therefore eliminat-ing their competition. But what is IPD?

The American Institute of Architects defines IPD as “a collaborative project delivery ap-proach that utilizes the talents and insights of all project participants through all phases of design and construction.” While AIA’s definition is OK, it is not complete. The Integrated Project Delivery Collaborative of Ocoee, FL., which developed the process in the ’90s and trademarked IPD in 2005, states that with honest, unfiltered informa-tion, an owner can be educated to make the right decisions, not a price decision.

They further state, “IPD has taken Design Build to a whole new level. Our designers and builders are a single team of stakehold-ers who take ownership of the project with you from the start. Each IPD team member is accountable for the performance of the other team members and shares in the overall project responsibility. We have developed a relational contact that allows our team members to share costs and profit and eliminate multiple mark-ups. Our methods incentivize the best ideas and lower costs. Your priorities are understood and incorporated every step of the way. The industry’s top professionals seamlessly integrate your ideas into reality. We have

consistent ly delivered a better project, under budget, on schedule, with less risk and conflict.”

I like to define client as “someone under the protection of,” and that last sentence in the above paragraph is about just that — the partnership of designers and contractors collaborating to protect the client from all risks and conflict while delivering a superior product.

Many people use the term IPD, but unless you are getting all of the above, you are getting what IPD Collaborative says is only an IPDish project delivery approach. The IPD Collaborative admits that the process has evolved over the past two decades. v While this report can’t cover all the details and lessons learned by them, you can go to their website at http://ipdfl.net to learn more about the details of the IPD process. In particular, see the Case Studies under the Our Work tab for specific examples of how extraordinary value was provided at no additional cost or schedule to owners.

In fact, I conducted three NCS Radio inter-


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views with three of the principles of the IPD Collaborative about how IPD works and the benefits for owners. You can listen to what Todd Andrew, president of Andrew General Contractors, Inc.; John Elsea, president of Peninsula Engineering; and Joe Territo, president of Territo Electric said by going to the following links:

Why does IPD work?

By shifting accountability for performance to the design/contractor team as a unit, they have an incentive to find the best solutions. Most waste in the construction industry is not in the individual tasks, but between the tasks. IPD attacks that waste by eliminating much of the duplication of effort so common in the construction industry. This is achieved by ensuring that the right people are involved in the project, which is something that will be discussed in greater detail in the upcoming report on best-value procurement. The other major contribution to eliminating waste is a more effective management of the supply chain, which studies on lean construction have identified as one of the biggest waste factors in the construction industry. By bringing everyone together on the project from the beginning, the process eliminates the silos that are so common in the construction industry. For years, management experts have been advocating the tearin g down of the walls between departments and between the company and its vendors, yet the construc-tion industry practices have maintained these barriers with a large negative impact on efficiency, resulting in higher costs and longer design and construction times.

IPD creates an environment where lean construction can flourish. As already stated, it helps reduce waste, but it also increases the reliability of planning. Reliable planning reduces risk for both the design/construction team and the property owner.

I asked Joe Territo during one of his presen-tations on IPD if the concepts of IPD could be helpful to contractors that are forced to compete in the design-bid-build arena. His response was yes. However, he added that his organization doesn’t participate in design-bid-build projects because the ben-efits to them and, of course, to their client are so much greater when IPD is applied to the entire design and construction process. My point is that if contractors are forced to compete on design-bid-build projects, by

improving the collaboration between the general contractor and its subcontractors and between subcontractors, the project could be made more efficient and more profitable for the contractors involved while delivering best value for the owner.

Do you need to get involved in IPD right now?

My answer to that question is an emphatic yes! Harvard professor Clayton Christensen talks about what he calls “disruptive innovation.” This refers to an innovation that creates a new market and disrupts the existing market. An example in construction is the sustainability move-ment. When the movement started out, almost any contractor could participate. Eventually, contractors need to be LEED accredited. Finally, to even bid on a LEED project, contractors had to prove they had successfully completed LEED projects of similar size and type. If your company waits until this point in the cycle, your company may suddenly find itself on the outside. Since you would not have a track record, you might find it difficult to find owners willing to allow you to participate.

In my opinion, IPD is going to work the same way. Once it reaches a tipping point, if you are not on board, you will be

left behind. So you need to get started immediately. Start with smaller projects, if necessary, but get started learning the process. Ed Anderson says you can’t learn to ride a bike without getting on the bike, and it’s no different with IPD. You will not learn it by reading a book or attending a seminar; you need to start practicing it. Maybe more important, you need to start building the necessary relationships because without them, you will not have IPD.

Next month I will explore lean construction.

Ted Garrison, president of Garrison Asso-ciates, 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 [email protected]. Further information can be found at www.TedGarrison.com."

Andrew: www.jackstreet.com/jackstreet/WCON.Andrew.cfmElsea: www.jackstreet.com/jackstreet/WCON.Elsea.cfmTerrito: www.jackstreet.com/jackstreet/WCON.Territo.cfm


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Here on Guam skin problems of the foot manifest mainly because of the humidity. It is important here on Guam to constantly keep your feet dry by bringing extra pairs of socks to work and applying foot powder before going to work. Also one must keep in mind that to much caffeine consumption can lead to excessive perspiration of both the hands and the feet.

Fungal foot infections are more common on Guam due to the humidity. This is the main reason and there is no specific skin condition that exist solely on guam called “jungle rot”. Ringworm and “jaf jaf “ are commonly used terms synonymously associated with fungal

infections. Fungal infections occur around the world and more common in areas closer to the equator which are naturally more humid.

Tinea Pedis is a fungal infection than can have four different presentations. Fungal infections can also be due to different genus species and affects the toenails as well.There are two acute forms one which is really itchy forming little bubbles and the other which causes wet open wounds. The third is a chronic one which forms thickened itchy scales. The fourth is one that occurs between the toes. One should not forget again that toenails can be affected also and if ignored will spread to involve all the toes. As with most skin conditions left untreated it will lead to more thickened tissue, itchiness and will be harder to eradicate.

Eczema is another condition but unlike fungal foot infections can be caused by internal and external stimuli. Eczema has a more intense itchiness accompanied like fungal infections with several different presentations. Eczema is an allergic response not caused by bacteria and or a fungus. Allergies can be from but not limited to foods, soaps, detergents, socks, slippers, and medications both oral and topical.

Hyperhidrosis is another skin condition that can affect the feet. It is due to excess sweating on the feet and can be accompanied by odor, secondary

bacterial, fungal and viral infections. It usually starts in childhood and continues into adulthood with. Stress, caffeine and certain work conditions can make the symptoms worse.

Guam sore I decided to include because like all Urban legends needs an explanation. You will not find this in any dermatological textbook. This like the term “ Jungle Rot” is not endemic to our island and exists in other places. The “Guam sore” in other places in known as impetigo. It is a superficial skin infection with small vesicle with a honey crusted base. It is caused by either S. aureus or Strep species. This is not caused by VRSE or MRSA which has gotten wide publicity among US. It is though highly contagious and is spread easily amongst family members. This infection is easily treated and should be caught early by seeing your doctor. Oral antibiotics in combination with topical ointments work best.

Internal disease and circulatory abnormalities can also affect the lower extremity as well but is much too exten-sive to include in this article. Enjoy your summer and don’t forget the sunblock.

Dr.Noel Silan, DPM ABMSP

Skin Problems of the Foot

Diabet ic Foot Problems • Gout • Sports/Work Related Injur ies • Skin Diseases • Surgery

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Guam Foot Clinic Express Med Pharmacy Bldg138 Kayen Chando St.Dededo, Guam 96929 • (671)633-3668 wk • (671)647-0027 faxDr.Noel Silan DPM, ABMSP P.C.

151 W. HARMON INDUSTRIAL PARK RD.,TAMUNING, GUAM 96913

TEL. NO.: (671) 646-5231/5268FAX NO.: (671) 646-5258

www.iecoguam.comAuthorized Distributor for Guam, CNMI and Micronesia

Bring on the Green.

Pacific Unlimited Inc. DBA: Pacific Trucking

Not sure where to bring your wooden pallets, crates, untreated wood waste from construction & renovations, land clearing shrubbery, trees refuse, yard trimmings, cardboard & paper?

We are the nearest, most affordable option on island.Pick up services available as well.

For more Information, hours ofoperation or credit applicationcall 437-4374., Ext. 100 or email usat [email protected]

Now accepting green waste at$9.00 per cubic yard.

Located at our EPA Permitted Ordot Green Waste & Composting Facility just across the former Ordot Landfill.

414 West Soledad Avenue, Hagatna, Guam 96910

FOR IMMEDIATE RELEASE CONTACT: Skip Bourgeois, Marketing For Coffman Engineers (671) 300-7531 x801

Coffman Engineers Hires Senior Mechanical Engineer

HAGATNA (April 29, 2013) – Coffman Engineers, Inc. is pleased to announce the addition of senior mechanical engineer Mike Pritchard, P.E. to the staff of their Haganta, Guam office.

Pritchard is a skilled mechanical engineer with experience in all phases of management, design, and construction. He has provided mechanical engineering services for military, govern-ment, commercial, industrial, and institutional applications. Pritchard is a registered professional engineer in Guam, The Com-monwealth of the Northern Mariana Islands, and the states of California, Oregon, and Washington.

Pritchard has provided mechanical engineering services on such notable Guam projects as the Anderson Airforce Base clear water rinse project, the Personal Finance Center HQ and satellite offices, the Naval Base Guam retro-commissioning project, the Naval Base Guam wharf revitalization, and the Bank Pacific main office. He also serves as the mechanical engineering consultant to Ken Corp, serving 5 hotels in downtown Tumon.

Coffman Engineers established a permanent presence on Guam in June of 2012. The company has provided multidiscipline engineering services at high profile facilities like the Guam Judicial Center, the Bank of Guam office building, the University of Guam, Naval Base Guam, and the Port of Guam. Coffman Engineers’ team combines a depth of on-island engineering experience with knowledge and history developed from working elsewhere in the Pacific Rim.

About Coffman EngineersFor more than 30 years, Coffman Engineers has provided civil, structural, industrial mechanical, process piping, commercial mechanical, electrical engineering and controls, lighting, project manage-ment, commissioning, and corrosion control engineering. The company collaborates on large, small, and diverse projects from commercial to industrial work as a prime or sub-consultant with offices in Seattle and Spokane, Washington; Los Angeles, California; Anchorage, Alaska; Honolulu, Hawaii; and Hagatna, Guam. Follow us on Twitter @CoffmanEngineer.

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Game Schedule HOME TEAM

Fri., May 03 6:00pm “BCC” Black Const. Co. vs. Blue Phoenix 7:15pm GMBA 50+ Mix vs. GMBA 65+ Mix 8:30pm GMBA 60+ Mix vs. GMBA 55+ Mix

Sun., May 05 NO GAMES SCHEDULED!! Volleyball Tournament at Dededo Sports Complex. Fri., May 10 6:00pm Hensel/Phelps-Granite vs. Payless Supermarkets 7:15pm Team FSM vs. “GCA” Thunder Buddies 8:30pm GTA vs. Jungle Juice Sun., May 12 10:00am “BCC” Black Const. Co. vs. GTA 11:15am Payless Supermarkets vs Hensel/Phelps-Granite 12:30pm Team FSM vs. GSI Pacific 1:45pm GMBA 70+ Mix vs. GMBA 55+ Mix 3:00pm GMBA 65+ Mix vs GMBA 60+ Mix 4:15pm Blue Phoenix vs “GWA” Fot’gon

Fri., May 17 6:00pm GMBA 55+ Mix vs. GMBA 50+ Mix 7:15pm Jungle Juice vs. Hensel/Phelps-Granite 8:30pm GTA vs. “GCA” Thunder Buddies

Contractor: ADeesonii’sP.O.Box 3555 Hagatna, GU 96932GCA Contact: Deepak BhojwaniEmail: [email protected]: 671-647-3736Fax: 671-647-3736Description: Air Conditioning

Associate:

American Watertek1853 Army Drive, Ste A-102 Dededo, GU 96929GCA Contact: Rizk SaadEmail: [email protected]: 671-649-2301Fax: 671-649-2330Description: Water Treatment

February 2013Contractor: 8K BuildersPMB147 979 Army DR. Barrigada, GU 96913GCA Contact: Karen CaballeroEmail: [email protected]: 671-858-2640Fax: 671-989-2691Description: General Contractorh\

G.P.F CorporationP.O.Box 24833 Barrigada, GU 96921GCA Contact: Gavino AguilarEmail: [email protected]: 671-687-6268Fax: 671-637-7126Description: Plant Nursery & Land Scaping

April 2013Associate:

Pacific Retail Concepts130 Adelfa Loop, Barrigada, GU 96913GCA Contact: Merle Ann RobinsonEmail: 671-637-2935Fax: 671-637-6567Description: Real Estate Retail Develop-ment- Consultant

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2013 Guam Contractor’s Association

Basketball Tournament Schedule

Documents

GCA Construction News Bulletin May 2013