GCA Construction News Bulletin July 2010

Guam Contractors’ Association

CONSTRUCTIONCONSTRUCTIONNEWS BULLETIN Vol.51 Issue 07

JULY2010

Feature Story: Military opportunities with local small businesses.

BRANCHING OUT

PC

GCF

SPGM

CONTENTSCONTENTS JULY 2010

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23

26

31

resident’s Message

ommitte Update:S.A.M.E.

uam’s Future

rane Critque Corner

eature Story:Small Business

mall Business

hoto Highlights

arrison Report

emeber Benefits

Feature Story

Guam’s Future

2 | JULY2010 CONSTRUCTION NEWS BULLETIN www.guamcontractors.org

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Hafa Adai! GCA Members:

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

In the month of July, we observe Independence Day on July 4th and Liberation Day on July 21st. We would like to wish all members a safe and happy holiday. The GCA o�ce will be closed on these days or whenever the o�cial holiday is recognized on our calendar.

July also marks the 23rd Annual GCA Golf Tournament which will be held on July 17th at the Onward Talofofo Golf Club. Showtime is at 7:00 am with a shotgun start beginning promptly at 8:00 am. This is a 3-man best ball modi�ed scramble format. There will be a tailgate-style BBQ sponsored by Parker Bros. who will bring out their HUGE BBQ pit for this event. Naturally, we can’t have an event like this without your favorite cold beverage. I would like to thank the GCA Golf Tournament Commit-tee for planning and coordinating our 23rd Annual GCA Golf Tournament and to our co-sponsors for their continued support including Shell Guam, Hilti, IT&E,

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

Have a great and pleasant summer!

Senseramente,James A. Martinez

4 | JULY2010 ONSTRUCTION NEWS BULLETIN www.guamcontractors.org

PRESIDENT’SMESSAGEPRESIDENT’SMESSAGE

Guam Contractor’s Association (GCA) in conjunction with AdzTech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduc-tion of materials appearing in this publi-cation 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 [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 Ann Marie Pelobello, Office Manager, Guam Contractors’ Association at (671)647-4840/41, or fax (671) 647-4866 or email to [email protected]. Postmaster. Send address changes to Guam Contractors’ Associa-tion, 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:Marc Mendiola

CREATIVE DIRECTOR:Christopher Estioca

GRAPHIC ARTIST:Geri Leon GuerreroChristopher “Taco” Rowland

PHOTOGRAPHERS:Christopher “Taco” RowlandMarc Mendiola

EDITOR:Adztech

CONTRIBUTING WRITERS:Jac Perry - GuzmanJohn RobertsonTed GarrisonRynette DeCastroDave BarnhouseVera TopasnaCatherine Cruz Norton

GCA STAFF:Ann Marie PelobelloChantel Torres-CruzFrancine Arceo

COVER:Branching Out - Military Contracts for Small Businesses

THETEAMTHEDIRECTORSPRESIDENTJames A. Martinez, GCA

CHAIRMANChit Bathan, Ace Builders LLC

VICE CHAIRWOMANBill Beery, Construction Management Services

PAST CHAIRMANTom Perez, Perez Bro., Inc.

SECRETARY/TREASURERRobert Salas, Landscaping Management Services

ASSOCIATE DIRECTORS:Edward Untalan, First Hawaiian Bank

Michelle Quidachay, Horizon Lines

Adam Baron, Cassidy's Associate Insurers (Alternate)

CONTRACTORS DIRECTORS:Tom Perez, Perez Bros. Inc

Tom Nielsen, Maeda Pacific Corporation

Joshua Tenorio, Core Tech International

Ana Lisa Reed, L.A. Painting & Construc tion Co.

Armando Acosta, Orion Construction Corporation Guam

Narci Dimoala, Amazon Construction

Ron Young, Parker Bros

6 | JULYL2010 CONSTRUCTION NEWS BULLETIN www.guamcontractors.org

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

COMMITTEEUPDATE

08 JULY2010 CONSTRUCTION NEWS BULLETIN www.guamcontractors.org

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

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

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

The funding requirement had been established but the source had yet to be identified for Phase IB – Berth rehabilita-tion, security, acquisition of cranes and additional equipment as well as Phase II – Construction of new Berth F7 and Yard Expansion after the 20 year planning horizon.

Developments in Early 2010In early 2010, the Port Authority of Guam was not awarded the targeted $50 million Federal TIGER grant for Phase IA. Public Law 30-100 directed the Port Authority of Guam to continue seeking $50 million in federal funding required for Phase IA. It further prescribed alterna-tives for the modernization program in the event that funding was not available. Finally, it required the Port Authority of Guam to report back to the Speaker of the Guam Legislature by June 2010.

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

of Defense funding. The Government of Guam held meetings with federal officials including the Deputy Defense Secretary, William J. Lynn, Economic Adjustment Committee Group and others.

Source of Alternate Funding IdentifiedIn an April 5, 2010 letter to the Speaker of the House, President Obama proposed to amend the FY 2010 Department of Defense budget by transferring $50 million to the Department of Transportation’s MARAD Port of Guam Improvement Enterprise Fund to increase the Port’s capacity. In May 2010, the proposed amendment was placed on the Senate’s legislative calendar under General Order No. 276. The bill is sched-uled to be voted on prior to the end of this fiscal year, or September 2010.

Program Development DetailThe Port Authority of Guam contracted Parsons Brinckerhoff last year to act as the Port’s Owner Agents/Engineer. Parsons Brinckerhoff had under an earlier master plan contract begun the site investigations, environmental documen-tation, terminal development planning and preliminary engineering and design work needed to fully define the modern-ization program. Parsons Brinckerhoff is now close to finalizing the preliminary design work for the initial phase of the massive modernization program. The work conducted by Parsons Brinckerhoff, in conjunction with the Port Authority of Guam, was unveiled recently. The Final Preliminary Design will be fully completed for Phase IA by early July of this year. The preliminary design for Phase IA will be handed over to EA Science and Technology, Inc who will continue with what has already been started. EA Science and Technology, Inc

By John M Robertson

Port Modernization and Expansion Program

ITEM $ (millions)

Federal Funding (TIGER grant):

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

Equipment Loan

Total Capital:

50.0

53.5

1.0104.5

COMMITTEEUPDATE

was recently hired by the U.S. Maritime Administration (MARAD) to act as the Program Management Team to finalize the design and oversee construction of the modernization program. Parsons Brinckerhoff will continue their role as the Port Authority of Guam’s Owners Agent/Engineer to initiate the Phase IB design. Phase II plans have been deferred beyond the 20-year planning horizon.

Supporting Investigations and Analy-sisSupporting Investigations and Analysis includes Terrestrial Ecology Survey, ESA Phase 1, Unexploded Ordinance Survey, Hydrosurvey, Topographic Survey, Geotechnical, Geology & Seismic Services, Water Quality Assessment, Benthic Mapping, Essential Fish Habitat Assessment, Wetland Delineation, Termi-nal Analysis – Development & Operations Plan, Gates and Terminal Operating Systems along with the JGPO Construc-

tion Cargo Forecast.

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

ter Recognition) Canopy for both Inbound and Outbound traffic, Breakbulk Guard Shack and Load Center #5. The security and communications system includes connectivity for port wide data collection to a central point security and communications infrastructure.

Phase 1B – Waterfront Improvements: This phase will have separate funding and will focus on upgrading the existing Berths including the acquisition of new container cranes.

For additional information contact Matthew Smith at “[email protected]” or (671) 988-4554.

www.guamcontractors.org CONSTRUCTION NEWS BULLETIN JULY2010 | 09

GUAMSFUTUREGUAMSFUTURE

By Catherine Cruz NortonNaval Facilities Engineering Command MarianasPublic Affairs Office

Secretary of the Navy Recognizes NAVFAC Marianasfor Acquisition Excellence

U.S. Naval Facilities Engineering Command (NAVFAC) Marianas was among the distinguished list of Navy acquisition teams honored with Depart-ment of the Navy (DoN) Acquisition Excellence awards for improving Depart-ment of Defense acquisition processes, during a ceremony June 14 in Washing-ton, D.C. hosted by the Secretary of the Navy Ray Mabus.

NAVFAC Marianas received a Field Acqui-sition Activity award for its work in preparing for the Guam Military Buildup. The command was recognized for its outstanding resource management, enhanced competition methods, person-nel development and retention, small business support and achievements, and its demonstration of excellence in bring-ing supplies and services to the customer

at the right place and the right time.

“During the 2008 fiscal year, we experi-enced an enormous workload surge executing 710 actions and more than $320 million in obligations,” said NAVFAC Marianas Director of Acquisition, Andy Wall. “This is a 24 percent jump in comparison to the previous year, and is anticipated to increase over the next several years.”

NAVFAC Marianas’ acquisition team managed large initiatives such as joint-regionalization, surges in military construction projects, and on-going planning for the heavy workload antici-pated in the Guam Military Buildup. All the while, it maintained its focus on a proactive push to encourage acquisition personnel to develop their skills.

“Our acquisition team is a shining example of the best and the brightest,” said Capt. Peter Lynch, NAVFAC Marianas commanding officer. “This is a dynamic group that will be vital to our acquisition efforts for current military construction requirements and for the Guam Military Buildup. I am confident that their “Can-Do” spirit will continue to keep us in this league of top performers.”

NAVFAC Marianas maintains a vibrant internship program with approximately 46 contract specialist interns, and provides tremendous training and skills-enhancement opportunities toward the development of top performers.

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


CRANECRITIQUECORNERCRANECRITIQUECORNER

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 di�erent technical issue pertaining to crane opera-tions here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike, by Dave Barnhouse

The decision to address this important subject is the result of a discussion with an operator during a recent operator classroom quiz on close proximity to power line work and what to do if any part of the crane or load contacts a power line. The speci�c question was ‘Should the operator jump immediately after contacting power lines’. The answers received created a very interest-ing discussion as it was revealed that a few of the operators just recently completed a general crane safety class and they were instructed to jump as far as possible from the crane when power line contact is made. It is very critical that these operators are instructed NOT to jump unless they are intent on commit-ting suicide.

Power line contact is the number one killer of crane ground workers, not opera-tors. This is because the riggers or work-ers on the ground in direct contact with or in close proximity of the load or crane

This month’s topic:


can become part of the completed circuit to ground. The operator will be completely safe in the cab and should not panic but attempt to move the crane away from the power line if possible and instruct all ground workers to keep a safe distance from the crane. If the crane cannot be moved free from the power line there is a possibility of a �re and then and only then should the operator jump if he feels his life is in danger. In all prob-ability the circuit will be open before a �re starts and the operator can safely exit the crane once con�rmed the power is o�.

The new OSHA proposed rule, soon to become law, addresses required training when operating equipment near power lines and speci�cally states in 1926.1408 (g) (1) (i) (B) ‘The importance to the operator’s safety of remaining inside the cab except when there is an imminent danger of �re, explosion, or other emer-gency that necessitates leaving the cab’.

1) Everyone is familiar with rotation resistant rope. Since it resists rotation why isn’t it used on all applications? Why does it have a different safety design factor?

2) What is the difference between Lang Lay and Regular Lay wire rope? Can they be used in the same applications?

To reduce the number of fatalities result-ing from electrical contact with power lines, the new standard provides a variety of employer options for assembly, disassembly, travel, and operation of cranes near power lines—for example, de-energizing and ground-ing power lines; taking encroachment measures—for instance, a dedicated spotter or proximity alarm; or maintain-ing minimum clearance distances depending on the circumstances. Additional requirements exist depend-ing on the options chosen.

In conclusion: Instructors must assure they are clearly understood when training operators on procedures to follow in the event of electrical contact with a power line, DO NOT PANIC, DO NOT JUMP. Think of the birds sitting on a power line.

This month’s test quiz addresses wire rope issues:

Crane contact with power lines:Should the operator jump?

CRANECRITIQUECORNERCRANECRITIQUECORNER


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.

1) What is required on a rubber tired truck crane before a load is permitted to be lifted over the front quadrant?

Answer: A 360° or Over the Front Load Chart. Not all truck cranes are designed to pick over the front, therefore no need for a 360° chart nor a front outrigger. If so, it is important the operator knows what designates the front quadrant. It may be a pie-shaped quadrant determined by lines from the rotating pin through the front outriggers or it may be the entire front half radius of the crane swing. Crane load charts will specify the quad-rants applicable to the crane. Bottom line, no ‘over the front chart’, no lifts over the front.

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

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

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

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

Answers to last month’s test quiz: Capacity Load Charts

Structural / Stability Line

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

FEATURESTORYFEATURESTORY


According to members of the Guam Contractors Association Small Business Committee (GCA SBC), US Congress requires the Military to speci�cally "ear-mark" contracts to be awarded to small businesses. Because of this, opportu-nities are very real if small businesses are willing to go the distance.

The focus on small businesses applies to all federal contracts and not just "military contracts." The Federal Acquisition Regula-tions (FAR 19.201(a)) state that: "It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small

business concerns. Such concerns must also have the maximum practicable oppor-tunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with e�cient contract performance."

During the acquisition planning phase for any project, part of the market research conducted includes a determination if there are small businesses capable of performing the required work. If so, then the project is set aside for small businesses. If the project is beyond the capabilities of small businesses, then it is open to all interested contractors, large and small. In their proposal, large contractors are required to provide a subcontracting plan wherein they would detail the extent to which they will subcontract work to small

businesses.

Guam-based businesses have an advan-tage over those from o�-island primarily because "local" businesses are familiar with the business environment and how business is conducted on Guam. The pend-ing military buildup has caught the atten-tion of many o�-island contractors, large and small. Many are seeking to establish o�ces here or develop relationships with "local" points of contact with which they can share information and/or resources with. Many large businesses are conduct-ing outreach events in order to build their pool of small businesses they can possibly partner with or subcontract to on upcom-ing projects.

In summary, utilization of small businesses


is a factor in federal contracting because regulations require consideration of small businesses in the procurement process. Large businesses are always looking for quali�ed, competent small businesses to work with in order to be successful in a very competitive business environment.

The GCA SBC explained there is an overwhelming e�ort not only by the military to focus on small businesses, but large counterparts as well.

There is opportunity for military business for large and small conglomerates, and several federal agencies on Guam are available to o�er assistance.

The Guam Procurement Technical Assistance Center, Paci�c Islands Small Business Development Center, Guam Small

Business Administration O�ce and the Naval Facilities Engineering Command have representatives that speci�cally tasked to assisting the development of new or expansion of existing small businesses.

GCA SBC members added the US Military as the customer to large contractors that win some of the bids for large projects are required by certain percentages to subcontract work to small businesses. This

requirement allows for small businesses to be focused upon. The military also breaks down smaller tasks within projects to further opportunity and segment projects to provide opportunity for more small businesses

While these requirements that provide opportunity are well-known, it becomes the responsibility of local small businesses to make sure they are in a position to take full advantage when a prospect arises.

At the same time, GCA small business committee members explained, small business must make sure they do what is necessary to market their businesses to the large contractors.

In the last couple months, there have been several outreach sessions to provide the opportunity for small businesses to make themselves known for absolutely no cost.

GCA SBC members further added that

while the "military build-up" is soon to become a realization, small businesses must ensure planning and preparation are to some degree well de�ned. There are people, companies, federal and local agencies that exist for the speci�c purpose and mere existence for small business.

GCA SBC o�ers special thanks to Capt. Peter Lynch for pushing the committee to plan, prepare and execute a fairly large event that will take place at the Hyatt Regency Guam on July 7, 2010. The GCA sponsored DoD Outreach Forum is an event all local businesses should take advantage of.

GCA SBC also thanks Al Sampson from NAVFAC Marianas; Vera Topasna from PTAC; David Leddy, President of the Guam Chamber of Commerce; Bert Johnson of the Guam Trades Academy; Narci Dimaoala, member of the GCA Board of Directors; and James Martinez, President of the GCA. The Guam Contractors Associa-tion is proud to say its membership is more than 500 strong.

"Core Tech-AMEC-SKEC, LLC clearly recognizes that small businesses play an impor-tant role in both NAVFAC's mission and Guam's economic future. The inclusion of small businesses in these as part of the military contracts awarded not only makes good business sense, but it is the right thing to do. Therefore, it is of utmost impor-tance that we use the opportunity presented to us with the award of a Guam MACC contract to develop small businesses through subcontracting, mentoring, the provi-sion of meaningful work, and long-term strategic partnering. Once these contracts are completed, it is critical that large businesses like us have had a positive impact on the small business community as well as the workforce on Guam."Joseph FarrellCore Tech-AMEC-SKEC, LLCSmall Business Liaision Officer

"Our project teams rely heavily on the subcontractors and suppliers who make up our Small Business Plan. These companies are an integral component of our team and their contributions are essential for the success of the project. We look forward to watching them grow as a result of working with dck-ecc pacific guam, llc."Joseph P. "Gerry" Majkut,Chairman of the Management Board of the LLC


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

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

Firms should also identify current procure-ment opportunities by visiting the Federal

Business Opportunities (FEDBIZOPPS) site at www.fedbizopps.gov/. The site is the designated government wide point of entry and the exclusive o�cial source for public access to notices of federal actions over $25,000. Once you have identi�ed agencies/buying o�ces that purchase your product or service learn more about their organizations by visiting their procurement o�ces or websites.

Another important process in the federal marketplace is to understand Federal contracting procedures. Firms should familiarize themselves with the Federal Acquisition Regulations (FAR) www.acqnet.gov/far and the Defense Acquisition Regulation Supplement (DFARS) www.acq.osd.mil /dpap. You can also access other Federal Agency FAR supplements by visiting their respective websites.

Don’t forget to explore subcontracting opportunities. It is important that you explore your secondary market, Subcon-tracting Opportunities with Federal Prime Contractors. Visit www.sba.gov/aboutsba /sbaprograms/gc/contacts/gc_subcontracts_opportunities.html. The SBA/GC Subcon-tracting opportunities directory lists, by State, large business Federal prime contrac-tors along with the name and telephone number of each �rm’s Small Business Liaison O�cer (SBLO). The SBA’s SUB-Net web.sba.gov/subnet) is another valuable source for obtaining information on subcontracting opportunities.

Contracts are generally awarded through a competitive process or as a sole source. In a competitive award, a number of companies are allowed to compete for a project. A project may be competed on an unre-stricted basis; that is, both large and small businesses may participate in the process. A project may also be competed as a small business set-aside wherein only small businesses may compete within a small business category. The small business categories generally used are Small Business, 8(a) Business Development Program, Historically Under-utilized Business Zone Small Business (HUBZone SB), Service-Disabled Veteran-Owned Small Business (SDVOSB).

Federal Acquisition Regulations (FAR) allow a contracting officer to award a contract directly (sole source) to a small business under certain conditions. After conducting market research and certain require-ments can be met, a contracting officer may award a contract to an 8(a), HUBZone SB, or SDVOSB firm based on mutually agreeable terms and conditions. Sole awards may not exceed $3.5M for 8(a) and HUBZone SB firms or $3M for SDVOSB firms.

How Military Bids Are Awarded to Small Businesses

WHAT EVERY SMALL BUSINESS SHOULD KNOW ABOUT DOING BUSINESS WITH THE FEDERAL GOV-ERNMENTMost small businesses know that doing business with the Federal Government can be an arduous task. There are several resource partners on island who can assist businesses as they navigate the Federal procurement arena. The �rst step in enter-ing the federal marketplace is to obtain a

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

UOG Paci�c Small Business Develop-ment Center Network (PISBDCN) www.paci�csbdc.com/The mission of the PISBDCN is to support the growth and economic development of the US affiliated islands in the western paci�c region by providing free one-on-one con�dential counseling and high quality training in all areas of business management, including pre-venture feasibility, business plan development, marketing, record keeping, �nancial and human resource management, operations management, and access to capital (loans & investors), as well as specialized areas such as international trade. Services available to all existing and/or potential small business owners/managers that are US citizens, green card holders or citizens of the Freely Associated States. For more information contact SBDC at 735-2590. U.S. Small Business Administration (Guam Branch O�ce):www.sba.gov/localresources/district/gu/index.htmlOne important resource for small business is the U. S. Small Business Administration (SBA). Through the local Guam SBA, firms can visit the local o�ce which o�ers a wide variety of programs and assistance for small businesses considering the federal market-place. Firms should also visit www.sba.gov/businessop/index.html for more information.

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

benefits in the Federal marketplace. Call the Guam SBA office at 472-7419.

Guam Veteran Business Outreach Center: www.guamvboc.com The mission of the Guam Veterans' Business Outreach Center (VBOC) is to help create, develop, and retain veteran-owned small business enterprises. The VBOC provides entrepreneurial training through workshops and the internet, counseling, technical assistance, and resource utiliza-tion services to Veterans, Service-Disabled Veterans, Reservists, National Guard Mem-bers, and Active Duty business owners and start-up entrepreneurs. Contact the Guam VBOC office at 475-4900.

Lastly, each resource o�ce will encourage you to Market, Market, Market!!! These are the three key words to remember in order to be successful in the Federal Procurement Arena. After you have identi�ed your customers, researched their requirements, and familiarized yourself with the Govern-ments’ procurement regulations/processes, it is time to market your product or service. Present your capabilities directly to those buying o�ces that purchase your products or services. If the match is a good one you can provide them with a cost-e�ective, quality solution to their requirements and the contract could be yours. Good luck and remember you are not alone, seek out your local resources!

“According to the SBA, Small businesses make up 99% of all the employer firms in the US and employ just over half of the work force. It does make sense then to appeal to the 99% of the firms as independent military contractors due to their broad range of expertise. Also, responsible small business military contractors are not highly structured and are more flexible to accommodate the needs of its customers. These are also the firms that would need some help from federal government since statisti-cally; these firms have a much lesser likelihood of surviving for more than 5 years.”William Alicar, President - AlliedPacific Builders, Inc.


SMALLBUSINESSSMALLBUSINESS


GUAM CONTRACTORS ASSOCIATIONSMALL BUSINESS COMMITTEE ‐ 2010 Members

Joseph P. Roberto EAST Island Tinting LLC, Managing Member NORTH Island Tinting, Inc., President [email protected] Chair, GCA Small Business Committee

Nora DLR. SantosAdministration ManagerAllied Paci�c Builders, Inc.nora@alliedpaci�cbuilders.comVice‐Chair, GCA Small Business Committee

Narcisca DimaoalaPresidentAmazon Construction, [email protected] Member GCA Board of Directors

Armando T. AcostaVice‐PresidentOrion Construction Corporation (Guam)[email protected] Member GCA Board of Directors

Adam BaronBond ManagerCassidy's Associated Insurers, [email protected] Member GCA Board of Directors

Michael AdyPresidentM80 Systems [email protected]

Paris JM BlasGeneral ManagerGuam Manpower Resources [email protected]

Michael CassidyGeneral ManagerCassidy's Associated Insurers, [email protected]

Theresa CrisostomoO�ce ManagerLMS [email protected]

Grace C. DonaldsonSolutions: Human Resources Management & [email protected]

Louise Salas HarperSenior PartnerInternational Consolidated Contracting, LLC [email protected]

Boris HertsletProcurement CounselorGuam Procurement Technical Assistance Center (PTAC)[email protected]

Irene HicksPresidentAmerica's Best ElectricMart [email protected]

Jaylene Kent, Ph.D., C.I.T.President, OwnerIsla Paint and Roo�ng [email protected]

Kathleen D.K. LewisSmall Business Liaison O�cer ‐ Paci�c Regiondck paci�c guam, [email protected]

Albert C. SampsonSmall Business Advisor, NAVFAC MarianasNaval Facilities Engineering Command [email protected]

Karen M. StortsSmall Business Outreach Coordinatordck paci�c guam, [email protected] between GCA and Guam Chamberof Commerce Small Business Committees

Vera TopasnaProgram ManagerGuam Procurement Technical Assistance Center (PTAC)[email protected]

Ann Marie M. PelobelloAdministrative ManagerGuam Contractors' [email protected]

Nathan TaimangloMarketing ManagerASC Trust [email protected]

To advocate and encourage small business members to develop a stronger presence within GCA and to develop a stronger relationship with other GCA members in order to nurture business development and growth.

SMALLBUSINESSSMALLBUSINESS

The Guam Chamber of Commerce Small Business Focus & Development Committee in cooperation with Guam Small Business Development Center presents the 2010 Small Business Management Seminar Series:

TAX ISSUES FOR SMALL BUSINESSFriday, July 16, 8:30 a.m. – 10:30 a.m.Presented by Joe Arnett, Deloitte & Touche

CUSTOMER SERVICE & HANDLING COMPLAINTSFriday, August 20, 8:30 a.m. – 10:30 a.m.Presented by Toshie Ito, Motiva Training & Consulting

Registration InformationChamber Member Admission: $10.00/personNon-member Admission: $20.00

Tel: 472-6311/8001• Fax: 472-6202Email: [email protected]

Professional Development Courses:• Presentation Success: How to Plan, Prepare and Deliver Effective Presentation, July 6 – 12• Finance & Accounting for Non‐financial Managers, July 13 – 19• Communication Skills for Managers, July 22 – 28• Performance Management, July 26 – 30• Intro to Business Writing, July 28 & 30

Technology Courses:• Intro to Microsoft Word, July 13• Advanced Microsoft Powerpoint, July 14 & 15• Intermediate Microsoft Word, July 29 & 30

For more information, call 735-2600-2 or [email protected] or visit www.uog.edu/pip

UNIVERSITY OF GUAMProfessional & International Programs

The Winning Solution for ALL your Professional Needs


The Military Buildup is happening NOW!

Get your company registered to do business with the Federal Government. • Do you have a DUNS? • Are you in the CCR? • Did you register in the DSBS? • Have you updated your ORCA?

If you said NO to any of these, then you might miss a once in a lifetime opportunity. Don’t be left behind!

Register now with the Guam Procurement Technical Assistance Center (PTAC) and we will help you get started, so you can dobusiness with the Federal Government.Sign up for our First steps to Federal Contracting on July 13, 2010 from 9am‐12pm, Room 129 at the UOGSchool of Business and Public Administration Building. Please register at our websitehttp://guamptac.ecenterdirect.com/Conferences.action or contact Therese at 735‐2552.

The Guam SBDC is one of six SBDC’s serving the Micronesian region, collectively known as the Paci�c Islands Small Business Development Center Network (PISBDCN). We o�er free, con�dential, one-to-one counseling in all areas of business management, including pre-venture feasibility, business planning, marketing, and �nancial management. We also o�er small business training programs.

Upcoming training workshops are: • July 15, 2010: Leading the organization • July 16, 2010: How to write a business plan • July 23, 2010: How to market your business • July 30, 2010: Customer service for small business owners

For more information, please visit www.paci�csbdc.com (click on workshops / calendar) or call 735-2590.

No longer aWASTEof time

No longer aWASTEof time

PHOTOHIGHLIGHTSPHOTOHIGHLIGHTS

GCA June LuncheonNational Center for

Construction Educationand Research

Certificate Presentation


appear attractive get lots of attention and experience hypercompetition. For example, this past year has seen an excessive number of bidders with some bids going for below cost. That doesn’t sound like a great opportu-nity to me.

The recession notwithstanding, any time a contractor is considering entering a new niche, it needs to consider the facts. The rules of economics will apply whether in a recession or during a boom, except during a recession the competition will almost always be greater.

Therefore, the decision to enter a new niche must be based on sound economic reasons, not desperation. The contractor must find a niche not only where the economic condi-tions don’t work against it, but also where the contractor offers something that the other competitors don’t. If the contractor can’t differentiate itself, it will be forced to compete solely on price, and in a recession that is a formula for financial disaster.

Entering a new niche will often create additional costs, including the following:Additional marketing expense to establish business in the new niche

Additional investment in technology

Lower margins than originally anticipated because its entry in the market increased competition and lowered prices

Subcontractors and vendors might give you the lowest prices

Unanticipated problems can occur

The recession might suppress the volume of work in the niche

Michael Porter in his classic book Competitive Strategy identified five competitive forces: entry cost, bargaining power of suppliers, bargaining power of buyers, substitution and rivalry. Historically the entry costs into the construction industry have been fairly low, which has contributed to a significant increase in the number of contractors and the

The worst construction industry recession that anyone in the trade has experienced is causing many companies to seek new types of work. But is that the right decision for your company? There is no definitive answer to that question because every situation is different. For example, if 30 years ago you were building nuclear power plants, you would have had to change niches no matter what. But for most contractors, it’s not that simple.

Doug Woods, president and cofounder of DPR Construction, said in an interview, “I think it’s important to stick with what you are good at. I think oftentimes as contractors we all have big egos, and we think we can go do some-thing different that you haven’t done before. We may take chances during economic crisis or downturns, and that path has gotten a lot of us in trouble. Stick to what you are good at!”

In How the Mighty Fall, Jim Collins wrote the mentality that “we’re so great, we can do anything!” leads to disaster. While he was referring to how companies fall even during good times, this type of attitude is even worse during a recession because there is virtually no margin for error.

Obviously if the niche your company operates in totally dries up in your region of operation and it’s not feasible to expand to other regions or the other regions are no better off, then drastic action will be required. This situation offers three basic options. The first is to shut down before losing a bunch of money. Several companies did this in the late 1980s in New Orleans. The second option is to shrink to a size that will allow your company to survive the economic crisis. The first two choices are painful and not the solution most companies are seeking. The third choice is to shift into a new niche, which is what this report is about.

A common mistake in this situation is to chase what appears to be the industry’s most attrac-tive opportunity. The problem is that in a severe recession, there probably aren’t any truly great opportunities, and those that

Should You Venture into New Niches to

Should You Venture into New Niches to Survive the Recession?


corresponding decline of profit margins in all segments of the industry. However, moving to a new niche may still incur additional costs than found in your original niche. The bargaining power of the various subcontrac-tors and vendors might be less than normal since they are under pressure too, but if you are the new kid on the block, you might not have as much clout as other competitors. In a recession, owners certainly have tremendous power, and many are bashful about squeezing contractors.

Depending on what kind of work you perform, substitution may or may not be a major factor. If you’re a general contractor, obviously it doesn’t matter what the building is made of, but the owner does have the option of buying an existing building instead of constructing one. Subcontractors often face substitution issues. For example, a concrete subcontractor must not only compete against all the other concrete contractors, but he must deal with structural steel contractors. Finally the rivalry is the host of other contractors, so the idea is to select a niche where the competition is at least reasonable.

In the end the decision about whether you should move into a new niche, whether in a recession or not, depends on the sound economic principles. If you attempt to move into a niche that doesn’t fit your company’s strengths, then it will probably result in an economic disaster, whether it’s during a recession or not. In fact, it might be worse in a recession because the margin of error is less. Do your homework before jumping because the grass may not be greener in that other niche.

Survive the Recession

By: Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. He can be reached at 800-861-0874 or by email at [email protected]. For further information see his web page at www.TedGarrison.com.

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

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

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

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

If you are considering entering a new niche, especially during a recession, you must look for a niche where you can minimize the above forces. A few suggestions include the following:

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MEMBERBENEFITSMEMBERBENEFITS

Everyone knows that the best defense against heart attacks or strokes is practicing a healthy lifestyle: adopting healthy eating habits, exercising daily, and refraining from smoking or excessive drinking. Healthy habits also lower your risk for high blood pressure, high cholesterol, diabetes, and obesity, which are additional risk factors for heart disease.

Sadly, though, statistics show that heart attacks are the number one cause of death in this country, and stroke is the number three cause of death. So what do you do when you or someone you know is exhibit-ing symptoms of a heart attack or stroke, and how can you tell?

Although some heart attacks do occur suddenly and no one can doubt what’s happening, most heart attacks start slowly and are often mistaken for less serious conditions. Unlike heart attacks, stroke symptoms occur more suddenly.

It’s important to learn these signs, as heart attacks and strokes strike when least expected. Keep in mind, however, that even if you’re not sure it’s a heart attack or stroke, get seen immediately before it’s too late. Heart attacks and strokes are life threaten-ing emergencies in which every second counts. Calling 9-1-1 immediately is the best and fastest way to get the life-saving treatment needed, as EMT staff can begin treating you before you even reach the hospital. Immediate action also ensures that you receive the proper medications to reduce disability and prevent permanent damage. For more information, see you doctor or visit the American Heart Associa-tion Website at www.americanheart.org.

by: Rynette DeCastro, CDM, CFPP

WARNING SIGNS & WHAT TO DO


Here are the warning signs for a heart attack:

Discomfort in the center of the chest (pressure, squeezing) that lasts more than a few minutes, or that goes away and comes back

Discomfort in one or both arms, the back, neck, jaw, stomach, or other areas of the upper body

Shortness of breath (with or without chest discomfort)

Cold sweats, nausea, or lightheadedness

Sudden numbness or weakness in the face, arm, or leg, espe-cially on one side of the body

Sudden confusion, or trouble speaking or understanding

Sudden trouble seeing in one or both eyes

Sudden trouble walking, dizziness, loss of balance or coordi-nation

Sudden, severe headache with no known cause

Here are the warning signs for a stroke:

HEART ATTACKS & STROKES

7” ½ x 4” 7/8.

GCA Construction News Bulletin July 2010

Documents

Transcript of GCA Construction News Bulletin July 2010