Centennial Now Supporting Houston Airport System

Here's a new contract update I'm excited to share. Centennial has been awarded a new multi-year Job Order Contract (JOC) with the City of Houston and the Houston Airport System. It is now recognized as a preferred provider for the airports’ Operations & Maintenance JOC projects. Centennial will provide a full range of construction services for facilities repair, renovations, minor and security construction for all three of Houston’s major airports – George Bush Intercontinental Airport, William P. Hobby Airport and Ellington Field Airport.

Centennial also serves Harris County, NASA Johnson Space Center and the Harris County Department of Education under Job Order Contracts and IDIQ contracts. It also works with several airports, including DFW Airport, where it recently helped prepare the facility for Super Bowl traffic.

Super Bowl Fans Fly to Renovated DFW Airport Terminal

Just in time for Super Bowl traffic, Centennial has turned over a new Corporate Aviation facility to DFW (Dallas-Forth Worth) Airport.

(See a video of our work here.)

The timing of renovation of the facility was driven by planning for Super Bowl traffic. DFW is the closest major airport to Cowboy Stadium, but the previous General Aviation facility could only accommodate about 30 private aircraft.

Now, many Pittsburgh Steeler and Green Bay Packer fans will fly into a complete renovation of a commuter terminal on the northeast side of DFW. The new facility features concierge services, a conference room and business center, pilot’s lounge and quiet rooms, and multiple lounge areas for passengers. DFW officials expect up to 1000 private jets to descend on North Texas in February.

This is the most demanding project yet we have completed for DFW, but we are very proud of this showcase facility which represents an expanded business line for our customer.

The project construction schedule had to be compressed by nearly 50% to open on time. DFW utilized its Job Order Contract in part because it’s designed for quick response, to perform the work. Centennial has served DFW under the Job Order Contract since 2005, completing up to 20 time-critical renovation and remodel projects annually in the demanding airport environment. A ribbon-cutting was held December 9th for local dignitaries and aviation executives.

Personally, I was in awe of the amazing dedication of our Centennial team. They pulled an all-nighter before the ribbon-cutting (I arrived at 9 pm and they were in full swing) to make sure everything was perfect! Great work!

JOC and Green

Green is seemingly everywhere today.  For us in the facilities world, much of the focus seems to be on glamorous new LEED buildings.  But the fact is the greenest building is almost always the one you're already in.

That's because of a concept called embodied energy.  Simply put, our existing buildings took alot of energy to build--the manufacturing process for the windows and brick, the transporting of materials to the jobsite, the machinery run on site.  And it takes a great deal more energy to demolish that building down and rebuild a new one, no matter how green.  By some measures, there is a 60+ year payback on replacing the biggest energy hog with a LEED platinum building, when embodied energy is considered. 

This isn't to say that we should stop building new LEED buildings.  We will continue to need new buildings for new purposes, and the move to LEED and other certifications is an important first step in the awareness of how our buildings impact the environment.  But an AIA study reveals that 75% of existing buildings will required major renovation by 2030, and how we go about that work, and the many incremental upgrades that occur in existing buildings, will have a far greater impact on our environment and our pocketbook than the sexy new buildings that make the magazine covers.

Of course most facility managers are more concerned with current budget issues than with embodied energy that was paid for long ago, and shrinking capital budgets are requiring us to reconsider the financial viability of new construction and focus on maintaining our existing buildings and upgrading them for greater energy efficiency and sustainability wherever possible. 

Job Order Contracting has an important role to play in the greening of our existing buiding stock.  As a collaborative, performance-based delivery method focused on remodel, renovation and repair, JOC can help building owners identify and implement green and sustainability strategies.  Studies have proven that collaborative delivery methods that involve the contractor at the outset are more successful in achieving sustainabiltiy goals; the focus of these studies has been CM At-Risk and Deisgn-Build, but Job Order Contracting brings the same approach to the table for retrofits and upgrades.

JOC's focus on cyclical upgrades means that building owners can integrate green materials and systems as they have maintenance funding available, and over time they can achieve increasing sustainability, energy efficiency, and occupancy comfort without a single major capital outlay.  The joint scoping and design-to-budget capabitlies of JOC mean that an owner can determine the level of green investment, after considering a menu of options.  By incorporating energy audits and payback analysis into the JOC proposal process, a contractor can empower the owner to make wise decisions based on a balance of lifecycle costing and more altruistic sustainability goals.

An exciting development in the JOC world is the upcoming release of a Green Building Cost Data book from RS Means, which will allow JOC contractors to accurately price some of the more cutting-edge green building technologies like solar installations and green roofs.  This book is being rolled out at Greenbuild in Chicago later this month, and we can't wait to get our hands on it!

Centennial Presents Free Job Order Contracting Webinar

If you're curious about Job Order Contracting (JOC) or want to gain an informative perspective, Centennial presents an educational solution.  Centennial, along with Angela Prather with the National Intergovernmental Purchasing Alliance, will provide a free JOC Talk Webinar, “Extreme Procurement Makeover: Small Construction Edition” on October 27.

The free webinar covers the basics of Job Order Contracting and the JOC Request for Proposal (RFP) process and will last an hour and a half, beginning at 1pm EDT.

Prather, the webinar's presenter, has more than 18 years experience in public procurement at the Federal, State, and Higher Education levels.  She is a US Navy Veteran who specialized in Supply Chain Management with direct responsibility for implementation of JOC projects at the local base level and has developed numerous RFPs to establish JOC Programs.

To register, please visit https://www2.gotomeeting.com/register/570045082.

Owners, Who is Reviewing Your Construction Estimates?

A recent webinar on Job Order Contracting by RS Means (view the archive here: http://bit.ly/czfWcl) highlighted for me the importance of proposal review in the JOC process, and I wanted to share the guidance of a couple of the panelists, and share some of my own thoughts.

Allen Henderson, former Facility Manager for Texas State University, emphasized the “Trust but Verify” approach, which Centennial absolutely champions. We want our clients to understand the line item proposals and have confidence in the pricing structure.

When I was first hired by Centennial, I was working on a team with a new operational manager who insisted that we not provide a detailed line items proposal to clients, because he was afraid they would pick it apart. He and I did some rounds on this one, because I believed it was critical to validating our pricing and building trust with the client. If you have questions about pricing, I want us to deal with those upfront. I don’t want you to have buyer’s remorse. Needless to say, this manager didn’t last too long with Centennial, because he wasn’t doing it the Centennial way. Any good Job Order Contractor should be willing to sit down and review a line item proposal with the customer, explaining the logic behind the selection of line items and sharing takeoff calculations. If a JOC contractor won’t, that’s a red flag.

OK, so we all agree that doing a proposal review is important, but who is going to do it for the owner? Allen had some good suggestions on this one. In-house tradesmen who are familiar with the details of work can be a good option. Purchasing personnel, who often administer compliance efforts for Job Order Contracts, generally lack the construction know-how to review line items for accuracy and appropriateness. Whoever is reviewing the proposals should have training in line item estimating and the specific unit price book used to build the proposal.

Some of our more sophisticated owners actually use the same JOC software to build their own estimate at the same time the JOC contractor is building theirs, and then compare the two. Though not every client will have the capability or people resources to build an independent estimate, a review of two line item estimates can add tremendous value by revealing differences in how owner and contractor are approaching the job that can enlighten both parties and ensure that final scope of work is fully aligned.

John Murray of the State of Missouri pointed out that proposal review should cut both ways, with the goal of both parties being the most accurate estimate to produce the right final lump sum price before proceeding. This means a contractor should be willing to review and explain line items that the owner may have questions about, but the owner shouldn’t just be looking to eliminate or cut back line items, but to ensure that all line items are captured. John says they have had instances where their internal estimate review staff has caught line items that the contractor missed, and requested that they be added to ensure the full scope was captured. I don’t know if there are many owners that would actually request a price add like that, but it demonstrates that the State of Missouri team is working in true partnership with its JOC contractor.

If you don’t have the expertise or man hours in house to review JOC proposals, you have options. Experienced consultants can perform this service for you, either as part of a turnkey JOC program like The Gordian Group’s, or from an independent consultant who works with an off-the-shelf unit price book like RS Means and software you have selected.

And while most of the above pertains to Job Order Contracting, I think the principles are the same for any contracting methodology. If you don’t have some level of transparency and communication in you pricing discussions, and faith that you are receiving value for the dollar, you probably have the wrong contractor, or the wrong delivery method, or both.

Centennial's a Green Business Award Finalist!

A couple of months ago, we showed you the world’s first train bridges made from recycled structural composite (RSC) built for the US Army Transportation School at Ft. Eustis. Now, we’re honored that the Washington Business Journal has named Centennial as a finalist in its Green Business Awards- Green Invention category.

Centennial worked with RSC manufacturer, Axion International as well as Parsons Brinckerhoff, Innovative Green Solutions and English Construction Company to complete the project. RSC, which is comprised entirely of post-consumer recycled plastic such as milk jugs, detergent bottles, disposable coffee cups and industrial plastics (car bumpers and computer casings) was invented by scientists at Rutgers University in New Jersey who melted the different types of plastic in a precise formula creating a material stronger and more durable than any recycled plastic.

The material proved to be very similar to working with conventional materials such as wood or steel. It does not leach any toxins into the environment which will also protect the local wildlife and people who come in contact with the bridges. Using RSC on these two bridges kept 334,000 pounds of material out of landfills and saved more than 50,000 gallons of gasoline and 496 metric tons of greenhouse gases.

The Washington Business Journal will announce the category winners at a breakfast honoring the finalists on September 24th.

Is Construction Like Toilet Paper?

I sat in an interesting conference presentation earlier this summer. The entire premise was to compare the purchase of Job Order Contracting to the purchase of toilet paper—complete with props of toilet paper rolls, a picture of house that had been teepeed (that was the illustration of getting ripped off in your construction purchase), etc. Now I have to begin by saying that the presentation actually had some really informative content and it was presented by someone who has a lot of experience with JOC and works for a company that I respect.

But I took huge exception to the comparison of Job Order Contracting to toilet paper. Maybe it is because I have often used the same example to explain why purchasing JOC, or any complex construction service, is not the same as purchasing a commodity (As in “It’s not like buying toilet paper!”) For me, it pointed up an important philosophical debate when it comes to JOC, or any alternative project delivery method, which I thought was worth discussion.

Is construction a commodity? In some provocative dialogue after this presentation, it was argued that a specified doorknob is a specified doorknob—it is a commodity just like toilet paper. The definition of a commodity is a product that is sold by all suppliers without differentiation. The low-bid approach follows that definition. Materials and even construction means and methods and tolerances are prescribed, and the lowest-priced contractor is selected based on the assumption that there is no differentiation between contractors—they are interchangeable and it doesn’t matter who is installing your doorknob, so you might as well get it for the cheapest price.

Except it really does matter a lot who is installing your doorknob. It matters in the quality of installation. It matters in whether the right doorknob was even selected in the first place. It matters whether the installer is accommodating your ongoing operations and working with your end user when they install that doorknob. And it matters whether you have a contractor who will come take care of any warranty concerns on that doorknob without hassle. Now amplify that into a Bio-Safety Level 3 lab, or a time-sensitive school renovation, or any complex project, and the contractor matters even more.

AGC’s Legislative Platforms asserts that construction should not be treated as a commodity. “Construction must be addressed as a service because of the site-specific and design specific distinctions for each construction project, unlike manufacturing which is a repetitive, rarely changing process.” JOC and other alternative delivery methods raise the stakes beyond just the site specific distinctions. They recognize that the contractor has an important role to play in planning and managing the process, and that it takes creative thinking to bring the best, unique solution to each and every project. (I actually think this is one of the things I like best about construction—each and every project is different and demands a different solution, calling for continuous growth from construction professionals.)

So I think owners should carefully consider what they believe about construction before plunging into JOC. If you believe it is a commodity, then why do anything other than low-bid? But I think that most owners who are considering JOC and alternative delivery methods are looking for a better way because they recognize that construction is not a commodity, but a professional service.

Hear Centennial CEO in Free Webinar

Centennial's president, Mark Bailey will speak on the topic of Job Order Contracting (JOC) during a new webinar presented by RS Means. Centennial has been starting up and operating successful JOC programs for public entities, both federal and state funded organizations for over 20 years. In addition, Centennial has experience completing projects under American Recovery and Reinvestment Act (ARRA) funds.

The webinar, “Job Order Contracting, the Stimulus Ready Delivery Method” will be presented August 19th, at 2 pm ET.

In addition to Mark, John Murray, State of Missouri Division of Facilities Management and Allen Henderson, Consultant, Former Facility Manager Texas State University will speak. Robert (Bob) Gair, Principal, RSMeans Business Solutions will moderate the discussion.

The presentation will address what partnering actions owners can take to promote the successful use of JOC at their facilities and will provide an overview of typical JOC contractor- submitted project proposal content as well as basic tips for the owner regarding JOC proposal review. Mark will share insights from the JOC Contractor’s point of view to help in the successful start up and ongoing relationship development.

The webinar is free. To attend, please visit Reed Construction Data’s website.

Respect, Collaboration and JOC

In the recent July/August edition of The Military Engineer I had the opportunity to write an article on project delivery method, Job Order Contracting. The article is titled Respect, Collaboration and JOC.

At the core of this article is the ability to share on the benefits of JOC that help military facilities achieve their goals, including funding local economies, supporting sustainable projects and working with less.

Podcast: Creating Sustainable Bridges at Fort Eustis

Learn more about recycled structural composite and how Centennial built the first train bridges using this material at Fort Eustis.

The Green Bridge to Somewhere

The interest is amazing. Two train bridges made from 100% recycled milk jugs, detergent jugs and tires. They are the first of their kind in the world. It started with the interest by our client at Fort Eustis in the Commonwealth of Virginia wanting to do something green and meaningful. It was accomplished thanks to the ability of Job Order Contracting to allow collaboration and innovation between owners and contractors and the fact that the base has had a long term successful JOC program in place and a team at Centennial aligned with their goals.

Recently ENR ran a story on the bridges at Ft. Eustis. It was exciting to see this project come together and take shape. It is a positive testament to job order contracting, sustainability and creativity.

Yesterday, at media day for the bridges, spokespeople from Centennial, Axion, who manufactures the material and Ft. Eustis described the project and its benefit to the environment to local TV and print media. They noted that the material is just as durable as traditional materials, has the same life expectancy, without the maintanence worries. It also keeps these materials out of landfills.

Phil Reed, Fort Eustis Directorate of Public Works Engineering Division chief, said "Centennial, our go to team, allowed us to use a design-build fast-track process to get into the hands of the new technology and came up with this for a better alternative for the long term and allowed us to complete the process in half the time that we would have using conventional construction."

There is a strong tie in public funded construction and job order contracting for sustainably. We wrote a white paper, Shades Of Green on this topic and it sets the ground work for why JOC and sustainability go hand in hand in a public facilities environment.

RSC materials being delivered to the construction location.

Train bridge was built to sustain a 130-ton load.

Members of Centennial's Ft. Eustis team pose for picture on completed bridge.

Texas Time

I recently spent a week traveling all over the great state of Texas. The goal was to get a sense of how the different markets are doing in the state and also to start building a plan for the legislative activities for 2011. It was a great trip, seeing a lot of old friends, visiting the Centennial teams and regional industry leaders, meeting with clients and getting a sense of the state’s activity level. I spent time with our lobbyists John and Marta Greytok of Texas Government Solutions. I was also able to stop by to say hi to Laura Fowler and as always gain a sense of energy and positive movement forward in the state.

A few thoughts jump out after this whirlwind tour:

1. Texas was the trailing indicator state on the construction industry economic issues and it is the leading indicator state on the recovery. Almost as if the economic issues that started for the country in 2008 are just a speed bump in Texas.

2. Texas is already seeing a build up of new design and engineering project requests and solicitation development (the pre-curser to construction work).

3. The mood across the state was positive and very focused on growing the economy. Everyone could see the need, the demand and the interest in public construction. Doesn’t mean there aren’t tough areas and situations, but the real sense was positive and confident.

4. The 2011 legislative calendars are being built right now and that there is going to be an effort to get legislation on the docket again to try and clean up the construction procurement laws, this includes design-build, CM at risk and job order contracting.

5. I am going to really try and help the local Texas JOC industry (owners, trade associations, educators, coops, contractors, subcontractors, consultants, etc.) work together to make sure job order contracting is not singled out and/or attacked. We need to find a way to work together to bring the right type of bill to the floor. All indicators are positive for this effort at this time.

6. Sense of growth and optimism.

One site I like to reference and track in Texas is ARRA Texas Eye On The Dollars .

Recycled Structural Composite Bridges Media Day

Construction is almost finished on the first ever recycled structural composite railroad bridges! Centennial built these “plastic” bridges at Fort Eustis, VA for the U.S. Army. On May 27th, we’re holding a media day at the base to unveil the bridges. If you’re a member of the media interested in attending, please email me at dcarrithers@cce-inc.com.

Stay tuned for more photos from the event!

Growth of the JOC Industry

On February 17th, the Center for Job Order Contracting Excellence (CJE) held its annual board meeting to hold elections of the new officers. This is both an exciting and challenging time for the organization and for me personally. In 2006, we began the journey of transition from an organization that was placed under ACE (the Alliance for Construction Excellence) which was part of Arizona State University to a stand alone national organization. Centennial was one of the key founding supporting organizations of CJE nearly 15 years ago.

This transition included the set up of the bylaws, the incorporation, the filing with the IRS for a 501(c) 6, a new Web site, new board, set up of an office in Washington DC, transfer of the old organization intellectual property and the raising of almost $100,000 from past donations and new dollars. This was a fast paced change with the goal of evolving the organization and growing its long term viability.

This recent election is a milestone, resulting in the first female Industry Chair . My goal was to help lay the ground work and give the organization the best chance to thrive. The addition of regional chapters, new blood on the board, a growing membership, and an owner lined up to be the Industry Chair in 2011 are all good things for CJE and the industry!

This is the first time since re-creation I am not on the board and the success of CJE is tied to the new leadership. I feel proud of where we are today and hopeful for where we are headed as an organization.

Federal Facilities' Green Efforts Require Collaboration

On February 22nd-24th, I attended a Military Construction Summit in Vienna, VA and there were a wide range of topics covered. This well-attended summit was focused on US Military Construction efforts for all branches of the Department of Defense. One session was headed up by Melissa Gallagher-Rogers Director, Government Sector of the US Green Building Council and she went over a pretty standard LEED and USGBC presentation. The questions by the audience were focused around the standard “how do you justify costs to do green?” or “what are the costs to get a building LEED certified”? As she was talking I realized that this idea of collaboration between owner, designer, constructor, end user, subcontractors, etc. to come up with the most green and sustainable solution will not really work with a restrictive and divided contracting method like design-bid-build.

So I raised my hand and asked Melissa, “Based on the fact that sustainable building approaches – both for new and existing buildings – require tons of communications, collaboration, sharing and flexibility, what is the USGBC preferred method of contracting on federal and public funded facilities?” After a few minutes of back and forth clarification questions the response was “we have not really looked at that point, and I can’t answer it.” So I raised the fact that construction contracting methods of design-build on new buildings and Job Order Contracting on existing buildings really favors the tenets, approaches and processes of LEED.

I challenged the group to understand that for the end product to be the best, greenest, and most sustainable solution there needs to be open, two-way collaboration. Make sure your contracting method allows for this. To apply pre-World War II contracting methods to 21st Century demands might not make sense. In the end, green efforts require relationships that are structured as open, win-win-win focused.