Tag Archives: General Dynamics C4 Systems

Panel will discuss Cybersecurity at GPEC

Members of Arizona’s business community are invited to the February meeting of the Arizona Aerospace & Defense Forum for a discussion centered on cyber-security including risks, trends and what businesses need to keep their businesses safe and secure online.

This event will be hosted at the offices of Greater Phoenix Economic Council (GPEC) located at 2 N. Central Ave Suite 2500 Phoenix, Arizona 85004. The event is scheduled for Tuesday, Feb.11 from 8 a.m. to 9:30 a.m. There will be networking from 7:30 a.m. to 8 a.m.

The forum will be led by panelists Bill Ross, vice president of information security solutions at General Dynamics C4 Systems; Ty Lindteigen, chief technology officer at SAIFE; Raz Yalov, chief technology officer of 41Parameters and Nadya Bliss, director of strategic project development at Arizona State University.

Greenberg Traurig, along with law firm Snell & Wilmer, were instrumental in the formation of the Arizona Chapter of the Aerospace and Defense Forum. Each month, the A&D Forum alternates from meetings in Phoenix and Tucson.

Registration required by going here.

Ivan Rosenberg, president and CEO of Frontier Associates is the executive director and co-founder of A&D Forum. Stephane Frijia, director, research and strategy at the Greater Phoenix Economic Council serves as Chapter Chair of the Arizona A&D Forum.

Currently, there are more than 700 international leaders involved in the A&D Forum. Other A&D Chapters are located in Los Angeles, San Diego and Orange County, Calif. In Arizona, there are more than 2,000 companies in the aerospace and defense industry providing more than 43,000 jobs and significant positive economic impact.

Aerospace and defense industry - AZ Business Magazine March/April 2012

Aerospace & Defense Forum launches Arizona Chapter

The Aerospace & Defense Forum, a global aerospace and defense organization promoting collaboration and commerce among industry leaders, has established an Arizona chapter which will launch in October.

An impressive line-up of Arizona business leaders will lead the Arizona Chapter Steering Committee and host monthly meetings and networking events. The Phoenix meetings will be hosted by the international law firm Greenberg Traurig and the Tucson meetings will be hosted by law firm Snell & Wilmer. Monthly chapter meetings will take place the second Tuesday of each month, alternating between Phoenix and Tucson, and include networking opportunities, presentations by aerospace and defense industry experts and small group discussions and at least once a year, a tour of an A&D facility not generally available to the public.

Ivan Rosenberg, President and CEO of Frontier Associates is the Executive Director and Co-Founder of A&D Forum. Stephane Frijia, Director, Research and Strategy at the Greater Phoenix Economic Council will serve as Chapter Chair of the Arizona A&D Forum.

In addition, those serving on the founding Arizona A&D Steering Committee include:
* Jerry Fellows, Shareholder, Greenberg Traurig, Phoenix
* Brett Johnson, Partner, Snell & Wilmer, Phoenix
* Richard Katz, Counsel, Snell & Wilmer, Tucson
* Bruce Macdonough, Co-Managing Shareholder, Greenberg Traurig, Phoenix
* Peter Vedder, Director, Civil Space and Space Services, General Dynamics C4 Systems

“We’re thrilled to bring this proven collaborative format to the Arizona A&D community,” said Rosenberg. “A&D companies have discovered that A&D Forum membership and group involvement provides an unmatched source of new ideas for improving both their top and bottom lines, as well as a forum for learning best practices and solving problems.”

The inaugural meeting of the Arizona chapter will take place Oct. 8, with a keynote presentation by Lt. Gen. Gene Tattini, Deputy Director, NASA Jet Propulsion Laboratory (JPL), entitled,  “Dare Mighty Things: Turning Around Two A&D Organizations.” Tattini is also former Commander of the United States Air Force Space and Missile System Center.

Currently, there are more than 700 international leaders involved in the A&D Forum. Other A&D Chapters are located in Los Angeles, San Diego and Orange County, Calif. In Arizona, there are more than 2,000 companies in the aerospace and defense industry providing more than 43,000 jobs and significant positive economic impact.

“The Greater Phoenix Economic Council reported more than $13 billion in defense contracts with Arizona ties in 2012 alone. These high-paying jobs make a significant economic impact in our state and we are proud to support and encourage industry growth,” said Greenberg Traurig Co-Managing Shareholder Bruce Macdonough. “We also look forward to raising the visibility of Arizona a top-tier destination for the best aerospace and defense companies to grow and prosper.”

Each monthly meeting is free of charge, but registration is required. To RSVP for the Oct. 8 meeting, visit: https://adfazoct13.eventbrite.com.

Aerospace and defense industry - AZ Business Magazine March/April 2012

Aerospace & Defense Forum launches Arizona Chapter

The Aerospace & Defense Forum, a global aerospace and defense organization promoting collaboration and commerce among industry leaders, has established an Arizona chapter which will launch in October.

An impressive line-up of Arizona business leaders will lead the Arizona Chapter Steering Committee and host monthly meetings and networking events. The Phoenix meetings will be hosted by the international law firm Greenberg Traurig and the Tucson meetings will be hosted by law firm Snell & Wilmer. Monthly chapter meetings will take place the second Tuesday of each month, alternating between Phoenix and Tucson, and include networking opportunities, presentations by aerospace and defense industry experts and small group discussions and at least once a year, a tour of an A&D facility not generally available to the public.

Ivan Rosenberg, President and CEO of Frontier Associates is the Executive Director and Co-Founder of A&D Forum. Stephane Frijia, Director, Research and Strategy at the Greater Phoenix Economic Council will serve as Chapter Chair of the Arizona A&D Forum.

In addition, those serving on the founding Arizona A&D Steering Committee include:
* Jerry Fellows, Shareholder, Greenberg Traurig, Phoenix
* Brett Johnson, Partner, Snell & Wilmer, Phoenix
* Richard Katz, Counsel, Snell & Wilmer, Tucson
* Bruce Macdonough, Co-Managing Shareholder, Greenberg Traurig, Phoenix
* Peter Vedder, Director, Civil Space and Space Services, General Dynamics C4 Systems

“We’re thrilled to bring this proven collaborative format to the Arizona A&D community,” said Rosenberg. “A&D companies have discovered that A&D Forum membership and group involvement provides an unmatched source of new ideas for improving both their top and bottom lines, as well as a forum for learning best practices and solving problems.”

The inaugural meeting of the Arizona chapter will take place Oct. 8, with a keynote presentation by Lt. Gen. Gene Tattini, Deputy Director, NASA Jet Propulsion Laboratory (JPL), entitled,  “Dare Mighty Things: Turning Around Two A&D Organizations.” Tattini is also former Commander of the United States Air Force Space and Missile System Center.

Currently, there are more than 700 international leaders involved in the A&D Forum. Other A&D Chapters are located in Los Angeles, San Diego and Orange County, Calif. In Arizona, there are more than 2,000 companies in the aerospace and defense industry providing more than 43,000 jobs and significant positive economic impact.

“The Greater Phoenix Economic Council reported more than $13 billion in defense contracts with Arizona ties in 2012 alone. These high-paying jobs make a significant economic impact in our state and we are proud to support and encourage industry growth,” said Greenberg Traurig Co-Managing Shareholder Bruce Macdonough. “We also look forward to raising the visibility of Arizona a top-tier destination for the best aerospace and defense companies to grow and prosper.”

Each monthly meeting is free of charge, but registration is required. To RSVP for the Oct. 8 meeting, visit: https://adfazoct13.eventbrite.com.

Jessica

BOYS & GIRLS CLUBS OF GREATER SCOTTSDALE ANNOUNCES 2013 YOUTH OF THE YEAR

Arcadia High School junior Jessica DuBois has been selected as the 2013 Boys & Girls Clubs of Greater Scottsdale Youth of the Year.

DuBois, 16, is a member of the Hartley & Ruth Baker Branch, which is located in south Scottsdale. She has been involved in a variety of educational and community service programs since joining the Club more than five years ago and is an active community volunteer, logging more than 90 hours of service in recent months.

Jessica - 2013 YOYAt the Club, she is a dedicated member of several programs, including:

  • Smart Girls, which is a health, fitness, prevention/education and self-esteem program for girls ages eight to 17 designed to encourage healthy attitudes and lifestyles that will enable early adolescent girls to develop to their full potential. She also serves as a mentor to younger girls entering the program.
  • What’s Hip, which is an eight-week program for high school girls covering issues such as relationships, drug and alcohol use, self-esteem, and fashion, among others. The program culminates with a fashion show at the Rose Lane Branch.
  • eCrew, which is a program developed in partnership with Arizona State University, C4 Systems, where General Dynamics’ engineers mentor Club members and provide them with the tools and knowledge needed to potentially become engineers and business leaders.

The Youth of the Year program has been an integral part of the Boys & Girls Clubs of America for more than 60 years and is the highest honor given to members of the organization. This annual program begins in January when each of the Scottsdale Clubs’ nine area branches, which are located in Scottsdale, Fountain Hills, Salt River Pima-Maricopa and Hualapai Indian Communities and other Northeast Valley neighborhoods, crown their own Youth of the Year honoree. Each of these members are chosen based on their dedication to the Club, community and family, academic performance, moral character, life goals, leadership, poise and public speaking ability.

From there, each of the nine branch Youths of the Year undergo a two-month judging process, which culminates with the kids being honored and then giving a speech during the Celebrate Youth Gala & Auction, the non-profits biggest fundraising event of the year.

Presented by Tiffany & Bosco and Great American Title, the annual gala, which took place on March 9 at Talking Stick Resort and Casino Arizona, included a dinner, silent and live auctions, paddle raiser, and live entertainment by Club members.

Katie 1During the gala, DuBois shared her dream of becoming a pediatric nurse one day – a dream much closer thanks to her Youth of the Year prizes, which included a $5,000 scholarship from General Dynamics C4 Systems, a laptop from NPCE Technology Solutions and a Young Leadership Training scholarship from U & Improved.

Her eight fellow branch Youths of the Year were also rewarded during the gala, each receiving a $1,000 scholarship from General Dynamics C4 Systems and Google tablets from NPCE Technology Solutions. They included: Ariana Alvez, Samantha Elder, Amari Gonzales, Dani Haboush, Alexa Jenouri, Marissa Masters, Kristofferson Walker and Lane Yazzie.

2013 Gala Title sponsors were Tiffany & Bosco and Great American Title, with other major sponsors including General Dynamics C4 Systems, Republic Services, Go Daddy, Talking Stick Resort and Casino Arizona.

This event caps off a whirlwind 12 months for the Boys & Girls Clubs of Greater Scottsdale, which also included:

  • The Clubs’ Lehi Branch, which serves youth from the Salt River Pima-Maricopa Indian Community, finishing construction and hosting the grand opening of its new $50,000 Teen Center, which includes a performance stage, upgraded fitness equipment, a computer lab, décor improvements and a painted mural representing the Native American culture.
  • The Club’s Red Mountain Branch, which also serves youth from the Salt River Pima-Maricopa Indian Community, being honored with a National Award of Merit for Program Excellence in Health & Life Skills from Boys & Girls Clubs of America.
  • The Club’s Vestar Branch, which serves youth from the Desert Ridge and North Phoenix areas, being named the top branch in the nation by the Boys & Girls Clubs of America.
Manufacturing Companies

Arizona’s Largest Manufacturing Companies

Arizona’s 10 largest public and privately held manufacturing companies, ranked by the number of employees based on full-time equivalents of 40 hours per week and based on industry research.

ŒRaytheon Co.
Arizona employees in 2012: About 12,000
Employment change since 2011: Added about 500 jobs
2010 revenue: $25.2 billion
Principal: Taylor W. Lawrence, president
Company’s focus: Missile manufacturing
Year founded: 1922
Headquarters: Waltham, Mass.
Phone: (520) 694-7737
Website: raytheon.com

Intel Corp.
Arizona employees in 2012: About 11,000
Employment change since 2011: Added about 1,300 jobs
2010 revenue: $43.6 billion
Principal: Paul S. Otellini, president and CEO
Company’s focus: Semiconductor manufacturing
Year founded: 1968
Headquarters: Santa Clara, Calif.
Phone: (480) 554-8080
Website: intel.com

ŽHoneywell International Inc.
Arizona employees in 2012: 10,100
Employment change since 2011: Added about 384 jobs
2010 revenue: $33.4 billion
Principal: Tim Mahoney, president and CEO, aerospace
Company’s focus: Aerospace manufacturing
Year founded: 1952
Headquarters: Morristown, N.J.
Phone: (602) 231-1000
Website: honeywell.com

Freeport-McMoRan Copper & Gold Inc.
Arizona employees in 2012: About 7,600
Employment change since 2010: Added about 600 jobs
2010 revenue: $19 billion
Principal: Richard Adkerson, CEO
Company’s focus: Mining
Year founded: 1834
Headquarters: Phoenix
Phone: (602) 366-7323
Website: fcx.com

General Dynamics C4 Systems
Arizona employees in 2012: 5,402
Employment change since 2011: Added about 376 jobs
2010 revenue: $32.5 billion
Principal: Chris Marzilli, president
Company’s focus: Defense, communications
Year founded: 1952
Headquarters: Falls Church, Va.
Phone: (480) 441-3033
Website: generaldynamics.com

‘Boeing Co.
Arizona employees in 2012: 4,878
Employment change since 2011: Added about 78 jobs
2010 revenue: $64.3 billion
Principal: Harry Stonecither, CEO
Company’s focus: Aircraft manufacturing
Year founded: 1916
Headquarters: Chicago
Phone: (480) 891-3000
Website: boeing.com

’Freescale Semiconductor
Arizona employees in 2012: 3,000
Employment change since 2011: Stayed about even
2010 revenue: $4.5 billion
Principal: Rich Beyer, chairman and CEO
Company’s focus: Microchip manufacturing
Year founded: 1953
Headquarters: Austin
Phone: (512) 895-2000
Website: freescale.com

“Shamrock Foods Co.
Arizona employees in 2012: 1,828
Employment change since 2010: Added about 47 jobs
2010 revenue: $1.650 billion
Principal: Norman McClelland, CEO
Company’s focus: Processor of dairy products
Year founded: 1922
Headquarters: Phoenix
Phone: (602) 477-6400
Website: shamrockfoods.com

”Microchip Technology Inc.
Arizona employees in 2012: About 1,539
Employment change since 2011: Lost about 21 jobs
2010 revenue: $1.487 billion
Principal: Steve Sanghi, CEO
Company’s focus: Microcontroller, memory and analog semiconductors manufacturing
Year founded: 1987
Headquarters: Chandler
Phone: (480) 792-7200
Website: microchip.com

•Orbital Sciences Corp.
Arizona employees in 2012: 1,378
Employment change since 2011: Lost about 58 jobs
2010 revenue: $1.294 billion
Principal: Christopher Long, vice president and GM Gilbert operations
Company’s focus: Aerospace manufacturing
Year founded: 1963
Headquarters: Dulles, Va.
Phone: (480) 899-6000
Website: orbital.com

Youth of the Year: Alyssa Coughenour

Boys & Girls Clubs Of Greater Scottsdale Announces 2012 Youth Of The Year

The Boys & Girls Clubs of Greater Scottsdale has selected Scottsdale resident and Pinnacle High School senior Alyssa Coughenour as the 2012 Youth of the Year. She was selected from nine finalists, one representing each branch in the nonprofit organization.

Coughenour was honored at the Youth of the Year Celebrate Youth Gala & Auction at Talking Stick Resort, which was attended by more than 600 members of the community and raised more than $235,000 for Scottsdale Clubs.

The following is an excerpt from her award-winning speech, where she reflected on her experiences as a Club member:

Alyssa Coughenour“My facial muscles tense, my forehead wrinkled, I fixated my eyes on the inside of my eyelids. Moments earlier, they had been forced shut by an intruding red blindfold and the hands of someone whom I trusted. She twisted the cloth behind my head to ensure my blindness.

It was two years ago at the PROUD Lock In, a Boys and Girls Club event, and it was the single experience that embodies what I’ve learned about respect.

At a young age, I learned how to respect others. However, it was the PROUD lock-in that taught me why respect was so important.

When I was blinded at the event, it only took me a few minutes to realize how dependent I was on other people. Being blind opened my eyes to circumstances other people have to live with, and I experienced first-hand what it would be like if I was not as fortunate as I am.

To this day, you’ll find the framed PRIDE Award, an award I received at the PROUD Lock-in, on top of the antique rollover desk in my room. It reminds me of the most important lesson I’ve learned in the past 18 years: respect. People who respect others’ unique differences are proud of themselves for appreciating everyone regardless of their color, disabilities or quirks. Thus, pride lies in respect, and respect, thanks to the Thunderbirds Branch, is something I have begun to fully comprehend.”

As the 2012 Youth of the Year from the Boys & Girls Club of Greater Scottsdale, Coughenour received a $5,000 scholarship from General Dynamics C4 Systems and $1,000 gift card courtesy of American Express. She hopes to attend Duke University and pursue a career in public relations.

Finalists from the other branches of the Boys & Girls Clubs of Greater Scottsdale were: Colleen Campbell, Mary Ellen & Robert McKee Branch; Andy Dao, Rose Lane Branch; Jackson Fogerty, Virginia G. Piper Branch; Doniar Mason, Lehi Branch; Claudia Mendoza, Harley & Ruth Barker Branch; Vivian Nguyen, Vestar Branch; Kristofferson Walker, Hualapai Branch in Peach Springs; and Lane Yazzie, Red Mountain Branch.

Each member received $1,000 scholarship from General Dynamics C4 and a $500 American Express gift card.

For more information about the Boys & Girls Clubs of Greater Scottsdale, the Youth of the Year finalists or the Celebrate Youth Gala and Silent Auction, please visit bgcs.org.

ACC Awards 2012

ACC Awards 2012 Finalists: A-G

Effective corporate counsel has never been more important than it is now. Arizona Business Magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel Awards, ACC Awards 2012. The 27 finalists and winners were honored Thursday, January 12 during a ceremony and dinner at the Ritz Carlton Phoenix. Here are the finalists in alphabetical order, A through G.


ACC Awards 2012 Finalists, A through G:

Jane D. Alfano
Corporate counsel
SRP

ACC Awards 2012Alfano joined SRP in 1979 and became the first female to hold the position of corporate counsel. Her strategic vision and application of the law, coupled with her ethical values and professionalism, epitomize the best of the legal profession, colleagues say. Alfano manages a law services teams that includes 12 attorneys and 20 law firms that augment SRP’s legal team. Alfano’s leadership philosophy of delivering value to the SRP executive team by providing legal remedies to meet their business strategy and goals through partnering with SRP attorneys has resulted in strong alliances with executives, SRP communities and SRP customers.


Andrejs K. Bunkse
General Counsel
Redflex Traffic Systems, Inc.

ACC Awards 2012Bunkse joined Redflex in 2009 to create a legal department for the company, which has customers in 22 states and Canada, representing more than 250 cities — each operating under its own unique set of laws. Redflex’s products have been scrutinized and have been subjected to a heavy defense litigation practice. Under Bunkse’s management of a staff of six and a wide network of lobbyists, lawyers and consultants, his department furthers Redflex’s efforts in setting positive legal precedent, improving legislative positioning, as well as defending a diverse set of external and internal legal challenges.


Clarissa Cerda
Senior vice president, general counsel and secretary
LifeLock

ACC Awards 2012Cerda manages LifeLock’s legal, compliance, government affairs, and human resources functions. She brings more than 19 years of experience in lawyering and negotiation, effective management, and strategic advising in fast-paced, technology corporations, leading law firms and even the White House. She currently sits on the board of directors of the Minority Corporate Counsel Association. Previously, Cerda held national positions on the American Bar Association (ABA), including the co-chair of the ABA’s Science and Technology Law Section’s Privacy Committee. Cerda graduated from Harvard College with an B.A. in government. She earned her J.D. from the University of Michigan Law School.


Rebecca Collins
Associate general counsel
General Dynamics C4 Systems

ACC Awards 2012Collins was responsible for all employment law aspects in establishing General Dynamics C4 Systems — which has its roots in Motorola’s military business — as a separate legal entity. Through the last decade, Collins has handled the employment law aspects of approximately eight acquisitions, along with major internal reorganizations. Combined with organic growth, this resulted in the workforce increasing to almost 11,000 employees. Collins has managed the significant employment law challenges associated with rapid growth, and is now managing the issues associated with workforce reductions necessitated  by economic conditions and reductions by the Department of Defense.


Laurence De Respino
General counsel
AMERCO (part of U-Haul International)

ACC Awards 2012In the 11 years De Respino has worked in the legal department of AMERCO, he has been responsible for sweeping changes in every facet of the legal department’s operations. Some highlights:
* He has grown the department from five to 17 attorneys.
* He values diversity, providing opportunities for women and minorities and a staff that is split equally between genders.
* He has created specialties within the legal department, adding attorneys with expertise in product litigation, class actions, insurance, business, labor, employment, and intellectual property.
* He created a discovery unit to draft requests and responses, cutting discovery costs by 50 percent in the last three years.


Brad Gazaway
Vice president and corporate counsel
The Dial Corporation

ACC Awards 2012Gazaway is a former corporate and securities attorney for Snell & Wilmer (1998-2003) and a 1992 graduate of the U.S. Naval Academy. He graduated in 1998 from the University of Iowa law school. While working with Gazaway, other attorneys are impressed not only with his professional demeanor and practical approach, but with his passion for the company and the pride he takes in the company’s accomplishments. Both Gazaway and Dial value community involvement, opening their headquarters for a United Way tour, with Gazaway sharing his personal interest in helping those less fortunate with those who toured.


David Glynn
Chief administration officer and general counsel
OneNeck IT Services Corporation

ACC Awards 2012Glynn has built the legal department at OneNeck from scratch into a small, efficient, well-rounded department that assists and ensures the success of the company. Among his accomplishments:
* He was the leader in the buyout of OneNeck from the publicly held parent company in 2001, including capitalization.
* He has led the acquisition of three private companies in 2003, 2007 and 2008.
* He led the $95 million sale of OneNeck to a publicly held telecom provider in 2011.
* He has converted all legal files electronically, allowing the department to have quick and easy access to all records.


Go Daddy Group
In-house legal department

Go Daddy LogoIn the past 10 years, the Go Daddy legal department has grown from a one-woman show to a staff of nearly 100, with 55 percent of them women. This unique department, which encompasses legal, network abuse, domain services, compliance, privacy, and government relations departments, extends its reach far beyond traditional legal issues. With guiding mantras of “do the right thing” and “know your client,” the legal department is intimately involved with its clients’ operational aspects. The department serves as an industry leader, drives public policy in the Internet realm, and still finds time to vigorously promote inter-departmental interactions.


Lukas Grabiec
Corporate counsel
Intel Corporation

ACC Awards 2012Despite being a junior-level attorney, Grabiec has taken on significant responsibilities and acts as a counselor for high-level Intel executives. In the past year, Grabiec has earned multiple Division Recognition Awards from Intel for his work on important and ground-breaking projects. Some examples:
* Grabiec seized an opportunity and drove Intel’s participation in the first Poland-Silicon Valley Technology Symposium at Stanford, marshaling Intel resources and laying groundwork for future collaboration with the Polish government and university officials.
* Grabiec completed negotiations for the funding of a major high-performance computing program with a large research-based U.S. government agency.


Arizona Business Magazine January/February 2012

Managing Downstream and Upstream Risks

Managing Downstream And Upstream Risks

Examine your company’s cash flow needs and managing downstream and upstream risks

Even the strongest, most sophisticated contractor has probably taken a lump or two over the past year as a result of one of the worst stretches the construction industry has seen in decades. Because of these challenges, there are many ways that you should be examining your own company, your cash flow needs, profit estimate and balance sheet projections.

Managing both your upstream risks and downstream risks will be critical to your success in the coming years. Ask the following questions:

  • How much bad debt can my company absorb before having a critical impact on my balance sheet and cash flows?
  • How long should I perform work without being paid? What does my contract allow for in terms of work stoppages for non-payment?
  • Who bears the risk of non-payment by the ultimate project owner? Do I have any “Pay If Paid” contracts?
  • How is this private project being financed? Has anyone seen a bank commitment letter?
  • What would happen if my receivables were stretched another 30-45 days on average?
  • How would this job be impacted if one of my subcontractors could no longer perform their work (due to bankruptcy or otherwise)? How much would it cost me to replace them?
  • What is my added exposure when I bond a job?
  • How do I address onerous contract terms with my owner/GC/client?
  • How do I know if my subcontractors are still financially viable?

There are landmines at every turn so be sure to not discount the value of doing your homework before signing a contract. What are some specific areas of risk to pay close attention to?

Upstream Risks

We all understand the inherent risks with subcontracting a portion of “your work” to another contractor for whom you will be responsible. How many of us though give a lot of thought to upstream risk? Are you a sub to a general contractor? Sub to another sub? Vendor, supplier? Or a general contractor doing work for a private company? All of these scenarios carry several risks.

The most obvious upstream risk is no pay/slow pay from your client. As a general contractor doing work for a private owner, you will typically have the ability prior to starting the work to inquire about project financing. Do not dismiss this right and take full advantage of this opportunity as you will likely have difficulty getting anything else from the owner once the project has begun. Useful tools here include a “set aside” letter from their bank, loan commitment letter for project specific funding or a bank reference letter stating that the owner has sufficient cash on hand to pay for the project.

Even if you are not prime to an owner, all of these risk factors affect you. Unfortunately, you will not likely have access to your upstream contractor’s financials and will be somewhat dependent on their due diligence with the owner. Even so, don’t be afraid to ask your prime contractor (or upstream contractor) if they have done their homework. Also, check with your peers or any subs/suppliers who are working for your general contractor to see how timely they are currently making payments.

Downstream Risk

If you are a general contractor, part of your normal operating procedure is to monitor subcontractor bids and hopefully that includes a formal prequalification process for the majority of your subs. The amount of data you request is up to you, but the following is a key list of things you should know about your potential subcontractors:

  • What is their reputation? Do they have reference letters? How many jobs of similar size and scope have they performed in the past?
  • What is their safety history? Do they have a dedicated safety director?
  • What is their financial status? Have they ever failed to complete a job? Will they share financials?
  • Do they have a bond company and/or a bond line? If so, what are their single and aggregate limits? Can you obtain a letter from their surety stating these limits and current capacity?
  • Do they have all the required insurance currently in place? How do you monitor and track expiring certificates throughout the year?
  • Do you know how many subs or suppliers they will engage to fulfill the contract? If you are providing a bond as a prime contractor, these parties will all be covered by your Payment Bond and add to your potential exposure for non-payment claims.

This economy has certainly taken its toll on a large number of contractors. Often the smaller, trade contractors are hit the hardest as they did not carry large backlogs of work or large balance sheets into this downturn. They could be dependent on their next job for their very survival so it is critical that all parties are aware of potential risk factors with key subs and suppliers and employ as many additional tools as possible to mitigate those risks and prevent another contractor’s problem from being your problem.

[stextbox id=”grey”]For more information about downstream and upstream risks, visit www.mjinsurance.com.[/stextbox]

 

General Dynamics Green Processes - AZ Business Magazine Jul/Aug 2010

BIG Green Awards: Green Processes

Twelve categories, hundreds of nominations — but only one will take home the green. It’s the first annual Southwest Build-it-Green Awards, where BIG teamed up with the USGBC to bring you the leanest sustainable leaders and projects in Arizona.

Recipient: General Dynamics C4 Systems

Scottsdale-based General Dynamics C4 Systems is cutting costs and its environmental impact at the same time. The company has applied various sustainable practices to its Scottsdale facility and achieved almost $750,000 in cost savings annually.

General Dynamics C4 Systems develops and integrates secure communication and information systems and technology for businesses and governments. Although the company does not directly focus on green products, it is committed to becoming environmentally friendly. The company’s Environment, Health and Safety Policy states that it strives to reduce its impact on the environment and continues to pursue improvement.

General Dynamics C4 Systems certainly found a way to shrink its environmental impact at its research-focused, 1.5 million square foot Scottsdale campus, which houses more than 5,000 employees, visitors and contractors.
The site utilized sustainable ideas and practices on the road to becoming a Leadership in Energy & Environmental Design (LEED) certified facility. Through the certification process, General Dynamics C4 Systems replaced or reconditioned the existing structures to lessen the site’s environmental impact. Also, the Scottsdale campus has saved more than 1.4 megawatts of power simply by turning off thousands of devices when they are not in use.

General Dynamics C4 Systems also integrated green cleaning and maintenance practices into its operations. The company utilizes reusable cleaning materials and cleaning chemicals that are non-obtrusive. It also extensively re-uses construction materials, equipment and components. Plus, the campus has upgraded the lighting system at its LEED-certified site and converted completely to locally manufactured recycled paper products.

The company also integrated its Computerized Aided Facilities Management system into its construction and maintenance processes. This system tracks sustainable data such as materials, infrastructure capacity, energy impacts and indoor air quality at its Scottsdale campus.

Additionally, General Dynamics C4 Systems produces the maximum energy savings and extends the life of equipment by integrating building operations procedures with systems commissioning.

Not only is General Dynamics C4 Systems’ own site lessening its impact on the environment, the company strives to meet environmental and safety requirements as it designs and manufactures products and services for its customers.

www.gdc4s.com

Arizona Business Magazine Jul/Aug 2010