Prieto intersection of engineering 03 27 13

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Today’s highly engineered environment requires a new first responder team that includes engineers and constructors. The importance of these new first responders could be seen in efforts to remove bent steel beams in the search for survivors on 9/11; seal levee breaches after Katrina; restore power and water supply after the tsunami at Fukushima; and the massive infrastructure recovery efforts following Super Storm Sandy in New York and New Jersey. These new first responders are also essential for rebuilding after the immediate response phase.
Events of scale change the normal construction process. New logistical challenges emerge and evolve in the post-disaster phase. These challenges include destroyed logistical facilities; competition with other post-disaster aid flows; and disrupted supply chains.
This paper looks at these challenges and offers recommendations to better manage them.
Today’s highly engineered environment requires a new first responder team that includes engineers and constructors. The importance of these new first responders could be seen in efforts to remove bent steel beams in the search for survivors on 9/11; seal levee breaches after Katrina; restore power and water supply after the tsunami at Fukushima; and the massive infrastructure recovery efforts following Super Storm Sandy in New York and New Jersey. These new first responders are also essential for rebuilding after the immediate response phase.
Events of scale change the normal construction process. This is addressed in more detail in a companion paper at this conference. New logistical challenges emerge and evolve in the post-disaster phase. These challenges include destroyed logistical facilities; competition with other post-disaster aid flows; and disrupted supply chains.

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Prieto intersection of engineering 03 27 13

  1. 1. Prieto Intersection of Engineering 03 27 13.docx -1-INTERSECTION OF ENGINEERING, CONSTRUCTION ANDLOGISTICS POST-DISASTERBob PrietoFluor103 Carnegie Center; Suite 300Princeton, NJ 085401.609.919.6376; bob.prieto@fluor.comToday’s highly engineered environment requires a new first responder team that includesengineers and constructors. The importance of these new first responders could be seen in effortsto remove bent steel beams in the search for survivors on 9/11; seal levee breaches after Katrina;restore power and water supply after the tsunami at Fukushima; and the massive infrastructurerecovery efforts following Super Storm Sandy in New York and New Jersey. These new firstresponders are also essential for rebuilding after the immediate response phase.Events of scale change the normal construction process. New logistical challenges emerge andevolve in the post-disaster phase. These challenges include destroyed logistical facilities;competition with other post-disaster aid flows; and disrupted supply chains.This paper looks at these challenges and offers recommendations to better manage them.Today’s highly engineered environment requires a new first responder team that includesengineers and constructors. The importance of these new first responders could be seen in effortsto remove bent steel beams in the search for survivors on 9/11; seal levee breaches after Katrina;restore power and water supply after the tsunami at Fukushima; and the massive infrastructurerecovery efforts following Super Storm Sandy in New York and New Jersey. These new firstresponders are also essential for rebuilding after the immediate response phase.Events of scale change the normal construction process. This is addressed in more detail in acompanion paper at this conference. New logistical challenges emerge and evolve in the post-disaster phase. These challenges include destroyed logistical facilities; competition with otherpost-disaster aid flows; and disrupted supply chains.
  2. 2. Prieto Intersection of Engineering 03 27 13.docx -2-Figure 1Today’s managers charged with designing, building and operating with resiliency in mind mustbe cognizant of the growing role these new first responders play after events of scale. Theireffectiveness and the effectiveness of longer term aid and reconstruction flows are closelycoupled by this weakened logistical chain.LOGISTICS AFFECTING ACTIVITIESMany of the work processes and engineering, procurement and construction activitiestraditionally associated with large scale construction programs must be modified to deal with therealities of post-disaster construction. Some of these changes are driven by logistical constraintsof the post-disaster environment while other changes are driven by changed institutionalprocesses. Each of these changes impact the normal logistical processes expected in large scaleprograms. This paper looks at changes based on prior experience. Recommendations areprovided in the matrix incorporated in Table 5 at the end of this document.Table 1. Logistics Affecting ActivitiesClient capabilities andresourcesGlobal sourcing Road and bridgetransportVehicle safetyClient-contractoralignment andcontractSourcing integrity OversizedshipmentsHuman remainsMobilization Mission-critical,unique equipmentsourcingOcean freight Communication
  3. 3. Prieto Intersection of Engineering 03 27 13.docx -3-Table 1. Logistics Affecting ActivitiesExecution plans Quality of locallyprocured materialTransportationinsuranceIn-country logisticalinstitutional infrastructureProject ManagementManualExpediting Port capacity andoperationsSite transportWorkshare Traffic routing andlogistics planConstructionequipmentStaging areasDesign basis Building permits andconsents fortemporaryconstruction andlogistical facilitiesConstruction fleetmaintenanceCash flowDegree of designstandardizationWarehousing Non-processinfrastructure(NPI)Anti-corruption andtransparencyPrefabrication Material security Craft training Stakeholder engagementPreassembly Logistical contractformsSmall tools Change managementModularization Construction wasteDegree of client-furnished materialsand equipmentLess-than-fulltruckload shipmentsSupplier relationshipagreements (SRAs)
  4. 4. Prieto Intersection of Engineering 03 27 13.docx -4-Client Capabilities and Resources – Client organization may be lacking resources thatunderstand engineering, procurement and construction processes and how they change in a post-disaster environment. Impacts and importance of logistics in post disaster situation may not besufficiently understood or required resources not engaged. Lack of appreciation for nature orscale of logistical challenges adversely impacts overall construction effortClient-Contractor Alignment and Contract – Private sector efforts are in support of clientswith flexibility to quickly execute risk appropriate contracts. Public sector efforts are effectivewhere prior contract vehicles exist and alignment activities have previously occurred. Lack ofprior contract impacts efficiency of logistical commitments being made.Mobilization – Certain government or aid agency contracts are task order based with noprovision for mobilization costs. This delays activities to create efficient logistics operation.Execution Plans – Funding driven baseline shaped by donor communityProject Management Manual (PMM) – PMM expanded to include procedures/ approvalslinked to funding source. These procedures may vary by project delivery approach, contractingstrategy and project phase. Added approvals and complexity impact logistics chain.Figure 2Workshare – Funding agencies may drive work to be performed locally.Design Basis – Nature of funding sources constrains solutions reducing opportunities to modifysupply chain.Degree of Design Standardization – Required volumes limit standardization opportunitiesLabor – OCONUS mobilization through Mobilization and Deployment Center (MDC). MDC ina Box for OCN mobilization (recruitment, training, and on-boarding process completed in 7 to8 days)
  5. 5. Prieto Intersection of Engineering 03 27 13.docx -5-Figure 3Table 2. Typical Stabilization and Post-Disaster Labor RequirementsContracts/Task OrdersTimePeriodFluor PersonnelMobilizedSubcontractPersonnelMobilizedBP MC 252 Incident Response <70 days 8,447 0LOGCAP IV, TO5–AOR <120 days 1,480 1,924LOGCAP IV, TO2 <90 days 64 376LOGCAP IV, TO4 <60 days 72 248FEMA Individual Assistance <90 days 1,410 2,190CETAC I <45 days 50 2,950CETAC II <60 days 33 1,575New Power Generation <45 days 50 540Public Works Water <45 days 50 1,150Prefabrication – Initially focused on response phase needs
  6. 6. Prieto Intersection of Engineering 03 27 13.docx -6-Preassembly – Typically limited by funding coupled to job creation in affected area; accessroute constraintsModularization – Use constrained by client awareness and procurement practices; site accessmay be limited to port areas and major routesDegree of Client – Furnished Materials and Equipment - Adequate owner provided advancefinancing limits use; contracting practices by government limit PMC+ approaches; multiplicityof buyers (lack of sourcing hub) reduces supply chain efficiencyTable 3. Cost of Labor and Building Materials in AcehLate 2004 to Late 2006Resource Unit (RP) End 2004 Mid-2005 Early 2006 Oct 2006Change(%)Labor 000/day30 40 50 50 67Wood million/m31.0 1.5 1.9 2.2 120Cement 000/50kg20 26 34 37 85Sand 000/3m3150 300 300 300 100Brick each250 580 700 700 180Table 4. Cost of Labor and Building Materials in SichuanMid 2008 to Mid 2009ResourceUnit(RMB) Mid 2008 End 2008 Early 2009 Mid 2009Change(%)Labor Per day30 60 100 80 167Brick Each0.33 0.53 0.55 0.35 6
  7. 7. Prieto Intersection of Engineering 03 27 13.docx -7-Table 3. Cost of Labor and Building Materials in AcehLate 2004 to Late 2006Resource Unit (RP) End 2004 Mid-2005 Early 2006 Oct 2006Change(%)Cement Per ton390 460 550 480 23.1Aggregate Per m325 50 55 75 200Steel Per ton5,400 3,800 3,600 4,200 22.2Supplier Relationship Agreements (SRAs) – Effective use limited by competitive procurementand form of contract; high demand drives use of non traditional sourcing for which reducedsupplier-buyer information exchange has occurred.Global Sourcing – Expanded sourcing effort to meet times frames requires augmented vendorinspection, QA/QC and expediting. Supply identification of materials of construction should beundertaken for disaster types and locations in advance of disaster.Sourcing Integrity – Supply origins for certain bulk materials (timber) and their preparation foruse may be difficult and compliance with procurement norms harder at the subcontractor level.Mission-Critical, Unique Equipment Sourcing – Supply chain compression activities mayinclude new sources of supply, multi-vendor awards, use of CFM as feedstock to select vendors,phased procurement and pricing, expedited transport.Locally Procured Material Quality – May take physical possession but not title at end ofinspection line to prevent material substitution further straining logistical chain.Expediting – Reflect evolving needs and on the ground conditionsTraffic Routing and Logistics Plan – Reflect evolving needs and on the ground conditions;consider evolving condition of transport routes and other logistics facilities; increased number oflogistics choke points and greater competition for logistics capabilities
  8. 8. Prieto Intersection of Engineering 03 27 13.docx -8-Figure 4Building Permits and Consents for Temporary Construction and Logistical Facilities –Government capacity may be inadequate. Delay of facilities may result. Mechanisms for waiversmay not exist.Figure 5Warehousing – Limited CFM and shortages make this a lower priority but inability to reliablyimplement a just in time supply chain can make this an even more significant activity.Warehousing may be needed to be located closer to site of reconstruction activities because ofweakened local logistics networks.Material Security – Augmented security; perimeter patrols; larger guard forceTrafficking – Trafficking is key link in supply chain management as logistical systemreconfigures post-disasterLogistical Contract Forms – Special requirements to address changed shipper risksConstruction Waste – Expanded volumes associated with site debris; high mixed waste;potential need to classify portions as hazardous waste
  9. 9. Prieto Intersection of Engineering 03 27 13.docx -9-Less-Than-Full Truckload Shipments – Logistically expensive especially where shipments arerationed.Staging Areas – Inefficient supply chains exacerbate staging needs. Out of zone staging processutilized to control flow into valuable routesRoad and Bridge Transport – Conditions and capacities unknown. Significant degradation maynot be evident.Oversized Shipments – Logistics constraints limit shipment sizes increasing volumes shipped.Ocean Freight – Competition for vessels or harbor constraints drive undesirable load sizes andcombinations.Transportation Insurance – Unavailability affects logistics choices.Port Capacity and Operations – Potentially impacted by damage at the port; cargo handlingoperations overwhelmed by lack of prioritization.Construction Equipment – Competition for equipment may drive ownership decisions;efficient equipment not available; shortages of operators.Construction Fleet Maintenance – Maintenance requirements associated with difficult siteconditions necessitate larger fleet sizes; fuel supply is critical resource.Figure 6Non-Process Infrastructure (NPI) – Constrained by site access (transport; site based debris)and community perceptions; competition for generators and water treatment limit constructionactivities.Craft Training – Training expanded to include hazards of ongoing risk conditions; multipleclient and contractor structures without strong program control undermines safety culture; local
  10. 10. Prieto Intersection of Engineering 03 27 13.docx -10-labor force may move between contractors more frequently diminishing training investmentmade by any one contractor.Small Tools – Requirement to address shortages and expanded workforce.Vehicle Safety – Difficulties encountered in driver certification and trainingHuman Remains – Protocols cause partial site shutdown and reconfigured logistics.Communication – Regional communication networks degraded impacting efficiency.In-Country Logistical Institutional Infrastructure – Institutional frameworks inappropriatefor post disaster response and rebuilding.Site Transport – Local transport dysfunctional.Cash Flow – Need to bridge cash requirements of subcontractors makes payment terms anincreasingly important selection factor in sourcing decisions.Anticorruption and Transparency – Risks greatly increase and monitoring and surveillancebecome larger activities. Increased security in logistics chain.Stakeholder Engagement – Changed stakeholder groups, priorities and communicationdifficulties impact effective communication.Change Management – Impacts of change magnified in logistics chain post disasterCONCLUSION AND RECOMMENDATIONSChanges to some logistics affected and logistics affecting engineering and construction activitieshave been described. Table 5 that follows includes a comparison with non-disaster programs andsuggests some areas for consideration by resiliency planners, implementers and post disastermanagers. The considerations laid out will help prepare the managers to deal with a growingdimension of post-disaster activities. Recommendations for individual considerations have beenmade based on experience.These specific recommendations at the activity level are complemented by the followingrecommendations.• Government and NGO community must plan for assisting in post-disaster recovery− Provide accessibility to the sites of critical infrastructure− Maintain awareness of global logistics chain
  11. 11. Prieto Intersection of Engineering 03 27 13.docx -11-− Ensure availability of specialized construction equipment, contracts, and materials− Develop well-documented system with clear interface points− Preplan and rehearse response and recovery scenarios for high-probability events♦ Earthquake♦ Hurricane♦ Flood• Engagement with engineering and construction community must begin pre-disaster− Pre-placed contracts♦ Program management♦ EPC♦ Supply chain− Earliest mobilization to disaster zone− Early activation of logistics chains• Post-disaster period requires streamlined decision frameworks− Decision authorities at project and disaster site− Logistical-affecting processes may act as barrier in post-disaster scenario♦ Examples are customs, building permits, and liability legislation♦ Consider a standard “modified” logistical template for local government consideration• “Go-bys”• Best practices
  12. 12. Prieto Intersection of Engineering 03 27 13.docx -12-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementClientcapabilities andresources• Client organization isappropriately resourced orprogram managerengaged• Combined team bringsnecessary understandingof EPC activities and howthey interact withnecessary logisticsconsiderations• Client organization may belacking resources that understandEPC processes, and how theychange in a post-disasterenvironment• Impacts and importance oflogistics in a post-disastersituation may not be sufficientlyunderstood in client organization,or required resources have notbeen engaged• Client lack of appreciation fornature or scale of logisticalchallenges may adversely impactoverall engineering andconstruction effort• Client organizations must recognizethat the linkage between end use andshipping and other logistical activitiesgrows in importance in a post disastersituation• Pre-positioned contracts withexperienced post-disaster constructioncontractors that have strong logisticscapabilities provide ownerorganizations with the capability toefficiently respond and recoverClient-contractoralignment andcontract• Pre-establishedcontractual basisreflective of overallprocurement and• Private sector efforts typically insupport of major customers, withflexibility to quickly executerisk-appropriate contracts• Pre-positioned contracts allow for pre-disaster alignment around basic workprocesses, allocation ofresponsibilities, and delegated and
  13. 13. Prieto Intersection of Engineering 03 27 13.docx -13-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementconstruction strategy• Alignment with ownerorganization• Public sector efforts effectivewhere prior contract vehicles existand alignment activities havepreviously occurred (FEMA andLOGCAP IV)• Lack of a prior contract impactsefficiency of logisticalcommitments being made• Lack of well-definedresponsibilities and authorities inpost-disaster organization maydelay completion of requiredRACI charts, creatinguncertainties in approval processfor crucial logistics-affectingactivitiesretained authorities and approvals• Supply chain and logistical strategiescan be discussed and the new firstresponder in todays built environmentcan participate in select tabletopexercisesMobilization • Typically recognized andfunded activity• Certain government or aid agencycontracts are task order-based withno provision for mobilizationcosts, delaying activities and• Create a limited mobilization task inpre-positioned contracts to accelerateresponse timeframes
  14. 14. Prieto Intersection of Engineering 03 27 13.docx -14-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementcommitments to create an efficientlogistics operationExecution plans • Scope-driven baseline • Funding-driven baseline shapedby donor community or “color ofmoney"• Clearly identify anyfunding-source-linked requirements atearliest possible stage• Select major donor organizationrequirements can be pre-identified inpre-positioned contracts (examples:FEMA Public Assistance, StateEmergency Management, Red Cross)ProjectManagementManual• Standard go-by templatewith client-specific forms,procedures, and approvals• Expanded to include forms,procedures, and approvals linkedto funding source• Procedures may vary by projectdelivery approach (directexecution or grant funded);contracting strategy (design-bidbuild, design build); and phase ofproject• Pre-positioned contracts allow for pre-disaster alignment around basic workprocesses and reports• Critical logistical hubs and chokepoints can be pre-identified
  15. 15. Prieto Intersection of Engineering 03 27 13.docx -15-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagement• Added approvals and complexitymay impact logistics chainWorkshare • Global EngineeringCenters (GECs)workshare limits need tomove many resources toproject location• Funding agencies may drive workto be performed locally• Local engineering and constructionresource surveys may be periodicallyconducted as part of pre-positionedcontractDesign basis • Optimized against well-defined owner criteriathrough a formal tollgateprocess• Nature of funding sources mayconstrain solutions to replace inkind, reducing opportunities tomodify supply chain• Existing planning documents should beinventoried and collected to acceleratereconstruction planning• Efforts focused on achieving plansversus creating entirely new oneswhere possible• Planning collection in advance ofdisaster also facilitates resiliencyreviews by local disaster planningagencies
  16. 16. Prieto Intersection of Engineering 03 27 13.docx -16-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementDegree ofdesignstandardization• Maximized to reducesupply chain• Required volumes limitstandardization opportunities• Incorporate resiliency features as partof new design basisLabor • Globally and locallysourced – standard HRsystems and processes• OCONUS mobilization throughMobilization and DeploymentCenter (MDC)• MDC in a Box for other-countrynational (OCN) mobilization− From first speaking to arecruiter to a putting boots onthe ground, the recruitment,training, and on-boardingprocess can be completed in 7to 8 days• Client organization must ensureresponse and reconstructioncontractors have well developedmobilization plans and capabilitiesPrefabrication • Maximized to addresslabor availability and cost• Eliminates shipments oftemporary equipment,materials, and• Initially focused onresponse-phase needs• Identify staging and prefabricationsites in proximity to criticalinfrastructure and population centers• Identify similar regional areas outside
  17. 17. Prieto Intersection of Engineering 03 27 13.docx -17-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementconstruction consumables• Reduces constructionwaste streamsthe evaluated zonePre-assembly • Maximized to addresslabor availability and cost• Eliminates shipments oftemporary equipment,materials, andconstruction consumables• Reduces constructionwaste streams• Typically limited by fundinglinkages to job creation in affectedarea• May be constrained by accessroute constraints• Identify staging and prefabricationsites in proximity to criticalinfrastructure and population centers• Identify similar regional areas outsidethe evaluated zone• Identify major access routes andweight and size constraints as part ofdisaster planning effortsModularization • Maximizes benefitsassociated withmanufacturing efforts,such as those realized ona smaller scale withprefabrication and pre-assembly• Allows parallel• Uses constrained by clientawareness and constrainingprocurement practices• Site access may be constrained toport areas and, at later stages,major overland logistical routes• Identify staging and prefabricationsites in proximity to criticalinfrastructure and population centers• Identify similar regional areas outsidethe evaluated zone• Identify major access routes andweight and size constraints as part of
  18. 18. Prieto Intersection of Engineering 03 27 13.docx -18-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementconstruction to shortenschedules• Facilitates pre-commissioningdisaster planning efforts.Degree ofclient-furnishedmaterials andequipment• Best practice movingbeyond major equipmentto include selectconstruction bulks,piping, cabling, pumps,motors, and MCC• Targeted levels nominally30 percent• Necessitates strongmaterials managementorganization as part ofexpanded programmanagement contractor(PMC) role (PMC+)• Use adequate owner-providedadvance financing limits• Contracting practices bygovernment limit PMC+contracting approaches• Multiplicity of buyers (lack ofsourcing hub) reduces supplychain efficiency• Prepositioned response andreconstruction contracts should providefor use of commercial practices to themaximum extent possible• Contractors with well-developedsupply chains are essential inpost-disaster settings
  19. 19. Prieto Intersection of Engineering 03 27 13.docx -19-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementSupplierrelationshipagreements(SRAs)• Maximize use of PMCsSRAs to simplify supplychain, gain greaterassurance on deliverytimeframes, andconsolidate shipments• High level of pre-transaction informationtransferred between buyerand supplier• Effective use limited to privatesector facilities and clients due totraditional limitations oncompetitive procurement and formof contract for non-private buyers• High demand drives use ofnon-traditional sourcing for whichreduced supplier-buyerinformation exchange haspreviously occurred• Prepositioned response andreconstruction contracts should providefor use of commercial practices to themaximum extent possible• Contractors with well-developedsupply chains are essential inpost-disaster settingsGlobal sourcing • Leverage of ongoingsupplier analysis andassessment activitiesconsistent withanticipated businessvolumes by supplycategory and regions• Appropriate supplysources pre-identifiedprior to major program• Expanded sourcing effort to meetrequired timeframes and budgetsrequires augmented vendorinspection, QA/QC, andexpediting efforts• Identification of supplies ofmaterials for construction andrequired non-processinfrastructure undertaken forlimited number of disaster types• Periodic assessments should be madeof basic construction materialavailability for a range of disasters(local, regional, multi-regional)
  20. 20. Prieto Intersection of Engineering 03 27 13.docx -20-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementactivities and locations in advance ofdisaster-limiting logistics systemplanning activitiesSourcingintegrity• Pre-acquisition surveysconfirm environmental,labor, and legalcompliance by supplybase• Local supply capabilitieswell defined and capacitybuilding undertaken off aknown base• Supply origins for certain bulkmaterials (timber) and theirpreparation or treatment for usemay be difficult to ascertain• Compliance with globalprocurement norms harder topolice at the subcontractor level• Best-value procurement, with strongquality and inspection efforts, producesmore consistent and timely outcomesand, at the end of the day, the mostcost-effective outcome, all costsconsideredMission-critical,uniqueequipmentsourcing• Traditional long-leaditems procured throughearly fundingcommitments• Supply chain compressionactivities may include:− New sources of supply− Multi-vendor awards− Use of CFM as feedstock toselected vendors• Prepositioned response andreconstruction contracts should providefor use of commercial practices to themaximum extent possible• Contractors with well-developedsupply chains are essential inpost-disaster settings
  21. 21. Prieto Intersection of Engineering 03 27 13.docx -21-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagement− Phased procurement and pricing− Expedited transport (Aeroflot)Locallyprocuredmaterial quality• Standard vendorqualification andinspection programs• Material (batch)inspections• May take physical possession, butnot title, at end of inspection lineto prevent material substitutionfurther straining overall logisticalchain• Strained logistical chains require theright shipments, at the right time, to theright place• Poor quality and associatedback-shipment and rework orworkarounds strain an alreadyover-taxed supply chainExpediting • Focused on baselineschedule execution• Reflect evolving needs andon-the-ground conditions• Trafficking into disaster area shouldnot be left to inexperienced suppliersbuying shipment services on a low-costand uncoordinated basisTraffic routingand logisticsplan• Focused on baselineschedule execution• Reflect evolving needs andon-the-ground conditions• Consider evolving condition oftransport routes and other logisticsfacilities• Trafficking into the disaster areashould not be left to inexperiencedsuppliers buying shipment services ona low-cost and uncoordinated basis
  22. 22. Prieto Intersection of Engineering 03 27 13.docx -22-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagement• Increased number of logisticschoke points and greatercompetition for logisticscapabilitiesBuildingpermits andconsents fortemporaryconstructionand logisticalfacilities• Routine activity • Government capacity may beinadequate given widespreaddamage and competing demandsfor permits• Delay of logistical and temporaryconstruction facilities may result• Mechanisms for waivers may notexist• Identify and put in place an expeditedprocess for temporary or transitionalfacilities after a declared disasterWarehousing • Consistent with higherCFM• More limited CFM and shortagesof labor and materials may makewarehousing a lower priorityfacility• Inability to reliably implement ajust-in-time supply chain canmake warehousing an even more• Mechanisms to identify vacant, large-scale commercial facilities equipped toreceive and warehouse equipment andmaterials should be pre-established(Examples: vacant "big box" stores,warehouses, and supermarkets)
  23. 23. Prieto Intersection of Engineering 03 27 13.docx -23-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementsignificant activity• Warehousing may need to belocated closer to site ofreconstruction activities becauseof weakened local logisticsnetworksMaterialsecurity• Warehouse and lay-downareas typically havecontrolled access androutine security• Augmented security• Perimeter patrols• Larger guard force• Pre-establish badging requirements andrequirements for security or auxiliarypoliceTrafficking • Most contractors rely onsupplier to ship goods• Supplier not expert− Materials arrive late, orworse, damagedbecause the supplierwent with the low-costshipper, withoutchecking quality and• Key link in supply chainmanagement as logistical systemresponds to stress andreconfigures post-disaster• Trafficking into the disaster areashould not be left to inexperiencedsuppliers buying shipment services ona low-cost and uncoordinated basis
  24. 24. Prieto Intersection of Engineering 03 27 13.docx -24-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementsafety records• Fluor controls delivery− Use companies thathave good tracking(GPS) and dispatchingcapabilities− Can change routes oreven delivery locationsas the situation dictatesLogisticalcontract forms• Generally industrystandard• Special requirements to addresschanged shipper risks:− Demurrage− Labor strife− Excess wear and tear− Lost productivity− Availability of fuel− Security• Strategies for changed logistical riskmanagement should be pre-assessedand decisions made on types of riskbest retained
  25. 25. Prieto Intersection of Engineering 03 27 13.docx -25-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementConstructionwaste• Seek to minimizevolumes generated (25percent of constructionmaterials are waste)• Minimize mixed waste• Recycle• Expanded volumes associatedwith site debris• High mixed waste• Potential need to classify portionsas hazardous waste• Pre-identification of temporary andpermanent debris storage locations andpreferred logistical movementsassociated with debris handling for arange of total impactsLess-than-fulltruckloadshipments• Limited attention beyondCFM volumes• Logistically expensive, especiallywhere possession times or numberof shipments are effectivelyrationed• Trafficking into the disaster areashould not be left to inexperiencedsuppliers buying shipment services ona low-cost and uncoordinated basisStaging areas • Staging area at port orkey local hub• Staging and warehousearea at or near site• Inefficient supply chains mayexacerbate staging area needs• Out-of-zone staging processutilized to control flow intovaluable shipping space and routes• Identify staging and prefabricationsites in proximity to criticalinfrastructure and population centers• Identify similar regional areas outsidethe evaluated zone• Identify major access routes andweight and size constraints as part ofdisaster planning efforts
  26. 26. Prieto Intersection of Engineering 03 27 13.docx -26-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementRoad andbridge transport• Conditions and capacitiesgenerally well understood• Conditions and capacitiesunknown• Significant degradation may notbe evident• Preposition a structural assessmentcontract for critical logisticalinfrastructure to provide earlyinformation of logistical degradation ofany formOversizedshipments• Limited to high-valueequipment and modules• Platooned where possible• Logistics constraints may causeshipment sizes to be constrained,increasing volumes shipped andassociated labor requirements• Client organizations must recognizethat the linkage between end use andshipping and other logistical activitiesgrows in importance in a post-disastersituation• Prepositioned contracts, withexperienced post-disaster constructioncontractors who have strong logisticscapabilities, provide ownerorganizations with the capability toefficiently respond and recoverOcean freight • Heavy lift needsidentified in conjunctionwith long-lead and• Competition for vessels or harborconstraints may drive undesirableload sizes and combinations• Client organizations must recognizethat the linkage between end use andshipping and other logistical activitiesgrows in importance in a post-disaster
  27. 27. Prieto Intersection of Engineering 03 27 13.docx -27-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementmodularization planning situation• Prepositioned contracts, withexperienced post-disaster constructioncontractors who have strong logisticscapabilities, provide ownerorganizations with the capability toefficiently respond and recoverTransportationinsurance• Generally industrystandard• Unavailability and cost orcoverage limitations may affectlogistics choices• Strategies for changed logistical riskmanagement should be pre-assessedand decisions made on types of riskbest retainedPort capacityand operations• Often saturated byglobal-scale programs• May necessitate separatematerial handling wharfs• Traditional challenges scaled upand potentially impacted bydamage at the port• Cargo handling operations may beoverwhelmed by lack ofcoordinated prioritization of needs• Preposition a structural assessmentcontract for critical logisticalinfrastructure to provide earlyinformation of logistical degradation ofany form• Trafficking into the disaster areashould not be left to inexperiencedsuppliers operating on an
  28. 28. Prieto Intersection of Engineering 03 27 13.docx -28-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementuncoordinated basisConstructionequipment• Lease-versus-buydecisions intermittentlyconstrained byavailability• Specialized equipmentidentified at early stage• Competition for equipment maydrive less than desirableownership decisions• Most efficient equipment may notbe available• Shortages of major equipmentoperators• Local construction equipment resourcesurveys may be periodically conductedas part of pre-positioned contractConstructionfleetmaintenance• May be delivered as partof PMC+ services• Fueling operations maybest be done as a client-furnished service• Fuel logistics may becritical challenge• Increased maintenancerequirements associated withdifficult site conditions maynecessitate larger fleet sizes• Fuel supply is critical resourceduring early phases• Local construction equipment resourcesurveys may be periodically conductedas part of pre-positioned contractNon-processinfrastructure(NPI)• Growing challenge• Increased use of modular• Meeting the NPI challenge may beconstrained by site access(transport or site-based debris) and• Identify NPI requirements for a rangeof disasters (scale and type) as part of
  29. 29. Prieto Intersection of Engineering 03 27 13.docx -29-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementcamp and ancillaryfacilities• Requires early site access• Site power and water maybe met from nearbynetworks in manyinstances or temporarygenerators or treatmentplants elsewherecommunity perceptions• Competition for generators andwater treatment may limit rates ofcertain construction activitiesprepositioned contract activities• Identify gaps in existing capacityCraft training • Skills, constructionsafety, and process safetytraining focused on laborforce are intended toserve programs needs• Consistent safety cultureacross program reinforcessafety• Training expanded to includeincreased awareness of hazardsassociated with prior destructionand any ongoing risk conditions• Multiple client and contractorstructures without strong programcontrol undermine efforts to buildsafety culture• Local labor force may movebetween contractors morefrequently, diminishing the• Develop post-disaster craft trainingprogram template for likelypost-disaster conditions to beencountered• Emergency authorities to include amandate for safety
  30. 30. Prieto Intersection of Engineering 03 27 13.docx -30-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementtraining investment made by anyone contractor (no overallprogram focus)Small tools • Implement program-widesmall tools program tocontrol cost, reduce theft,and improve safety• Small tools program a requirementto address shortages and expandedworkforce• Prepositioned contractor should havean in-place, small tools capability tofoster response and reconstructionactivitiesVehicle safety • Driver certification andsafe driving program• Reduced accidentssupport increasedlogistics availability• Difficulties may be encountered indriver certification and training,given competition for limitedsupply• Strengthened driver inspectionprogram as part of materials receiptprocessHuman remains • Not typically encountered • Protocols put in place and maycause partial site shutdown andreconfigured site or supply chainlogistics• Defined program for human remainrecovery, with clearly assignedresponsibilities and augmentation planfor large-scale eventsCommunication • Utilize regionalcommunication networks• Regional communicationnetworks may be unavailable or• Project Management Plan shouldidentify planned communication
  31. 31. Prieto Intersection of Engineering 03 27 13.docx -31-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementand supplement with site-based communications asneededdegraded, impacting efficiency ofsupply chain operationsstrategy and contractorprovided-capabilities (Example: Sat-Phone)In-countrylogisticalinstitutionalinfrastructure• Policies defined:− Imports and duties− Weight limits− Packaging requirements− Rules of origin− Requireddocumentation− Typical approvaltimeframes• Agency roles understood(even if inefficient)• Institutional frameworks may beinappropriate for post-disasterresponse and rebuilding• Institutional frameworks formodification may be absent,contributing to logistical chainineffectiveness or uncertainty• Establish institutional frameworks forengineering, construction, andlogistical response activities and thespecialized issues associated withreconstruction• Clearly identify variance from normalprocesses and authoritiesSite transport • Typically bus transportfrom site gate orconstruction camp• Local transport may bedysfunctional• Travel times for critical specialty• Logistical plan should identifyextraordinary transportationcapabilities:
  32. 32. Prieto Intersection of Engineering 03 27 13.docx -32-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagement• Local transport, ifavailablelabor may necessitate increasedhelicopter operations− Heavy lift− River access− Heliport or potential landing sites invicinity of staging areas− Warehouse− Command centersCash flow • Positive cash flow orminimum working capitalneeds do not influencelogistical decision making• The need to bridge cashrequirements of subcontractorsmakes payment terms anincreasingly important selectionfactor in sourcing decisions• Prepositioned contracts should havenecessary payment mechanisms,invoicing requirements, and approvalmechanics thoroughly addressedAnticorruptionandtransparency• Required business process • Risks greatly increase, andmonitoring and surveillancebecome larger activities• May impact sources of supply,logistic routes, and ports of entry• May necessitate increased security• Strong transparency and anticorruptionrequirements in place and incorporatedinto all contracts
  33. 33. Prieto Intersection of Engineering 03 27 13.docx -33-Table 5. Logistics Affecting Engineering and Construction ActivitiesLogistics-AffectingActivitiesGlobal Scale CAPEXProgram - LeveragedExecution andProcurement Post-Disaster ReconstructionRecommendations for Post-DisasterManagementin logistics chainStakeholderengagement• Keep stakeholdersinformed in advance oflogistics activitiesimpacting local orregional transportationnetworks• Changed stakeholder groups,priorities, and communicationdifficulties impact the effectivecommunication of planned logisticactivities that affect local andregional networks• Stakeholder impacts may beexacerbated by difficulties instakeholder engagement• Communication plans, focused on bothresponse and reconstruction activities,developed in advanceChangemanagement• Critical activity forefficient supply chainoperations• Impacts of change magnified inlogistics chain post disaster• Responsibility and timely decisionprocesses incorporated into ProjectManagement Plan and institutionalframeworks for post-disasteroperations

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