Coghlin Perspective v1i2

2 COGHLIN PERSPECTIVE

MESSAGE FROM THE PRESIDENT

COGHLIN PERSPECTIVE 3

This issue is dedicated to a man who has invested 46 years in ourcompany. His is the story of success and climbing the ladder. Leo startedworking at Coghlin’s as a truck driver and rose to the ranks of VicePresident and Chief Estimator. His dedication to whatever job he hadshowed passion and an intrigue for learning. What more could acompany hope for? Congratulations and thank you to Leo McCaffrey for

his many years of important work for Coghlin’s.

The economy is impacting our company and the region—thankfully the diversity ofour services will ease the pain. In particular, in 2009 we saw significant growth in ourData Center practice and project double digit growth again in 2010.

As we look ahead I am constantly reminded that our business is about skilled and motivatedpeople, like Leo. I am impressed that we continue to have this caliber of person working forour company.

Susan M. Mailman

A publication from:

Coghlin Electrical Contractors, Inc.100 Prescott StreetWorcester, MA 01605508.793.0300 • 508.793.0303 Faxwww.coghlin.com

Susan MailmanPresident

Dick SabataloSafety

Leo McCaffreyExecutive Vice President

Kevin HennessyChief Estimator

Matthew LoganBusiness Development

Christine KellyVice President & General Manager

Brian LewisDirector Project Management

Stephen WentzellChief Financial Officer

On the Cover:

Bristol-Myers Squibb’snew manufacturingfacility was Coghlin’slargest projectof 2009. Photo credit:Stephanie Caputo

VOLUME 1 • ISSUE 2

Coghlin Perspective is a resource for industrial end users,property managers, building owners and operators, facilitiesmanagers, general contractors, architects, consulting engi-neers, as well as potential and existing clients of CoghlinElectrical Contractors, Inc. and Coghlin Network Services, Inc.Designed to feature topics affecting the electrical and con-struction industries. Coghlin Perspective also highlights CEC& CNS achievements and capabilities.

Coghlin Perspective is published by Oser-Bentley CustomPublishers, LLC, a division of Oser Communications Group,Inc., 1877 N. Kolb Road, Tucson, AZ 85715. Phone (972) 687-9035 or (520) 721-1300, fax (520) 721-6300, www.oser.com.Oser-Bentley Custom Publishers, LLC specializes in creatingand publishing custom magazines. Inquiries: Tina Bentley,[email protected]. Editorial comments: Karrie Welborn,[email protected]. Please call or fax for a new subscrip-tion, change of address, or single copy. This publication maynot be reproduced in part or in whole without the express writ-ten permission of Oser-Bentley Custom Publishers, LLC. Toadvertise in an upcoming issue of this publication, pleasecontact us at (972) 687-9035 or (520) 721-1300 or visit uson the Web at www.oser-bentley.com. September 2009

IN THIS ISSUE

Large Project TakesCareful CoordinationBristol-Myers Squibb .................................................... 4

APC White Paper #6Determining the total cost of ownership for datacenter and network room infrastructure................... 8

Teamwork Leads To Project’s SuccessBrian Lewis and Steve Lanney ...................................12

LEO MCCAFFREY“In closing out my 46-year career with Coghlin Electrical Contractors I canonly say that I could not have been associated with a finer group of fellowemployees or a better company. I wish to thank the Coghlin family for all theopportunities that have been afforded to me and my family.”

COVER FEATURE


When Bristol-Myers Squibb choseDevens, Mass. as the location forits new $750 million biologicmanufacturing facility, CoghlinElectrical Contractors was a naturalchoice to perform the electrical andtelecommunications work due to its

outstanding reputation and more than100 years of experience.

Bristol-Myers Squibb is a leadingglobal biopharmaceutical companyfounded in 1858. The new facility willproduce Orencia, a biologic therapy forrheumatoid arthritis as well as other

biologics in development. The firstproject phase includes four mainbuildings—a manufacturing facility,a central utility building, anadministrative/quality control buildingand a warehouse. Bristol-Myers hopesthe administration and manufacturing

Large Project TakesCareful CoordinationBristol-Myers Squibb

COVER FEATURE


facilities will be approved as LEED-certified. LEED, Leadership in Energyand Environmental Design, wasestablished by the U.S. Green BuildingCouncil and serves as the benchmarkfor the design and construction ofsustainable building projects.

The project was led by joint ventureConstruction Managers Skanska andParsons. It was Coghlin’s largest projectof the year with two contracts—one forthe electrical work and another fortelecommunications. The electricalcontract was valued at $16.5 millionand the telecommunications contractwas valued at $3.5 million. Coghlin’swork on the project began in March2008 and finished in August 2009.

The project was designed using theSmartPlant Navisworks Program,giving all of the MEP trades adesignated space within the designto locate all of their respectiveutilities. However, a challenge withthe software program was that it didnot take into consideration thenecessary support hardware or theconstruction sequence and schedule.After Coghlin joined the jobsite, theyraised their concerns about theelectrical services installation at aweekly coordination meeting. SaidExecutive Vice President LeoMcCaffrey, “What worked in regardsto the mechanical coordination effortwas Coghlin’s ability to identifyimpacts affecting our installation ofwork early on in the construction ofthe project, due to the prematureinstallation of major duct work by themechanical contractor.”

The project was redesigned on boththe electrical and telecommunicationsends by Coghlin engineers WayneDeslauriers and Joe Puglisi andCoghlin designers Pedro Burgos andMike Smith. Smith, Lead CADOperator, said trade contractors “bringa hands-on view to what can and

cannot be done in a field condition toget the job completed.” After theredesign, the trade contractors onlyhad to be concerned with being in theright place at the right time.

Smith explained that the SmartPlantsystem eased the burden on thetrade contractors. Usually, a building isengineered and drawn diagram-

matically and MEP trades must meetand place all of the utilities as requiredto fit in the building. With SmartPlant,the contractors met biweekly to discussthe construction schedule and whichareas of the building individual tradeswould work in order to maintain theschedule. Coordination between tradeswas primarily kept to small conduit


COVER FEATURE

and piping not shown in the model,said Smith.

A project this size often createsdifficulty in coordinating among thecontractors, but regular meetings andthe accessibility of the contractorshelped ease communications forthe entire project team. A positiverelationship with the ParsonsElectrical Project Manager alsoeased communications. “Our assignedcontact was open to change, and wasvery pleased with the professional levelof the Coghlin team,” said McCaffrey.In order to stay in contact and keep theproject on track, the entire teamcommunicated via Nextel, e-mail andweekly meetings. Project Manager forTelecommunications, Andy Anderson,said coordination was made easier forCoghlin by having Project Engineer JoePuglisi on-site, full-time.

Internally, Coghlin ensured success-ful coordination among team membersthrough constant communicationbetween the office staff and the workforce. Meetings held several times aweek established goals and priorities forthe direction of the project. SaidElectrical Foreman Chris Chianese,“The overall success of the project canonly be attributed to the team. I can’tsay enough about the people I waslucky enough to have worked with onthis project. They are all stars as far asI’m concerned.”

McCaffrey agreed that the successof the Bristol-Myers project couldbe attributed to the members ofthe Coghlin team. “Their dedicationand vast experience in electricalconstruction is what made this asuccessful job, and delivered ahigh-quality electrical installation toour customer.”

Overcoming challenges throughcareful coordination enabled Coghlinto help deliver a state-of-the-art facilityfor Bristol-Myers Squibb. ◆


LEEDing the WayGreen, energy efficient, sustainable are the words on the tip of everyone’s tonguethese days. However, what does it truly mean to build green? The U. S. GreenBuilding Council has developed a certification system for commercial andresidential construction. The system provides measurable standards for owners andbuilders to use and meet in order to ensure a truly green build.

The LEED certification system measures the following areas of construction:• sustainable sites• water efficiency• energy and atmosphere• materials and resources• indoor environmental quality• locations and linkages• awareness and education• innovation in design• regional priority

The USGBC updated the LEED rating system in April 2009 toincorporate harmonization between commercial and institutionalrating systems, credit weightings and recognize regionally sensitivebuilds. The updated LEED system better meets the demands oftoday’s owners, builders and an environmentally-conscious society.

The demand for energy efficient and sustainable buildings is onlyexpected to increase in the coming years. The green buildingmarket is expected to double by the year 2013 and the USGBC’smembership has quadrupled since the year 2000. Green buildingoffers environmental, economic and community benefits byconserving resources, reducing costs, enhancing value,improving overall quality of life and more.

Coghlin congratulates Wayne Deslauriers on becominga LEED Accredited Professional in 2009! ◆

Information compiled from the U.S. Green Building Council.

LEED

DETERMINING TCO


EXECUTIVE SUMMARYAn improved method for measuringTotal Cost of Ownership of datacenter and network room physicalinfrastructure and relating these coststo the overall Information Technologyinfrastructure is described, withexamples. The cost drivers of TCOare quantified. The largest cost driveris shown to be unnecessary unabsorbed

costs resulting from the oversizing ofthe infrastructure.

INTRODUCTIONPredicting and measuring Total Cost ofOwnership (TCO) for the physicalinfrastructure for network rooms anddata centers is required for Return-on-investment analysis and other businessdecision processes. In addition, an

understanding of the cost driversof TCO provides insight intoopportunities to control costs.

Many users are surprised when theyconsider that the TCO for physicalinfrastructure may be comparable to orlarger than the TCO of the supportedInformation Technology equipment.

In this paper, a method fordetermining TCO of physical data

APC White Paper #6Determining Total Cost of Ownership for Data Center and Network Room Infrastructure

DETERMINING TCO


center and network room infrastructurewill be described. In this context, thephysical infrastructure means all of thefacility equipment needed to providepower, cooling, and physical protectionof IT equipment, but not the ITequipment itself.

There are no recognized standards formeasuring the TCO of the physicalinfrastructure of data centers.

Simple methods of summing variouscapital and operating expense items doprovide insight into total cash outlay,but they do not account for theutilization of the equipment.

Consider the case of two data centers,each 100kW capacity and builtidentically; in one case the data centeris fully utilized to 100% of the spaceand power capability; and in theother case the data center has only asingle rack with 2kW of InformationTechnology equipment. While the cashcost of operating these two facilitiesover their lifetime is comparable, theuseful return on that investment istotally different. In the totally utilizedcase, the TCO of the data centeris spread over a large amount ofInformation Technology equipment

providing useful services. In thelightly utilized case, the entire burdenof the expense of the physicaldata center infrastructure must beborne by the single rack. When TCOof physical data center or networkroom infrastructure is measured fromthe point of view of the useful workperformed, namely how much ITequipment is supported, underutilizationcan drive extraordinary cost.

This paper will show that when TCOis viewed from the point of view of theuseful work performed, the single largestcost driver of TCO for data center andnetwork room physical infrastructure isthe unabsorbed overhead cost ofunderutilized infrastructure. The highestreturn investment that the average datacenter operator or specifier can make inrelation to physical infrastructure is inrightsizing. The practical and feasiblefinancial return from a rightsizingstrategy is quantified.

RELATING TCO TO THEUSEFUL WORK PERFORMEDMost attempts to quantify TCO end upexpressing TCO per data center, persquare foot of data center, or per kW of

data center. These metrics are notuseful when considering the usefulwork performed, and are unhelpfulto Information Technology staff indetermining project ROI. They don’t atall help an individual attempting todetermine the TCO associated with thedeployment of a new IT application inan existing data center or networkroom environment.

One measure of physical infra-structure, which is commonlyunderstood by both facility and ITpersonnel, is the rack itself. The power,cooling, and area requirements of a rackare reasonably well standardized from afacilities standpoint. The amount of ITfunctionality and equipment that can fitin a rack is reasonably well understoodfrom an IT standpoint. This has lead tothe concept of expressing facilityinfrastructure in terms of “Racks” or“Rack Units”, which is now beginningto gain wide acceptance.1

For this purpose, the term “rack”refers to an open frame rack or rackenclosure, and it also refers toproprietary cabinets such as mainframecomputers and large disk systems.

Research shows that the typical datacenter is only utilized to 30% of itscapacity. While some data centers areutilized to 90% or more of capacity,there are similar numbers utilized toonly 10% of capacity. Furthermore, theutilization of a data center varies duringits lifetime according to a relative-ly consistent pattern. Fraction ofutilization, and its variation with time,is an important input into a TCOmodel. In this paper, the typical modelof Figure 1 is used. For a more completediscussion of this topic, consult APCWhite Paper #37, “Avoiding Costs fromOversizing Data Center and NetworkRoom Infrastructure.”

When TCO is expressed in a per-rackbasis, the total cost of the data centeror network room is allocated across theFigure 1 — Utilization fraction of data center power infrastructure over lifetime


DETERMINING TCO

utilized racks. In this way, nounallocated overhead costs are created,and costs associated with data center ornetwork room physical infrastructurecan be more accurately and directlyrelated to the IT infrastructure.

TYPICAL TCO EXAMPLETo determine TCO and express it on aper-rack basis requires a significantamount of data, including capital,engineering, installation, and operatingcost data for the various elementsof physical data center or networkroom infrastructure, as well as design-related parameters such as square feetper rack, watts per rack, utilizationschedule, expected lifetime, redundancyoptions, etc.

For the data presented in thesubsequent sections, TCO calculationswere performed using the APC TCOCalculator software application, whichis developed and maintained by theAvailability Science Center of APC2.www.apcc.com/tools/isx/tco. The TCOCalculator was set up to use averagecosts for capital equipment, installation,engineering, and operating costs. Theresults presented reflect values based onindustry and site averages. Utilization

data is assumed to exhibit the profile ofthe previous Figure 1.

To determine TCO data for a typicaldata center, the typical data center wasdefined to be one exhibiting thefollowing characteristics:

• Power rating: 100KW• Power density: 50W/sq ft• Life Cycle: 10 years• Average rack power: 1500W• Redundancy: 2N

Tests confirm that changing theseparameters over typical ranges does notmaterially affect the results orconclusions of this paper.

FINDINGSThe Total Cost of Ownership of a rackin a data center is approximately $120Kover the data center lifetime. In manycases, this cost is comparable to the costof IT equipment that a rack is likely tocontain over the data center lifetime.Approximately half of the lifetime perrack TCO of $120K is capital expense,and half is operating expense. Thesecosts break down into categories asshown in Figure 2.

A review of the breakdown of TCOcost components provides insights into

opportunities to control or reduce costsin various areas.

OPPORTUNITIES TO CONTROL TCO

A variety of strategies to controllifetime Total Cost of Ownership areapparent. These include efficiencyimprovement, improved planning,rightsizing the system, negotiatingcosts, self service, etc. Using the TCOcalculator, it is possible to examine theeffect that various scenarios have onTCO, in order to identify fruitful areasfor investigation and investment. Theper rack TCO savings for a typical 2Ndata center or network room resultingfrom a variety of scenarios aresummarized below:

The savings in the table are per rack;therefore the savings for any size datacenter or network room can bedetermined by multiplying by thenumber of racks. Note that in each casesubstantial savings are possible whencompared with a typical legacy design,but the feasibility of obtaining thebenefits is uncertain.

Rightsizing of the system providesthe largest potential benefit among theabove scenarios. This is due to theoversizing effect described earlierand summarized in the previousFigure 1. Large savings are obtainedby rightsizing because A) data center ornetwork room infrastructure that isnever needed is never deployed, andB) data center or network roominfrastructure that is needed is notbuilt out until it is needed.

PRACTICAL BENEFITS OF RIGHTSIZINGA deployment strategy that couldprevent oversizing was shown in theprevious section to offer the potential ofreducing the cost of infrastructure by60%. Ideal data center or networkroom architecture would be “rightsized”Figure 2 — Breakdown of TCO cost components for a typical rack in a high availability 2N data center


DETERMINING TCO

and only incur the infrastructure coststhat are actually required at a giventime. To achieve the theoreticallyavailable cost savings, the ideal datacenter or network room architecturewould only have the power and coolinginfrastructure needed at the moment; itwould only take the space that it neededat the moment, and it would only incurservice costs on capital infrastructurecapacity that was actually being used. Itwould be perfectly scalable. While suchan ideal architecture is not currentlyfeasible, it is practical and cost effectiveto consider an approach to data centerand network room deployment that isscalable and modular in order to obtaina significant fraction of the cost savingsavailable by rightsizing.

With technology available today,many components of a data center andnetwork room, such as UPS, powerdistribution, and air conditioning, canbe deployed in a modular and scalablemethod. One example of such ascalable architecture is the InfraStruXurearchitecture from APC Corp. Whensuch components are deployed over timeto match the actual requirement, costsavings are realized not only for theequipment itself, but also for servicecontracts and electricity. There are manycontributors to the total cost of a datacenter that are difficult to scale withtime and are typically incurred up-front,such as facility space improvements,facility switchgear, and engineeringcosts. When the modular, scalabletechnology is used to the extent whichis currently practical, the TCOCalculator estimates that approximately50% of the theoretical savings fromrightsizing can be obtained. This resultis show in Figure 3.

The savings in the “practical scalable”example in Figure 3 do not reachthe theoretical or “perfectly scalable”level because no practical scalabletechnology yet exists to allow certain

data center components like firesuppression, raised floor, facility space,or switchgear, to be deployed in amodular scalable fashion. Furthermore,some components like UPS cannot beminimally deployed to exactly matchthe load requirement, but must bedeployed in steps incorporating a safetymargin. Nevertheless, a very significantsavings in lifetime TCO are practical.

65% of the savings of the “practicalscalable” example of Figure 3 werecapital expense reductions, and 35%were operating expense reductions. Thecash-flow requirement is reduced everyyear by using the scalable approach, withthe largest savings in year 1. Over 90%of capital is typically spent in year 1using legacy design approaches, yet thisis when the utilization of the facilitymay be lowest and the knowledgeregarding future requirements is poor.This can make the investment difficultto justify based on ROI.

The savings obtained in aspecific situation will vary based onassumptions and constraints of theparticular project; for a more exactestimate the TCO Calculator should berun with site-specific inputs.

CONCLUSIONSExpressing TCO for data center andnetwork room physical infrastructure ona per-rack basis normalizes themeasurement of TCO, providing ametric that can be used to compare datacenters / network rooms and to comparedifferent approaches to design.

The use of a TCO calculation tooland method was described. This toolpermits the evaluation of cost controlstrategies, and can estimate TCO forspecific installations.

The per rack lifetime TCO of a highavailability data center is approximately$120K. The oversizing of infrastructureis a major contributor to this cost, andon average 30% cost savings can beobtained by implementing practicaldesign techniques using modularscalable data center infrastructure.

1 Snevely, R., Enterprise Data CenterDesign and Methodology, Palo Alto:Prentice Hall PTR, 2002, p. 35.

2 Contact the Availability ScienceCenter [email protected] for moreinformation on applying the TCOCalculator to specific applications

Reprinted with permission from AmericanPower Conversion.

Figure 3 — Per Rack Lifetime Cost for Three Types of Data Center and Network Room Infrastructure Types


EMPLOYEE SPOTLIGHT

Teamwork Leads To Project’s SuccessBrian Lewis, Senior Project Manager andSteve Lanney, General ForemanWhen there are multiple people workingon a project, teamwork, communicationand collaboration are key to maintainingthe project’s success. That’s how Coghlin’sBrian Lewis and Steve Lanney created

success at the Blackstone WastewaterTreatment Facility.

Both Lewis and Lanney have workedwith Coghlin since 1992, and for the lastfive years, the two have worked together

on the wastewater treatment facility.The Blackstone project involved theinstallation of new buildings and tanksand retrofitting existing buildings andtanks. Coghlin was also responsible for

Pictured: (left) Project Manager Brian Lewis & (right) Site Foreman Steve Lanney


EMPLOYEE SPOTLIGHT

materials. Lewis and Lanney also builtan installation matrix together, depictingarea classifications with NEMA ratingsfor raceways, fittings, hardware,boxes and supports for each specificarea/structure of the project.

“Brian supplies me with what I needand vice versa,” Lanney said. “I takecare of stuff that has to be done in thefield so he doesn’t have to worry aboutit. And if there’s a problem, he’ll dealwith it for you.”

The extensive underground duct bankwork that needed to be completed is aclear example of how importantcommunication can be. Full access tothe CAD department was provided to

Lanney and he utilized it to create 3-Dmodels of duct banks. This helped himenvision what was going to be requiredto layout the 15kV distribution systemfor the Blackstone project. Thecoordination between Lewis and Lanneywas vital due to the need to coordinatethe purchasing and scheduling of thematerials and tools necessary for theduct bank installation.

“We can talk to each other aboutanything on the job that comes up. Wedon’t hold back about what we need orwhat needs to be done,” Lanney said.Clear communication between the two

was necessary in order for them toeffectively communicate with the fieldteam, vendors and other contractors.Being proactive enabled Coghlin toalways have materials readily availableand to stay ahead of the constructionwithout downtime.

This team relationship also influencedthe work and morale of the employees inthe field. “Guys generally like to do agood job and not have to worry aboutneeding something to do and wherematerial is,” Lanney explained. “Mostpeople like to accomplish something atthe end of the day and if you give themwhat they need, they can feel like they’veaccomplished something.”

Lewis said Lanney always made sure thefield team was able to work. “Steve’s goodwith having a backup plan. It’s an outdoorsite and there’s need for a plan B in case ofweather or other trades, such asexcavation. As an electrical contractor yourely on other trades to complete theirwork. If a Coghlin crew was impacted, heknew when and where to move the crew.He understood the flow of construction.”

At the end of the day, Lewis and Lanneyaccomplish more than just a qualityinstallation. They encourage a productivefield team, a safe jobsite and a positivework environment. ◆

Both men agree that the way to maintain a positive working

relationship and the project’s success is open communication.

upgrading the 15kV distribution system.Four old sub-stations were removedand six new sub-stations were added.Currently, Lewis and Lanney are guidingthe project through its second phase.

Lewis’ role as Senior Project Manageris to lead Coghlin’s part of the installationfrom an administrative point of view—contracts, procurement, scheduling,correspondence and logistics. Lanney,General Foreman, oversees the technicalinstallation, manpower, site safety andassists in the organization of materials,time and paperwork.

“It’s a horizontal position where each ofus work together to complete theproject,” said Lewis. “Steve runs the fieldand I run the administrative and officepositions and we work diligently togetherto make sure everything is covered.”

Both men agree that the wayto maintain a positive workingrelationship and the project’s success isopen communication. “I think it’sunderstanding that it’s not going to getdone without communication,” Lewissaid, “and so we start at the verybeginning with the estimate downloadand with the understanding of whatsystems and materials require criticalpath scheduling.”

Early on in the project, Lewis madesure that Lanney was involved withsuppliers, that meetings occurred earlyand often and that Lanney was receivinginformation concerning the project and


ADVERTISER DIRECTORY

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Coghlin Electrical Contractors, Inc.100 Prescott StreetWorcester, MA 01605

Documents

Coghlin Perspective v1i2