Credentials Report 2010 Final

Credentials“Over 30 Years of Experience with 150 Companies”

F a c i l i t y S e r v i c e s P a r t n e r s , I n c .Managing Partner’s Accomplishments

IntroductionPart I General Cost Avoidance

Construction ProjectsLandscapingTentant Improvement ConstructionCost Reduction – Poisonous Gas SystemConsolidation and Centralization of Corporate Facilities Information

Part II Energy Savings

CogenerationLighting RetrofitLighting Control SystemsEnergy Management SystemHVAC ChillersLighting ControlEnergy Consumption – HVACEnergy Savings – Laboratory Fume HoodsHeat RecoverySteam Trap SavingsChilled Water Production and DistributionWarehouse LightingWalls, Floor and Electrical Wiring System Savings

Fa c i l i t y S e r v i c e s Pa r t n e r s, I n c .

Part III Labor Optimization

Personnel Optimization UtilizationOptimization of Multiple Site LaborShift DesignProcess Improvement

Part IV Human Resources

Manage Risk of UnionizationIntegrating and Aligning Performance with Pay and Work MeasurementHuman Resource PlanningPersonnel OrganizationValue Assessed Training and Development

“Over 30 Years of Experience with 150 Companies”

Part V Cultural Changes

Savings from Home OfficingOffice and Furniture Standards

Part VI New Technology Implementation

New Technology Implementation

Part VII Subcontract and Procurement Management

ProcurementContactor Vendor PerformanceContractor and Supplier ConsolidationProcess GasCustodial ContractingNatural Gas


Part VIII Capital Asset Management and Optimization

Working for Multiple Customers within the Client OrganizationCapital FundingFacility Asset Optimization

Part IX Finance and Administration

Facilities BudgetingInternal Rent Charge Back Process

Part X Quality Programs

Performance MeasurementQuality Management – ISO 9000 ProgramTracking Information for ISO-9000 ComplianceCustomer SatisfactionMalcolm Baldrige FocusSix Sigma Focus


Facility Services Partners, Inc.Managing Partner’s Accomplishments

INTROduCTIONThe Managing Partners at Facility Services Partners have hadexecutive management responsibility to oversee multiple client siteswith large corporate service providers. Here are some of their majoraccomplishments with clients past and present.


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PART I GENERAL COST AVOIDANCE

CONSTRuCTION PROjECTS

Client: IBM, San jose CA and IBM Research CenterClassification: Electronics and ComputersSize: 36 buildings comprising 6,000,000 square feet

IBM Almaden Research CenterThe client used traditional separation between engineering design and the construction process.By implementing Design/Build as one process, contracts were awarded to one company to do bothdesign and build. Savings were hard to quantify, but a savings of at least 10% was achievedthrough the Design/Build Process. At the annual level of $2.6 million in construction for this client,annual savings were estimated at $260K.

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IBM Almaden Research Center


LANdSCAPING

Client: TRW (Now Northrop Grumann), San diego CAClassification: Military Avionics ResearchSize: 325,000 Square Ft.

TRW (Now Northrop Grumann), San Diego, CASignificantly reduced landscaping costs by introducing wildflowers to replace wide expanses ofgrass and weed areas. Savings in landscaping and irrigation amounted to $32,000 per year.

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TRW (Now Northrop Grumann), San diego CA


TENANT IMPROVEMENT CONSTRuCTION

Client: Mcdonnell douglas (Now Boeing), San diego CAClassification: AerospaceSize: 220,000 square feet

Client: TRW (Now Northrop Grumann), San diego CAClassification: Military Avionics ResearchSize: 325,000 Square Ft.

McDonnell Douglas (Now Boeing), San Diego andTRW (Now Northrop Grumann), San Diego, CAImplemented a supporting construction office for a large maintenance site to do retrofits andsmall capital work while providing services to other clients in the immediate office to defrayoverhead costs. Annual savings were over $126,000 to the client thereby reducing the constructionsupport costs for these services.

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Mcdonnell douglas (Now Boeing), San diego CA


COST REduCTION - POISONOuS GAS SySTEM

Client: Lam Research Corporation, Fremont CAClassification: Manufacturer of Equipment to Produce Computer ComponentsSize: 750,000 campus (5 buildings)

Lam Research Corporation, Fremont CAResearched and provided a more cost effective hazard alarm system for potential release ofpoisonous gases created during the manufacturing process. This resulted in a reduction ofpoisonous gas control technicians at the site saving $180,000 per year.

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Lam Research Corporation, Fremont CA


CONSOLIdATION ANd CENTRALIzATION OF CORPORATE FACILITIES INFORMATION

Client: Washington Mutual (Now Chase)Classification: BankSize: 1,300 Branch Banks, 3 administrative centers, 1 headquarters (11 million sq ft.)

Washington Mutual Headquarters, Seattle Washington (Now Chase)Facility information was scattered throughout the facility management organization and was notreadily accessible. Some facility related information resided within the client’s business operatingunits. A significant amount of information was not written down, “tribal knowledge”. This placedthe client in a risky and vulnerable position if such information was lost or not readily available.Through the use of our customized database residing offsite and along with a remote call center,standardized information was collected, backed-up and readily available. This resulted in improvedeffectiveness, responsiveness, and quality of operations.

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Washington Mutual Headquarters, Seattle Washington (Now Chase)


PART II ENERGY SAVINGS

COGENERATION

Client: TRW (Now Northrop Grumann, San diego, CAClassification: Military Avionics ResearchSize: 325,000 Square Ft

Northrop Grumann formerly TRW, Rancho Bernardo CAOperated a central cogeneration plant that also included underground water-cooling tanks. Thecost per kilowatt-hour produced was lower than any cogeneration facility in the Southern Californiaregion for a number of years. Annual savings for this 350,000 square feet facility averaged$250,000 per year.

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Northrop Grumannformerly TRW, Rancho Bernardo CA


LIGHTING RETROFIT


Lam Research Corporation, Fremont CAProvided a major lighting retrofit of the site (700,000 square ft.) resulting in $200,000 in annualelectricity savings.

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Lam Research Corporation


LIGHTING CONTROL SySTEMS

Client: Hewlett Packard Headquarters, Pal Alto, Hewlett Packard Office Center,Cupertino, California, Hewlett Packard Storage Facility, San jose.

Classification: Electronics, Computers, and PrintersSize: 13 buildings comprising 2,100,000 square feet.

ENERGy MANAGEMENT SySTEMS

Hewlett Packard’s Headquarters, Palo Alto CAThere were no lighting control systems in place on the client campus. Lights were shut downmanually when not in use. We implemented a digital lighting control system in the offices toensure that lights were always turned off during non-occupied hours. Critical emergency lightingremained on and reset switches overrided shutdown of lighting when required. Lighting controlsprovided consistent reduction in annual lighting runtime leading to a reduction in lighting energyconsumption of $96,000.

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Hewlett Packard’s Headquarters, Palo Alto CA


ENERGy MANAGEMENT SySTEMS

Client: duPont Nemours Headquarters and Surrounding Facilities, Wilmington, delaware.Classification: ChemicalsSize: 9 million square feet

DuPont Nemours, Wilmington DelawareOffice and common areas were primarily heated, cooled, and ventilated by many packaged rooftopHVAC units as many of these buildings were over 40 years old. These units were independentlycontrolled through thermostats located in the spaces they served. Units were turned on and offindependently via dedicated time clocks. An energy management system (EMS) was installed tocontrol rooftop units serving office and common areas. The EMS provided more consistentintegrated control than what could be obtained via independent systems. Annual energy savingswere $1,300,000 per year.

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duPont Nemours, Wilmington delaware


HVAC CHILLERS

Client: IBM, Tucson, ArizonaClassification: Electronics and ComputersSize: 2,700,000 square feet.

IBM, Tucson ArizonaChillers existed in three buildings that provided both process and HVAC cooling to those facilities.Energy balance calculations indicated that these chillers consumed approximately 19% of allelectricity used on the client’s campus. These chillers were less than optimally efficient with respectto commercially available chillers at that time. Air-cooled chillers in the building were replacedwith new units with improved efficiencies of per ton cooling provided. Chillers in buildings werereplaced in other buildings with highly efficient variable speed compressor chillers. Modernvariable speed compressor chillers provide an increase in efficiency when at full-load, but theirtrue value was evident at part-load conditions. Chillers normally operate at part-load whereasconstant speed chillers experience degradation of efficiency. Net present value energy savingswere $1, 800,000 over a six year period.

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IBM, Tucson Arizona


LIGHTING CONTROL

Client: IBM, Austin TXClassification: Computers and ElectronicsSize: 1,700,000 square feet.

IBM, Austin TexasAt the client site, lighting accounted for over 25% of all electrical use within office spaces andapproximately 12% for all spaces reviewed. Site wide retrofits to electronic ballasts and highefficiency lamps placed the client buildings to best practice levels for lighting density. While energyefficient lighting was used throughout the campuses, operational run time was something thatcould be improved upon. Lighting control was recommended as an energy conservation measure.Many buildings had spaces where lights were left on when areas were not occupied. For theseareas, automatic occupancy sensor lighting control systems were installed. These control deviceswere either wall switch replacements or ceiling-mounted sensors. Energy savings resulted fromlimiting the length of operation of light fixtures.

For areas such as lobbies, entrances, hallways, exterior facade lighting, and landscape lightingwhere fixtures need to operate on a regular schedule for safety, security, aesthetics, or to facilitatecommerce, time clock or day lighting controls were recommended. Time clock controls wereinstalled in areas where slow starting lighting were used. Energy management systems wereinstalled to function as time clocks, but with additional capabilities. Typical savings wereapproximately 15% to 50% of existing light fixture energy use, depending on operating scheduleand the layout of the fixtures controlled.

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IBM, Austin Texas


IBM, Austin Texas (continued)

Occupancy sensor controls enable light fixtures when an occupant was detected. Fixtures wereautomatically turned off after the area has been vacant for a preset period. The best places toinstall these controls were typically offices, conference rooms, classrooms, and utility spaces.Sensors were generally not recommended for areas where sudden switching of lights may behazardous to occupants (such as stairwells), for HID fixtures (because of slow startingcharacteristics), or in areas where lighting was seldom used.

Energy management systems afford flexibility in control and provide users with a means to override“OFF” conditions when required. EMS control was recommended for locations with regular butvariable schedules, areas where users require local overrides, and areas where scheduled half-level lighting may be appropriate. With the addition of photo sensors, an EMS was configured toprovide lighting control in response to available daylight. The proper placement and periodic ad-justment of all automatic sensors were key components of the site’s success. During the com-missioning period, the location and calibration of each sensor was verified to ensure properoperation.

During the first year after installations, a savings of $402K was realized.

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IBM, Austin Texas


ENERGy CONSuMPTION HVAC

Client: duPont Nemours Headquarters and Surrounding Facilities, Wilmington,delaware.Classification: ChemicalsSize: 9 million square feet

DuPont Nemours Headquarters, Wilmington DelawareOffice HVAC and Lab ventilation accounted for approximately 47% of total electrical consumptionof this client. General HVAC needs were met through a wide variety of equipment and controls,indicative of multiple generations of construction and equipment change outs. Cooling supplyvaried from site to site; including heat pump and DX cooling (BMP), as well as chilled water supplygenerated by both absorption (ESL) and centrifugal chilling (ESL, WOB).

The Client’s facilities took the step from local, distributed HVAC control to campus–wide EnergyManagement Systems (EMS). The depth of penetration and level of control varied from site to site;there was also an ongoing effort to expand the presence of EMS control throughout the HVACsystems. The strategies deployed varied from simple time clock operations to space pre–coolingprograms.

The evolution from multiple energy management systems to a single, enterprise wide energymanagement was recommended and implemented. This step resulted in the establishment ofHVAC control best practices and an adaptive, dynamic control system. This in turn presented theopportunity for the leveraging of a predictable, controllable, aggregated load desired by utilitycompanies when negotiating energy supply contracts.

The implementation of a centralized system resulted in the net reduction of energy costs for thisclient of $1.3 million per year. PA

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duPont Nemours Headquarters, Wilmington delaware


ENERGy SAVINGS – LABORATORy FuME HOOdS

Client: duPont Nemours Headquarters and Surrounding Facilities, Wilmington,delaware.Classification: ChemicalsSize: 9 million square feet

DuPont Nemours Headquarters, Wilmington DelawareThis client had over 1,500 fume hoods of varying configurations and control technologies. Whilebest in class standards were in place governing face velocity and sash positioning, the fume hoodsand ventilation systems were of varying ages and conditions, reflecting 100 years of building andspace retrofitting.

Laboratory ventilation and fume hood controls were upgraded as laboratory space was changedout and retrofitted. While this activity continued, there was significant energy savings potentialremaining. An accelerated retrofit schedule was recommended and implemented. Off-shift hourswere used to implement controls upgrades in a non-obtrusive fashion. Priority was given to fumehoods needing minimal modifications.

Air valve technology for variable exhaust flow was implemented for those spaces served bymanifold exhaust systems. In those areas where individual fume hood exhaust ducting existed,improved sash position control was explored and made where feasible. Total annual savingsimplementing these recommendations resulted in a measured savings of $637,000 per year.

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HEAT RECOVERy

Client: Naval Air Station, jacksonvilleClassification: MilitarySize: 2,400,000 square feet

Naval Air Station, Jacksonville FLHeat from boiler exhaust was used for air and water pre-heat within the Client’s powerhouse.Exiting stack temperatures exceeding 500 Deg F (at times) indicated the potential for additionalheat recovery. Thermal analysis at the boiler house indicated a significant savings opportunity.

Potential candidates for this thermal energy included additional feed water preheat and fuel oilheating. Logistical issues included the placement and maintenance of heat recovery equipmentand distribution piping. The net present value savings from the implementation of thisrecommendation amounted to $655,000.

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Naval Air Station, jacksonville FL


STEAM TRAP SAVINGS

Client: Naval Air Station, Patuxent River, MarylandClassification: MilitarySize: 3,900,000 square feet.

Naval Air Station Patuxent River, MarylandCondensate removal was an integral and often neglected component of any steam distributionsystem. This issue was faced head on, employing a managed, multiple site trap maintenanceprogram, using the “Trap Man software” package. Scheduled testing and replacement wasperformed. The sites were also standardized to a single trapping technology for ease ofreplacement. As a result of this program, trap failure rate was reduced to be approximately 10%on an annual basis.

While technology standardization was important, there was an opportunity to reduce steam dueto misapplication of traps to specific condensate removal situations. Poorly applied trappingtechnologies resulted in repeated failure and excessive steam pass through in traps that wereconsidered to be operating properly.

A detailed evaluation of trapping applications and the addition of technology replacementsresulted in savings of $116,000 per year.

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Naval Air Station Patuxent River, Maryland


CHILLEd WATER PROduCTION ANd dISTRIBuTION

Client: Charleston Naval Weapons Station, Charleston SCClassification: MilitarySize: 2,700,000 square feet.

Charleston Naval Weapons Station, South CarolinaChilled water production and distribution was controlled via a centralized supervisory system inboth the Client building and at their Experimental Station Laboratory. The ability to provideautomated control in stages of chilled water production and distribution existed.

Two specific opportunities for the application of variable speed drives (VSD) were observed duringthe assessment of the Client facilities. These applications were monitored and modeled todetermine the viability of installation.

Chilled water flow at the Client site was controlled by means of control valves located within thedistribution system. These valves open and close to maintain a designated differential pressureacross the system. Energy savings through the installation of variable speed drives were obtainedby varying flow through speed control as opposed to variable “friction” and by eliminating theunnecessary minimum pressure drop associated the control valves.

The tower fans located at the power plant were also a candidate for variable speed control. Thefiner level of control provided by variable speed drives allowed for fully automated control of towerstages, eliminating energy waste through less dynamic control.

Once variable speed control was achieved for these sites, a savings of $112,000 per year wasachieved.PA

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Charleston Naval Weapons Station, South Carolina


WAREHOuSE LIGHTING

Client: Hewlett Packard Warehouse and distribution Center, San joseClassification: Electronic and Computer EquipmentSize: 250,000 Square Feet

Hewlett Packard Warehouse and Distribution Center, San Jose CAThe warehouse on campus was illuminated with a mixture of quartz halide and T8 fluorescentfixtures. This warehouse was a “high-bay” type space. High-output T5 fixtures were installed toprovide similar light output levels with metal halide fixtures at a greatly reduced powerrequirement. High-output T5 fixtures possess slightly greater lumen per watt levels as comparedto T8 fixtures, but cannot be utilized in low-bay spaces because of their high light intensity levels.This technology was ideal for high-bay warehouse spaces. Uniform lighting using the T5 fixturesgenerated less heat and thus provided cooling savings. Annual energy savings using the new lightfixtures was approximately $87,000.

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Hewlett Packard Warehouse and distribution Center, San jose


WALLS, FLOORS ANd ELECTRICAL WIRING SySTEM SAVINGS

Client: Altavista, Palo Alto, CAClassification: Internet Search EngineSize: 350,000 square feet.

Altavista, Palo Alto CAThis company purchased three buildings and had the interiors gutted. We recommended that thecompany use moveable walls and a new form of electrical network that was easy to install andchange. Prior to the construction, the walled offices used by the client were primarily fixed wallsand all wiring was in the dry wall and the plenum areas above the ceiling. Changing out electricaland data cabling and hook-ups was costly with this arrangement. When walls had to be changedout, this necessitated the demolition, removal, and disposition of the wall material, which waspartially hazardous waste. For new space and space to be retrofitted the client, based on ourrecommendations, raised the floor 2 ½ inches to allow for interlocking prefabricated electricalwiring and cabling. This type of wiring was “plug and play” reducing construction costs by 75%.Soldering was not necessary. Where new hard walls were needed, removable and reusable wallswere used to significantly eliminate costly downstream tenant improvement costs and constructionhazardous waste. These measures eliminated rewiring electrical and cabling costs when tenantimprovement was needed. Removable walls have a more accelerated depreciation schedule andcan be reused at other locations. The ROI’s for areas requiring walled offices and heavy churn canbe significant. Though hard to measure, the targeted goal was a 20% reduction in the cost oftenant improvement for office space. Tenant changes could also be done quickly with these typesof walls and wiring. To do electrical or cable maintenance, carpet squares were removed and theplug and play changes would be made. The Client saved $1.2 million Net Present Value over a5-year horizon period.PA

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Altavista, Palo Alto CA


PART III LABOR OPTIMIZATION

PERSONNEL OPTIMIzATION uTILIzATION

Client: Birmingham Southern CollegeClassification: Higher EducationSize: 920,000 Square Feet

Birmingham Southern College, Birmingham ALAt this campus, a vigorous training and recruiting program was implemented to reduce the client’sreliance on high “per call” subcontractors. By transferring this work to a fully utilized full timeperson, we were able to significantly improve the skill levels of the employees to reduce this client’sreliance on subcontractors. Examples of scope areas that our company assumed with our “in house”staff included such areas as:

• Gas distribution systems• Fire alarm maintenance• Repair of the energy management system.• Boiler plants and steam systems – Major replacements• On line vending system• Automated doors• Laundry equipment• Compressor replacement• Blower retrofits• Drive assemblies for air handlers

Buy assuming these responsibilities from subcontractors, a savings of $266,000 was achieved inthe first year.PA

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Birmingham Southern College, Birmingham AL


OPTIMIzATION OF MuLTIPLE SITE LABOR

Client: Washington Mutual (Now Chase)Classification: BankSize: 1,300 Branch Banks, 3 administrative centers, 1 headquarters (11 million sq ft.)

Washington Mutual Headquarters, Seattle Washington (Now Chase)An operational strategy was implemented to optimize the cost of labor to provide maintenanceto over 1,300 branches located in 15 States in addition to administrative centers and the corporateheadquarters. To do this, work was dispatched to four different types of maintenance technicians.The first type of technician worked full-time at one site when there was enough work for afull-time position. These sites were large enough to provide enough maintenance work formultiple full-time technicians. The second type of technician worked on a “dedicated crew” thatwas assigned specific routes to service multiple client sites in a given territory or area. The thirdtype of crew were “non dedicated” crews that serviced different customers including the banksfacilities. These crews were dispatched to provide “demand or emergency” services when the firsttwo types were not available to do the work. The fourth type of service was provided from outside“niche subcontractors” to provide services when the first three types of technicians were notavailable or it was not feasible to use the first three types to provide services. This group was alsoused when specific skill sets or capabilities and equipment were needed. This type of maintenanceminimized the cost “per work order” for all types of maintenance work needed to be done. In thiscase, optimizing work order costs rather than the cost per hour resulted in savings of over $2.2million per year.

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Washington Mutual Headquarters, Seattle Washington (Now Chase)


SHIFT dESIGN

Client: Fluor Corporation Headquarters, Irvine CAClassification: Engineering, Maintenance and ConstructionSize: Headquarters Complex, 1,900,000 square feet

Fluor Daniel Headquarters, Irvine CABefore assuming facility management responsibilities at this site, all client services were singleshifted although many had call-out procedures to assure that emergency work was performed asrequired. The costs of single shifting included: schedule disruption to manage non-emergencyweekend requests that stacked up, sub-optimized maintenance services which need to be donein a non disruptive manner were inefficient, and unnecessarily high overtime charges. Additionalshifts have costs as well. Shift differentials were a good example. However, it was not clear thatthe full potential of alternative shift designs were analyzed and exploited.

Upon assumption of facilities management responsibility for this site, a review of shift structureswere immediately established with a view to making efficiency changes. Shifts were reviewedwithin the context of ensuring adequacy of coverage, customer satisfaction, and cost optimization.Customer feedback on the desirability of expanded service hours for relevant services was con-ducted. We speculated alternative approaches and analyzed additional costs and benefits for eachscenario. Where appropriate, we negotiated cost recovery approaches when higher customervalue was identified. Alternative shift approaches were implemented to capture value.

The appropriate application of off-hour availability resulted in higher customer satisfaction (leastdisruption to client work, for example), higher resource utilization, and eliminated overtime costs.Savings amounted to $180,000 per year.PA

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Fluor daniel Headquarters, Irvine CA


PROCESS IMPROVEMENT

Client: IBMClassification: Electronics and ComputersSize: 9 Sites totaling 24 million square feet.

IBMReduced facilities, construction, maintenance, shipping and receiving, construction andengineering staffing for IBM sites located in San Jose CA, Almaden CA, Morgan Hill CA, BoulderCO, Tucson AZ, Austin TX, Rochester MN, Research Triangle Park NC, and Charlotte, NC from 1,370facilities employees to 1,080 employees through work process improvement and the removal ofunnecessary approval requirements. Developed standardized and streamlined work processdocumentation among the 9 sites totaling 24 million square feet. Consolidated help desks at thelarger sites to one help desk. Savings in personnel reduction over a 3-year period resulted inannual savings of $23,200,000 per year. Reduced the number of approvals from the client toimplement construction projects. Changed the staff from specialized craft capabilities to highermultiple skill disciplines thereby significantly reducing subcontracting and eliminating workprocess fragmentation and compartmentalization. Reduced administrative overhead to managethis larger work force.

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IBM


Part IV. Human Resources

MANAGE RISk OF uNIONIzATION

Client: Intel Corporation, Colorado Springs CO and Rio Rancho, New MexicoClassification: Computer Chip ManufacturerSize: Two campuses comprising 2,400,000.

Intel, Rio Rancho New MexicoDecision-making regarding management action for this client that will impact employeesatisfaction, appear to be made out of a concern regarding the possibility of unionization. Thiswas of course a prudent approach. Upon assumption of facility management responsibilities, weidentified excessive risk aversion about the potential of unionization. The potential issue here wasthat management was not taking full advantage of existing employee flexibility in theperformance of work.

Once we assumed the responsibilities of the facility department, we developed an explicit approachto utilization of manpower with more flexibility built into it. We did this by:

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Intel, Rio Rancho New Mexico


Intel, Rio Rancho New Mexico (continued)

Once we assumed the responsibilities of the facility department, we developed an explicit approachto utilization of manpower with more flexibility built into it. We did this by:

• Performing a rigorous risk assessment around the risks and consequences of unionization anddeveloped a common management approach based on a level of risk that was identified asacceptable.

• We inventoried projects and plans and initiatives that were bypassed and largely based onexcessive prudence regarding potential unionization.

• Built and gained leadership team alignment to the new standard, including the use ofperformance coaching to reduce management reluctance to operating at the new standard.

• Established higher multi-skilled positions that were more versatile than the single skilledpositions that unions promote.

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Intel, Rio Rancho New Mexico


INTEGRATING ANd ALIGNING PERFORMANCE WITH PAy ANd WORk MEASuREMENT

Client: Former Nissan North American Headquarters, Gardena CA Classification: AutomotiveSize: 450,000 Square Feet

Former Nissan North America Headquarters, Gardena CaliforniaUpon the assuming the facility management services with this client, our interviews, supportedby organization performance documentation indicated that the critical operating tasks, and theplanning architecture that guides and rewards managers did not directly link to the performancepay of staff. One result of this was the missed opportunity of harvesting the energy of a muchbroader employee base in the achievement of these goals.

Upon assuming facility management responsibilities, the company implemented goals and relatedstreams of action and performance measures that were meaningful to employees in theirday-to-day work. These goals and measures were lined to meaningful incentives (team orindividual). Outcomes were reviewed through a focused annual performance cycle (goals,coaching, review). Wage progression was linked to the outcomes of the individual and the group.

This program was aimed at leveraging the potential of the entire employee population in theachievement of Client priorities. Broader organizational alignment resulted in higher levels ofcommitment to required change and shorter cycle times for initiatives. Additionally the programoff-loaded some of the work of these initiatives from the management team to build a greatersense of a whole team.

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Former Nissan North America Headquarters, Gardena California


HuMAN RESOuRCE PLANNING


DuPont Nemours Headquarters, Wilmington DelawareBefore the assumption of facility management responsibility, the client was in a demographiccrunch with an aging labor force with the associated issues of increased health and availabilityrisks, and topped out salary and vacation levels. This created issues around operational flexibilityand longer-term ramifications about the capacity to provide leaders and experienced technicalpeople when retirements come up in large numbers. There was an absence of a long-term staffingplan. To solve this problem the following staffing plan and other documents were implementedfor the facility management employees.

• A staffing plan was fully aligned to strategic and business planning processes of the client withrespect to facilities.

• A risk mitigation plan to manage the impact of the upcoming retirement bulge, including ananalysis of alternative approaches including, for example, flattening the bulge byencouraging early bridges to retirement,

• Created a leadership and high skill succession plan that identified:• leadership and high skill requirements• internal high potential candidates.• a fast track career path for high potential candidates.• internal gaps and external sources of required talent.

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PERSONNEL ORGANIzATION

Client: Mazda Corporation, Irvine CAClassification: AutomotiveSize: 250,000 square feet

Mazda North America Headquarters, Irvine CAThe client had 2 employees working for a subcontractor solely devoted to furniture management,storage, and furniture moves. These employees were supported by a help desk. These employeeswere responsible for a narrow scope of services. These employees were compartmentalized intoa specific scope of work that reduced the efficiency of these employees. They were too busy ornot busy enough with the workload they had. When we assumed the facility managementresponsibilities for this client, we hired these employees to be a part of the general facilities staff.The call center was incorporated into the facilities call center. The workload for furnituremanagement was managed easier as the general staff could take up the shortage of personneland these personnel could contribute to other work when furniture moves were slow. Thisorganizational change promoted a multi-skilled approach to the work and more flexibility in thefacility organization.

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Mazda North America Headquarters


VALuE ASSESSEd TRAINING & dEVELOPMENT

Client: IBMClassification: Electronics and ComputersSize: 9 Sites totaling 24 million square feet.

IBM, Boulder ColoradoOpportunities for employee training and development were constrained by the fiscal reality thattime away (in addition to other overheads like vacation and benefits loading), puts the residual(profit) goals at risk. Training was seen as an overhead, not treated like an investment. For thisreason, training and development’s potential contribution to cost reduction and productivityimprovements was not being fully exploited.

When our company assumed responsibility for the facility management and maintenance servicesfor this client, the facility management and maintenance-training program had to be refined toclearly identify the level of success or failure relating to the cost of training to eventual businessoutcomes. The training plan also:

• Qualified and linked all potential training against measurable observable behavioral differencesthat will have a quantifiable difference in business outcomes and make training a conscious investment.

• Measured and verified training outcomes against targeted outcomes• Explored alternative training approaches where employees shared costs (on own time) where

training was predominantly for the sake of employability• Continued to build essential skills in support of key organizational skills needs

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IBM, Boulder Colorado


PART V. CuLTuRAL CHANGES

SAVINGS FROM HOME OFFICING

Client: Performance Auto Group Headquarters for Ford Motor Company, Irvine CAClassification: AutomotiveSize: 250,000 Square Feet

Former Ford Pacific Auto Group Headquarters, Irvine CaliforniaConfigured and reduced total office space through the implementation of a “home officing”program. This resulted in the establishment of a number of common areas and offices designedfor visiting employees. This resulted in the reduction of “individual offices” for a net reduction ofoffice space equaling 11%. To accomplish this, we reviewed job titles and descriptions at the clientsite and recommended to the client those positions that may be feasible for officing at the home.After consideration of the potential issues, certain positions were offered the opportunity to workout of the home. This was a voluntary program that resulted in savings of $520,000 per year.

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Former Ford Pacific Auto Group Headquarters, Irvine California



OFFICE ANd FuRNITuRE STANdARdS

Client: Altavista, Palo Alto, CAClassification: Internet Search EngineSize: 350,000 square feet.

Altavista, Palo Alto CAThe client had hierarchical standards for office space and needed to free up space and save money.A decision was made to cut office sizes by 15% over time. By changing standards from ahierarchical structure to a standardized structure that did not make large distinctions betweendifferent levels of employees, a 22% reduction of annual costs ($2.9 million) was achieved aftera three-year period.

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PART VI. NEW TECHNOLOGy IMPLEMENTATION

NEW TECHNOLOGy IMPLEMENTATION

Client: Soka university of AmericaClassification: Higher EducationSize: 820,000 Square Feet

Soka University of America, Aliso Viejo CANew technologies were implemented to improve service delivery. A summary of thesetechnologies are provided as follows:

• Room Disinfection Fogger. While disinfecting rooms, introduced a room fogger that providesa disinfecting fog to cover all areas of the room.

• Postage Machine. Optimizes discounts for outgoing mail.• Mail Tracking System. “State of the Art” tracking of inbound mail• New Mop Technology. Chemical injecting mops that improve productivity by 35% eliminating

the need for a mop bucket.• En-Motion Paper Towel Dispensers. Installed replaced single sheet dispensers actuated by

hand motion.

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Soka University of America, Aliso Viejo CA (Continued)

• Back-strapped Vacuums. Improves coverage by to 10,000 square feet per hour. Multiple filtersincluding HEPA filters remove 99.99% of the Allergens.

• Overhead Door Holders – Prevent injuries and have built in smoke detectors.• Mulching Mowers – Introduced to return nutrients back to the soil.• CO2 Tanks—The introduction of new CO2 tanks for the swimming pool that have their own

heater to prevent them from freezing over and becoming inoperative.• Electronic door magnets – These units lock doors without the use of door locking bars that

can be damaged by students.• Odor Remover Sewer Chemicals—Environmentally green chemicals were introduced to

eliminate biologically created sewer odors.

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PART VII. SuBCONTRACT ANd PROCuREMENT MANAGEMENT

PROCuREMENT

Client: Brocade Software, San jose CAClassification: Software developerSize: 320,000 Square Feet

Brocade Software, San Jose CAPrior to our assumption of facility management responsibilities and related procurement activities,the client had very liberal procurement polices. We revamped procurement strategy to reducecompetitive bid limits for formal and informal bidding. This was done to get a larger range oftransactions procured through the competitive bid process. We also developed strategies for theprocurement of different classes of products including definite and indefinite quantity term con-tracts, innovative blanket orders for low-ticket items. Sole and single source procedures were alsoput into place. The development and execution of the procurement program saved the client$150K after the first year.

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Brocade Software, San jose CA



PROCuREMENT

Client: Los Angeles World Trade Center, Los Angels CAClassification: Commerce PromotionSize: 630,000 Square Feet

Los Angeles World Trade Center, Los Angels CADeveloped long term indefinite quantity agreements for equipment and supplies specifically usedby the various site locations and reduced the number of procurement personnel at the sites.

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Los Angeles World Trade Center



CONTRACTOR VENdOR PERFORMANCE

Client: Mattson Technologies, Fremont CAClassification: Advanced fabrication equipment used in semiconductor manufacturing.Size: 250,000 Square Feet.

Mattson Technologies, Fremont CABefore taking over the facilities program, the client had no method of auditing service performanceand no subcontractor data in the work order management system for status and cost tracking.When assuming the responsibility for facilities management including subcontract management,a formalized subcontract management program was implemented which included thedevelopment of scopes of work, service expectations and contractual conditions. Personnel wereassigned responsibility for reviewing bids, negotiation, awarding and reporting on performance.Specific programs were developed for specialized HVAC, elevator, electronics maintenance, pestcontrol, CCTV, gas cylinder supply and demurrage, emergency generator maintenance, landscapingservices, and pest control. This program improved the performance of these types of vendorsresulting in cost savings, improved responsiveness, and quality of workmanship.

client was able to eliminate some of the smaller contracts resulting in a reduction of the size ofthe contracting workforce. Savings for the first year exceeded $1,400,000.

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Mattson Technologies, Fremont CA



CONTRACTOR ANd SuPPLIER CONSOLIdATION



Hewlett Packard, Cupertino CaliforniaA review of the “A-list”, those contract services providers that either had contracts or werepre-qualified to provide services to the client revealed that the client was maintaining relationshipswith 159 contractors. 21 of these contractors, or 13% of the total, were not expected to receiveany work from Client during the year. Additionally the 10 largest contracts accounted for 80% ofthe total estimated spend for the fiscal year.

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Hewlett Packard, Cupertino California



Hewlett Packard, Cupertino California (continued)

Once assuming facilities management responsibility, the company performed an in-depth analysisof its current and future service needs to determine if any of the contracts could be eliminated byeither consolidation or elimination of redundancy. As part of this analysis, the following itemswere evaluated:

• The amount of work historically performed by the contractor• Average annual in-house cost to maintain the contract (including Scoring, Contract

Administration, Legal, Accounting, etc…)• Criticality of the work being performed and lead time to procure service• The number of other local service providers offering the service or product.• Once the review was completed a number of smaller contracts were eliminated and a

reduction in the size of the contracting workforce occurred. The client was able toeliminate some of the smaller contracts resulting in a reduction of the size of the contracting workforce.

Savings for the first year exceeded $1,400,000.

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PROCESS GAS


Lam Research Corporation, Fremont CANitrogen generation equipment existed on campus to provide large quantities of nitrogen gas forthe campus. This equipment was consuming approximately $145,000 worth of electricity permonth of operation. A pipeline capable of providing economical nitrogen gas existed directlyadjacent to the facility. The nitrogen generation equipment was decommissioned when contractsexpired. Process nitrogen gas was then purchased through the adjacent pipeline owner. Backupliquid was stored in the existing tanks in case of pipeline supply interruption. Ceasing operationof this equipment eliminated maintenance and energy costs that were $211,000 per year.

CuSTOdIAL CONTRACTING


Lam Research Corporation, Fremont CAThe janitorial service contract the client was used was a frequency-based contract. When ourcompany entered into an agreement with the client, we negotiated a performance-based contractwith frequencies posted as a guide. We were able to reduce the custodial staff from 22 people to18 people that resulted in a savings of $120k per year.PA

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NATuRAL GAS

Client: IBM Corporation, Rochester MNClassification: Electronics and ComputersSize: 3.5 million square feet.

IBM, Rochester MinnesotaThe client was paying too much for natural gas coming from the local utility company. The localderegulated gas market allowed customers to procure this commodity from a number ofindependent suppliers. Given the high volume of natural gas purchased annually, the Client wasin a position to seek bids and negotiate a lower price per therm from the independent suppliersresulting in a savings of 106K.

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IBM, Rochester Minnesota



VIII. CAPITAL ASSET MANAGEMENT ANd OPTIMIzATION

WORkING FOR MuLTIPLE CuSTOMERS WITHIN THE CLIENT ORGANIzATION

Client: jdS uniphase, Milpitas, San jose Area and Santa Rosa CAClassification: enables broadband and optical innovation in the communications,

commercial and consumer marketsSize: 1,200,000 in multiple sites.

JDS Uniphase, Milpitas CaliforniaContinuous attention to increasing Customer Satisfaction scores was a focus of the Client. Thecompany observed that an opportunity for improvement was the apparent in lack of alignmentaround service and quality standards in some of the customer business unit organizations. Whatservice users desired and what the paying business unit was willing to pay for were not necessarilyconnected. Client personnel were often put in the role of communicating the paying customerstandards to the user community, which did not contribute to customer satisfaction.

Once our company assumed facility management responsibilities, a “service level agreement” wasestablished between the facilities organization and each business unit. These agreement weretwo-way commitments to a commonly agreed upon outcome.

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JDS Uniphase, Milpitas California (continued)

Work with customers to set service level expectations were in accordance with business conditionsand the Client’s strategic needs for each business unit. This was done ensure that these were com-municated with all consumers. Adequate governance processes were put in place to ensure thatthe customer business driven service levels were aligned with what consumers expected. Theprocess involved the establishment of a clear distinction between specified service level standards(relatively fixed) and the standards that would serve to actually satisfy the client (variable). Ap-propriated adjustments in cost were made to insure that business units that wanted extra serviceswere paying for them out of their budgets.

Past relationships between the Client facility organization and the business unit customers washeavily focused on cost and delivery standards and to a lesser extent on customer satisfactionstandards. The potential outcome of this can be the dilemma of delivering exactly what the cus-tomer negotiated and still (potentially) leaving the customer unsatisfied. After the assumptionof facility management and maintenance responsibility, we adjusted the focus to relationshipmanagement and client value creation from the older focus on deviation from cost and servicelevel specifications. Original service level agreements were changed in some cases in some casesto reflect this new relationship focus. We were able to create a customer satisfaction process ownerrole focused on creating and guaranteeing delivery (through a powerful partnership) with theBusiness Units. The new service level agreements increased flexibility in standards of service levelofferings to meet the specific client needs.

The value of this recommendation was to increase customer satisfaction without increasing costs thatwere unacceptable to the customer.

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CAPITAL FuNdING

Client: Lawrence Livermore National LaboratoriesClassification: Federal GovernmentSize: 16,000,000 square feet

Laurence Livermore National Laboratory, Livermore CaliforniaThe client’s facility management group had to compete for funding for capital projects againststrategic operating units within the client’s organization. Capital projects submitted by the facilitydepartment for approval had higher return on investment threshold requirements as those of theother operating units (for example, the Laser Research Lab). The facility organization wascontinually struggling to get capital funding as building fixtures and equipment were deteriorating.

The company developed new tools to support business cases for capital funding. The new toolsincluded facility degradation curves to:

• Demonstrate the total cost avoidance by investing in facilities now as opposed to the future.• Quantify the increases in operations and maintenance costs associated with not overhauling

or replacing an aging asset• Partner with other business units to develop business cases that include capital funding for

facilities• Team with supplier organizations that have invested and developed mature systems and

technology and pay usage charges rather than capital costs.

This was a program that saved the client over $3.5 million in net present value dollars in the firstyear of implementation by providing management more accurate decisions to optimize the capitalreplacement and renewal.PA

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FACILITy ASSET OPTIMIzATION



Hewlett Packard, Cupertino CaliforniaWith this client, we identified and inventoried critical facility assets. At the same time, a facilitycondition assessment of the buildings was done. From this information we developedrecommendations for the client relating to replacement dates. The approved information was puton a capital replacement schedule, which was updated annually. Some years, liquidity was moreimportant that longer-term paybacks and the schedule would have to be redone to reflect theseliquidity constraints. Each year internal rate of return guidelines or net present value guidelineswere updated to meet the criteria of the time. A formalized asset optimization program providedconfirmation to the client to insure that the Client knows the level of investments necessary tominimize the total cost of maintenance, replacement, and downtime costs.

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PART IX. Finance and Administration

FACILITIES BudGETING

Client: Nissan Headquarters, Gardena CA Classification: AutomotiveSize: 450,000 Square Feet

Former Nissan North America Headquarters, Gardena CaliforniaThe facilities budget did not reflect all of the facility related costs within the client organization.Some costs and investments were borne by the client operating units and this information wasnot readily available for the FM organization. Without this information, a holistic depiction ofcosts and capitalization was not possible. Budgeting categories were changed to allow the facilitymanagement organization to be the repository for all facility related costs. This allowed a morecomplete picture of costs and allowed for better and more holistic decision-making relating tofacilities.

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Former Nissan North America Headquarters, Gardena California


INTERNAL RENT CHARGE BACk PROCESS


DuPont Nemours Headquarters, Wilmington DelawareThe client maintained two different rent rates for office space and lab space. The charge for officespace was the same regardless of where the customer was located. This practice was originallyadopted to ensure equality across sites and to prevent all customers from moving to the lowercosts sites. A detailed study of the effects of the rent allocation process to determine if was causingsub-optimal use of client space was conducted. The following items were reviewed:

• Cost of current space and cost of empty space• Future Client demands for space• Local real estate market• Client’s cultural acceptance of leasing space to other organizations

By eliminating rent subsidies, the customer was able to occupy 650,000 square feet of its emptyspace for a savings of $9.5M. Subsidized non-owned leased space was vacated to fill this “owned”vacancy.

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PART X. QuALITy PROGRAMS

PERFORMANCE MEASuREMENT



Hewlett Packard, Cupertino CaliforniaDesigned and implemented a facilities related measurement and reporting system based onHewlett Packard’s corporate wide key result areas (TQRDCE- Technology, Quality, Responsiveness,Delivery, Cost and Environmental Responsibility). This reporting program tied individualperformance appraisals, facility related key result areas, measures and reports together to alignthe interests of the client, our company and the employees.

of work processes contributing to the client’s and the company’s goals and objectives.

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QuALITy MANAGEMENT – ISO 9000 PROGRAM

Organization: Building Technology Engineers, Inc., Irvine CAClassification: Facility Maintenance CompanySize: 1,800 Employees

Building Technology Engineers Inc., Irvine CAAs the CEO of this company, Mal Thomas was the executive sponsor (CEO) for the implementationand certification of an ISO-9000 program for a company that provided maintenance services in33 states comprising 7 regions. The program required the development of the following:

• Standard Operating Procedures – Procedures that govern the entire company. • Work Instructions – Procedures for a specific or operating unit within the company.• Operating Plan – Contains customer site-specific operating procedures that were

customized to meet client requirements.• Procedures for recording and acting on customer feedback were detailed in the specific

account operating plans and site-specific procedures. Site management was responsible to act appropriately on customer feedback and record action taken. Pertinent feedback andactions were reported in the monthly report to senior management

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Building Technology Engineers Inc., Irvine CA


Building Technology Engineers Inc., Irvine CA (continued)

The site manager was responsible to ensure that customer requirements were met as detailed inthe contract Scope Of Services (SOS). Account specific procedures (work instructions, guidelines,postings, etc.) were produced whenever the lack of documented processes could adversely affectthe quality of the product or service provided.

A part of our accreditation process related to how we aligned with our clients and measuredperformance. The ISO-9000 program provided standardized unity of direction for procedures andtasks where feasible. The system fostered learning and improvement of work processescontributing to the client’s and the company’s goals and objectives.

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Building Technology Engineers Inc., Irvine CA


TRACkING INFORMATION FOR ISO-9000 COMPLIANCE

Client: IBM, San jose CAClassification: Electronics and ComputersSize: 36 buildings comprising 5,000,000 square feet

IBM, San Jose CACommunications and approvals were informal thereby making it difficult to track informationwhen needed and not in compliance with the Company’s ISO-9000 compliance program. Adatabase platform was developed to store subject matter in Internet based “teamrooms”. Thisprovided a way to track information, communications and service level agreements, etc. Interfaceprocedures were documented and became a part of the IS0-9000 program to insure compliance.Proper communication interfaces between our company (the service provider), the client,contractors and client business units staff insured operational consistency and improvements inthe responsiveness and quality of communications. Also, the our company helped this clientbecome compliant with ISO-14001 (Environmental Compliance].

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Hewlett Packard, Cupertino, California


CuSTOMER SATISFACTION

Client: Soka university of America, Aliso Viejo CAClassification: Higher EducationSize: 820,000 square feet.

Soka University of America, Aliso Viejo CaliforniaBefore using our services, client satisfaction was obtained soley from work order input. Peoplehad the option to complete their level of satisfaction on the work order not. Rather than usingthis information source as the only way to obtain client satisfaction information, a site survey wasdeveloped and sent via email to all of the building occupants. In addition to the survey, in depthinterviews were given to key people effected the most by the facilities organization. The surveyand interview, along with the specific work order feedback, provided a comprehensive view ofthe level of client satisfaction. Follow up was used to conduct root cause analysis on any problemsdeemed appropriate for this type of review.

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MALCOLM BALdRIGE FOCuS

Client: Soka university of America, Aliso Viejo CAClassification: Higher EducationSize: 820,000 square feet.

Soka University of America, Aliso Viejo CaliforniaThe company, working in concert with its Clients, has implemented the Malcolm Baldrige programfunded and started by the United States Department of Commerce. The program defines the majorareas of excellent focus and has a framework work for focusing on leadership, customer satisfaction,human resources, work measurement, process improvement, results and organizational strategy.Using this framework, we have achieved a Malcolm Baldrige award for excellence. One of theManaging Partners is also on the Board of Examiners for the Malcolm Baldrige program.

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F a c i l i t y S e r v i c e s P a r t n e r s , I n c .www.FacilityServicesPartners.com

Documents

Credentials Report 2010 Final