Insourcing vs Outsourcing Tactics & More – Playbook Review Part 8

In part seven we examined the various elements needed to implement a construction strategy. This post is a continuation of that discussion and will deal specifically with insourcing versus outsourcing tactics, field productivity reporting, and implementing key performance indicators (KPIs). This is part of an overall step of implementing a resiliency program, discussed in chapter five of PDi2’s Utility Infrastructure Resiliency Playbook.

Insourcing Versus Outsourcing Tactics

The final decision the utility will have to make is if and how to split the design and construction work between an internal (insourcing) or external (outsourcing) workforce. Given that a resiliency program will likely consist of spending above and beyond current activity, a critical question is can and/or should the work be undertaken with the existing engineering and construction workforce?

The answer to this question is based on a nuanced understanding of the utility’s internal capabilities and access to competent and experienced external service providers. In part, the anticipated program will require a realistic evaluation to determine the resource needs for design, procurement, permit acquisition, project management, and construction. As always, contingency planning for large outages should include on-site resources with minimal mobilization.

Field Productivity Reporting

Given the labor-intensive nature of the undergrounding work that will be part of a resiliency program, tracking hourly, daily, weekly, and monthly performance will prove critical to process improvement and in demonstrating prudence in the management and oversight of the construction process. Questions that will require answers include the following:

  • What motivates internal crew or contractor success and how can a utility make this visible and impactful?
  • What internal obstacles might we (the utility) create and how can a utility remove these internal obstacles that may slow productivity and the contractor’s ability to meet their productivity goals or reasonable profitability? What is the history or capacity of internal crews to meet their productivity goals?
  • What technologies can be applied or shared among the program team to support tracking of work, productivity, material installation, etc.?
  • How will standards compliance evaluation and commissioning tests drive the quality and effectiveness of workmanship? How will the quality of work affect contractor or intern crew compensation?
  • How will internal sampling, third-party inspection, and self-testing of construction quality take place?

Project Management Key Performance Indicators (KPIs)

The selection of one to three key performance indicators for the program is necessary to monitor implementation progress. At the program level, the setting of a clear and focused objective at the beginning of the planning process will help drive the development of KPIs for summary reporting.

In addition, progress reporting will prove critical in reauthorization and continuation of the resiliency efforts. The connection to clearly defining a program objective will come into play and demonstrate its importance in confirming the prudence of the program and the required investment.

Download the Playbook

Keep an eye out for our next post where we discuss how to report on your resiliency program’s progress. Interested readers are highly encouraged to download a free copy of PDi2’s Utility Infrastructure Resiliency Playbook. Designed to help utilities address obstacles they might face when developing resiliency programs, this comprehensive resource includes details on each step of developing a program, case studies, and links to additional resources.

October 2019

Utility Resiliency Playbook

Developed by PDi2
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Ivan Jovanovic

Managing Director, Cable Accessories Business Unit (CABU)
G&W Electric
Associate Member, PDi2

Ivan has global responsibility for MV and HV cable accessory product lines for G&W Electric Company, a specialized manufacturer and marketer of high-voltage electrical equipment for distribution and transmission networks. His responsibility includes leading product management, marketing, R&D and engineering for the CABU. With nearly 20 years at G&W Electric, Ivan has also served as General Manager, Cable Accessories Engineering Department; and Product Development Engineer. Previously to joining G&W Electric, Ivan was a Research Engineer for the Nikola Tesla Electrical Engineering Institute in Belgrade, Serbia. He received a Master of Science in Electrical Engineering from the University of Belgrade, and an MBA from Loyola University Chicago. Ivan also leads IEEE and CIGRE working groups and is Chairman of IEEE 48/404 Standard for transmission CA; and is the US member in IEC 62271-209 Standard for cable connections to Gas Insulated Switchgear.

Jeff Killin

Vice President of Engineered Products, Forterra
Associate Member PDi2

Jeff Killin, is the Vice President of Engineered Products for Forterra, a leading manufacturer of precast concrete pipe, structural, and specialty products. Working with Forterra’s Engineered Products team, Jeff is responsible for the commercialization and market development of Forterra’s engineered precast concrete products, including the recently introduced RED-E-DUCT™ precast electrical duct bank system. In this role, he and the Engineered Products team work to ensure that Forterra’s precast products meet the complex design and performance requirements demanded by multi-billion-dollar oil/gas, energy, and other industrial projects.

Mr. Killin is a 30-year veteran of the concrete and pipe products industry who has led commercial, engineering, manufacturing, management, and sales efforts, working with large, national engineering, procurement, and construction (EPC) firms. He has held management and executive positions at Forterra, Hanson and Price Brothers Company.

Rachel Mosier

Principal Engineer and Vice President
Power Delivery Consultants, Inc.
Associate Member, PDi2

Rachel Mosier, Principal Engineer and Vice President of Power Delivery Consultants, Inc. (PDC) joined the organization in 2006 and specializes in underground (UG) cable system design, specification, installation, operation, and maintenance. She is responsible for engineering analysis, specification and bid review for UG cable projects both for utilities and architect-engineers. Ms. Mosier has in-depth experience performing cable factory audits, has reviewed publications, conducted technical and economic studies, and prepared and given testimony in utility hearings. She also is experienced in failure analysis and subsequent cause determination and mitigation. Prior to joining PDC, Ms. Mosier worked as an engineer with Northeast Utilities Service Company (now Eversource) where she planned, coordinated and performed engineering assignments related to the design, construction and operation of underground distribution and transmission systems. Ms. Mosier is a Senior Member of the IEEE, its Power & Energy Society and Standards Association. She served as the longest standing chair of the IEEE Insulated Conductor Committee (ICC), and is an active member of several working groups within ICC and CIGRE. Ms. Mosier also served as a utility advisor on several EPRI projects and was a member of the AEIC Cable Engineering Committee. Ms. Mosier has a BS in Engineering from the University of Connecticut and an MS in Power Systems Management from Worcester Polytechnic Institute.

Mathew Raymond

Underground Transmission Division Manager
Haugland Energy LLC
Associate Member, PDi2

Mathew Raymond, Underground Transmission Division Manager, has over 12 years of field experience in the construction industry, and has worked in all phases of construction including project management, business development, estimating, project scheduling, costing, budgeting, supervision and claims/change order processing. Prior to moving over to Haugland Energy in 2015, Mr. Raymond worked for 2 years with ABB and 6 years with CB&I. He has worked in the capacity of Project Manager, Process Manager, Contracts Specialist, and Business Development, accumulating a list of notable project achievements for clients including: PSE&G, PSE&GLI, Deep Water Wind, NYPA, NSEG, GEMMA Power, NRG, and Georgia. Mr. Raymond has a Masters Certificate in Government & Commercial Contract Management from Villanova University and a BA in Political Science (Pre-Law) from Coastal Carolina University.

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Brent Richardson

Marketing Development Manager, North America - DOW
Voting Member PDi2

Brent represents Dow’s Wire & Cable business to the utility industry in North America. Prior to joining Dow in May of 2007, Brent worked for nearly 25 years for Duke Energy in Charlotte, NC. His experience includes many components of the utility business including Field Engineering, Distribution Standards, Project and Product Management and Marketing. He received a BS in Electrical Engineering from Virginia Tech and is a registered Professional Engineer in NC and SC. He is also a Senior Member of the IEEE and the Insulated Conductors Committee and has made numerous presentations to the IEEE, the ICC and other industry organizations. In the ICC, Brent serves as Chair of Discussion Group A14D –Cable Standards and Vice Chair of Subcommittee A-Cable Construction and Design.

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Ben Lanz

Director of Applications Engineering, IMCORP
Vice-chairman/Voting Member PDi2

After 20 years in the power cable industry, Mr. Lanz currently holds the position of Director of Applications Engineering at IMCORP and has technical oversight of power cable life cycle consulting. He is a Senior Member of the IEEE Power & Energy Society, a voting member of the IEEE Standards Society, and a member of the IEEE Dielectrics and Industrial Applications Societies. He has served as Chairman of the Insulated Conductors Committee (ICC) technical committees responsible for cable testing, cable reliability and surge arresters, Chairman of the American Wind Energy Association (AWEA) O&M Balance of Plant technical subcommittee, a UL technical study committee member for MV and HV DC cables and is a reviewer and voting pool member for InterNational Electrical Testing Association (NETA) standards. Mr. Lanz received his electrical engineering degree from the University of Connecticut (UCONN) under mentorship of Director of the Institute of Material Science Electrical Insulation Research Center (EIRC), Dr. Matthew Mashikian. He has published over a dozen papers on power system reliability, asset management, and diagnostics and regularly presents on the topics.

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David Lindsay

Marketing Manager – Energy Borealis Compounds, Inc.
Chairman/Voting Member PDi2

David Lindsay is currently Marketing Manager for the Energy business of Borealis Compounds, Inc. in North America. He has over 20 years in the US wire and cable business, working at manufacturers, non-profit organizations and electrical contractors. His experiences range from research and product development, to manufacturing, construction and installation of EHV cable systems. At Borealis he is responsible for customer and end-use marketing, and strategic planning of all wire and cable related product lines.

David serves on the NEETRAC Advisory Board, is actively involved in IEEE Insulated Conductor Committee and is past US representative to Cigré SC B1. He holds a Bachelors of Materials Engineering from the Georgia Institute of Technology and Masters of Business Administration from the University of West Georgia.

Brian Hunter

Regional Manager
TT Technologies, Inc
Associate Member PDi2

Brian Hunter is a regional manager with TT Technologies, Inc., a trenchless equipment manufacturer based out of Aurora, Illinois. He has been successfully managing the sales and service of this equipment in the southeast US for nearly 21 years. He is a graduate of Clemson University with a bachelor’s degree in mechanical engineering. He is a member of various underground utility organizations such as NUCA, NASTT, SGA, SCRWA, NCRWA, ASCE, AREMA, ICC, NCAWWA-WEA, & SCAWWA-WEA. Brian was recently a key partner in the successful pilot underground steel pipe replacement project involving EPRI, PDC, & ATC. This underground pipe replacement process (pipe splitting) will significantly reduce the amount of excavation and time needed to replace current pipe-type cable steel lines with a new larger host pipe. Brian looks forward to contributing his extensive underground knowledge with Power Delivery Intelligence Initiative (PDi2 ).
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Nathan Rochel

Department Manager, T&D
Burns & McDonnell
Partner Member PDi2

Nathan Rochel is an electrical engineer specializing in the design of underground transmission lines and managing the underground transmission team at Burns & McDonnell Engineering. Throughout his 10-year career in underground transmission, he has been involved in the design and/or construction of underground transmission projects ranging from 15-kV through 500-kV. These projects include multiple cable technologies including HPFF, HPGF, EPR, XLPE and HVDC cables. Mr. Rochel’s experience includes projects in major metropolitan areas for clients throughout North and South America.

John W. Fluharty, II

Quanta Services Inc.
Partner Member PDi2

John W Fluharty, II is currently working as part of Quanta Services, Inc.’s (Quanta) underground cable group that performs large underground electrical projects.

Previously Mr. Fluharty was Vice President of Mears Group, Inc. (Mears) a subsidiary of Quanta Services, Inc. He was an owner of Mears until its sale to Quanta in 2000. He managed every division in the company and at the end of his tenure with Mears he focused on business development, asset management, safety and operations for large projects.

Mr. Fluharty is a board member of the Power and Communications Contractor Association (PCCA), and the American Pipeline Contractors Association (APCA).

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Matt Spalding

President, IMCORP
Director PDi2

With more than 30 years experience in the power industry, Mr. Spalding was named President of IMCORP in January 2018. He previously held positions of VP Sales & Marketing and VP Business Development. Prior to joining IMCORP, Spalding held a variety of positions at ABB, TE Connectivity, Tyco International (Raychem), and El Paso Electric. He has been very active in industry professional associations including IEEE and NEETRAC and holds 14 US patents related to power products including MV/HV insulators, substation animal mitigation devices, power connectors, HV cable designs and cable accessories. Mr. Spalding holds a BSEE degree from New Mexico State University with post-graduate studies in Engineering Economic Systems at Stanford University.

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Terri Howe, APR

Owner/Principal - Howe Marketing Communications LLC
Secretary/Treasurer, Marketing Counsel PDi2

Terri Howe, APR is Owner and Principal of Howe Marketing Communications LLC, a virtual, full-service advertising and public relations firm located in Grand Rapids, Michigan (Coopersville). HMC specializes in servicing local, regional, national and global business-to-business accounts and has been recognized with several local and regional advertising and public relations awards. Terri has 30 years’ experience in the marketing communications field, is a past president and board member of the West Michigan Public Relations Society of America (WMPRSA), is an executive committee member of PRSA’s Counselors Academy and has served as an adjunct professor in the School of Communications at Grand Valley State University. Terri is the secretary, treasurer and marketing counsel for the Power Delivery Intelligence Initiative.

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Nathan Kelley

Vice President, High Voltage Cables and Systems Business Unit - Prysmian
Voting Member PDi2

Nathan Kelley is currently Vice President, High Voltage Cables and Systems Business Unit. Since joining Prysmian Cables and Systems in 1997, Mr. Kelley has been involved with research, design, installation and sales of High Voltage and Extra High Voltage power cable systems. From 2002 until 2015, he managed the engineering team responsible for the High Voltage Business Unit’s activities and actively participated in many of the largest HV cable projects ever conducted in North America. Mr. Kelley was raised in Indiana, but received his BS in Mechanical Engineering from Duke University in 1995 and his MS in Mechanical Engineering from Georgia Institute of Technology in 2002.