Category Archives: Industry Jobs Oil Economics

Make the Whole Nation an Opportunity Zone

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Having just interviewed for a radio segment, Joel Griffith, an economic expert at the Heritage Foundation, I was motivated to draft this piece about how America re-opens and what will America look like in coming years.

Years ago, during the genesis of the dot com era, companies across the nation were launching incubation centers where innovation, creators and entrepreneurs were mobilized to advance business opportunity across all industries. Governments at all levels should get out of the way with stifling red tape, permits, fees, regulations, taxes and other bureaucratic measures to unleash business transformations.

So, Joel answered that the whole nation should be an opportunity zone where I used incubation centers….same thing.

Just about to collect some thoughts on this article, here comes an email from my favorite law firm, The Pacific Legal Foundation. The firm just published an economic recovery action plan. This plan is a framework that quite useful in supporting the notions of a nationwide economic zone policy or incubation centers.

The plan has 4 simple steps but each one is profound to the principles of economic restoration and practical.

  1. Liberate Healthcare
  2. Embrace Entrepreneurs
  3. Protect Property Rights
  4. Get Bureaucrats out of the Way

As the Trump Administration has gathered political and business professionals for the Economic Restoration Council that includes an estimated 100 business personnel from countless industries, new guidance will be shared with all 50 governors to use as a framework to reopen their respective states. This is a perfect moment in time to consider and deploy a revolution in ideas, resources and to eliminate vulnerabilities in the whole society such that lessons learned can be produce new skill sets and advanced solutions to encourage small business across sectors.

How to Be an Entrepreneur in Top 5 Easy Steps - Ejournalz

The marketplace is sure to change not only for America but across the globe as these discussions with unleashed imaginations are sure to alter everyday commerce, education, healthcare, national security, communications, hospitality, entertainment and perhaps even legislation.

A new discipline in our culture may just be creative new breakthroughs taken from lessons learned due to this pandemic and self-distancing. Where do ideas come from? They begin with discussions to questions we have all asked like: Why don’t we have…How come no one has invented….How did we get here….What do we do now….How do we make sure this does not happen again….

Our country is in distress so the bigger question that should be asked is how do we succeed as an individual, a family and as a business. Rewards are great when one has planned for risks and strategies during any type of crisis. Self management and that of all business is the purposeful task of a systematic strategy that fosters mood, creativity, production, perception and opportunities.

The ‘opportunity zones’ in place today in all 50 states is derived from the TCJA, The Tax Cuts and Jobs Act. Sounds great, however OZ’s leave behind or omits innovation across all regions. Investment capital generally is habitually applied to known and or proven commercial models, brushing aside ventures concepts that take risks unknown and unproven that with some development can be the next Fortune 500 success story.

Breaking Down the Benefits of Investing in the Opportunity ...

The Opportunity Zone concept must be considered in all framework guidance coming from the Federal government to the state and local governments to restart the nation, economic liberty, grow the GDP, improve the employment landscape and realize financial victory at all levels.

 

GWB was Obsessed with Pandemic Preparations in 2005

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The efforts of the Bush administration was intense over the ensuing three years, including exercises where cabinet officials gamed out their responses, but it was not sustained. Large swaths of the ambitious plan were either not fully realized or entirely shelved as other priorities and crises took hold.

“There was a realization that it’s no longer fantastical to raise scenarios about planes falling from the sky, or anthrax arriving in the mail,” said Tom Bossert, who worked in the Bush White House and went on to serve as a homeland security adviser in the Trump administration. “It was not a novel. It was the world we were living.”

According to Bossert, who is now an ABC News contributor, Bush did not just insist on preparation for a pandemic. He was obsessed with it.

“He was completely taken by the reality that that was going to happen,” Bossert said. In a November 2005 speech at the National Institutes of Health, Bush laid out proposals in granular detail — describing with stunning prescience how a pandemic in the United States would unfold. Among those in the audience was Dr. Anthony Fauci, the leader of the current crisis response, who was then and still is now the director of the National Institute of Allergy and Infectious Diseases.

Bush told the gathered scientists that they would need to develop a vaccine in record time.

“If a pandemic strikes, our country must have a surge capacity in place that will allow us to bring a new vaccine on line quickly and manufacture enough to immunize every American against the pandemic strain,” he said.

Bush set out to spend $7 billion building out his plan. His cabinet secretaries urged their staffs to take preparations seriously. The government launched a website, www.pandemicflu.gov, that is still in use today. But as time passed, it became increasingly difficult to justify the continued funding, staffing and attention, Bossert said.

“You need to have annual budget commitment. You need to have institutions that can survive any one administration. And you need to have leadership experience,” Bossert said. “All three of those can be effected by our wonderful and unique form of government in which you transfer power every four years.”

***

Then in 2006, enter Senator Burr:

The Pandemic and All-Hazards Preparedness and Advancing Innovation Act (PAHPAI) is legislation introduced and passed by the U.S. Congress in 2019 that aims to improve the nation’s preparation and response to public health threats, including both natural threats and deliberate man-made threats.[1]

A previous bill (with a near-identical name), the Pandemic and All-Hazards Preparedness Act (PAHPA), was signed into law in 2006 and reauthorized in 2013 in order to create a system that prepares for, and responds to, public health threats that could turn into emergencies.

The 2019 bill (PAHPAI) was introduced by U.S. Senators Richard Burr (R-NC), Bob Casey (D-PA), Lamar Alexander (R-TN), and Patty Murray (D-WA).[1] Congress passed the bill and sent it to President Trump for his signature in June 2019. (The bill number is S. 1379).

What went on at the State level during all this time? Well in recent years, there was an exercise called Crimson Contagion.

Crimson Contagion 2019 was/is a Functional Exercise, a national level exercise series conducted to detect gaps in mechanisms, capabilities, plans, policies, and procedures in the event of a pandemic influenza.  Current strategies include the Biological Incident Annex to the Response and Recovery Federal Interagency Operational Plans (2018), Pandemic Influenza Plan (2017 Update), Pandemic Crisis Action Plan Version 2.0, and CDC’s Pandemic Influenza Appendix to the Biological Incident Annex of the CDC All-Hazard Plan (December 2017). These plans, updated over the last few years, were tested by the functional exercise with emphasis on the examination of strategic priorities set by the NSC. Specifically, examined priorities include operational coordination and communications, stabilization and restoration of critical lifelines, national security emergencies, public health emergencies, and continuity. The Crimson Contagion 2019 Functional Exercise included participation of almost 300 entities – 19 federal departments and agencies, 12 states, 15 tribal nations and pueblos, 74 local health departments and coalition regions, 87 hospitals, 40 private sector organizations, and 35 active operations centers. The scenario was a large-scale outbreak of H7N9 avian influenza, originating in China but swiftly spreading to the contiguous US with the first case detected in Chicago, Illinois. Continuous human-to-human transmission of the H7N9 virus encourages its spread across the country and, unfortunately, the stockpiles of H7N9 vaccines are not a match for the outbreak’s strain; however, those vaccines are serviceable as a priming dose. Also, the strain of virus is susceptible to Relenza and Tamiflu antiviral medications. The exercise was intended to deal with a virus outbreak that starts overseas and migrates to the US with scant allocated resources for outbreak response and management, thereby forcing the Department of Health and Human Services (HHS) to include other agencies in the response. To do so, the exercise began 47 days after the identification of the first US case of H7N9 in Chicago, otherwise known as STARTEX conditions. Then, the HHS declared the outbreak as a Public Health Emergency (PHE), the World Health Organization (WHO) declared a pandemic, and the President of the United States declared a National Emergency under the National Emergencies Act. As was the case in the 1918 Great Influenza, transmissibility is high and cases are severe. At STARTEX, there are 2.1 million illnesses and 100 million forecasted illnesses as well as over half a million forecasted deaths. As the pandemic progresses along the epidemiological curve, the overarching foci of the federal-level response adjusts across four phases:

  1. Operational coordination with public messaging and risk communication
  2. Situational awareness, information sharing, and reporting
  3. Financing
  4. Continuity of operations

The outcome of the Crimson Contagion is that vaccine development is the silver bullet to such an outbreak, but there are complications beyond its formulation. Namely, the minimization of outbreak impact prior to vaccine development and dispersal, strategy for efficient dissemination of the vaccine across the country, allocation of personal protective equipment (PPE), and high expense of vaccine development and PPE acquisitions. The exercise concluded that HHS requires about $10 billion in additional funding immediately following the identification of a novel strain of pandemic influenza. The low inventory levels of PPE and other countermeasures are a result of insufficient domestic manufacturing in the US and a lack of raw materials maintained within US borders.  Additionally, the exercise revealed six key findings:

  1. Existing statutory authorities, policies, and funding of HHS are insufficient for a federal response to an influenza pandemic
  2. Current planning fails to outline the organizational structure of the federal government response when HHS is the designated lead agency; planning also varies across local, state, territorial, tribal, and federal entities
  3. There is a lack of clarity in operational coordination regarding the roles and responsibility of agencies as well as in the coordination of information, guidance, and actions of federal agencies, state agencies, and the health sector
  4. Situation assessment is inefficient and incomplete due to the lack of clear guidance on the information required and confusion in the distribution of recommended protocols and products
  5. The medical countermeasures supply chain and production capacity are currently insufficient to meet the needs of the country in the event of pandemic influenza
  6. There is clear dissemination of public health and responder information from the CDC, but confusion about school closures remains.

A few years go, DHS published the National Response Framework Second Edition May 2013 and later,  FEMA published a 143 page report known as the Biological Incident Annex to the Response and Recovery Federal Interagency Operational Plans Final – January 2017

as a follow up to the work that began in 2008.

Many things certainly were going on that otherwise have not received media attention and the above is by no means a full accounting. The above is only referenced for perspective and context.

So while so many are working to find a single solution to Covid 19, there is not one cure but more in the realm of hundreds or perhaps thousands. Furthermore, while so many want to place blame, that too is misguided to point to U.S. politicians and medical experts. When it comes to Dr. Fauci or Bill Gates and his Event 201, understand that every medical counter-measure to pandemics call for growing viruses in laboratories and getting patents for the work each does including pharmaceutical companies and universities. We of course have the bureaucracy of clinical trials and they do take lots of time to launch and process.

Slow down readers, stop with the blame games, stop with finding fault, let’s deal with the here and now to get this behind us, never to repeat. If anything, blame the Communist Party of China, begin and end there and re-examine national policy with Beijing.

Vendors Return in Wuhan as China Prepares COVID-19 ... source

While Pelosi and Schiff have a new oversight commission led by Congressman Clyburn, which was in the $2T stimulus bill, so what? You say it is just another plot to go for another impeachment of President Trump? Nah…it is only the Democrats and media’s plot and wont happen. A full investigation of all things Covid 19 would hardly be completed by 2024.

Oh yeah, for those of you angry at Senator Burr for selling stock, we dont know how many in congress did sell stock. Remember, Senator Burr authored that pandemic bill in 2006….and it was signed into law.

Senators did receive a closed-door briefing on the virus on Jan. 24, which was public knowledge. A separate briefing was held Feb. 12 by the Senate Health, Education, Labor and Pensions Committee, which Burr is a member of. It’s unclear if he attended either session.

One must ask if the Senate Intelligence Committee received the briefing, who gave the briefing and did that same briefing happen in the House? That is always the policy. If so, how come the Chairman of the House Intelligence Committee, you know, Adam Schiff never said a thing about it. Inquiring minds want to know.

Meanwhile….

Just follow hygiene rules and let’s get America into full restoration mode…FAST.

 

 

 

The Reason for the WH and Dr. Birx Chilling New Probability Report

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Primer: We all seem to guess this except for Jim Acosta/CNN and the others at MSNBC. Media continues to blame the Trump White House for the slow response to address COVID-19, while Dr. Birx and Dr. Fauci explained what they did not know very early on. Now we know.

Now some real questions and new policy towards China must be considered. We can start with the $1.8 T in U.S. debt that China holds. The next is challenging American telecommunications companies to squelch China’s advances of 5G. Then there is the next phase of the U.S. trade agreement with China. Add in the mission to stop China’s power agenda across the globe as it is clear, China is fine with killing people and economies across the world.

China has concealed the extent of the coronavirus outbreak in its country, under-reporting both total cases and deaths it’s suffered from the disease, the U.S. intelligence community concluded in a classified report to the White House, according to three U.S. officials.

The officials asked not to be identified because the report is secret and declined to detail its contents. But the thrust, they said, is that China’s public reporting on cases and deaths is intentionally incomplete. Two of the officials said the report concludes that China’s numbers are fake.

The report was received by the White House last week, one of the officials said. The outbreak began in China’s Hubei province in late 2019, but the country has publicly reported only about 82,000 cases and 3,300 deaths, according to data compiled by Johns Hopkins University. That compares to more than 189,000 cases and more than 4,000 deaths in the U.S., which has the largest publicly reported outbreak in the world.

Communications staff at the White House and Chinese embassy in Washington didn’t immediately respond to requests for comment.

While China eventually imposed a strict lockdown beyond those of less autocratic nations, there has been considerable skepticism of China’s reported numbers, both outside and within the country. The Chinese government has repeatedly revised its methodology for counting cases, for weeks excluding people without symptoms entirely, and only on Tuesday added more than 1,500 asymptomatic cases to its total.

Stacks of thousands of urns outside funeral homes in Hubei province have driven public doubt in Beijing’s reporting.

Deborah Birx, the State Department immunologist advising the White House on its response to the outbreak, said Tuesday that China’s public reporting influenced assumptions elsewhere in the world about the nature of the virus.

Coronavirus: Doctor at hospital in China's Hubei province ... source

“The medical community made — interpreted the Chinese data as: This was serious, but smaller than anyone expected,” she said at a news conference on Tuesday. “Because I think probably we were missing a significant amount of the data, now that what we see happened to Italy and see what happened to Spain.”

China is not the only country with suspect public reporting. Western officials have pointed to Iran, Russia, Indonesia and especially North Korea, which has not reported a single case of the disease, as probable under-counts. Others including Saudi Arabia and Egypt may also be playing down their numbers.

U.S. Secretary of State Michael Pompeo has publicly urged China and other nations to be transparent about their outbreaks. He has repeatedly accused China of covering up the extent of the problem and being slow to share information, especially in the weeks after the virus first emerged, and blocking offers of help from American experts.

“This data set matters,” he said at a news conference in Washington on Tuesday. The development of medical therapies and public-health measures to combat the virus “so that we can save lives depends on the ability to have confidence and information about what has actually transpired,” he said.

“I would urge every nation: Do your best to collect the data. Do your best to share that information,” he said. “We’re doing that.”

The outbreak began in China’s Hubei province in late 2019, but the country has publicly reported only about 82,000 cases and 3,300 deaths, according to data compiled by Johns Hopkins University. That compares to more than 189,000 cases and more than 4,000 deaths in the U.S., which has the largest publicly reported outbreak in the world.

Map of sampling sites in the Hubei Province of China. Red ... source

 

Abstract

Background: The COVID-19 outbreak containment strategies in China based on non-pharmaceutical interventions (NPIs) appear to be effective. Quantitative research is still needed however to assess the efficacy of different candidate NPIs and their timings to guide ongoing and future responses to epidemics of this emerging disease across the World. Methods: We built a travel network-based susceptible-exposed-infectious-removed (SEIR) model to simulate the outbreak across cities in mainland China. We used epidemiological parameters estimated for the early stage of outbreak in Wuhan to parameterise the transmission before NPIs were implemented. To quantify the relative effect of various NPIs, daily changes of delay from illness onset to the first reported case in each county were used as a proxy for the improvement of case identification and isolation across the outbreak. Historical and near-real time human movement data, obtained from Baidu location-based service, were used to derive the intensity of travel restrictions and contact reductions across China. The model and outputs were validated using daily reported case numbers, with a series of sensitivity analyses conducted. Results: We estimated that there were a total of 114,325 COVID-19 cases (interquartile range [IQR] 76,776 – 164,576) in mainland China as of February 29, 2020, and these were highly correlated (p<0.001, R2=0.86) with reported incidence. Without NPIs, the number of COVID-19 cases would likely have shown a 67-fold increase (IQR: 44 – 94), with the effectiveness of different interventions varying. The early detection and isolation of cases was estimated to prevent more infections than travel restrictions and contact reductions, but integrated NPIs would achieve the strongest and most rapid effect. If NPIs could have been conducted one week, two weeks, or three weeks earlier in China, cases could have been reduced by 66%, 86%, and 95%, respectively, together with significantly reducing the number of affected areas. However, if NPIs were conducted one week, two weeks, or three weeks later, the number of cases could have shown a 3-fold, 7-fold, and 18-fold increase across China, respectively. Results also suggest that the social distancing intervention should be continued for the next few months in China to prevent case numbers increasing again after travel restrictions were lifted on February 17, 2020. Conclusion: The NPIs deployed in China appear to be effectively containing the COVID-19 outbreak, but the efficacy of the different interventions varied, with the early case detection and contact reduction being the most effective. Moreover, deploying the NPIs early is also important to prevent further spread. Early and integrated NPI strategies should be prepared, adopted and adjusted to minimize health, social and economic impacts in affected regions around the World.

 

(PanCAP)SynchronizationMatrix-COVID-19 Plan

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The Defense Production Act. Read it here.

The president invoked the act Wednesday during a White House news briefing with members of the Coronavirus Task Force.

“It can do a lot of good things if we need it,” the president told reporters.

Image result for defense production act source

 

The 1950 act was periodically used during both the Korean War and throughout the Cold War, and was last invoked in June 2017 by Trump to provide technology in the space industrial base.

This is not about what the Federal government can provide, but rather the Federal government authorizing and hiring private business to produce products and service to fulfill the needs for the good of the nation. That is where innovation and capitalism works.

President Trump is pulling all the levers of government and plowing his way through regulations and bureaucracy. It is big and messy mostly because of Obamacare which installed 23000 pages of regulations. The PANCAP plan is found here in full. Additional levers are being created to stop the economic and financial damage the the nation.

Meanwhile, media has attacked President Trump for using the term ‘China virus’ and he defended that use, rightly so. The medical community uses several variations of the same phrase. It is about China and has been for decades. World leaders have challenged China for countless years over their reckless laws and lack of food, people, animal and health protections. I have seen it personally myself being in mainland China many years ago. I visited those wet markets where the food supply and lack of safety is not only disgusting but deadly. Truth be told, trafficking and breeding animals for food in China is estimated to be a $76 billion industry.

For perspective, this short video is a must watch.

Relations between the West and China has taken on a new attitude and approach and rightly so. The discussions should begin with China paying trillions in reparations to nations affected by not only the Covid-19 virus but even previous virus outbreaks as well. China holds an estimated $1.7 trillion of U.S. debt. China should forgive that debt today.

From an article written by Michael Auslin in part mentions:

Those concerned with global health issues may wonder why it is that China is wracked regularly by viral epidemics in addition to coronavirus, such as SARS, African Swine Fever, and avian flu (another outbreak is happening right now). Others may begin to look more carefully at China’s environmental devastation and the hundreds of thousands of premature deaths each year from air and water pollution.

On the trade side, many foreign corporations already have been reconsidering their operations in China, due to rampant intellectual property theft and rising production costs; now, they may seriously question how safe it is to continue to do business in China. Not only is the health of their employees at risk, but they no longer can be assured that China will be a stable supplier. If coronavirus becomes a seasonal phenomenon, as some experts predict, then even with a vaccine, new strains of the pathogen will always raise the specter of another out-of-control epidemic overwhelming the party-state’s capabilities and infecting the rest of the world.

China has a plan to be the world’s dominant power, what better way to achieve that mission than to infect the globe with a pandemic causing financial collapse? To prevent the China mission, Western nations must reassert nationalism including manufacturing and install policy that never allows vulnerabilities to health and national security, this includes 5G. China and Russia cannot be allowed to win much less have any kind of advantage over other nations.

U.S. citizens are very crafty, innovative and resourceful and given these skills and spirit, this will pass quickly.

 

California Bullet Train, Shut-up About Fleecing the Government

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Exactly how come Senators Kamala Harris and Dianne Feinstein have nothing to say? Pelosi? Nah….
When Mark Styles was hired in October 2018 to help oversee Central Valley scheduling for the California bullet train, he soon learned he had walked into a mess.
Over the previous half decade the project had repeatedly fallen behind schedule, and the cost by 2018 had jumped from $64 billion to $77 billion in two years.
California is Building High-Speed Rail | High Speed Rail ...
A core problem was the project’s operating culture, in which managers for WSP, the bullet train’s lead consultant, threatened to punish or terminate employees if they failed to toe the company line, Styles said.
“I was told to shut up and not say anything,” said Styles, a career construction manager who was hired as WSP’s senior supervisory scheduler in the project’s Fresno office. “I was told that I didn’t understand the political arena the project was in. I told them I am not going to shut up. This is my job.”
The atmosphere described by Styles has been corroborated by a half dozen current and former senior officials knowledgeable about the project’s Fresno office.
The officials say it helps explain why California’s high-speed rail endeavor has barreled ahead for more than a decade, despite warnings it was structured on risky assumptions and could run out of money before any trains operate.
WSP spokeswoman Denise Turner Roth rejected Styles’ claims. “We always work carefully with our client to evaluate the demands of each project and to prepare realistic and transparent recommendations regarding schedule and budget,” she said.
But other ex-WSP employees in the Fresno office, including engineer Vera Lovejoy and project controls coordinator Todd Bilstein, say they were also discouraged from sharing bad news with bosses.
“I wanted the project to succeed,” said Lovejoy, who left the project in 2019 after one year. “I was eager to help deliver it. But I couldn’t stay. If you rock the boat, you are labeled as not a team player.”
Bilstein also left in 2019 after a nine-month tenure.
“If I was to give a talk at a construction conference, I would say they were not following generally accepted project management principles,” he said. The company’s failures, he said, ran the gamut of estimating costs, scheduling construction and managing change orders.
“Revealing bad news was discouraged,” he added. “I just couldn’t continue to work there. I don’t work that way. American professionals don’t work that way.”
Styles, who has no lawsuit or other legal claims, is also no longer with WSP. He left in November, calling it “the worst job of my career,” and moved to a new construction job out of state.
Brian Kelly, chief executive of the California High-Speed Rail Authority, said in a statement that the agency “takes seriously any claim of wrongdoing by an employee or contractor. We have procedures in place for any such claim to be raised and reviewed. We have an expectation that all employees act within the law and that our contractors meet the requirements of state and federal law.”
He added in an interview, “Our focus is on the mission in front of us.”
In the last half year, Kelly has moved to make changes in his organization’s culture, replacing numerous middle-level management officials, orchestrating more documentation for its plans and vowing to improve transparency in the agency operations.
WSP and Parsons Brinckerhoff, which merged in 2014, have been on the project since the 1990s. The Montreal firm, one of the largest infrastructure engineering organizations, is working under a $666-million contract. When he arrived at the project’s Fresno office, Styles said, he found a dysfunctional operation like he had never seen before — a pressured environment that aimed to contain bad news that could damage the project’s fortunes.
At the time, the rail authority was confronting delay claims, resulting from its slow acquisition of land, and change orders — both amounting to millions of dollars in higher costs.
Within days, he asked to see the detailed justification documents for the change orders. He said he wanted to understand the delays and how they would affect future construction, a routine part of a scheduler’s job.
WSP management, he said, told him that he didn’t need to see the documents. WSP was pushing to “keep the numbers looking good,” which in some cases involved altering reports written by its staff to make construction progress look better, he alleges.
Styles and other sources speaking off the record say that the bullet train schedule, which calls for installing 119 miles of track and a complex signal system from Madera to Wasco by 2022, is “impossible,” even though the project’s budget is predicated on the completion date.
To install track by 2022 would normally require all of the bridges, viaducts, trenches and other structures to be completed beforehand. As a stopgap measure, the rail authority now plans to install track in five-mile discontinuous segments, which the Federal Railroad Administration has criticized as illogical.
A more likely scenario would have the current construction completed between 2025 and 2028, which would drive costs up and force the state to either find new money or curtail the project, Styles and others said.
Rail authority spokeswoman Annie Parker said the agency has acknowledged repeatedly that “the deadline is a challenge.” It will require boosting monthly construction spending from the current $46 million to $70 million, said chief financial officer Brian Annis, who added that its construction pace is improving.
Sylmar-based Tutor Perini, which is building rail structures in Madera and Fresno counties, said a week ago it will complete its work in 2023. The company’s contract was initially $1 billion, but delay claims and change orders have doubled the amount.
Chief Executive Ron Tutor told security analysts in a recorded telephone call on Feb. 26, “With our extending the completion date from the end of ’21 to the first quarter of ’23, once again, we are in discussions with the owner to resolve payment for that further delay. However, it seems certain that given all of the results and resolves over the last 90 days that that should be the final end date for high-speed rail.”
It would mean that the rail authority could not begin to install track and signals until after that construction is completed.
When The Times asked the rail authority if it had comment on Tutor’s statement, it received an email Friday from Tutor saying his statement to investors had caused “some confusion.” He said that he hopes that “substantial completion” of his company’s work would occur in early 2022, leaving “paperwork, acceptances and contractual documentation” to be completed in early in 2023.
Turning around the multibillion-dollar project has proved difficult for years, given California’s complex governance structure, flawed contracts and past decisions, officials close to the project say. Executives in civil engineering firms say the rail authority lacks technical resources.
“They have all these people in top jobs with no technical background,” said a top executive at a major European engineering firm, who worked on the project. “They are politicians. They never disclose the full cost. They give you incremental truth. They believe that is a successful business model. They should cancel the contracts and start over.”
The Federal Railroad Administration, which oversees billions of dollars in grants, has long warned the rail authority it risked missing deadlines and was headed for big cost overruns. In December 2016, the FRA warned the statethat the cost of the Central Valley construction could jump by $3.6 billion. After The Times obtained a copy of the confidential report and published its findings, the rail authority denied the legitimacy of the analysis. Today, the cost is even higher than the FRA projected.
WSP said it stands by the job it is doing for the bullet train. “To the extent WSP prepares cost and schedule estimates for the program as a whole, WSP brings world-class talent to the project that prepare professional estimates based on client needs and the information available when generated,” Turner Roth said.
Styles said he was shut out of work not long after taking the job at WSP, though the company did not fire him. Over many months, Styles, who was being paid $170,000 annually, said he kept advising management about the problems and writing procedures for contract compliance.
In a Facebook posting in June, Styles wrote that he had been warned by a co-worker “to be careful” and “you know too much” and to take a lower profile. “I’d rather be dead than a coward,” he wrote.
Styles filed an ethics complaint against his former employer in June, which was examined by a management committee in Chicago. “The committee concluded there was no proof that WSP violated ethics with the state,” he said.
Turner Roth said, “In 2019, an employee — who has since left the company — raised a question about the schedule data submitted to WSP by the construction managers and construction contractors. In response to this question, WSP thoroughly investigated the matter, and concluded there was no wrongful conduct by WSP employees in their review of contractor submissions.”
As for Lovejoy, whose career includes engineering jobs at major public agencies and corporations, she said problems started more a decade ago when the Obama administration issued a $2.5-billion grant from its economic stimulus program, intended for “shovel-ready projects.”
The grant came about four years before the first construction contract was issued, and actual work did not begin for two more years. “It was so far from shovel-ready,” Lovejoy said.
Another former WSP employee, who spoke anonymously out of concern that he would face retribution, supported Styles’ assertion that monthly and annual reports submitted by staff often were changed by WSP management before they were reviewed in meetings and sent to state executives.
“We gave them the bad news and they wouldn’t accept it,” he said.
The Times has previously reported that the project has struggled to relocate pipes, electrical lines and other infrastructure that stands in the way of securing parcels and laying track. Today, the rail authority is short by 497 of the 2,042 parcels it needs, according to its most recent progress report. In December, the authority acquired only five parcels.
In late 2018, Hemanth Kundeti, a database manager, was hired into the project to help improve property records, but he lasted only several months.
Kundeti, an employee of a subconsultant to WSP, said he developed his own software tool that could track the work more accurately. It would have allowed the state to replace a subcontractor that was charging $2 million annually to maintain the records, he said.
When he proposed the tool to WSP and state officials, it was rejected. In February 2019, he was twice reprimanded for “insubordination” for continuing to promote his software, according to a copy of the reprimand. In response, he wrote on his warning letter that management “without healthy debate is dangerous for any organization.” He was terminated a few weeks later.
“I am still reeling from the after-effects of being terminated for trying to save taxpayers’ money from being wasted,” said Kundeti, who has found a new job.