The Executive Message

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1 CAPE DESIGN ENGINEERING CO. R E D L I N E SNEWSLETTER The Executive Message By Lutfi M. Mized and Kannan Rengarajan Has it really been 15 years? It seems like a blur, but if you read our accompanying story celebrating our company s history, you ll see that this really is the 15th anniversary of Cape Design Engineering. When you re busy, time passes quickly, and we ve certainly been busy through the years, and especially so this past year. CDE experienced significant growth on the construction side of the business, which led to the company hiring a team of 8 project managers, superintendents and project coordinator in the last 6 months. This has been especially rewarding because construction was in our business plan when CDE was founded, but it wasn t until nine years into our company s growth when it finally took root. Now construction and design-build services have become integral parts of CDE s operation, and we expect to see continued growth. We received several construction & design-build projects with the Naval Air Station in Jacksonville, two with NASA at the Kennedy Space Center, and two more with Patrick Air Force Base this year. On the engineering side of our company, CDE landed three major long-term contracts a 5-year structural engineering service contract with NASA-KSC, a 3-year mechanical, electrical and plumbing (MEP) contract with UCF and a 3-year structural engineering services contract with the St. Lucie County School board. In addition to serving state colleges and public schools, we re pleased that 2012 saw university clients added to our list of partners. Doing work with all these various educational institutions has been enormously gratifying for us, for the obvious reason that we value education. But Cape Design Engineering doesn t just do business with universities, colleges and public schools. We strive to give back, too. Toward that end, this past year saw CDE continue to mentor and train interns while also serving as an advisor to universities. We are actively promoting engineering in high schools and providing free lectures on entrepreneurship. We also contributed to functions that raised funds for scholarship funds. Our goal and desire is to help develop tomorrow s engineers and business leaders in order to carry the torch that we ll one day pass on. We feel blessed by all the success we ve had, and believe that whatever we can do to help the next generation that s coming behind us is the least we can do. While CDE is becoming more and more of an international company, we still feel a special affinity for the Space Coast and now, in recent years, with Jacksonville. This is our fourth year in Duval County, where we now have four field offices, and growing. In connection with that, we re proud that in this depressed job market we ve been able to both hire and contribute to the local economies in Brevard and Duval counties. Yes, it s been a busy time, but in a good way. [Continued on page 7] WINTER 2012 WHAT S INSIDE?: A 15 Year Journey Guest columnist Peter Kerasotis writes a retrospective look back at Cape Design Engineering over the past 15 years Page 2 Projects In Motion Take a look at some of CDE s most recent design and construction projects Page 6 Meet Otto Introducing the leader of CDE s Jacksonville Contruction Team Page 5 Dinner Photos Some photos from CDE s company dinner. Page 8 DID YOU KNOW?: In an average lifttime, a person will walk the equivalent of 5 times around the equator. The citrus soda 7-UP was created in 1929; 7 was selected because the original containers were 7 ounces. UP indicated the direction of the bubbles. There are 10 human body parts that are only 3 letters long. (Extra Credit - Can you name all 10?) 1

2 A 15-Year Journey By Peter Kerasotis It seemed like an ordinary ribbon-cutting ceremony, except that Kennedy Space Center Director Roy Bridges used the opportunity to say something extraordinary. Standing in front of what would soon be an award-winning building called the NASA Technical Records Center, built to house all the space program s historical archives from its beginning, Bridges looked at dignitaries, contractors and NASA officials. I want you to know, he said with words drenched with praise, that this whole project was designed and built in just six months. In the audience, Lutfi Mized, Kannan Rengarajan and Herb Wasserman beamed. The three partners who in 1997 founded Cape Design Engineering in Cape Canaveral, Fla., had been waiting for this day. In fact, they d been desperately hoping for it. We ve turned the corner, Wasserman told his partners later. I think we ve finally turned the corner. It was 15 years ago when the three men left what Mized called cushy jobs with a previous engineering firm to start their own business. They had no clients and no contracts lined up. Instead, all they had was a vision. A different vision for running a company, Mized said. The goals they set for CDE were high: Provide Brevard County with the best engineering services. Hire a creative, innovative and energetic staff that would take ownership of the company, rewarding them with bonuses based on the company s success. Create a horizontal management philosophy with a true open-door policy. Never take customers for granted. Instead, offer excellent customer service and state-of-the-art innovative engineering at a reasonable cost. Seek and embrace challenging projects. Have fun. Enjoy the work and have a passion for it. There would be no shortcuts, either. The partners met at Mized s home and agreed to honesty, integrity, ethical and moral business practices as well as fidelity to family. Mized had worked in engineering long enough to have seen some of the seedy sides of the industry, and he was determined not to resort to any of them. I was going to flip burgers before resorting to any of that, he said. For a while there, though, it seemed like the three men might just be doing that anyway, or at least going back to being employed by a firm instead of owning one. For the first six months we made minimal income, Rengarajan recalled. We were basically running the company with our own money, from our savings. It was a family operation, for sure. Their wives Peggy Mized, Rama Kannan and Maxine Wasserman made lunches daily while doing all the accounting and clerical work. When CDE moved into their first office suite, holding just 750 square feet of space, they bought the used furniture the previous tenant had left behind for $100. Meanwhile, Peggy painted the walls while son Sami Mized, 15 at the time, set up the IT programs, the phone system, the company web site, assembled brochures and even began writing proposals. 2

3 Small engineering jobs trickled in; things like work with architectures and other minor projects. But it was nothing meaningful, nothing challenging and certainly nothing that was paying all the bills. It was only after that NASA project, late in 1999, when KSC Director Roy Bridges singled out CDE for its exemplary work that later won an ASHRAE Award, when they felt like they d turned the corner. Big jobs with Boeing and FP&L soon followed, which Mized said really kick-started the company. And now? Fifteen years down the road from the birth of Cape Design Engineering, the firm has completed more than 2,500 projects worth hundreds of millions of dollars. But even though the firm now sits in a combined 10,000 square-feet of office space in both Cape Canaveral and Jacksonville, CDE still maintains the same philosophy and attitude it had during its humble beginnings. You don t forget where you came from and all the hard work it took, Mized said, recalling a time early in CDE s history when their phone system, which a friend had sold to them on the cheap, suddenly sounded staticky. It sounded like there were aliens in it, he said. He opened it up and found it crawling with ants. Soon he and Kannan were outside the building, spraying the inside of the disassembled phone with a pesticide, putting the phone back together, and then resuming work. It helped that the three men are friends. Wasserman has since retired, enjoying his grandchildren, though he still dabbles in consulting with the company. Today, Mized serves as Cape Design Engineering s President and Rengarajan as its CEO. Rengarajan recalled exactly where they were when Mized first approached him about going into business together. They were at the Portside Galley restaurant in Cape Canaveral, eating lunch. Rengarajan was 36, and his friend was 38; and as Mized had mentioned, they both did have cushy jobs that offered a measure of security. Leave that and venture into the uncertain prospect of starting their own company? Lu, Rengarajan told his friend, I ll go with you anywhere. Rengarajan had observed Mized at their engineering firm, how he had risen to vice president with 85 people reporting to him. Whenever we had a meeting, Rengarajan said, Lu always knew everything about everything. He was very knowledgeable. I always looked up to him. Mized had hired Rengarajan at their old engineering firm in 1995, and the two men hit it off immediately. It probably helped that both are from halfway around the globe Mized from Palestine and Rengarajan from India. I liked Kannan right away, Mized said. I could see that he was very smart, had a good work ethic and was a good family man. When I wanted to start my own business, it was important for me to partner with people like Kannan; ethical people with good qualities. And we insisted from the beginning that we were going to have fun and enjoy what we re doing. We do this because we want to. allow their lives to orbit around a dollar sign. They also want to help others, too. The two men help support family members back home in the Middle East and India, as well as family in the States. They give generously to charitable organizations, involve themselves in mentorship programs and generally don t [Continued on next page] 3

4 We really like what we do, Rengarajan noted. And what we really like are challenges. We get excited when there s a challenging project. We thrive on it. Mized had run a small engineering company LM Engineering in Daytona Beach back in the 1980s. He also has a gift for simplifying complicated matters and technical jargon into layman s terms, which is why, after teaching part-time at Daytona State College for four years, the school tried desperately to hire him as faculty. But owning his own company was his dream. Beyond that, however, owning a quality company that was creative and innovative, one that stood out from other engineering firms, was his goal. Even as CDE grew, the challenge was to keep the same principles intact that were there when it was a smaller company. We worked hard to control the growth so that we could maintain the high level of quality, Mized said. If you get too big, things start slipping through the cracks and customer service can suffer. Even now, Mized and Rengarajan can often be found in the field, working hands-on on projects, communicating directly with clients. Where other company heads tend to disappear after a contract is signed, Mized and Rengarajan choose to become even more visible and accessible. One of their clients who appreciated that was Michael Uren, an OBE from England. OBE means Order of the British Empire, one of the highest honors a citizen can receive. A brilliant and wealthy man, Uren was the founder and developer of Civil and Marine Ltd. In 2001, he wanted to build a slag grinding plant in Port Canaveral, and he needed an engineering firm. Uren made the rounds along the Space Coast. When he came to CDE, he was immediately impressed by its office by how simple and efficient it was. I m not looking for a flashy office, because I ll end up paying for it, he declared. Immediately, Uren started asking questions of Mized, Rengarajan, Wasserman and the staff. No matter what their field of expertise was, Uren could converse with them in-depth, and he did. Basically, what he did was go around and conduct an oral interview with everyone, Rengarajan recalled. He was old school that way. He just quizzed everyone. Not only did Uren like what he saw, he liked what he heard. He was equally blown away with how efficient, professional and prompt the dossier of permitting was that CDE supplied him. CDE got the contract, with Uren stating, I don t mind paying for the best technical knowledge. The project lasted four years, and after it was completed CDE continued to do consulting work for Uren. There have been other highlights, like playing a key role in their team getting the 8-year TESS contract, landing construction contracts with the Navy in Jacksonville, working with the Brevard County School Board and various colleges and universities, winning multiple awards and rave reviews along the way. In fact, Mized and Rengarajan recall a time when a school board official stated, If you want the mundane stuff, hire an engineering firm. But if you have something complex that you need done, hire CDE. Said Rengarajan, We thrive on finding high quality solutions to problems. And they re still finding them. It s been a while since Cape Design Engineering turned the corner and continued motoring down the road they re on now. It s been a journey, for sure. One that still continues. Peter Kerasotis is an award-winning journalist whose career spans five decades. Locally grown but nationally known, Peter graduated from Merritt Island High School, Brevard Community College and the University of Florida. An author and broadcaster, he also regularly writes for the New York Times and Orlando Magazine. 4

5 Noteworthy News Did you know that you can follow CDE on Twitter or friend us on Facebook? Visit for more information! CDE wants to wish Joanna Monge, E.I. good luck as she prepares to sit for her Professional Engineering license examination. The University of Central Florida has selected CDE for an ongoing MEP engineering design contract. This is CDE s first direct contract from the University and we look forward to forging a long lasting relationship with the University. NASA has awarded Cape Design Engineering Co. a five year ongoing contract to provide engineering services. CDE looks forward to working with NASA on any projects that further support the mission of spaceflight. St. Lucie County Public Schools has awarded Cape Design Engineering Co an ongoing structural engineering services contract. This is the first time CDE has worked directly for the St. Lucie Public School district. Jack s Travels... Our very own Laura brought in a small stuffed animal that sits on her desk - his name is Jack. Little did she know she started a funny little tradition. Each person that travels abroad takes Jack with them and takes a photo of the little bear where ever they go. So far this year Jack has traveled to places like England, Antigua, The Bahamas, and Grand Cayman just to name a few. Introducing Mr. Otto Herrera, CGC Otto Herrera might be fairly new to Cape Design Engineering, having hired on just 14 months ago in his native Jacksonville. But as a former owner of an engineering and construction company that focused on design-build operations, Herrera is no neophyte to the industry. In fact, he s third generation in the construction business. It started with my grandfather, he says. So I m not new to this. Herrera, 47, knows how hard it can be to run a business, especially in this current economy. It s why he s no longer an employer, and instead is now an employee. I know what it takes, and I really like working for CDE, he says. I especially like the open-door, interaction policy with our owners. I also enjoy the team. We have very good people who are very easy to work with. I think all of that comes from ownership and their policies and personalities. Conversely, Herrera is exactly the type of person CDE likes on its team. He was hired as a superintendent, safety officer and quality control. In October, at about the one-year anniversary of coming on-board with CDE, Herrera was promoted to project manager. Herrera was born, raised and spent most of his life in Jacksonville, where he lives now, in the Orange Park section. During his youth, he did spend time living in Nicaragua, where his father was born. He enjoys spending time with his family, his church and bowling. Even though he no longer owns his own engineering and construction company doesn t mean that Herrera has given up on business altogether. About two years ago, he created a multi-use sauce more by necessity than design. Now it s become an entrepreneurial venture. One night, I was grilling a big pile of shrimp, and I threw together a sauce for it, he says. Everyone loved it. It really is an all-purpose sauce for nachos, salads, dipping, marinating meat. It s pineapple and strawberry based, but it s really hard to describe. It s like trying to describe chocolate to someone who s never tasted chocolate. One day, a close friend recommended that he market the sauce, which is what Herrera has been doing. He has a web site where people can place orders. Right now, the cost is $4 plus shipping for a 5-ounce bottle. He hopes to soon have his product in grocery stores at a $3.70 price point for a 10-ounce bottle. By the way, in case you re wondering what the TD in TDsauce stands for, it s TD as in Totally Delicious. Right now, just from requests, I can t keep up with demand, Herrera says. I m selling five to six cases a month, with 12 bottles to a case. I m really hoping to get it into markets soon. He jokes that his target is to one day buy Heinz. With a chuckle, he adds, Hey, you ve got to think big. 5

6 Projects In Motion KaBOOM - K-a Band Objects Observation Monitoring KaBOOM? Yes, KaBOOM, as in K-a Band Objects Observation Monitoring. It s a NASA project, with the intent to implement a high-power, high-resolution radar system to better track and characterize orbital debris and Near Earth objects or NEO s. It s a joint effort pulling together several NASA facilities, with the one at Kennedy Space Center that CDE is involved in. We are designing and building a command center at KSC with pile foundations for three 40 antennas, electrical, water and sewer infrastructure that will also support three state-of-the-art antennas being built to probe outer space. KaBOOM s lead scientist is Dr. Barry Geldzahler. He s the same scientist who, on Feb. 4, 2012, beamed The Beatles song Across the Universe into deep space. The transmission was aimed at the North Star, Polaris, located some 431 light years away, prompting former Beatle Paul McCartney to say in a message, Amazing! Well done, NASA. Send my love to the aliens. All the best, Paul. The transmission coincided with the 40th anniversary of the day The Beatles recorded Across the Universe as well as the 50th anniversary of NASA s founding. Sea King Park at Naval Air Station Jacksonville, FL Since we are sports fans at CDE, it s fun to take on projects that involve two of our favorite sports football and soccer. So when the Naval Air Station in Jacksonville contacted us to build a state-of-the-art multi-sports facility at Sea King Park, we rolled up our sleeves with a smile on our faces. The new park now allows six teams whether they be football, soccer, or both to simultaneously train and play their sports. We re pleased, too, that they can do so even after there is heavy rainfall, because the innovative drainage system design we created significantly controls any potential flooding. On this project, CDE got a kick (pun intended) out of working with a company called Field Turf, which in the past has provided state-of-the-art artificial turf for the NFL s Indianapolis Colts, U.S. Air Force Academy, U.S. Military Academy, U.S. Naval Academy, as well as many major colleges around the country.the field that Navy personnel will now get to play football and soccer on is now NFL quality, and it all came in onbudget and on-time. Palm Beach State College Technical Education Facility at Belle Glades, FL Palm Beach State College had a goal for its Belle Glade Campus. It wanted to build a technical education center, but it wanted it to meet LEED Silver certification. That meant it needed a forward-thinking design and construction project that was cost-effective and intelligent in its approach. Enter CDE. Everyone knows the green buzzwords are these days, and that the challenge is to be net zero energy increase for the campus. Can you design and build while minimizing the energy consumption needed? Mission accomplished. A two-story, 28,000+ square-foot building went up, and thanks to all the energy-saving designs CDE provided, energy costs for the campus increased by only $2,000 per year after the building went online. It didn t go unnoticed. Palm Beach State became the first college in Florida to be awarded a Platinum LEED Certification, and was awarded the prestigious GalaVerde 2012 LEEDership Award for Outstanding LEED in new construction recently. 6

7 Air Field Rinse Rack at Naval Air Station Jacksonville, FL There is a reason why there are no basements in Florida. The water level obviously won t allow it. So when the Naval Air Station in Jacksonville wanted us to build what is essentially an underground vault beneath its air field, it was particularly challenging. But it is challenges like these on which CDE thrives. Think of it as building a dry, reverse swimming pool. But that s what we were able to do. In addition to that, CDE is proud for the environmental contributions it brought to this project. Previously, when airplanes were washed at this facility, the used water was dumped untreated into the St. Johns River. But now, because of Environmental Services Inc. out of Oceanside, CA and CDE s creative design approach, the rinse water is treated and cleaned first prior to releasing into the river. In the process, several hundred thousands of gallons of water will be preserved upon completion of the project. Centrial Instrumentation Facility Roof at Kennedy Space Center The Central Instrumentation Facility at Kennedy Space Center needed a new roof. But, oh, if only it was that simple. The challenge was installing that new roof, and doing so without disrupting normal business operations, which especially included the delicate calibration operations that go on beneath that roof. We were honored that to meet that challenge and accomplish that task, it was CDE who was called upon. In addition to the new roof over the entire CIF facility, CDE also designed a fall-protection safety feature, which was implemented. Also, a lightning-protection system was installed to ensure the protection of sensitive equipment. So, yes, CIF got a new roof. But it also got so much more. Continued from The Executive Message We don t take our growth and our success for granted. Nor do we believe that we ve been able to do this alone. That s why we d like to thank our friends NASA-KSC, the Air Force, the Navy, FPL Energy Services, Brevard Community College, Palm Beach State college, Daytona State College, the Brevard County School Board, Health First, Anguilla Development Corporation, and architects and contractors we ve been privileged to work with. We also want to acknowledge the US Small Business Administration, Miami Office, for their support and encouragement through the years. We don t take any of these relationships for granted. As we look back on our 15 years, we do recall the struggles and trials we went through as a fledgling company. It wasn t easy. That s why, as we look forward to the coming year, we re also looking toward mentoring newer, younger and smaller companies, and exploring ways that we can do that most effectively. More on that to come in the near future and in our next newsletter. Until then, a sincere thank you to all our friends and all the relationships we ve forged through the years. Kannan Rengarajan, P.E. Chief Executive Officer Lutfi M. Mized, P.E. President 7

8 Photos from our Company Dinner C DE COMPANY Cape Design Engineering Co. 191 Center Street - Suite 201 Cape Canaveral, Florida PHONE : FAX : WEB : U.S. POSTAGE GOES HERE PLEASE MAIL TO: 8

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