Welcome to Sebesta World

Employee NewsletterEdition - April 2015

SEBESTA2

Message from the CEO 1

Service Spotlight 2

Security Partnership 3

Market Profile 4

Features 5

Company Corner 7

Contents

The cover of this issue symbolically represents the concept that Sebesta operates in most major cities throughout the US, delivering solutions and improving lives across a wide blend of facilities. Operating in this manner requires change. When it occurs, planned or not, it always requires a period of adjustment. Change, however, helps us to expand our thinking and build our resolve to become stronger, smarter, and better. Think of the positive changes that we’ve already seen this year:

• We added new infrastructure design capabilities in Texas, through the acquisition of Profile Consultants.

• We began supporting the students at the School of Environmental Studies to apply for LEED certification for their school.

• We secured a large contract to provide design engineering services for a significant upgrade to the power plant at the University of North Carolina at Chapel Hill.

• We are in the process of launching a roadmap for our future – a tool that we will use each and every year going forward to guide our evolution.

In addition, we continue to make a name for ourselves in the industry:

• We were named to the Minneapolis / St. Paul Business Journal’s Top Engineering Firms list - again!

• We were mentioned 23 times last year in print and online media and expect that number to double in 2015.

• We’re on target to again be named in ENR’s Top Design Firms listing when it comes out in May.

Last but not least, we continue to care about our communities:

• Last year, Sebesta employees collectively invested at least 290 hours in local charities to improve lives in their communities.

• Six spirited employees (aka The Sebesta Blombers) raised $2,785 for Special Olympics by splashing into the frigid waters of Crooked Lake in March. Overall, 1,000 plungers raised more than $208,000.

• More community investment is coming through our efforts with the American Heart Association, Kids Against Hunger, and other life-affirming organizations.

As we move forward, Sebesta’s World will continue to grow and evolve. With our strategic roadmap now in place, we will maneuver through future challenges ensuring our decisions are best for ourselves and our clients.

Welcome to Sebesta World

Change your thoughts and

you change your world.

-Norman Vincent Peale

“ ”

SEBESTA 1

CORE VALUESTRUST: We believe this is a function of both our character, which includes integrity, and our competence.

VALUE: We recognize the relationship of the services we provide to their worth.

PERFORMANCE: We focus our actions on achieving results.

PROFITABLE GROWTH: We must grow in order to offer compelling opportunities and resources to our employees, clients and shareholders. We must be profitable to sustain our growth.

Message from the CEO

Sebesta has been working with the Air National Guard since 2008 to help them meet their energy reduction goals while improving the performance of their facilities. We have provided energy audits and retro-commissioning services for dozens of bases around the country. Our teams working on these projects have drawn from multiple offices to provide cross-functional expertise, including engineering, commissioning, energy analysis, and facility operations. To date, Sebesta’s revenues from the ANG have exceeded $5 million.

The ANG retro-commissioning process starts with the Investigation Phase, which is comprised of two components; field investigation and data analysis. Sebesta provides a preliminary evaluation of the condition and performance of energy using systems throughout the base. The process includes extensive field investigation and testing of HVAC systems and controls, electrical systems, and building envelope. Field testing can include temperatures, air flows, pressures, electrical voltage and current, vibration, infrared testing, and water treatment conductivity / PH. Data analysis consists of extensive and comprehensive system trending via the BAS and data loggers. This helps to uncover latent control issues and provides the field team with a better picture of the energy using equipment therefore allowing a more focused and complete investigation. Current facility requirements vs. original designs are reviewed.

During the Investigation Phase, Sebesta has a budget for Ancillary Services or “Quick Fix” repairs, such as controls, HVAC, and electrical repairs, that will both allow the investigation to proceed and provide immediate improvements in facility performance and energy efficiency. At the end of the Investigation Phase, Sebesta publishes a report documenting the findings and recommendations from the Investigation, with estimated costs and energy savings achieved to date, and additional recommended energy efficiency projects and their estimated economics.

The Investigation Phase is followed by an Implementation Phase, where Sebesta works with ANG staff and third-party contractors to implement the recommendations from the Investigation Phase. Examples of energy efficiency measures include rebalancing air systems to provide appropriate air flows, installing CO2 sensors and controls to provide variable outdoor air, installation or repair of VFDs to allow for more efficient variable air and water flow, addition of air-side economizer capability to air systems, and conversion of lighting systems to more efficient LEDs.

(Continued Next Page)

By Abbe Bjorklund and Rob NoeEnergy Performance

SEBESTA2

Air National Guard Retro-Commissioning and Energy Performance

Service Spotlight

SEBESTA 3

At the end of the Implementation Phase, Sebesta issues a final report documenting the results and benefits of the retro-commission implementation. Energy savings achieved are typically about 15%, with paybacks ranging from three to 10+ years depending upon the mix of operational and capital projects.

Other benefits of the retro-commissioning process include identification and repair of safety issues (such as loose electrical connections and breeches in fire dampers), and improvements in facility comfort through reduced infiltration and excessive air flow. There is also a training component of the retro-commissioning process, where ANG staff work along side Sebesta staff to investigate and test building systems.

Through the retro-commissioning process, Sebesta has also been able to provide value by improving the performance of energy systems that may not ever have been properly installed or commissioned. An example is the geothermal field at the Truax ANG site, where Sebesta recommended flushing the system to eliminate excess air and cavitation.

The result was an increase in the temperature differential from 2 degF to 10 degF, thereby improving the energy output and efficiency of the system. At the Fort Worth site, Sebesta was able to utilize solar PV collectors that the ANG had purchased but never installed.

For recent projects, Sebesta has been utilizing our new commissioning tool, CxAlloy®, to generate Field Reports and Commissioning Issue Logs while we are working in the field, and transmit them immediately to ANG facilities staff for their action. This process has allowed us to deliver our services more efficiently and ANG to achieve the benefits of retro-commissioning more quickly.

Sebesta’s ANG team includes Andre Lehr, Rob Noe, Theresa Warner, Tom King, and several others that have been providing valuable services to this important client.

Air National Guard (Continued)

Project SitesFargo, ND Memphis, TNDuluth, MN Tulsa, OKTopeka, KS Salt Lake City, UTMadison, WI New Orleans, LACamp Douglas, WI

At Sebesta, our Facility Security Officers stay current on National Security issues by meeting with leaders in the security community and taking continuing education classes.

We use this information to both advise management on enhancements to our security program and develop policies and tools to educate our colleagues, in addition to supporting our federal contracts. You’ve seen e-mails from security@sebesta.com, under our STEP (Security Training & Education Program) logo (pictured above). These e-mails are often direct reflections of briefing topics.

Recent security briefings have had a common theme - PARTNERSHIP. The Department of Defense, and various agencies supporting National Security, are increasingly turning to industry to develop a security partnership. National Security is closely tied to economic security and our economic system, so it is incumbent upon us all to do our part.

We all need to partner to protect our families, our communities, our workplaces, our critical infrastructure sites, and our nation.

It’s very simple to help out: if you see something, say something. The Department of Homeland Security’s campaign to encourage everyone to report suspicious behavior fits perfectly with the theme of Partnership being highlighted by the Department of Defense.

Report any suspicious activity to your local law enforcement agency, or call 911 in an emergency. If you have questions about Sebesta’s security program, please email security@sebesta.com.

Security Partnership

Service SpotlightBy Liz BolinAdministrative / Security

SEBESTA4

Sebesta creates solutions for clients in a variety of markets: Government, Education, Industrial, Commercial, Healthcare, and Power & Energy. The Government Market, for whom we provide commissioning, retro-commissioning and engineering, is one of our leading markets generating about 25% of our annual revenue.

As an example of how this market drives our business, in FY 2014 we had staff from almost every office working on Department of State projects. On any day of the week, team members from five states are working globally on an average of three Department of State embassies. Furthermore, for the past five years we have held the General Services Administration (GSA) FAC 03 contract. Through this contract we have provided commissioning and energy services to the National Guard and the Veterans Administration.

All of our Government clients are focused upon reducing their energy footprint. It is our vision to help them to reduce energy demands so they can develop a sustainable infrastructure for future generations. We already have a number of major Government opportunities in the pipeline to help them achieve this goal, including the following:

• NASA’s Kennedy Space Center for commissioning and design services

• Department of Energy with their Energy Services Performance Contracts (ESPC)

• DOD Washington Headquarters Service for the Pentagon Commissioning Contract

• GSA professional services engineering and management contract consolidation

The Government Market can be characterized as a market with established clients and contractors. Also, it is typical that project opportunities can take a year to go from a proposal to a contract award. And, oftentimes the prime project opportunities must be led by a small business. So to win projects we must be conscientious about developing teaming relationships with both large and small businesses.

In addition to myself, the regional Government Market Leaders include Dave Harrison, Brad Bowman, Andre Lehr, and Dave Vettraino. Please reach out to any of us with questions or ideas to support the Market’s strategic direction.

Government ClientsTier 1 and 2* Tiers 3 and 4**

US Department of State Federal Aviation AdministrationUS Department of Veterans Affairs US Department of Energy

National Guard NASAHennepin County, MN Airports (Boston, Dallas, Houston Markets)

* Current Clients ** Potential Clients

Our Top Three Government Clients:US Department of StateUS Department of Veterans AffairsU.S. Army Corps of Engineers

Since 2010, we have proposed to and worked for over 100 federal, state, and aviation clients.

Market Profile - GovernmentBy Bill TippinNational Market Sector Lead

SEBESTA 5

New Arlington Location Set for Future Growth

Our Arlington office has moved! The new office, although in the same neighborhood, provides significant benefits for the region and company, particularly in meeting current and project staffing needs for the location.

The landlord, Vornado, offered an incentive for Sebesta to stay in their portfolio and based the design of the new office on a space plan from “Design Lab” (an architectural competition held in this building last year). This approach, and strong negotiations by our real estate agent, secured Sebesta a great deal on the tenant fit-out. Additional savings include lower per square foot rent and a smaller overall footprint.

The new space will be LEED-CI Silver, and has a modern, fresh look. The use of glass walls and doors, along with abundant natural light, makes the smaller space feel open. Showcase features of the new office include an entry with wood-plank walls, a stylish conference room, and a kitchen with a view of Crystal City (including the control tower at Ronald Reagan Washington National Airport).

Did You Know…..• Sebesta recently made significant enhancements to the Registration and Certification Bonus Policy?

This program is designed to reward those Sebesta associates whom, on their own initiative, pursue certain professional registrations or certifications.

• Key enhancements include increasing the $3,000 bonus to $5,000 for those who successfully pass the PE exam. In addition, employees whom successfully pursue a Certificate of Energy Management (CEM), will receive $2,500. We also have broadened the Commissioning Certifications to include $1,000 for obtaining a Certified Commissioning Authority (CxA) status or Certified Commissioning Professional (CCP) status.

• Questions? Details of the Registration and Certification Policy may be found on iVantage. Don’t forget you can always reach out to a Human Resources team member.

FeaturesBy Liz BolinAdministrative / Security

SEBESTA6

In a previous newsletter, we discussed how the relationship with a client and understanding their needs make a huge difference in winning or not winning work. With this in mind, how can the proposal technical lead and proposal coordinator work together to create winning proposals?

The essential ingredients to a successful proposal are the same as a successful project: the spirit of collaboration, good team communication, and meeting schedule milestones. In addition, we must determine as a team how to reflect throughout the proposal our clear understanding of client goals and how we will execute the project with these goals in mind better than other firms vying for the work.

Know Thy Client: If a proposal doesn’t reflect an understanding of the client’s goals, it is unlikely to win. When drafting and reviewing proposal materials, ask each other if you are hitting the differentiator nails on the head? Only with a clear understanding of what the client wants to achieve can we articulate in our proposals how we will deliver solutions and improve lives.

Collaboration and Communication: Examples of how important these two are emerge in proposal kick-off meetings where teams are discussed, assignments are made, and schedules reviewed. After the kick-off meeting, regular updates and sharing of information is vital for success.

Schedule Milestones: It’s crucial to take ownership of these key dates and communicate any snags or problems that arise to the rest of the team. Since a first draft is rarely the best version, adhering to the development schedule allows for more draft reviews. Coming back to a draft and reviewing it with fresh eyes will inspire and also help identify any gaps in the requested information.

If we combine these key ingredients, we are better positioned to reap the rewards implied in Henry Ford’s observation: “Coming together is a beginning, keeping together is progress, working together is success.” Success leads to profits, stability, and growth. Stay tuned for continued updates through the 2015 Roadmap!

Proposal Formula Highlights Collaboration, Communication

Cedar Rapids Office Teams with Kids Against HungerOn March 28, the Cedar Rapids Team came together with family and friends to package nutritious meals for those in need. Kids Against Hunger is an international food relief organization working to save the lives of starving people around the world. This year’s efforts were dedicated toward providing meals for the local food shelf as well as Central Americans in need. The volunteers packaged an astounding 88,684 meals, by far exceeding their original goal of 75,000!

In an effort to honor the caring spirit of Sebesta family members participating in this year’s event, Sebesta is proud to be a Corporate Sponsor for Kids Against Hunger. Members of the Sebesta Team included Doug, Sara, and Emma Kelley; Denise, Jason, and Josie Strohbehn; Pat and Grant Ryan; Sara Schmerbach; John, Kolsie, and Drew Bixler; Maggie Wiederin; Melissa and Mark Gilmartin; Keith Steuer; Austin Smith; and Brennan Russell, Vicki Wang, and Katie Greiner.

kidsagainsthunger.org

PROPOSAL

CATERPILLAR, Inc.Corporate Headquarters Commissioning Services

August 11, 2014

STATEMENT OF QUALIFICATIONS

The University of North Texas SystemIDIQ Commissioning ServicesRFQ 769-15-848ER

January 15, 2015

STATEMENT OF QUALIFICATIONS

Project No. 2014-16Engineering Services for NMR Installation

SEDC Engineering, P.C. (An Affiliate of Sebesta, Inc.)

December 19, 2014

Features

SEBESTA 7

FarewellTodd Cole

Sarah Zorn

Ronald Ciesla

George Houk

Sarah Carver

Hilda Perez

Donald Fearing

Darian Westerlund

John “Jack” Simpson

Nathan Reimers

Doug Baggett

Michael Apewajoye

Patty Thomas

Pete Dahl

Katie Anthony

JJ Brantingham

Welcome New HiresThomas Matzek St. Paul

Tom Skatter St. Paul

Drew Kohler Philadelphia

Ravish Paul Raleigh

Adnan Adam St. Paul

Usamah Hayes St. Paul

Sandeep Kulkarni Chicago

Nima Sadeghpour Dallas

Brandon Ballard St. Paul

Angela Thomas St. Paul

Interns:

Austin Owens St. Paul

Cesar Trevino Boston

Emma Yeager Boston

Roxanne Karami St. Paul

Gregory Dooley Cedar Rapids

Kyle Blacker Cedar Rapids

Employees Complete CEM Exam; Certifications PendingCongratulations to the following employees who successfully participated in a week-long training program facilitated by the Association of Energy Engineers (AEE) in February. AEE is the leading credentialing body for Energy Managers. Upon completion of the course, participants sat for a rigorous Certified Energy Manager (CEM) exam. We are pleased to recognize the following employees for successfully completing the CEM exam: Carlos Lopez, Corinne Wichser, Andrew Heairet, Markus Harper, and Israa Ajam.

Don’t Forget!!• Sebesta will be sponsoring

the Women in Engineering Event in Washington, D.C. on April 22.

• Annual Employee Evaluations are Coming Up in May.

• Spring and Summer are typically busy periods for procurement. Remember to schedule Go / No Go Meetings for opportunities with the Proposal Center as soon as they become available.

Newsletter Contest Winners Announced; Next Ones Sought

Congratulations to Billy Parker, St. Paul, and Rita Abbot-Billings Raleigh, for participating in the December Newsletter Fun Fact Contest. They each will receive a $25.00 American Express Card!

Be one of five winners for our current newsletter contest. Enter the contest by submitting the correct number of countries in which Sebesta employees worked during 2014. Submit your entry by emailing your answer to snewton@sebesta.com. Be sure to type “newsletter contest” in the subject line. If there are more than five correct entries, the winners’ names will be drawn from the pool of correct submissions.

Company Corner

If You’re So Smart....If you would like to submit ideas for the next edition of the newsletter, please forward them to Maryam Peters in Human Resources or Braden Whaley in the Proposal Center.

Sebesta aims to publish new editions quarterly. To this end, it may not be possible to incorporate certain content due to timeliness and / or other schedule constraints. Any materials submitted for use in the newsletter should have the proper clearances and / or ownership. Any materials where ownership is not established may be refused.

By Su NewtonHuman Resources