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D o in g B u sin ess w ith B GCAPP Diane Osbourne Small Business Advocate August 21, 2008

Proven performers, good neighbors 1. 2 Agenda Safety Topic Overview of Agenda Introductions –Richard Rife, Deputy Project Manager –Lori Baker, Acquisition

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Proven performers, good neighbors

1

Doing Business with BGCAPP

Diane OsbourneSmall Business AdvocateAugust 21, 2008

Proven performers, good neighbors

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Agenda

Safety Topic

Overview of Agenda

Introductions– Richard Rife, Deputy Project Manager– Lori Baker, Acquisition Services Manager– Behle Burns, Design Manager– John Walczyk, Construction Area Superintendent – Evan Carlson, Field Procurement Manager– Glenn Franklin, Project Procurement Manager

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Doing Business with BGCAPPGlenn FranklinProcurement ManagerAugust 21, 2008

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Overview

– Identification, Prequalification and Selection of Potential Bidders – What is the process and what are the requirements

– Request for Proposal – Section by Section Review

– Complete Proposals – What does it take to provide a complete proposal

– eRFP (Electronic Request for Proposal)

R:/Administration/Presentation/SubcontractorTraining/Prequalification Requirements for Subcontractors June 2006

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Prequalification ProcessPotential Bidders List

Potential Bidders are identified as follows:– Bechtel Global Supplier Information System– Expressions of Interest through the

BGCAPP Website– Industrial Search Engines

(Thomas Register, Construction Blue Book, etc.)

– Small Business Advocate input

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Information needed by Supplier for FREE Registration•Dunn and Bradstreet Number•Bonding capacity, bid range•Annual sales•Area of expertise, work experience to enter commodity code

information•Business size classification

http://supplier.bechtel.com

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Identification, Qualification and Selection of Potential Bidders

Prequalification Procurement Professional issues Prequalification Requirements to

Potential Bidders

– Potential Bidders MUST respond completely and timely – Subcontractor’s Certification Form to be completed/signed

Satisfactory completion of the Prequalification requirements normally qualifies that the prospective offeror will be issued an RFP (Request for Proposal)

Prequalification Requirements are unique to each Request for Proposal (Scope of Work).

Prequalification Requirements will typically be divided between 1) Commercial 2) Technical

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1) Commercial

– Is the potential supplier capable of furnishing a complete scope for the materials/equipment?

– Contact Information has been completed– Similar Scope Experience List, including a summary of

performance and Customer Contact Information– Audited Financial Statements and/or current

Comprehensive Dun and Bradstreet Report

Identification, Qualification and Selection of Potential Bidders

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Identification, Qualification and Selection of Potential Bidders

2) Technical Is the Bidder capable to perform the Scope of Work?

What is the Bidder’s experience with this Scope of Work?

Do they have capable personnel?

What work is Subcontracted? (Work performed by others)

Does the Bidder have an acceptable QA Program (e.g. ISO Certificate, or Table of Contents) ?

Shop Capacity, and Work Load - does the Bidder have the ability to meet the shipment schedule?

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Request for Proposal

BGCAPP will issue formal, written Request for Proposals (RFP) for all permanent plant equipment

The content for each RFP will be unique depending on the requirements of the Material Requisition.

An RFP typically includes the following documents:

Request for Proposal Letter (including attachments)– Information and Instructions to Bidders– Representations and Certifications– Commercial Form of Proposal (including attachments)– Technical Form of Proposal (Evaluation criteria)

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RFP Letter - SAMPLE

Bechtel National, Inc. 301 Highland Park Drive Richmond, KY 40475 Bidder Name and Address

DATE:

PROJECT NAME: Blue Grass Chemical Agent Destruction Pilot Plant (BGCAPP) BECHTEL JOB NUMBER: 24915

PROPOSAL REQUEST NUMBER: 24915-000-MRA-AAAA-00000 Rev. 0 Show this number on all correspondence

PROPOSAL DUE DATE: Date No later than 4:00 PM, EST Proposals received after PROPOSAL DUE DATE may not be considered

DPAS RATING: D0-A5

DELIVERY AT: Blue Grass Chemical Depot, Richmond, Kentucky

REQUIRED NO LATER THAN: Date

GOODS/SERVICES:

You are hereby invited to submit a firm proposal on or before the PROPOSAL DUE DATE noted above covering the goods defined by the attached Scope of Work and Technical Specifications in compliance with all referenced documents and attachments.

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RFP Form of Proposal

1. INSTRUCTION

THIS COMMERCIAL FORM OF PROPOSAL MUST BE RETURNED WITH THE OFFEROR'S PROPOSAL. NO ENTRY SPACES ARE TO BE LEFT BLANK.

The OFFEROR shall include responses in the spaces provided or shall enter "See Attached", "None", "Included Above", or like words to indicate that it has read and understands the requirement. The OFFEROR’S proposal will not be considered responsive unless completed in this manner.

Bid Request Number: 24915-007-MRA-ADDH-00044

PRODUCTS: BLAST DOORS AND GATES

From: Name of Offeror:

Offeror’s D-U-N-S No: (Offeror should contact their closest Dun and Bradstreet office to obtain their D-U-N-S number if necessary)

Offeror's Street Address:

City, State, Zip Code:

Offeror's P.O. Box:

City, State, Zip Code:

Telephone Number:

Facsimile Number:

Email address:

Web site:

ALL FIELDS MUST BE COMPLETE! If field is not applicable state N/A

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RFP Section 1 Scope of Work and Pricing

THE BUY AMERICAN ACT MAY APPLY TO THIS PROCUREMENT. Questions or Concerns should be directed to the Procurement Representative. Item Rev QTY

Unit Description Unit Price Extended

Value Prepare technical documents, provide materials, plant labor, and

supplies, fabricate, assemble, inspect, test and deliver the products in strict compliance with the terms, conditions, specifications, drawings, data sheets and other documents included in or referenced by this Purchase Order.

1.00 0 1 EA Door No.3 Equipment ID: 07-AD-EBH-0103 Datasheet No.= 24915-07-MUD-EBH-07001 Cost Code: 1-G07-000-XX0000-XX.00000

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RFP Section 2 Technical Specifications

2.1 DATA SHEET LIST

DOC NO.

DATA SHEET NUMBER REVISION

DESCRIPTION

10 24915-07-MUD-EBH-07001 A Motor Data Sheet 11 24915-07-MUD-EBH-07002 A Motor Data Sheet 12 24915-07-MUD-RHS-07110 B Motor Data Sheet

2.2 SPECIFICATION LIST

DOC NO.

SPECIFICATION NUMBER REVISION DESCRIPTION

13 24915-000-3PS-AFPS-00001 1 Special Coating - Metal

14 24915-000-3PS-E000-00016 5 Low-Voltage Induction Motors

15 24915-000-3PS-E000-00021 0 Electrical Requirements for Packaged Equipment

NUMBER REVISION DESCRIPTION ADDED/

REVISED IN MR REVISION

24915-000-MJ-00-00001 2 Munitions Demilitarization Bldg. Materials Handling - Legend,

Abbreviations & General Notes 0

24915-07-MJ-00-00002 2 Munitions Demilitarization Bldg. Materials Handling - Equipment General Arrangement- Plan

0

2.4 TECHNICAL NOTES

2.4.1 Technical conflict between the documents included in this Material Requisition must be submitted to Bechtel Parsons Blue Grass for individual resolution before the start of any subsequent work.

2.3 – Drawings 2.4 – Technical Notes

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1. 2. 3. 4. 5. 6. 7. 8.

PERMISSION TO PROCEED

REQUIRED DOCUMENT CATEGORY

NUMBER

SPECIFICATION PARAGRAPH REFERENCE

DOCUMENT DESCRIPTION

X = Yes (Blank) = No

SUBMITTAL SCHEDULE

QUANTITY REQUIRED

I=Initial F=Final

KIND OF COPIES I=Initial F=Final

REMARKS

6 8 Quality Assurance Manual X 30 4, 1 P, E 1.00 thru 24.01 w/ Quote

10.1 Note 2 Typical Quality Verification Documents / Sample

X 30 4, 1 P, E 1.00 thru 24.01

10.2 Note 2 Typical material Used / Sample X 30 4, 1 P, E 1.00 thru 24.01 12 5.1 thru 5.1.3 Welding Procedure & Qualifications X 30 4, 1 P, E 1.00 thru 24.01 19 5.1 UT- Ultrasonic Examination

Procedure X 30 4, 1 P, E All Lines Except

Control Panels 20 5.1 RT- Radiographic Examination

Procedure X 30 4, 1 P, E All Lines Except

Control Panels 21 5.1 MT- Magnetic Particle Examination

Procedure X 30 4, 1 P, E All Lines Except

Control Panels 22 5.1 PT- Liquid Penetrant Examination

Procedure X 30 4, 1 P, E All Lines Except

Control Panels

RFP - Section 3Drawings and Data Requirements

G321-E SAMPLE

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PROJECT: Blue Grass Chemical Agent Destruction Pilot Plant JOB NO.: 24915

LOCATION: Richmond, Kentucky DATE: REV No.:

EQUIPMENT NAME:

TAG NO.:

SELLER’S Shop Order Number:

INITIAL SUBMITTAL DATE

G-321-E DOCUMENT CATEGORY

NUMBER

SELLER DOCUMENT

NUMBER

SELLER DOCUMENT DESCRIPTION/TITLE

SCHD. ACTUAL

G321-EX SAMPLE

RFP - Section 3Drawings and Data Requirements

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G321-V - SAMPLE

SECTION 3 - G-321-V FORM QUALITY VERIFICATION DOCUMENT REQUIREMENTS

1.

DOCUMENT CATEGORY

NUMBER

3. DOCUMENT

DESCRIPTION

6. REMARKS

7. DOC

SUPPLIER PAGE

COUNT

2. SPECIFICATION

PARAGRAPH REFERENCE

4. BGCAPP RELEASE

5. FIELD RECEIPT

INSPECTION CHECK-IN

12 5.1 Welding Qualification Verification Documents All Lines Except Control Panels

13 4.0 Material Verification Reports All Lines Except Control Panels

RFP - Section 3Drawings and Data Requirements

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The Dow Chemical Company

Product Name: Adhesion Promoter AP8000

Issue Date: 11/09/2005

Print Date: 10 Aug 2006

* Indicates a TrademarkPage 1 of 8

The Dow Chemical Company encourages and expects you to

read and understand the entire (M)SDS, as there is important information throughout the document. We expect you to follow the precautions identified in this document unless your use conditions would necessitate other appropriate methods or actions.

Material Safety Data Sheet

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RFP– Sections 4a, Flow-Downs, and Section 4b

Section 4a: General Conditions

Flow-Downs (Appendix FOA-1) are an appendix of the General Conditions and are specific points contained in our Prime Contract that MUST BE flowed down to the Suppliers

Section 4b: Special Conditions

Remember, exceptions to Terms and Conditions is an evaluation consideration!

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1.0 QUALITY SURVEILLANCE

Quality Surveillance is defined as BUYER’S selective review, observation and evaluation of processes, procurement, manufacturing operations, quality control systems and programs to assist BUYER in monitoring SELLER’S compliance with the quality requirements of the Purchase Order. Quality Surveillance may consist of all or part of the following activities:

Quality Planning Surveillance Supplier Evaluation

Quality Program Verification Audit of Quality Programs Order Status Verification

RFP - Section 5Supplier Quality Surveillance

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RFP Section 6 Expediting Instructions

Expediting Instructions offer specific guidance on submission of:– Schedules– Progress reports– Organization charts– Seller purchase orders– Packing lists– Shop loads/schedules– Supplier Deviation Disposition Requests– BUYER’s Expediting Contact

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RFP Section 7 Packing, Marking, and Shipping Instructions

Provides specific instructions on the requirements for Packing, Marking and Shipping equipment/goods including US Export Control Compliance

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RFP Section 8 Invoicing Instructions

Invoicing Instructions are provided to summarize the Invoice payment process requirements. It includes instructions on:–Payment Terms (where they are located)–Electronic Payment–Invoice Preparation Instructions–Bechtel Electronic Funds Transfer Authorization Form

FAILURE TO PROVIDE A PROPERLY PREPARED INVOICE MAY RESULT IN THE INVOICE BEING REJECTED!

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RFP Section 9 Supplier Quality Assurance Program

SECTION 9 – ATTACHMENT 1 SUPPLIER QUALITY ASSURANCE PROGRAM REQUIREMENTS

DATA SHEET

PROJECT BLUE GRASS CHEMICAL AGENT PILOT PLANT JOB NUMBER 24915

LOCATION BLUE GRASS ARMY DEPOT, RICHMOND, KENTUCKY REQUISITION NUMBER 24915-007-MRA-ADDH-00044 REVISION 1

EQUIPMENT NAME BLAST DOORS AND GATES

BUYER’S SECTION SELLER’S SECTION QA PROGRAM ELEMENT SUPPLIER DOCUMENT PARAGRAPH REFERENCE

X ORGANIZATION

X QUALITY ASSURANCE PROGRAM

X DESIGN CONTROL

X PROCUREMENT DOCUMENT CONTROL

X INSTRUCTIONS, PROCEDURES& DRAWINGS

X DOCUMENT CONTROL

X CONTROL OF PURCHASED ITEMS AND SERVICES

X IDENTIFICATION AND CONTROL OF ITEMS

X CONTROL OF PROCESSES

X INSPECTION

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RFPRepresentations and Certifications

Representations and Certifications are required with all proposals. This document requires the Offeror to make Representations and Certifications about their company.

Reps and Certs must be completed by an authorized agent of the company

Failure to complete Reps and Certs may result in removal of your proposal from further consideration

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Complete Proposals What constitutes a complete proposal?

The million dollar question, literally. It is IMPERATIVE that a Bidders proposal is complete and on time. Incomplete or untimely proposals may not be considered.

What it takes to provide a complete proposal:– READ THE ENTIRE RFP. Even if you are an experienced offeror, the

requirements may change from RFP to RFP. It is IMPERATIVE that Bidders read and understand the entire RFP.

– In a typical RFP, the following documents are required to be provided with the proposal: Any requirements of the Information and Instruction to Bidders. Examples

are as follows:– Financials– Experience Statements– Copies of Code Stamps– Resumes– Execution Plans– Copy of QA Manuals

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Complete Proposals What constitutes a complete proposal?

– Continued A completed Form of Proposal.

– THAT MEANS NO BLANKS. EVERY FIELD SHOULD BE FILLED OUT, IF IT IS NOT APPLICABLE, TELL US!

– Include all attachments, such as (but not limited to):» Optional Pricing Worksheets» Unit price breakdowns» A summary of Commercial or Technical Exceptions (if any)» Technical Form of Proposal, including any submittal

requirements

A completed Section 1 Scope of Work and Pricing. If your company requires you to use a specific application to provide an offer, that’s fine, but the Section 1 document must be complete!

Signed and dated Representations and Certifications form.

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ReviewWhat you should know now

– QUESTIONS?

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Procurement Status

BGCAPP AcquisitionsTotal Awards to Date = $145.1 M

Field Purchases, $9.1

Total, $145.1

Subcontracts, $67.5 Equipment & Bulks, $68.5

$0

$20

$40

$60

$80

$100

$120

$140

$160

(mill

ion

s)

32% Complete

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Forecast of Acquisitions

Construction Materials – Construction Equipment, Tools, & Consumables

Trucks and Gators Welding Machines, Shop Fabrication Equipment

– Construction Materials– Electrical Materials– Miscellaneous and Specialty Fabrication

Pipe/Fitting/Valves/Pumps/Flanges

Schedule is subject to change!

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Forecast of Acquisitions

Engineered Equipment & Materials – Vertical Embeds– Carbon Steel Pressure Vessels– Bridge Monorail Crane– Stainless Steel, Carbon Steel Clad & High Alloy

Pressure Vessels– Jib Crane– Observation Windows– Evaporative Coolers– Chiller and Air Compressors– Shield Doors

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Forecast of Acquisitions

Subcontracts and Service Contracts– Potable Fire/Water Tanks– Firewater Pump House– Non-Destructive Examination Services– Architectural Doors, Windows & Hardware– Snow Removal & Road Sweeping– Parking Lot Paving– Personnel Maintenance Building– Utility Building– Laboratory Building

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BGCAPP Project Website

Please click on the link below to view a forecast of upcoming opportunities

•Construction and Services•Awarded Company-138kv Main Substation and Pole Lines•Awarded Company- Maintenance Building•Awarded Company- Personnel Support Building

•Engineered Equipment•Materials

Website Link:

www.bechtelparsonsbgcapp.com

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Tips for Doing Business with Bechtel Parsons Blue Grass

Complete and current registration on Bechtel Supplier and Contractor Portal

Look for opportunities on the project website Market directly to project via Small Business

Advocate and other Acquisition staff Identify small business socioeconomic status Complete documents for prequalification Fully read and understand Request for

Proposal Ask questions

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Contact Information

Diane OsbourneSmall Business Program Advocate301 Highland Park Dr.Richmond, KY 40475(859) [email protected]