Evaluate Vendor LTSA

Scope

Is LTSA time-limited or hours-limited? LTSA Time about 6 Years Does it cover just the hot gas path or the entire gas turbine? Are the generator and auxiliaries covered? The generator and auxiliaries are not covered. Does it cover just scheduled maintenance or all events? Vendor is cover just scheduled maintenance Does scheduled work have fallout limits above which replacements cost extra? Does it cover consequential internal damages or just the failed part? Does the LTSA cover labor, supervision, material and other or something less? Does it include or exclude the terminal overhaul?

Parts

Does LTSA specify minimum and working quantities of spares with liquidated damages (LDs) for failure to maintain those quantities in stock? Does LTSA provide new parts as needed or refurbished rotables? Who owns spares, rotables and obsolete parts (taxability issue)? Are spares stocked on-site or at LTSA provider's (provider's) facility? What distance/time to access? Are spares dedicated to specific unit(s) or pooled to support multiple customers? Any guaranty of discount on cost of upgrades when originals are obsolete? Who owns removed parts after terminal overhaul, the provider or plant? Will parts removed at terminal overhaul be left as removed or refurbished? Does LTSA permit condition-based life extension of major components, e.g. rotors and hot gas casings? Whose decision and who takes the risk?

Performance

Does LTSA incentivize up-time and outage efficiency? Does LTSA reward improved unit performance, i.e. heat rate, MW, emissions? Do those incentives match the unit's operating mode and seasonal demands? Does the LTSA spell out seasonally adjusted time values in case of performance claims? Does LTSA require incorporation of all upgrades whether or not owner wants them? For all-inclusive LTSAs, does it guarantee that first responders supplied by the provider will be qualified to address the problem? Does LTSA indemnify operator or provide business interruption (BI) compensation for provider's failure to perform per contract? Are those LDs realistic?

Ancillary Services

Does provider offer or require ancillary services (such as on-line monitoring or diagnostics) linked to LTSA? At list price or discounted? Will the provider supply a resident LTSA support specialist? If not, how close is the nearest one? Does site or provider own any required special tools? Are they stored on site or remotely? Any availability guarantees?

Does the LTSA include long range outage planning support? Does the provider have usable on-line outage planning and ordering capability? Does the provider demonstrate genuine 24x7 response to other customer's LTSA problems?

Terms and Conditions

Do billable equivalent operating hours (EOHs) include those from OEM-caused trips and automatic precautionary load shedding (PLSs) during commissioning? Can these be negotiated or capped? Define and refine EOH formulae, e.g. "hot" start penalties vs. "cold" starts and even "warm" starts. Same for full power vs. part power trips and PLSs. If using multiple grades of liquid fuel, refine the EOH penalty for each. Negotiate with OEM/provider to determine whether some automatic trips could be reconfigured to become PLSs and some PLSs reconfigured to alarms. Are EOH penalties reduced for "cool time," spinning reserve, or high altitudes? For combined cycle units, EOH calculations differ for gas turbines, steam turbines and generators. If LTSAs cover all, will the OEM/provider waive separate schedules to combine outages? Are the provider's LTSA obligations mitigated by unusual site conditions, i.e. hostile environment, changing fuel quality or "islanded" operation? Will aftermarket modifications, e.g. inlet spray systems, jeopardize the LTSA? What are unit performance guarantees post LTSA events?

Special Considerations for Aeroderivatives

Does LTSA fee cover "loaner" engines? How many "loaners" in the pool vs. number of engines installed? Are they configured to match your engine? Any availability and delivery guaranties on the loaner and will "delivery" mean it is ready to install? What is loaner fee for pool member vs. non-pool members? Does the fee cover all engines on your site or just one? Is the fee based on OH, EOH or weeks? Does loaner engine fee escalate after X weeks? Does the provider guaranty turnaround of your engine within that X weeks or cover the jump in loaner fees? Does provider guarantee the performance and emissions of the loaner engine? If, during a scheduled in-site LTSA event, "unanticipated breakages" require removal to the provider's shop, who picks up the added costs?

Miscellaneous

How does having an LTSA affect insurance premiums and lender's rates? Compare OEM customer service to plants with and without LTSAs. Will up-front options, such as built-in crane or quick-access enclosure, save on LTSA fees?