MANAGEMENT

OF THE PROCUREMENT

PROCESS OF THE TURBNES

1-The procurement strategy is to select an International contractor for supply and erection of the turbines and generators through International Bidding Competition. At the time being ,the Supervision Consultant has prepared the Bidding draft Document according to the fisibilty report of the equipment. 2-Methodology of Tendering and Contracting. The pre-qualification process ,tendering and contract award will be performed under the control of SURENERJ and Consultant. In general,SURENERJ will review bidding document,statements and any related document submitted by consultant or contractors,and will check their complience with fisibility report. 3-Managing to prepare and confirm Tender Documents Based on engineering report given by the consultant (related to fisibility report),and experience from similar projects for functional tendering of the Project taking the least cost and best quality principle and sustainability into account. Following criteria have to be taken into account as one of the important factor during evaluation. a-Maximum technical stability and reliability of the equipments. b-Minumum of O&M costs c-Minumum of impact on environment d-Minumum of risk during construction e-Maximum on capacity to overcome the constraints f-minumum of investment g-Minumum consumption of the area h-Operation imput and operating personal.

That means,the optimum solution will be evaluated using the above criteria in a weighing matrix and will be designed on a strategic level by upgrading the technical the technical consept and the economic conditions. The financial situation concerning running costs and investments will be evaluated by comparing ; a-Capital costs for turbines and generators b-Incidantal costs,such as custom duties,taxes and fees c-Personnel costs for operation

Operating costs,consisting of costs for energy and consumables,disposals and maintanence and savings.

We will also include

a-Experience of contractor in the same fields b-Understanding of the design c-Overall quality and adequacy of proposal ,work plan and methodology corresponding to the terms of procurement d-Cost adequacy e-Qualification and the experience of the contractor personal f-Training and knowledge transfer of the O&M

Objective of the bid evaluation is to determine the bids,which are most qualified in all relevant technical and commercial aspects.Due to the requirements that comparision of the bids only shall be performed on a comman comparision basis,anticipate checks have to ensure its availability and is the first step.The important check criteria are;

Completness of the bids Compliance to the inquiry Correctness of the offer Time schedule

Fulfillment of guarantees References,image and experiance of the technology Recources of bidders Local portion ofsubcontractor

Thedetail evaluation of the bids basically consists of a technical and commercial bid evaluation in order to obtain the final recommendation which bidder to award the contractor.

Criteria to considered are; Definite bid costing Balance and additional and diminutive prices in order to harmonize scope of supply and service Financing proposals Staff expenses Maintanence expenses

4-Contract Negotiations

The consultant will participate in the contract negotiations and manage to prepare and confirm the contract documents for signature and subsequent award.The contracts to be prepared will include the result of the evaluation of the equipment and technology proposed by bthe tenderer and the finel quotation and quality for equipment,suppliers and related ivil Works. After the most favorable bid is determined the recpective bidder would be informed about the process and invited for contract negotiations.In the contract negotiation all issues not perfectly clear will be discussed and a mutual accepted solution be sought.The succesful bid becomes legal part of the contract in which all deliverables,timeframe and other issues such as quality of Works and service sor penalties in case of mal-performance are documented. Once the contract is signed and legally binding the other participating tenderer are informed about the outcome of the tender.