ME PROCUREMENT PROCEDURE PT, DEPRIWANGGA ENGINEERING pre eee (DOGUNENT NUMBER REV DATE SHEET DWE-PS-P-02 1 20572016 | _1 of 10 PROCEDURE AUTHORIZATION This procedure have been generated and implemented to identify the control that shall be applied by members of staff in the department when carrying out their duties Department Authorization | Date Jlefos te sina Gres Z This confirms that this procedure has been approved fp NGorporate Authorization Date official issue and that members of staff shall complete pany Director) tasks assigned in accordance with the mechg : defined herein | See Signed: fa The procedure forms part of a formal Quality Authorization Date: company which ensure that this do ina | (Quality Management-Rep' s) controlled manner in accordang vented lefos (re procedures. This procedure will be subje < part of the sty company policy towards quali Signed: PROCEDURE REVISION Rev. Date Section Outline of Changed 0 _| 12032014 All| initial Issued ct 1_|_ t2;0sr2016 8.0 _| Add for references ‘STATEMENT OF CONFIDENTIALITY This procedure is for controlled circulation unless stamped “Uncontrolled Copy”. The documents or extracts from documents must nor be passed or copied to other companies, agents or persons without the permission of the relevant Company Directors.TLE pues ENGINEERING PROCUREMENT PROCEDURE DOCUMENT NUMBER REV DATE ‘SHEET DWE-PS-P.02 1 12/05/2016 2of 10 TABLE OF CONTENTS 1.0 PURPOSE........... 2.0 SCOPE... 3.0 SCOPE EXCEPTION........... 4.0 ABBREVIATIONS 5.0 DEFINITIONS... 6.0 RESPONSIBILITIES... 7.0 WORKFLOW / PROCESS.. 7.1 Pre-qualification .... 7.2 PUTChASING ..arnssecensesee 7.2.1 Request Form (RF) 7.2.2 Request for Quotatiop{RFQ). 7.2.3 Bid Evaluation wi await Orde? (SPF... berfng System ‘omparison Summary 7.2.4 Raising Servio 7.2.5 Service Order N 7.2.6 Issue Service Order to Supplier/Sub-contractor.... 7.2.7 Expediting Service Order. 7.2.8 Service Order Amendments 7.2.9 Urgent items 7.2.10 Delivery... 7.3 Annual Performance Evaluation 8.0 REFERENCES... SeCVwrMmaINIYNVNar2anronanbk RoweTHLE PROCUREMENT PROCEDURE PT, DEPRIWANGGA ENGINEERING ereeerreT DOCUMENT NUMBER REV DATE ‘SHEET DWE-PS-P-02 1 1270572016 | dof 10 1.0 2.0 3.0 4.0 PURPOSE To describe the process of procurement/purchasing activities from prequalification up to service order and close out. SCOPE This procedure only applies to purchase of quality impacting items and to sub-contractor to reinforce DWE's daily operation due to lack of manpower andlor capabilities, SCOPE EXCEPTION This procedure does not fully apply to purchase of general office supplies and admin support services as stated below: General office supplies includes: Admin support services includes: © Groceries * Associations memberships/annual fee + Employees meals * Auditor services © Name cards Beats © Insurances © Uniforms © Notary services + Permits/visa services © Souvenirs + Minor office repairs e Heder antes + Office rental + Translations © Training * Document Storage * Medical check up © Event organizer * Promotion items Other items are not stated here shall be determined by Purchasing Staff based on quality and safety aspects considerations. The above item shall not be required the following process as outlines in this procedure. ABBREVIATIONS DWE: PT. DEPRIWANGGA ENGINEERING HSEQ: Health, Safety, Environment and Quality SO: Service Order SIUP: Surat Izin Usaha Perdagangan TDP: Tanda Daftar Perusahaanpentane PROCUREMENT PROCEDURE TE DOCUMENT NUMBER REV DATE SHEET DWE-PS-P.02 1 12052016 | 40f 10 * NPWP: Nomor Pokok Wajib Pajak + PKP: Pengusaha Kena Pajak 5.0 DEFINITIONS + Supplier is who is passed in selection and assigned by DWE to supply material use to support the DWE activity. ‘© Sub-contractor is who is passed in selection and assigned by DWE to support DWE activity in conducting of services and/or products based on issued Service Order. ‘+ Hazardous material is material containing hazards. 6.0 RESPONSIBILITIES 6.1 Procurement The responsibility of the Project Services Department includes the following activities: © Sourcing/lssue of Enquiries Purchasing Expediting Inspection Packing, Transport and Shipment Custom Clearance Documentation Gods Receipt Importation The Project Services Department provides a service to the Project Manager/Operational Director to ensure that all__ materials. and servicesisubcontracting are purchased in a controlled and expeditious manner so as to ensure that: * Purchase in from Supplier (Vendor) from DWE's approved Supplier (Vendor) List © Materials, equipment or service are purchased from the most competitive, technically accepted Supplier (Vendor) (with final selection from a minimum 3 Suppliers (Vendor)). ‘+ Project Manager/Operational Director approves that the materials or services are both technically and commercially acceptable. ‘+ The receipt of quotation, technical/commercial evaluation placement of order, receipt of documents and delivery of the materials, equipment or services are in conformance with the project schedule. + To procure materials and services on the most favorable terms and conditions. '* Proper warranty/guarantees are secured from Supplier (Vendor). Supplier (Vendor) confirms receipt and acceptance of the Service Order.TLE PROCUREMENT PROCEDURE DOCUMENT NUMBER FEV DATE, SHEET OWE-PS-P-02 1 1210572016 | Sof 10 * To ensure all terms and conditions are referred to in the Service Order, which shall be according to DWE's standard Service Order form. + Suppliers (Vendors) invoice (s) are properly checked and approved. 6.2 HSEQ Representative The HSE & Q Representative shall be responsible for: ‘* Developing and maintaining corporate audit schedules: ‘+ Defining the qualifications required by the auditor(s); * Assigning auditor(s) for each corporate audit; ‘+ Reviewing/summarizing findings resulting from corporate and project audits for consideration during Management Review of the company’s management system; 6.3 Engineering Engineering is responsible for performing technical bid evaluation that is requested by Purchasing, 7.0 WORKFLOW / PROCESS 7.1 Pre-qualification Each supplier and sub-contractor who would like to be included as DWE’s Approved Vendor List (AVL) shall be assessed and reviewed through pre-qualification processes. Each potential supplier and sub-contractor shall be requested to complete ‘Supplier Pre-qualification Form. Procurement Representative and assisted by HSEQ Representative shall conduct verification of data provided by supplier and sub-contractor. A field survey shall be carried-out if necessary in order to ensure data given is true. Item to be verified shall include: (i) Compliance to legal aspect as required by the regulation with minimum score is 80 such as o Akte Notaris Perusahaan olzin Domisili o SIUP o TDP oNPWP © PKP The above data shall be valid in date and complete, if one of them is missing then the result of pre-qualification is fail (ii) Implementation of Quality Management System and SMK3 (System Manajemen Keselamatan dan Kesehatan Kerja) with minimum scoring is 60. The implementation of quality management system and SMK3 should beTe PROCUREMENT PROCEDURE DOCUMENT NUMBER REV DATE ‘SHEET OWE-PS-P-02 1 1210572016 | 6 of 10 demonstrated by adequate written policy and objectives and implementation records as planned. (il) Experience List with minimum scoring is 60. The experience list must relevant to job to be ordered. If not comply, another consideration shall be taken by Procurement Representative for example, the potential supplier and sub- contractor has capability and adequate capability to perform the job. 7.2 Purchasing 7.2.1 Request Form (RF) Request Form (RF), Form No.: DWE-PS-F-001 is normally raised by user. It shall than reviewed by Project Services Manager and approved by Operational Director. RF contains all details about the item to be purchased, e.g. full description of the item, quantity, cost estimate, quality, date required, code, size, certificat including technical drawing, photos etc where needed. Approved RF is then submitted to Purchasing staff for the next process. 7.2.2 Request for Quotation (RFQ) RFQ (Form No. DWE-PS-F-012) shall be sent to nominated supplier and sub- contractor for bid purposes. If there is only one bidder submits quotation, then second RFQ shall be performed by Purchasing staff. If the result is the same, then one or two bidders are accepted without Single Source Justification form 7.2.3 Bid Evaluation with Quotation Comparison Summary The evaluation of nominated supplier/sub-contractor is conducted by reviewing the following aspects: + Technical * Commercial * Delivery time * Quality and safety. The technical specification requirements are mandatory to be met by nominated Suppliers/Subcontractors. These shall be verified by Technical Authority personnel. Technical authority person shall note their technical evaluation in the Quotation Comparison Summary (QCS) Form, Form No.: DWE-PS-F-004 or in Technical Bid Evaluation (TBE) form, Form No.: DWE-PS-F-008 In case no Supplier/Subcontractor can fulfil these requirements, the Technical Authority shall review the specification to change the specification and propose to Clientluser for approval. The prices and terms of payment are part of commercial consideration. The preferred Supplier/Subcontractor is the one who quotes the lowest price and softest term of payment. Any doubts, can be consulted with Finance team.PT, DEPRIWANGGA ENGINEERING TLE PROCUREMENT PROCEDURE DOCUMENT NUMBER, REV DATE SHEET DWE-PS-P.02 1 r2ios2016 | 7of 10 The delivery time quoted will be reviewed by referring to the schedule of material needed by DWE. In case of no Supplier/Subcontractor can deliver the materials as expected, Purchasing staff shall advise Procurement Representative/relevant User to take an alternative sol Purchasing staff shall then evaluate the commercial of the technically accepted bidders and prepare commercial evaluation The final evaluation result will be recorded in the QCS Form. Form No.: DWE-PS- F-004. All relevant parties shall sign off the relevant section provided. Project requirement will dictate whether client's signature is needed or not. Within the bid evaluation period, Purchasing staff may negotiate with the bidder to obtain the best outcome for DWE's benefit, QCS will not be required if DWE place order to supplier who has already had a valid service/contract agreement in place and within the scope of agreement with DWE. 7.2.4 Raising Service Order (SO) Service Order is generated using Service Order standard format. Purchasing staff is required to complete or fill in all necessary details (technically / commercially) into the Service Order. For purchase of value below Rp1.000.000 or equivalent, Purchasing staff can purchase it directly without the need of issuing a Service Order to supplier. Service Order shall approved by Operational Director. A Service Order should not be placed until such approval has been granted, 7.2.5 Service Order Numbering System Each Service Order issued to supplier/sub-contractor shall be identified by the numbering system as follows: DWE ~ SO-XXX-MO-YEAR Sample: DWE-SO-044-IX-2013 7.2.6 Issue Service Order to Supplier/Sub-contractor Each completely signed Service Order is sent to the supplie It could be via email, fax, postal or courier. A copy of appropriate terms and conditions along with any other supporting documentation are to be sent at the same time. The Purchasing staff shall expedite the return of the signed Service Order acknowledgment from supplier/subcontractor 7.2.7 Expediting Service Order Expedite delivery of all materials and documentation required by SO.Te PROCUREMENT PROCEDURE Oy) PT, DEPRIWANGGA ENGINEERING ee DOCUMENT NUMBER. REV DATE ‘SHEET DWE-PS-P-02 1 1210572016 | of 10 Periodically at the expeditors’ discretion, and to meet the needs of the requisition originator, the expeditor shall contact the supplier for progress updates and resolve with the supplier any difficulties as they occur. 7.2.8 Service Order Amendments Basically, a Service Order should not be amended after being awarded to supplier. In case an amendment is required, reasons for the amendment shall be given and the implications agreed between related parties beforehand All requisition revisions shall result in a Service Order amendment. However, where the Service Order is amended for commercial reasons the requisition does not need to be revised Service Order Amendments can arise from technical adjustments which will be processed by revising the requisitions, within the relevant company procurement! materials management system, giving details of the changes, subject to the amended requisition approvals. Other agreed changes of a commercial nature will be documented within the Service Order file and will result in a Service Order Amendment, but this will not necessarily require a revision to the Request Form. 7.2.9 Urgent items There are circumstances that_items/materials are required urgently by projectluser. For such cases, Purchasing staff can purchase this in cash, 1g that: «Value is maximum Rp10 million or equivalent + Purchase Requisition/Request form has been approved accordingly. Cash advance can be requested based on financial procedure and has to be settled within 7 calendar days. If not, justification needs to be given on reasons of delay to Finance. 7.2.10 Delivery 7.2.10.1 Confirm Documentation Receipt & Approval Status Upon receiving delivered materials/items from supplier, recipient shall confirm all the required documentation including certificates has been received and confirm that all Service Order requirements have been met by issuing Delivery Receipt form, Form No.: DWE-PS-F-011 or by signing the delivery receipt issued by supplier. Should items receipt differ from Service Order requirement or incomplete, recipient has the right to retum the items to supplier or issue Delivery Receipt form on partial quantity only.TM PROCUREMENT PROCEDURE DOCUMENT NUMBER REV DATE ‘SHEET DWE-PS-P.02 1 121052016 | 9of10 7.2.10.2 Resolution of Discrepancies Itis the responsibility of Purchasing staff to resolve any discrepancies that arises with supplier against Service Order requirements. 7.2.10.3 Invoicing from supplier Suppliers should be requested to submit their invoices, including the supporting documents to Finance directly, as per Financial Procedure. If Purchasing staff invoice directly from Suppliers, this needs to be forwarded to Finance without any delay. If there are discrepancies on the invoice, this will be dealt by or via Finance, not directly by purchasing. 7.2.10.4 Filing ‘All purchasing/subcontracting documentation from the beginning of the process (from purchase requisition until delivery receipt) should be kept properly in one folder by Purchasing staff so that the factual that happened during the process of ordering are in sequence, and can be explained when audited. Purchasing staff needs to make any notes necessary during the purchasing process flow so that each order can be followed through in logical order during audit. 7.3 Annual Performance Evaluation Every year, each supplier/subcontractor performance shall be evaluated and a summary of supplier evaluation shall be recorded, Evaluation would include and not limited to the following criteria: 1. Quality Weight : 40% 2. Delivery time Weight : 40% 3. Communication & responsiveness Weight : 20% Scoring system used Score _[ Quality Delivery ‘Communication 100 | 100% no defect ‘On schedule Excellent, high initiative 80 ‘90% of quantity is non defect 1 days late Good 60 | 80% of quantity is non defect | 2 days late Satisfactory 40 | 70% of quantity is non defect | 3 days late Need to be followed up 20 | Below 60% of quantity is non | 4 days late Communication defect difficulties 0 100% of quantity is defect 5 or more days late | Communication difficulties and passive responseTIME pe DEPRIVANGA ENGINEERING Eee eee rete ore DOCUMENT NUMBER REV DATE ‘SHEET DWE-PS-P-02 1 121052016 | 100/10 Suppliers which do not achieve an overall score of 60 would need to be addressed and specific action required to be taken by Purchasing team. The final action proposed or taken by Procurement Group can be as far as to exclude the supplier from SAL for the next 12 months period. Upon the evaluation result, Purchasing team shall propose necessary actions to be taken up to the project management / client meeting. Such result of meetings shall be recorded accordingly in a minutes of meeting. 8.0 REFERENCES List of Associated Procedures * DWE-HSEQ-M-01 HSEQ Manual List of Forms + Request Form (DWE-PS-F-001) * Supplier Prequalification Form (D' * Supplier Subcontractor Sooring/6r, Frans DWE-PS-F-004) + Supplier/SubcontractofPertofmlange’Evaluation Form (DWE-PS-F-005) * Quotation Comparison Si + Supplier/Subcontractor Pex * Request for Supplier/Subcontractor Performance Evaluation Form (DWE-PS-F- 007) * Single Source Justification Form (DWE-PS-F-009) * Technical Bid Evaluation (DWE-PS-F-008) * Service Order (DWE-PS-F-010) * Delivery Receive Form (DWE-PS-F-011) * Request for Quotation Form (DWE-PS-F-012) List of Attachments * None