PURCHASING STANDARD

PURCHASING REQUIREMENTS FOR FURNACE

MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 1 OF 8

TABLE OF CONTENTS

Section Title Page No.

1. GENERAL ......................................................................................................................................1
1.1 Scope..............................................................................................................................................1
1.2 KBR Documents, Codes, and Industry Standards .........................................................................1
1.3 Data Furnished by the Purchaser ...................................................................................................1
2. QUOTATIONS BY BIDDER ...........................................................................................................2
2.1 Base Quotation ...............................................................................................................................2
2.2 Alternate Quotations .......................................................................................................................2
2.3 Quotation Requirements.................................................................................................................2
2.4 Purchaser's Acceptance .................................................................................................................3
3. SELLER'S RESPONSIBILITY .......................................................................................................4
3.1 General ...........................................................................................................................................4
3.2 Quality Control ................................................................................................................................4
3.3 Documents to be Submitted by the Seller ......................................................................................4
3.4 Documents to be Retained by the Seller ........................................................................................5
3.5 Marking and Identification...............................................................................................................5
3.6 Packaging and Shipping .................................................................................................................6
4. INSPECTION AND REJECTION BY PURCHASER .....................................................................6
4.1 Inspection........................................................................................................................................6
4.2 Rejection .........................................................................................................................................6
4.3 Seller's Guarantee ..........................................................................................................................7
5. DEFINITIONS .................................................................................................................................7
5.1 General ...........................................................................................................................................7
5.2 Material Record Definitions.............................................................................................................8

1. GENERAL

1.1 Scope

This Standard covers purchasing requirements relating to bidding, documentation, data, quality control,
inspection, packaging and shipping of materials, components, and equipment for furnaces. Exceptions to
this specification, if any, and abbreviations are in accordance with Technical Standard MB15-1TS. (Note:
KBR will be referred to as the Purchaser.)

1.2 KBR Documents, Codes, and Industry Standards

The following documents are referenced herein and form part of the Order. Additional KBR documents,
when applicable, will be listed in the Requisition. Applicable dates of issue of industry standards and codes
shall be as indicated in the Technical Standard MB15-1TS.

KBR DOCUMENTS
MB1-4TS, "Protection and Packaging Class MB: Furnaces
MB15-1TS, "General Furnace Specification"
SDR-1MB, "Supplier Drawing and Data Requirements for Fired Heaters and Associated Equipment"

1.3 Data Furnished by the Purchaser

1.3.1 Project-specific requirements and instructions are contained in other documents in the Order. Except
where requirements conflict, these project instructions shall be complied with in the following order:

a. the Requisition

b. Purchaser drawings and data sheets

 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 2 OF 8

c. Purchaser Specifications and Standards.

1.3.2 The Seller shall refer all conflicting requirements contained in the Order to the Purchaser, in writing, for
clarification and resolution before proceeding with the manufacture or procurement of the affected items.
The Seller is not at liberty to assume which requirements govern.

2. QUOTATIONS BY BIDDER

2.1 Base Quotation

2.1.1 The Bidder shall submit a base quotation in complete compliance with the Inquiry. Failure to submit a
base quotation in complete compliance with the Inquiry may result in rejection of the bid.

2.1.2 The following statement shall appear on the first page of the base quotation:

THIS QUOTATION IS IN COMPLETE COMPLIANCE WITH THE INQUIRY

2.2 Alternate Quotations

2.2.1 In addition to the base quotation, or when otherwise designated in the Order, the Bidder may submit
alternate quotations which take exception to the requirements of the Inquiry.

2.2.2 The following statement shall appear on the first page of the alternate quotation, and all exceptions to
the Inquiry shall be listed or indexed immediately thereafter:

THIS ALTERNATE QUOTATION IS IN COMPLIANCE WITH THE INQUIRY WITH THE

FOLLOWING EXCEPTIONS:

2.3 Quotation Requirements

2.3.1 The quotation shall state that transmittal dates for documents required to be submitted to the
Purchaser will be in accordance with the requirements of the Inquiry.

2.3.2 The quotation shall include the cost of providing detailed drawings, documentation, examination, and
testing of the quoted items as required by the Inquiry.

2.3.3 The quotation shall include the cost of all preparation for delivery, packing, crating, loading, cartage,
and delivery in accordance with the instructions specified in the Inquiry.

2.3.4 The Bidder shall be responsible for complying with the mandatory requirements of all codes,
regulations, ordinances, and statutes of all municipal, provincial, state, and national bodies having jurisdiction
at the location where the items are to be installed.

2.3.5 Quotations on items required to be designed or manufactured to meet codes or government

regulations shall include the cost of the required inspections.

2.3.6 For component fabrication to conform to the ASME Code for installation in the U.S. or Canada, the
Bidder shall verify compliance with the following:
 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 3 OF 8

a. Bidder has ASME authorization for applying the "S" stamp for ASME Section I coils and "U" stamp for
ASME Section VIII Division 1 coils.

b. If the complete unit is required to be stamped "National Board", Bidder shall be capable of registering
the unit with the "National Board."

c. Bidder must be qualified to take "Code" responsibility for the equipment within limits of fabrication
specified.

2.3.7 When specified in the Inquiry, the Bidder shall include unit prices for random examinations by
radiographic, magnetic particle, liquid penetrant and hardness tests which may be specified by the
Purchaser.

2.3.8 The quotation shall include a separate price for any special tests required, including alloy verification.

2.3.9 Bidder shall confirm in quotation qualification of weld procedures on metals of the same nominal
analysis as those specified.

2.3.10 The Bidder shall quote as separate costs all optional equipment, components, or services necessary
to install, operate, maintain, or service those items which are specified in the Inquiry.

2.3.11 When specified in the Order, the Bidder shall submit samples of items to be furnished with the
quotation.

2.3.12 If the Bidder's operational guarantee or warranty requires the presence of an installation supervisor,
the quotation shall so state, and the cost of the service shall be included in the quoted price and not as a
separate quotation.

2.3.13 When noted in the Inquiry, the Bidder shall quote separately the cost of furnishing the services of
qualified personnel to supervise the installation of the materials or equipment, and in the case of equipment,
to assist during start-up and operation, and to witness and accept the operating tests. The Purchaser
reserves the right to reject such services.

2.3.14 Shop fabricator and/or field erection contractor shall provide separate bids for artificial dry out of
castable refractory, if necessary.

2.3.15 Shop fabricator and/or field erection contractor shall quote unit price, as a separate item other than
the base bid, for carrying out additional testing to check alkali hydrolysis of refractory. Final decision to dry
out shall be based on results of these tests.

2.3.16 The Bidder shall quote a firm delivery schedule.

2.4 Purchaser's Acceptance

2.4.1 Upon issuance of the Purchase Order the successful Bidder becomes the Seller.

2.4.2 The Bidder shall obtain written acceptance from the Purchaser before any work is performed or
procurement action initiated relative to the base or alternate quotation.
 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 4 OF 8

3. SELLER'S RESPONSIBILITY

3.1 General

3.1.1 The Seller shall assume responsibility for designing, fabricating, or procuring items in accordance with
the requirements of the Order.

3.1.2 The Seller's responsibility for complete compliance with the requirements shall not be relieved, in
whole or in part, by anything contained in the Order.

3.2 Quality Control

3.2.1 The Seller shall have, as part of usual business practice, an established routine and documented
quality control program. This program shall be used to provide verifiable evidence that the materials, design,
fabrication, examination, inspection, and testing of the items conform to the requirements of the Order. This
program shall ensure that all factors affecting the reliability, safety, and durability of the items have been
evaluated and properly tested and controlled.

3.2.2 When requested, the Seller shall submit a quality control program for the Purchaser's acceptance.

3.2.3 The Seller shall purchase items, which will be subsequently supplied to the Purchaser, only from
manufacturers or subsuppliers which have been approved by the Purchaser.

3.3 Documents to be Submitted by the Seller

3.3.1 The Seller shall submit the documentation required to the Purchaser at the address shown in the
Order. In addition, the Seller shall comply with the requirements for submittal of documentation contained in
the Purchasing Standards SDR-1MB and SDR-2MB's and other specifications of the Order.

3.3.2 The Seller shall identify all drawings and data in accordance with Article 6.1 of Purchasing Standard
SDR-1MB.

3.3.3 The Seller shall submit a chemical analysis and a documented history of use which demonstrate that
the marking materials for use on austenitic materials meet the requirements of Paragraph 3.5.2. Previously
approved marking material need not be requalified.

3.3.4 Material Test Reports and manufacturer's certification shall be provided as required by the Order.

3.3.5 The Seller shall furnish all manufacturer's data reports and photographs of pencil rubbings of Code
stampings when applicable.

3.3.6 Certificates of Compliance are permitted in lieu of Material Test Reports for the following cases:

a. For material acquired from stock for which Material Test Reports are not obtainable, except when
certification in lieu of Material Test Reports is not permitted by the applicable code or material
specification.

b. When the markings on items are missing or are removed during fabrication operations, provided
certification of the unmarked material is acceptable to the Purchaser's Inspector, and does not conflict
with the requirements of the governing Standard, Specification, or Code.

c. Unless otherwise specified, when heat treatment information is missing from material test reports.
 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 5 OF 8

3.3.7 The Seller shall submit to the Purchaser a master shipping list, in advance of the shipment, listing total
quantities of each item, section, subassembly, or piece required for the complete shipment. See Technical
Standard MB1-4TS for full shipping documentation requirements.

3.4 Documents to be Retained by the Seller

3.4.1 All documents to be retained by the Seller shall be available for examination by the Purchaser or the
Purchaser's representative at the time and place of inspection.

a. All drawings and data shall be identified as indicated in Article 6.1 of Purchasing Standard SDR-1MB.

b. The Seller shall also submit these documents to the Purchaser if so specified in the Order. This
submittal may be for Purchaser's records only, or for review and acceptance by the Purchaser, as noted
in the Supplier Data Requirement Forms or elsewhere in the Order.

3.4.2 Welding Procedure Specifications (WPSs), Weld Maps, and Procedure Qualification Records (PQRs)
shall be completed before fabrication begins and shall be retained by the Seller. These documents shall be
available to the Purchaser or the Purchaser's inspector at all times prior to and during fabrication.

3.4.3 Welder or welding operator qualification test results shall be retained.

3.4.4 Procedure Specifications, Procedure Qualification Records, and Operator Qualification Records shall
be retained for all applied nondestructive testing.

3.4.5 Certificates shall be retained stating the results of required nondestructive testing.

3.4.6 Radiographic film shall be retained in the shop for review by the Purchaser's or third party inspector.

3.4.7 Pyrometer charts or other detailed records shall be retained for all heat treatment performed, such as
postweld, normalizing, and heating for forming.

3.4.8 A detailed description of any casting repairs shall be retained, including a sketch, photo, or drawing
indicating the location and size of the repaired area.

3.4.9 Charts or other records shall be retained of required hydrostatic or pneumatic tests. Test logs shall
include the test date, testing fluid, duration of the test, temperature of the test fluid, test pressure, a
description of the item tested, a traceable identifying number such as a shop order number, and the
signature of the manufacturer's shop inspector witnessing the test.

3.4.10 Material records shall be retained, when specified in the Order, and shall fully identify the specific
materials they represent.

3.5 Marking and Identification

3.5.1 All austenitic materials shall be identified by stamping with "low-stress" steel stamps having round or
"U" shaped cross sections or with "interrupted-dot" die stamps or by vibra etching.

3.5.2 Marking with paint or ink on all metallic materials shall be with a water insoluble material that contains
no harmful substance, e.g., metallic pigments (zinc, lead or copper), sulfur, or chlorides, which would harm
specified materials at ambient or material service temperatures.

3.5.3 The manufacturer shall monitor the marking materials used to ensure that the composition of the
specific ink is maintained as analyzed.
 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 6 OF 8

3.5.4 In addition to the marking required by the applicable ASME or ASTM specification, all castings shall be
clearly and permanently marked with the manufacturers or foundry's heat number of each cast tube segment
in each tube assembly and the Purchaser's Item Number. Parts made to the manufacturer's standard shall
also be marked in a manner that will clearly and permanently identify the item, material, and heat number.

3.5.5 The marking shall be made in only one location on the individual tube or individual tube assembly.

3.5.6 The manufacturer shall prepare a log of all the markings applied to the tubes and assemblies. The log
shall show color, description, and location of markings. One copy of the log shall be sent to the coil
fabricator with the tubes.

3.5.7 The manufacturer shall provide "tube maps" which show location of each tube segment with
corresponding heat number within each tube.

3.5.8 Fittings required to be furnished in accordance with a specific code shall carry the required code
stamping.

3.6 Packaging and Shipping

3.6.1 The Seller shall be responsible for suitably packaging the items to protect them from damage or loss
during handling and shipment and any special requirements or storage conditions specified in the Inquiry.

3.6.2 Packaging and shipping shall be in accordance with the requirements of Technical Standard
MB1-4TS.

4. INSPECTION AND REJECTION BY PURCHASER

4.1 Inspection

4.1.1 All Seller facilities, materials, and fabrication work shall be subject to inspection by the Purchaser. The
Inspector representing the Purchaser shall have entry at all times, while work on the contract of the
Purchaser is being performed, to all parts of the manufacturer's works that concern the manufacturing of the
material ordered. The manufacture shall afford the Inspector all reasonable facilities to ensure that the
material is being furnished in accordance with this specification. If specified, inspection shall be made at the
place of manufacture.

4.1.2 Drawings of the purchased items shall be available to the Purchaser's inspector at the time of
inspection. Items shall not be shipped until the inspection is complete.

4.1.3 The Purchaser's inspector is not to be construed as the Authorized Inspector responsible for
performing code inspections.

4.2 Rejection

4.2.1 Equipment, assemblies, and items not in complete compliance with the requirements of the Order, or
materials containing defects, will be rejected.

4.2.2 Discovery of conditions warranting rejection, after inspection and acceptance of the items by the
Purchaser, does not relieve the Seller of responsibility to comply with the Order.
 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 7 OF 8

4.2.3 Items not in accordance with the original Inquiry may be rejected after award if the Seller is discovered
not to have submitted a proper base quotation or if all deviations were not properly indicated in accordance
with Article 2.2.

4.3 Seller's Guarantee

4.3.1 All equipment and component parts shall be warranted by the Seller against defective materials,
design, and workmanship for one year after being placed in service. The equipment shall be guaranteed for
satisfactory performance at all operating conditions specified on the Purchaser's Data Sheets, and the range
between those points.

4.3.2 If any malperformance or mechanical defect occurs during the guarantee and warranty period, the
Seller shall:

a. Make any necessary repairs, alterations, or replacement free of charge, f.o.b. the Purchaser's jobsite.

b. Warrant the replaced, repaired, or altered parts for the same performance and period of time as the
originals.

c. Extend the warranty period for remaining parts in the equipment by the period that the equipment was
out of service waiting warranty repairs.

d. Furnish the services of any observer that the Seller deems necessary to ensure the correct installation
of the parts in question so that the warranty is maintained.

e. Be responsible for any field labor charges for warranty work.

5. DEFINITIONS

5.1 General

5.1.1 "Inquiry" is defined as the package provided to the Bidder, which includes:

a. The actual Inquiry.

b. Terms and Conditions.
c. Requisition.
d. All included documents, such as specifications, standards, drawings, and data sheets.
e. All referenced documents, such as industry codes and standards which are not included in the package.

5.1.2 "Requisition" is defined as the requisition sheet and all included and referenced documents.

5.1.3 "Order" is defined as the package provided to the Seller, and includes the actual Purchaser Order and
all included and referenced documents noted in Subparagraphs 5.1.1 b through 5.1.1 e.

5.1.4 "Purchaser" includes any KBR office.

 PURCHASING STANDARD
PURCHASING REQUIREMENTS FOR FURNACE
MATERIALS, COMPONENTS, AND EQUIPMENT MB2-1PS

DATE: 01 JUN 2004 ENGINEERING SERVICES BY KBR TECHNICAL SERVICES, INC. PAGE 8 OF 8

5.2 Material Record Definitions

5.2.1 "Material Test Report" (also known as "Mill Test Report" or "Test Report") is a document on which the
material manufacturer records the results of tests required by the basic material specification. In addition to
the test results, the document shall also:

a. Identify the material represented and the applicable material specification, including year of issue

b. Show the heat, lot, or melt identification number

c. State the type of heat treatment, if any

d. State results of tests, including chemical analysis, mechanical tests, and nondestructive tests, required
by the basic material specification

e. Include on or with the Material Test Report any supplementary or special requirements required by the
material specification or the Order.

5.2.2 "Certificate of Compliance" (also known as "Certificate" or a "Certification") is a document by which

the material manufacturer certifies that the material represented has been produced and tested in
accordance with the requirements of the basic material specification shown on the certificate. Objective
evidence of compliance with the requirements of the material specification shall be maintained in the records
of the material manufacturer. However, certificates of compliance shall include reports or test results
required by the material specification or the Order.