@ evan Project Guideline for the Selection Rev. ° Project No. of Engineering Contractors Date: 2009-11-23 Site: e Page: tof? Dratt Guideline for the Selection of Engineering Contractors in Projects Revision Index Guideline for the Selection of Engineering Contractors. doe Prepared by: Prasche / Waltermann, OG-TE-EN-P2@ evonix Project: Project No, Site Guideline for the Selection Rev. 9 of Engineering Contractors Date: 2009-11-23 “ Page 2017 Table of Content 24 22 23 24 25 2.6 27 28 34 32 33 34 PURPOS! PROCEDURE Step 1: Market Research. Step 2: Selection for “Long List”. Step 3: Issue of “Request for Information” Step 4: Selection for “Short List”.. Step 5: Issue of “Request for Quotat Step 6: Selection of “Final Bidders”. Step 7: Final Negotiations. Step 8: Selection of Engineering Contractor ATTACHMENTS Request for Information. Evaluation Form Sheet for Contractors on ,,Long List“ Request for Quotation [HOLD]. Evaluation Form Sheet for Contractors on ,Short List and for ,Final Bidders Guideline for the Selection of Engineering Contractors. oe Prepared by: Prasche / Waterman, DG-TE-EN-P2@ evonx Project: Guideline for the Selection Rev. ° jirelect No: of Engineering Contractors poe eee, Site ae Page: 3087 1 Purpose This Guideline contains information on the general procedure regarding the inquiry of engineering services in projects and the selection of the appropriate Engineering Contractor to provide the respective services. This Guideline shall ensure that a standardized, timesaving, cost-effective and auditable approach for the selection of Engineering Contractors in projects is taken. ‘Guideline for the Selection of Engineering Contractors doc Prepared by: Prasche / Wallermann, DG-TEEN-P2© evanik Project: Guideline for the Selection Rev. 9 Project No. of Engineering Contractors poe pee Site Orsit Page: 4of7 2 Procedure The schematic representation below shows the general steps and activities related to the inquiry and selection of Engineering Contractors. The respective steps are described in detail in the next sections, Step 1. Market Research; Evaluation of information available within Evonik Degussa or from Public Sources Step 2: Selection of "Long List" Step 3: Conclusion of Secrecy Agreement Issue of "Request for Information"; Evaluation of Questionnaires Step 4: Selection of "Short List" Step 5: Issue of "Request for Quotation”, Basis: Preliminary Quantities and Terms; Evaluation of Quotations Step 6: Selection of "Final Bidders" Step 7: Issue of "Request for Revised Quotation", Basis: Definitive Quantities and Terms; Conduct of Final Negotiations Step 8: Selection of Contractor; Placement of Order a nooo Nn] Ss] G6 \ Guideline forthe Selection of Engineering Contractors. oe Pregared by: Prasche / Waltermann, OG-TE-EN P2@ evonix Project Guideline for the Selection Rev. o Project No. of Engineering Contractors Date: 2009-11-23 Site: ar Page: 5of7 24 Step 1: Market Research The target of the market research to be undertaken is the establishment of a comprehensive list of Engineering Contractors potentially suitable for the project, and the compilation of Primary information on these Contractors. At this stage, unless required by special circumstances, no Contractor shall be contacted, neither directly nor indirectly nor through third parties, All information shall be gathered from internal or public sources, e. g. the internet. During the evaluation process, primary information available for all Contractors, e. g. staff, turnover, location of branches etc., shall be related to the project and the services to be carried out 22 Step 2: Selection for “Long List” The result of the evaluation of primary information is the selection of Contractors for the “Long List’. This list shall contain Contractors that are generally considered to be the most suitable ones for the provision of the required services. The “Long List” shall comprise six (6) to maximum eight (8) companies. The Contractors on the “Long List’ shall be contacted in order to gather secondary, i. e. more detailed, information on their qualification for Evonik Degussa’s project. 2.3 Step 3: Issue of “Request for Information” A template for a "Request for Information” questionnaire is attached to this Guideline (Attachment 1). Upon conclusion of a Secrecy or Non-disclosure Agreement with the respective companies, the standardized "Request for Information’ questionnaire, amended to reflect the actual basic data of the project (e.g. location, type of project, services to be rendered etc.), shall be issued to the Contractors through Evonik’s procurement organization. The “Request for Information* questionnaire shall be issued together with a cover letter explaining the reasons for the request and organizational issues. Unless otherwise agreed with the involved Evonik Degussa Business Unit, during the first inquiry phase the provision of project specific data to the Contractors shall be restricted to a minimum. The information received from the Contractors shall be evaluated by means of a pre- qualification form sheet (Attachment 2) 24 Step 4: Selection for “Short List” Based on the results of the above evaluation, a limited number of Contractors shall be selected for the “Short List”. This list shall contain the Contractors that are considered to be the most adequate ones for the provision of the required services, the type and size of project at the designated place of construction etc. The “Short List’ shall comprise four (4) to maximum five (5) companies. ‘The Contractors selected for the "Short List” shall be invited to bid. Guideline for the Selection of Engineering Contractors. doe Prepared by: Prasche / Waltermann, DG-TE-EN-P2© evonix oe Guideline for the Selection Rev, ° ene, of Engineering Contractors ae pee Site: ae Page 6of7 2.8 Step 5: Issue of “Request for Quotation” The “Request for Quotation” shall consist of a cover letter, the “Inquiry Documentation” (detailed description of any tasks, tools, conditions and applicable specifications to be considered, services and deliverables to be rendered) and the “Split of Engineering Scope” spreadsheet showing the respective responsibilities of Evonik Degussa and the Engineering Contractor. Templates for the above-mentioned documents are attached to this Guideline (Attach ment 3). However, as all projects and related engineering services differ in scope, these documents shall be used for information only and have to be adapted to the actual project parameters and schedule. Unless otherwise agreed with the involved Evonik Degussa Business Unit, during this inquiry phase the provision of project specific data to the Contractors shall be restricted to information mandatory for the preparation of comparable quotations. The process(es) shall be explained in general, preliminary quantities shall be stated to enable the Contractors to calculate the bid price, e. g. number of equipments, PFDs/P&IDs, pipelines, electrical consumers, instruments, buildings etc. Except for the general outline of contractual conditions contained in the “Inquiry Documentation”, no contract drafts shall be prepared, exchanged and negotiated during this inquiry phase. The quotations received from the Contractors shall be evaluated by means of a qualification form sheet (Attachment 4). This form sheet combines the general Contractor evaluation and the technical / commercial bid analysis. 2.6 Step 6: Selection of “Final Bidders” Based on the results of the above evaluation, the two (2), maximum three (3), most adequate Contractors shall be selected as “Final Bidders’. ‘The “Final Bidders” shall be asked for a revised quotation. 27 Step 7: Final Negotiations The “Request for Revised Quotation’ basically consists of the updated “Inquiry Documentation’, which now includes the definitive quantities and terms to be used as reference for the Contract. In order to avoid later disputes regarding the determination of quantities, original documents as appropriate and as agreed with the involved Evonik Degussa Business Unit shall be provided by Evonik Degussa to enable the “Final Bidders” to prepare the revised quotation based on their own method of calculation Note: According to international laws, the Contractor shall be deemed to have obtained from Evonik Degussa all information and taken account of all circumstances which may affect the cost of services to be rendered before agreeing to the Contract price. If any information provided by Evonik Degussa proves to be inaccurate and in consequence the Contractor incurs any increase in the cost of performing his contractual obligations, the Contractor is entitled to issue a Variation Order Request for such additional cost. During the final negotiations, Contract drafts shall be discussed and agreed with all “Final Bidders’ so that these can be used for the Purchase Order without requiring any further negotiations. The revised quotations received from the “Final Bidders" shall be evaluated by updating the qualification form sheet (Attachment 4), Guideline fr the Selection of Engineering Contractors. do Prepared by: Prasche / Waltermann, DG-TE-EN-P2evonik Project ine for the Selection Rev. ° Project No of Engineering Contractors Dees erate Site ae Page: 7of7 2.8 Step 8: Selection of Engineering Contractor Based on the results of the above evaluation, the factually and economically most advantageous Contractor shall be selected for the provision of the required engineering services, The Purchase Order shall be issued by Evonik’s procurement organization in due time according to the agreements reached with the selected Contractor during the final negotiations (finalized Contract draft) 3 Attachments 34 Request for Information 3.2 Evaluation Form Sheet for Contractors on ,,Long List 3.3 Request for Quotation [HOLD] 3.4 Evaluation Form Sheet for Contractors on ,,Short List“ and for Final Bidders“ Guideline for the Selection of Engineering Contractor. oe Prepared by: Prasche / Waterman, DG-TE-EN-P2we 94 joofoie Aq pavedoigs ‘0p srTuOYS”s0}e;UONS 2yeq payejay 39efo1g $10}9e81}U05 Bulseoulbug jo uoneoysjenD spoaloid essnbaqg ylUuoAg 6Lio1 obe4 uoReULosUl 105 sonboy aiodebus aus 1-01-6002 ‘area ‘suojoeguoo Buyeeulbug ‘ON Woafoud ° neu Jo uoneowiTeND ‘palo sitions ©&) evonik Project: Project No, Site Qualification of Rev. o Engineering Contractors Date: 2009-1014 Singapore Request for Information Page: aoa Table of Content 24 2.2 2.3 a4 32 33 34 35 36 44 42 43 44 45 46. 5A 52 64 62 7A 72 73 74 75 43.1 Capacity and Qualification of Employees in Main Engineering Office. 9 432 Capacity and Qualification of Freelance Engineers. 10 433 Capacity and Qualification of Employees in Low Cost Center 1 CONTACT AT EVONIK DEGUSSA. COMPANY ORGANIZATION AND ECONOMICAL DATA. General Information. ‘Company Organization Annual Turnover... SERVICES AND CAPABILITIES.. EPCM Services. Maximum Project Size. Minimum Contract Valu Certifications / Business EPC / Turn-Key Contracts. ‘Quality and Document Management System. PROJECT EXECUTION STRATEGY. 7 Organizational Chart . Involved Engineering Offices. Project Related Work Force... Cooperation with Engineering Subcontractors. Site Support... Software Tools Utilized in the Project PROCUREMENT Procurement Experiencs Procurement Procedure. REFERENCES. 417 References in the Evonik Degussa Group... ADDITIONAL INFORMATION Intellectual Property Protection .. Workload. Charge-out Rates. Additional Comments.. ENContvactors_Shorttist doe Prepared by: Project TeamS EvVoOniK Project: Qualification of Rev. 0 Project No. Engineering Contractors ae 2009-10-14 Site: Singapore Request for Information Page 3of 19 1. Contact at Evonik Degussa Please address any questions you may have concerning this request to the following person: Name: Address: Evonik Services GmbH Department: Phone: +49 Fax: +49 E-Mail @evonik.com Please fill out this request and return it to the above, preferably in electronic format, by e-mail. The specified format shall be used without any changes. 2, Company Organization and Economical Data 24 General Information Please provide the following information: Name of Company ‘Address of Company Year of Foundation Legal Structure Main Owners / Shareholders Phone Fax EMail General Manager Sales Manager ‘Account Manager for Evonik Degussa Person answering this Request for Information, contact data ENContractors_Shonlist dee Prepared by: Project Team© evonk Project: Qualification of Be U Project No. Engineering Contractors Date: 2009-10-14 Site Singapore Request for Information Page: 4oft9 2.2 Company Organization Please outline the overall organization of your company and its affiliates. Please attach an organizational chart of your company (worldwide and of responsible branch). 23 Annual Turnover Please state your Company's annual turnover and earnings for the following years Tumover [mUSD) 2007 2008 2009 YTD, Total of your Company = thereof Engineering Services = thereof Procurement Services = thereof Construction Management Services - thereof Subcontract Total with Evonik Degussa Group Eamings ENContractors_Shoriist.doe Prepared by Project Team© evan Project Qualification of Rev. ° Project No. Engineering Contractors Date: 2009-10-44 ce ‘Singapore Request for Information Page: come 3. Services and Capabilities 3.1 EPCM Services What are en aw 's core gues? Dd youatter own processes cepacia ‘What is your company's main business in the local affiliate? What are the EPCM Services your company offers in the local affiliate, 3.2 Maximum Project Size Please state the maximum individual project value your Company can handle for Evonik Degussa, using only your own personnel (i.e. without involvement of Subcontractors), assuming a duration of the joint project execution phase of up to two years, and a maximum utilization of 50 % of your total capacity? [mUSD] Total project value = thereof Engineering Services = thereof Procurement Services = thereof Construction Management Services ~ thereof Subcontracts 3.3 Minimum Contract Value If applicable, please state the minimum individual contract value your Company would usually require in order to offer competitive bids to Evonik Degussa. Minimum required contract value [mUSD} ENGontractors_Shonlst doe Prepared by: Project Teamj) wS evonik Project Qualification of Rew ° Project No, Engineering Contractors Date: 2000-10-14 Sie: Singapore Request for Information poe teeeos 3.4 Certifications / Business Licenses Which organizational, environmental or safety Certifications and Licenses does your Company hold (e.g. DIN / EN ISO 9001, OHSAS, SCC etc.)? If any, please attach one copy. ‘Type of Certificate Certificate Valid through (rmmn/yy) 3.5 EPC / Turn-Key Contracts Please state whether your Company is prepared to enter into EPC or turn-key contracts for certain parts of a project or the overall project, and which prerequisites may apply 3.6 Quality and Document Management System Please outline your company's quality and document management system. If a company procedure exists, please attach one copy. Name of your Company's Quality Manager: ENContractors_ShonList doe Prepared by. Project Team© e«vonik pea Qualification of Rev. 0 Project No. Engineering Contractors Date: 2009-10-14 Site: ‘Singapore Request for Information Pose: Tott 4 Project Execution Strategy 4.41 Organizational Chart Please outline the organizational chart of specific project indicating the number of personnel and responsibilities ENGontractors_ShatList doc Prepared by: Project TeamEvonik Project Qualification of Rev. ° Project No. Engineering Contractors Date: 2000-10-14 ae Singapore Request for Information Page: oie 4.2 Involved Engineering Offices Please outline the ENContractors_Shonlist doe Prepared by: Project Team@ evonix Project Qualification of Rev. ° Project No. Engineering Contractors Date: 2009-1044 Site Singapore Request for Information Page: 9of19 4.3 Project Related Work Force 434 Capacity and Qualification of Employees in Main Engineer ig Office Please enter the number of employees dedicated to the project and their qualification. Function, 1 Syears of | > Syearsof | > 10yearsof| Total Performace Class experience | experience | experience Company Management Manager | Controller - - Secretary Other Enginering Functions and Services Project Manager Engineering Manager Procurement Manager Process Technology Expert Cost Controller ‘Schedule Controller Permitting and Authority Engineering Expert Environmental, Health & Safety Expert Safety Manager Safety Inspector BBR Ecuioment Engineer BEBE Equipment Engineer Piping Engineer 3-D CAD Engineer Instrumentation and Process: | Control Engineer Electrical Engineer | General Plot Pian Engineer Layout Engineer Civil, Structural, Archtectural Engineer HVAC Engineer TT, Telecom. COTV ete. Engineer Fire Fighting and Alarms Expert ENGonivactors_ShorList doe Prepared by: Project Team© eEvonik Project Qualification of Rew. ° Project No. Engineering Contractors Date: 2009-10-14 or Singapore Request for Information Page: pore Function, 1-5 years of | >Syearsof | >10yearsof| ‘Total Performace Class experience | experience | experience Technical Buyer | Expediter Logistics Coordinator Fabrication Control Specialist Construction Manager I Construction Supervisor Quantity Surveyor Commissioning and Start-up Engineer Document Controller Secretary Other Other Functions and Services | (if applicable) Total | 4.3.2 Capacity and Qualification of Freelance Engineers Please enter the number of freelance engineers dedicated to the project and their qualification. Function, 1-5 years of | >Syearsof | >10yearsof] Total Performace Class experience | experience | experience ENContractors_Shorilist dee Prepared by: Project TeamSS © Evonix Project: Project No, Site: ‘Singapore Qualification of Rev, ° Engineering Contractors Date: 2009-10-14 Request for Information Page: 11 of 19 4.3.3. Capacity and Qualification of Employees in Low Cost Center Please enter the number of employees dedicated to the project and their qualification Function, 1- Syears of | > Syears of | > 10 years of | Total Performace Class experience _| experience | experience Company Management | Manager é Controller - Secretary | Other - Enginering Functions and Services | Project Manager Engineering Manager Procurement Manager Process Technology Expert Cost Controller Schedule Controller Permitting and Authority Engineering Expert Environmental, Health & Safety Expert Safety Manager Safety Inspector BEBBR Equipment Engineer BEGERI Eauioment Engineer [Piping Engineer 3-D CAD Engineer Instrumentation and Process Control Engineer Electrical Engineer General Plot Plan Engineer Layout Engineer Civil, Structural, Archtectural Engineer | HVAC Engineer IT, Telecom. CCTV ete Engineer Fire Fighting and Alarms Expert ENGontvactors_Shortist doo Prepared by: Project Team©& EVONIK Project Qualification of Rev. ° Project No Engineering Contractors Date: 2009-10-14 Site: Singapore Request for Information Page: 120f 19 Function, 1-5 years of | >5 years of | > 1Oyears of | Total Performace Class experience | experience | experience Technical Buyer Expediter Logistics Coordinator Fabrication Control Specialist | Construction Manager Construction Supervisor Quantity Surveyor ‘Commissioning and Start-up Engineer Document Controller | Secretary Other Other Functions and Services (if applicable) Total 44 Cooperation with Engineering Subcontractors Please state the capacity of engineering subcontractors your Company is working with. ‘Name of Subcontractor Location of Sub- contractor's office Personnel Capacity Major projects with this ‘Subcontractor in the past 5 years ENContactors_ShoriListdoo Prepared by. Project Team© evanix Project: Project No, Site Singapore Qualification of Engineering Contractors Request for Information Rev, Date: Page: 0 2009-10-14 13 0f 19 45 Site Support Please outline the number and function of your company’s employees on the site during erection, commissioning and start up. Who is responsible for the construction time scheduling Funetion, Performace Class ] 1-5 years of | > 5 years of experience | experience | > 10years of | Total experience ENContactors_ Shortlist doe Prepared by: Project Team@ © EVONIK paeotect Qualification of Rev. 0 Project No Engineering Contractors Date: 2009-10-14 Site Singapore Request for Information Page: 15 0f 19 Task / Discipline ‘Software Tool Number of] Number of experienced operators, Licenses _| (> 3 years experience) Cost Controlling Document Management Office MS Office E-Mail ENGontractors_ Shortlist dae Prepared by: Project Teamwy) ) EVONIK N Project Qualification of Rev. ° Project No. Engineering Contractors Date: 2009-10-14 Site Singapore Request for Information Page: 16019 5 Procurement 5A Procurement Experience Please enter the annual procurement values. 2007 [mUSD] 2008 [mUSD] Total procurement value IG branch = thereof Engineering Services = thereof Equipment Supplies = thereof Construction and Installation Contracts Total procurement value Company worldwide = thereof Engineering Services = thereof Equipment Supplies = thereof Construction and installation Contracts Please enter significant procurement experience during the last three years. Client / Project Name | Start/ Completion Date | Procurement Value | Offshore Portion [mUSD] [mUSD} 5.2 Procurement Procedure If available, please attach one copy of your Company's procurement procedure. ENContractors_Shortist do Prepared by: Project Team>» © evonin Project Qualification of Rev ° Project No. Engineering Contractors Date: 2009-10-14 Go Singapore Request for Information Page: we 6 References _ 64 References in the Chemical Industry For reference lists please use the format as desribed below and sort the list starting with the most recent projects in § years. Special emphasis shall be given to projects in the local branch. fos here ni teres sw ae Ae yrds * Location * Client * Project description ‘+ Total investment in which year + Contract value * Work scope (e.g. consulting, EPC, EPCM, turn-key) * Execution as prime contractor or as JV / consortium partner * Preferred contracting strategy (e.9. reimbursable, lump-sum, target performance arrangement) ‘* Duration of the whole project 6.2 References in the Evonik Degussa Group If applicable, please enter the services provided by your Company for the Evonik Degussa Group or its Affiliates. Project Description Country Year Services Value provided (mUSD] ENContractors_Shontist doe Prepared by: Project Team© evonix Project: Qualification of Rev. 0 Project No. Engineering Contractors Date: 2009-10-14 oe Singapore Request for Information Page: Botta Additional Information 7A Competition Constraints If applicable, please enter constraints resulting from existing contracts between your Company and third parties that may hinder your Company from providing services for Evonik Degussa projects. 72 Intellectual Property Protection Please outline the project specific procedures with respect to IP protection. 73 Workload Please indicate your Company's workload in 2010 and give a forecast of your workload in 2011 and 2012, respectively. If available, a graphic representation would be helpful. ENContractore_Shotist doe Prepared by: Project Team©@ evonix Project Qualification of Rev. ° Project No. Engineering Contractors Date: 2009-10-14 Ste: Singapore Request for Information Poge: tootie 7.4 Charge-out Rates Please state your Company's hourly charge-out rates (as an indication only) for key functions with a different level of experience. Function Status “junior” | Status “standard” | Status “senior (UsDihy [USD/n] [UsD/hy Technicians SADRDSumRSTEn =a | BaES 7.5 Additional Comments. In case you would like to add further comments to allow us to make a more comprehensive assessment of your Company, please use the space below. Name, Date, Company Seal ENContractore_ShortList doe Prepared by: Project TeamQualification of Engineering Contractors Basis: Questionnaire for Contractors Erase om Weight | — Points] Points | Paints wo [al 07) [0-7] (0-71 lo [Contractor ‘Contractor A | ContractorB| Contractor hi —[Contact at Evonik Degussa : = : 5 2 —|Gompany Organization and Economical Data| 5% [23 — [Genera information 5 = [22-—[Company Organization 3 3 z 3 —Jannual Tumover 3 = 3 average points 40) 40 25 [7 [services and Capabilities DE Si —[EPCM Services = e = [52 [Maximum Project Sze Kosta yee Ono 7 1 7 [53 [Minimum Contract Vaiue (c0-ctrio? yes no" 7 1 7 [54 —|Cerificatons /Business Licenses 3 3 3 [S5—[EPC /Tum-Key Contracs 2 4 < [36 [Quely and Document Management System 5 5 2 [3.7 —[Project Execution Strategy 3 8 3 3 — [Work Force 7 8 3 [3.877 [Capaciy and Oualfcaton of Employees @ 5 3 5.8.2 [Cooperation with Engineering Subcortraclors 1 a 2 5.9 [Software Tools 5 2 4 [Average points 35 a5 ar l¢ — Procurement 2 [7 [Procurement Experience z z 3 [22 —[Procurement Procedure 3 a 2 Faverage points 35 a0 a5 Is —TReferences 10% 57 [References in the Chemical nasty z 5 z [5.2 — [References inthe Evonik Degussa Group 3 2 2 [Average points a5 40 a9 fs [Additional information| ra 6 —[Compettion Constraints 3 3 3 [5:2 — intelectual Property Protection a 6 7 [53 —[Workioad I 6 2 [54 —[Charge-out Rates 3 2 3 [55 [Additonal Comments 2 2 3 Average points 34 [Rutecant by mockout orteron? ve 7 =] Total number of ports = oa 7% Weighted number of points = a3. 36 [Explanation [Evaluation fexrerey goo [ery goo frQualification of Engineering Contractors Basis: Questionnaire for Contractors E tps le Le ——— 7 [eee = ee = ee 7Ay € WS EVONIK Project: Qualification of Rev. ° Project No. Engineering Contractors Date: 2009-10-14 Site Singapore Request for Information Page: 14 0f 19 4.6. Software Tools Utilized in the Project Please enter the number of workplaces for each software tool. Multiple entries, if applicable, are possible. Task / Discipline ‘Software Tool Number of | Number of experienced operators Licenses _| (> 3 years experience) Process Design ‘Aspen Equipment Design Piping, Stress Analysis, Safety Devices Design 3D CAD AutoCad PDS, POMS Microstation Structural Design Frameworks PDS Instrumentation Engineering Electrical Engineering Procurement and Expediting Tools Material Management ‘Scheduling MS Project ENContaciors_ShorList.doe Prepared by: Project Team