procurement plan procedure
DESCRIPTION
Procurement procedureTRANSCRIPT
T. Sp. Emergency Power Gen. Pkg.
Company Identification
3201.11.DBPF.10010Contractor Identification
4600016138/39/40 Rev. index.Sheet of Sheets
21 / 25
Validity StatusRev. No.
EX-DE02
Projects Development, Engineering Division
SIMULTANEOUS WATER AND NATURAL
GAS DISPOSAL (SWAN) PROJECT
VARIATION ORDER TO EOC WATER
REINJECTION PROJECT.PROCUREMENT PROCEDUREREVISION RECORD
0223 Oct 14Approved for Construction
0129 Sep 14Issued for ApprovalComment Incorporated
0002 Sep 14Issued for ReviewFirst Issue
Rev.DateReason for RevisionShort Description of Changes
TABLE OF CONTENTS
41.0 GENERAL
61.1 SCOPE
Error! Bookmark not defined.1.2 ABBREVIATIONS
71.3 REFERENCE
82.0 EVALUATION AND CONTROL
83.0 PURCHASING PROCESS
104.0 Expediting Process
155.0 PURCHASE PLANNING
156.0 USE AND MANAGEMENT OF SUPPLIERS
167.0 ISSUANCE AND DISTRIBUTION
178.0 ISSUANCE AND DISTRIBUTION OF ORDERS
189.0 Material Control
189.1 Tracking of Materials
1910.0 Materials Receiving (Local Purchased)
2011.0 Forms
1.0ABBREVIATIONS COMPANY
NAOC
NAOC Nigeria Agip Oil Company
CONTRACTOR
B+G&S Nigeria Limted
MRR
Material Receiving Report
MRF
Material Request Form
PO
Purchase Order
RFQ
Request for Quotation
RFP
Request for Procurement
MDS
Material Data Sheet
BEF
Bid Evaluation FormFEED
Front End Engineering Design
LPO
Local Purchase Order
RGIR
Receipt of Goods Inspection ReportPM
Project Manager
PD
Project Director2.0INTRODUCTIONThe Nigerian Agip Oil Company intends to install an ejector for the simultaneous disposal of produced water and low pressure gas which would otherwise be flared. The source of the low pressure gas shall be from the gas outlet line of the LP-3 separator currently installed in Ebocha Oil Center. The produced water to be utilized for this project shall be sourced from the produced water reinjection package.EPC Contractor shall ensure throughout detailed engineering that all hazards have been identified, risks assessed and that appropriate measures to protect personnel, facilities and the environment have been incorporated in the design, by means of activities such as HAZID, HAZOP, and Constructability Review etc.Contractor shall perform all activities including all Project management, detailed design engineering, procurement and supply of materials including line pipes, fabrication, supply, transport, construction activities, installation, restoration, testing and pre-commissioning activities required to achieve the successful completion of the Work.2.1SCOPE OF WORKContractor scope of work for EPC of Simultaneous Water And Natural Gas Disposal (SWAN)
Project shall include but not limited to procurement and supply of materials including valves, fabrication, inspection and testing, transportation, construction and installation activities required to achieve the successful completion of the project. In procuring these items: Piping Fittings, Bolts and Nuts, Pipe Supports, Fittings, Valves Gasket.
COMPANY shall prepare the Project procurement Plan Procedures, which outline guidelines for Procedures and Schedules to be implemented by all Contractor / sub-contractor and applicable Suppliers for carrying out all procurement as contained in the Procurement Packages Dossier (All Packages) and related services; however Contractor Sub-Contractor shall purchase within their procedural requirements through their nominated Vendors/suppliers. The Procurement Plan Procedure shall be prepared by CONTRACTOR Project Engineer and the Procurement Officer. It shall be reviewed by the Project Manager (PM) and approved by the Project Director (PD).COMPANY / CONTRACTOR shall ensure the following standards and specifications are met:
3201.11.DLST.14127- Technical Specification for Valves.
3201.11.DLST.14129 - Technical Specification for Flanges, Anchor Flanges and
Gaskets and Bolting.3.0REFERENCE
3201.11.DGSP.10053 - QAQC Plan. 3201.10.BGRV.10701- Scope of Work. 3201.11.DLST.14127- Technical Specification for Valves.
3201.11.DLST.14129 - Technical Specification for Flanges, Anchor Flanges and
Gaskets and Bolting4.0EVALUATION AND CONTROL
The assessment and qualification of Vendors & suppliers shall be carried out in accordance with the Contract and the CONTRACTOR procedure for managing vendors and suppliers in the case of project materials for permanent structure, CONTRACTOR shall solicit bids from Companys approved Suppliers list in the approved Vendor List. The Contractor shall ensure that Vendor and suppliers shall adopt and implement all inspection and Test plans in accordance with companys standard in all their activities on the project. No deviation from the vendor/Supplier list shall be accepted without prior approval from Company, if the Vendor/Supplier has been assessed against the appropriate Quality System standards and approved by a third Party accredited national body, the Vendors/Supplier shall be requested to return a copy of their current approval certificate and Quality Manual.
If the vendor/Supplier does not have an approved certificate for their Quality System but does have a Quality Manual, the Vendor/Supplier shall be requested to return a current copy of the Quality Manual, (unless CONTRACTOR Party is already in possession of the current issue) together with a list of any government, national or major industrial bodies that have formally approved Quality System in a recognized Quality Standard and any certificate showing QC / product approvals, such as ASME, etc.
In addition, CONTRACTOR shall have firm control over its Vendors and suppliers and shall cause them to adopt and implement all Inspection Test Plans relevant to the vendors/Suppliers specific activities on the project.5.0 PURCHASING PROCESS5.1 Purchased Goods / Material quality Requirements
CONTRACTORs purchasing process is tailored to ensure that goods and materials purchased for project use are in accordance with the requirements of the contract. At each stage of the purchasing process and depending on the overall effect of the decisions on the final product, Company representative will be invited to agree with the decisions to complete the stage and move to the next.5.2 Purchasing Process Description
A comprehensive series of corporate Procurement Management Procedures and Work Practices exist to satisfy the project execution methodology whilst providing a sound management basis at all times.
The Procedures and Work Practices are formalised in manuals for each main discipline group and provide a clear and positive indication of the controls employed in the normal day-to-day execution of the procurement management activities. Documentation is of a formalised nature and uses standardised formats (e.g. Proposal Requests, Proposal Status Reports, Proposal Summaries, Purchase Orders, Order Variations and Amendments, Cost Allocation, Expediting Requests and Reports, Inspection Requests and Reports, overall material status reporting, document transmittals, etc.). These Procedures and Practices forms the basis of the project specific documents and forms that will be produced to identify and incorporate the unique requirements of Company Project specific. General Purchase Conditions and Instructions to Bidders are prepared by the project team members in consultation with Department Heads, which also incorporate the Company requirements regarding documentation, inspection, commissioning assistance, warranty and spares. These are included in the RFP, which is sent to the vendors for submitting a quotation.
Technical questionnaires are sent to the vendors by the Procurement department and a Technical Bid Analysis is prepared, based on these, purchase orders are placed by procurement manager. Preference is given to vendors with proven track record or in the vendors list issued by Company Quality Control. Engineers from CONTRACTOR and Vendors also firm up the detailed quality control plan (witness, hold and review stages). Items procured from within Nigeria are inspected by CONTRACTORS QA department. However, for majority of other imported items, external inspection agencies are appointed to work with CONTRACTOR Internal Quality Management team to ensure that all purchase specifications are complied with. Only approved & certified TPI will be appointed for third party inspection.
The import department of CONTRACTOR handles all commercial matters related to the imports such as opening of letters of credit, payment to suppliers, etc. The procurement Officer keeps in touch with the import department to coordinate these activities. The procurement officer has a single point responsibility for all the items purchased. He closely monitors all the activities related to the procurement via floating enquiries, locating the right vendor, technical evaluation, commercial negotiations, purchase specification approval, drawing approval, expediting, inspection calls to external inspection agencies and Companys inspectors, sea freight, customs clearance and local transport; and closely liaises with all other departments and consultants to remove any possible bottlenecks in the timely delivery of goods.
6.0Expediting ProcessAll RFPs are issued by the Procurement department where technical bids from vendors/suppliers are also received and analysed/ evaluated. The technical discussions with the vendors are held with the Procurement Officer and or Manager, and the commercial part of all procurement is handled by the procurement team. Priorities will be given to Vendors/Suppliers who have agents in Nigeria. The scope of procurement covers all permanent materials and equipment required by the project, excluding Company furnished materials.
The scope of procurement and deliveries are maintained by employing methods used by international Contractors for such jobs, such as: Preparation for start of engineering prior to award, to avoid delay after contract award; Making commitments for critical materials Using materials from stock yards at higher cost, if necessary; Air-freighting items when necessary,
Working round-the-clock, including weekends and holidays. Monitor / expedite deliveries by vendors and deputing expeditors at each of such work centers.
This approach calls for operating flexibility and de-centralized decision making, which CONTRACTOR shall adopt for the project. Familiarity with international procurement procedures is essential. Refer to flow chart below for a typical expedited purchasing processes developed by CONTRACTOR.
YesNo
No
Yes
No
Yes
No
Yes Yes No
NoNo
No
yes
yes
yes
7.0 PURCHASE PLANNING
The Procurement Department and the Project Management and the Quality Department is responsible, for planning and monitoring of purchases. The supply system must be put in place to make it possible for availability of products and reliable suppliers and ensure the fulfillment of the requirements ofs service. Supplies planning
When planning supply, quality management and examination of product, the following topics should be discussed: Development of supply Requirements to be applied to various types of supply Planning of supply Qualification of new suppliers of products / services Renewal of the qualification of suppliers
Information required for planning and monitoring of purchases
The need for new products / services and the planning of purchases are regulated by Contract/QA dept. through: Market research Processing and analysis of data related to customers Analysis of non-compliance
8.0 USE AND MANAGEMENT OF SUPPLIERS
Suppliers to be used
The Vendors/Suppliers to be used are those indicated in the Companys approved Vendors list. The use of new Vendors/Suppliers shall be in accordance with process of evaluation, qualification and approval
Documents governing the relationship of supply
The documents governing the relationship of supply are: Specific orders Contracts Letters of intent
Purchase of goods or services
Procurement / Quality dept is responsible for defining requirements, terms and conditions contents to be applied in the supply of products and services. When it may be necessary to use a new supplier, the name must be reported to Quality dept. with all the information necessary for its qualification.
9.0ISSUANCE AND DISTRIBUTION
Issuance of RFP (Request for Proposal)
The purchase request is issued in written form by the Procurement officer and must indicate:
The type of goods or services The quality requirements to which must respond The quantity Delivery time
Order Issue The purchase order shall be signed after the Company and Contractor have agreed on the RFQ before sending to suppliers/vendors. 10.0ISSUANCE AND DISTRIBUTION OF ORDERS
The purchase order must be signed by Project Director, Project Manager and the Procurement Manager or persons designated by them before sending to suppliers. Contents of purchase orders
The order must necessarily include the following: Purchase order number and date of order Sender Job number (optional) The recipient: Name, Name of Supplier (optional address and phone) Name, of the person to whom to refer (i.e. attention of Mr xxx ... in case of prior agreements) The object (material or description of service required) Quantity and product number (if any) Precise description (for catalog products copy description from the catalog itself) Price (from list or catalog, or from agreed offer) Any discounts or special conditions agreed In the case of an offer by telephone, return the phrase "as in telephone talks with your Mr. xxxxxx ... .. the price of ... .... (list conditions agreed). Time of delivery and payment Mode of transport and in charge of whom ("transport by courier" ... .. "Port assigned" or "free port", etc..) OBLIGATORY signature of Project Director, Project Manager and the Procurement Manager. Order transmission
Purchase orders are made in written form and sent to suppliers by mail, by courier or fax. Any purchase orders by telephone, are always confirmed in writing (except for particular circumstances and urgent need) and transmitted to suppliers in the above rules, or by written order confirmation of the supplier. Order Confirmation by suppliers
In the case where suppliers have a continuous relationship, it is considered that the confirmation of acceptance of an order is implied. In other cases, after a certain time without having received confirmation, PD/PM will have to activate and obtain it.
This approach calls for operating flexibility and de-centralized decision making, which CONTRACTOR is equipped with, as a professionally managed company. It also calls for familiarity with international procurement procedures. Purchasing Organization
Refer to Project Organizational Charts in the Project Execution Plan 3208.20.GBPG.00001 as attachment 111.0 Material Control
11.1 Tracking of Materials
A material control chart (a Microsoft work sheet program) is prepared which contains all the necessary information about the procurement of goods from Purchase Order data covering through the period of shipment and arrival date. This work sheet is available in Contractors created Dropbox account and is periodically updated.
Recording of receipts for goods
Receive and inspect goods for damage during transport and complete the Good reciept Inspection Report (GRIR). This GRIR is transmitted to procurement specialists for action based on findings, if required.
Custom Clearance
In coordination with CONTRACTOR team, only approved companies who are based in Nigeria shall handle all customs clearance and forwarding.
Traceability of goods upon receipt
The traceability of goods upon receipt is followed as per stores procedures for receipt and issue. Storage of goods
Adequate space will be provided at the port & site facilities to store goods in line with Manufacturers recommendations
Stock/inventory control
The stock and inventory are controlled as per stores procedure for receipt, storage & issue.
Inspection and expediting
Inspection shall be carried out as per the approved quality plan of the project with expediting being done on a regular basis. 10.0 Materials Receiving (Local Purchased)
All locally purchased materials are delivered to the warehouse, accompanied with original local purchase order(LPO), original delivery note, three invoices (one original and two copies); and received by the warehouse supervisor or his designated representative. The warehouse supervisor will inspect the material to ensure that the quantity and price (if applicable), match the LPO. Additionally, he will ensure that the quality of items meet the QC requirements, when items delivered to the warehouse does not meet the requirements, the warehouse supervisor rejects the materials and inform the local purchase office. When items are accepted, the warehouse supervisor signs the vendors delivery note/waybill. The vendor will provide the warehouse supervisor with original delivery note or original local purchase order. The warehouse supervisor will forward these documents to the local purchase office and copy the Construction Manager.
The Project manager will review the price, description of goods received by signing on the delivery note/waybill. He will also initial his name on the LPO and invoice, and then forward the documents to the warehouse administrative department. 12.0FORMS
BGS FORM-PP-001 - Over Short and Damaged Report BGS FORM-PP-002 - Materials Receiving Report BGS FORM-PP-003 - Supply Issue Voucher
BGS FORM-PP-004 - Non-Conformance Report BGS FORM-PP-001 - OVER, SHORT, DAMAGE REPORT Job No:Ref No: BGS FORM-PP-001 O.S & D.No:
Client:Shipper:Date Prep:
Port of Origin:Rec. Point:P.O. No:
Del:Truck No:D.M.I. No:
Way Bill No:Date Recd:M.I.V. No:
ABOVE SHIPMENT RECIEVED IN FOLLOWING CONDITION Overage or Substitution Shortage in packing package in apparent good order but contents short
Shortage in delivery No of pcs. On W B No of pcs. recd
Shortage in shipment package damaged. Appears opened on repacked Content short Damaged visible damage to material. Any damaged goods recieved notify QA/QC Dept. For Inspection.
Damaged concealed damage package in apparent good order
P.O. Item No.Quantity OrderedQuantity Recieved UnitDescription
Recommendation: Repair in Field Return to shipper/vendorReplace
Estimated cost of repair damage or replace:
Project Engineer notified on: Action By
Deliver Document Attached? Yes Recieving Report attached Yes No
Was damage or loss due to poor packing: Lack of precautionary packs? Other reason?
Explain.............................................................................................................................................
Prepared By: Approved By:
BGS FORM-PP-002 - MATERIALS RECIEVING REPORT
Project:No.Delivery order NumberShip Recieving Report No.
Client:
Contract Number:
Job Number: BGS FORM-PP-002
Date
Remarks:
Item#Qty. U/MPart Number
DescriptionO.S.D Report
Key:
O- over S- Short D- Damaged
Signed: Date Prepared/recieved by: Date
(QA/QC) Rep. BGS FORM-PP-003 - SUPPLY ISSUE VOUCHERFROM:
REQ:
TO: JOB NO: BGS FORM-PP-003EQUIP NO.
ITEMQTY U/MPART NO.DESCRIPTIONIMPORTLOCAL
TOTAL
ISSUED BY: RECIEVED BY: CONFIRMATION
W/H MGR W/H SUPERVISOR
WHITE: WAREHOUSE NUMERICAL FILE BLUE: MECHANICAL DEPARTMENT
PINK: WAREHOUSE SECURITY + REQUISITIONER GREEN: WAREHOUSE REFERENCE COPY
BGS FORM-PP-004 - NON CONFORMANCE REPORT
(1) LOCATION(2) NCR NO: BGS FORM-PP-004
(3) CONTRACT/JOB
(5) RESPONSIBLE PARTY(4) DATE:
(6) AUDIT NO: (IF APPLICABLE)
(7) REFERNCE, SPECIFICATION/PROCEDURE
(8) DESCRIPTION OF NON-CONFORMANCE:
Block 1 to 8 completed by Initiator of NCR
(9) PROBABLE CAUSE OF NON-CONFORMANCE
Block 9 completed by QA/QC Manager or Designee
(10) SUGGESTED (Engineering decision requires date & signature in this block) CORRECTIVE ACTION:
USE-AS-IS ( ) REWORK ( ) REPAIR ( ) REJECT ( ) SCRAP ( ) OTHER ( ) {DEFINE BELOW}
Block 10 Completed by Project Manager or Designee
(11) QA/QC Manager: Sign: Date:
(12) CORRECTIVE ACTION TAKEN
Block 12 Completed by Project Manager
(13) VERIFICATION OF CORRECTIVE ACTION:
Completed by QA/QC Manager or QA/QC Engineer
Date:
Representative(14) DISTRIBUTION TO:
PROJECT DIRECTOR [ ]
PROJECT MANAGER [ ]
QA MANAGER [ ]
PROJECT ENGINEER [ ]
NCR LOCATION [ ]
FILE [ ]
Completed by QA/QC Mgr or Designee
Purchase Goods/Services
Identity
Requirement
PM/CM raise purchase order
Purchasing Manager Logs Request
Purchasing Manager Reveiws Requirement to know the level of local and foreign procurement
Only Local
Purchases Required
Forward instructions to Corporate office in PHC to arrange Purchase
Check for Suitable Approved Suppliers in Company Listing
Source suitable suppliers
Purchasing carried out per corporate office QA procedure for purchasing
Formally review and approve new
suppliers
Select suppliers from which to obtain prices
Arrange Shipment Where Applicable
Analyze Bids (Prepare Analysis of Options)
Transport From Port To Required Delivery Point
Negotiate with Suppliers and Settle any Bid Anormalies
Final Selection of Supplier
Prepare PO and get PO Approved
P.O. Approved?
P.O. Approved?
Place Purchase Order
Monitor Manufacturing / Supplier Process
Ensure Any required Inspection Test Plan is Carried out
Transport from Supplier to Required Delivery Point
Check Purchased Item on Delivery at Required Delivery Point, Clients Inspection as Required
Item satisfactory?
Purchase by site office
Advice PHC office with regards to problem
Advice supplier of problem
PHC office to follow up matter with supplier and resolve
Purchasing manager will follow up with supplier and resolve problems
Problem Resolved?
Item satisfactory inspection by Client if Required
Purchased by Office?
Outstanding payments are made to supplier and PO closed in Purchasing system
Formally advise PHC office that the PO has been completed satisfactorily
Outstanding payments are made to supplier and PO closed in Purchasing system
Review suppliers performance and take any action necessary with regards to supplier status
Purchasing process completed
EX-DE0220 April 15Approved
For
ConstructionENGR TEAM
C.AC.OT.S
Validation
StatusRev.DateDescriptionPrepared
byChecked
byApproved
byContractor
ApprovalCompany
Approval
Company logo and business name
Project name
REPLACEMENT OF 6 SCH120 FLOWLINES FOR EBOCHA PROJECTCompany identification
3201.11.DBPF.10010
Contractor logo and business name
Contract No. 4600016138/39/40
Vendor logo and business name
Facility Name
EBOCHA OIL CENTRE Location
LANDScale
Sheet of Sheets
n.a.1 / 25
Document Title
PROCUREMENT PROCEDURESupersedes N.
Superseded by N.
Plant Area
Plant Unit
Projects Development, Engineering Division
This document is CONFIDENTIAL and the sole property of the Company. It shall neither be shown to third parties nor used for other purposes than those for which it has been issued/sent. Any unauthorized attempt to reproduce it, in any form, is strictly prohibited.File Name : 3201.11.DBPF.10010_02_Procurement Plan ProcedureThis document is property of NAOC Ltd. Who lawfully reserves all rights. Any unauthorised attempt to reproduce it, in any form, is strictly prohibited. NAOC will safeguard its rights according to the civil and penal provisions of the law