GENERATION BUSINESS LINE

Qualification Package # 11:

Supply of Treatment Chemicals, Oils and Gases

INSTRUCTION TO SUPPLIER/MANUFACTURER

The purpose of this evaluation is to establish the technical competency of the potential Supplier/Manufacturer in providing the most techno-economical of the below-listed products to the Generation Business Line of Saudi Electricity Company:

  • Water Treatment Chemicals
  • Fuel Treatment Chemicals (Boiler and Gas Turbine Fuel Additives, Demulsifiers, Dispersants)
  • Lubricants and HydraulicOils
  • Electrical Insulating Oils (Transformers and Circuit Barkers)
  • ControlFluids (Turbine Control Systems of Steam Turbines)
  • Solvents and Cleaning Fluids
  • Industrial Gases (CO2, N2, AND Fire Fighting Gases)
  • Laboratory Reagents
  1. Field Experience:The product offered for qualification should have proven field experience (Refer toCritical Questions, Page-6 of 14) in facilitiessimilar to SEC.
  1. Newly Developed Product:In case, the productoffered has no past field experience, the Supplier/Manufacturer should submit for the review of COMPANY, the detailed R&D report, Pilot Plant Testing Results, and any approval from pertinent authorities and OEMs. COMPANY reserves the right to decide for Field Trial Testing (FTT) if the offered product is found suitable.
  1. Composition of product:The product offered should have similar composition (active ingredients)and compatibility (Physical and Chemical Characteristics) with the products being used by COMPANY.
  1. Prototype type products:The product offered for qualification should not be of "Prototype" and having "Proprietary information ".
  1. Payment:Payment of the product to be used during FieldTrial Testing (FTT) shall be on "Pay if Successful", after the successful completion of the FTT.
  1. Material Free of Cost: In case any Supplier/Manufacturer offers free of cost the material required for Field Trial Testing (FTT). This offer shall be considered in case the information provided, analysis results of the samples, and audit report of the manufacturing facility(s) are satisfactory and approved by the competent authorities of SEC.
  1. Field Trial Testing Duration: Field Trial Testing shall be performed as per the procedure of SEC. (Procedures of Field Trial Testing (FTT) for Gas Turbine and Boiler Fuel Additives are attached as Annex-1 and Annex-2 respectively).
  1. Liability of Supplier/Manufacturer:Supplier/Manufacturer shall be responsible and liable to bear expenses caused to Equipment/Machinery/Property/Personnel injury or severe damage arising out of the non-conformance of the supplied material or due to inappropriate action of the Supplier/Manufacturer site staff, as per applicable SEC documents, e.g. Clause-18 and 21of Schedule-A.
  1. Material shall be transported to the delivery site in proper packing and shall contain the following information:
  • Manufacturer’s Name
  • Local Supplier Name (if applicable)
  • Date of Manufacturing
  • Shelf Life and Storage instructions, if any
  • Gross wt. / volume
  • Net wt. / volume
  • Safety and Handling Instructions
  1. All the expenditures including Fuel Additive dosing and management, etc. pertaining to the FTT shall be borne by the Supplier/Manufacturer/Contractor.
  1. Loss of material due to defective packing/transportation damage shall be the responsibility of the supplier and such loss shall have to be made good by the supplier without any extra cost to SEC.
  1. Change of Supplier, Manufacturer and Product:Any change of Supplier, Manufacturer and/or Product, prior to COMPANY’s approval shall be obtained by submitting the "Qualification Package" / "Written Request". During the process of procurement, if any Supplier/Manufacturer/Productis found "Non-Qualified" their offer should not be considered even if it is lowest in cost.
  1. Disqualification:In case Supplier/Manufacturer/Contractorfailed to maintain the quality of the product(s) and technical support services, COMPANY has the right to disqualify such product(s).
  1. Request of Experienced Local Supplier: To encourage local suppliers having experience for more than 10 years of blending similar products within the Kingdom and supplying these products to SEC, their request for qualification shall be considered even if they intend to supply the same product under modified brand names.
  1. Qualification Validity: Qualification shall be valid for a period of five (5) years subject to compliance with SEC terms and conditions.

The supplier/manufacturershall follow the following steps in completing his qualification package:

STEP ONE:Title Sheet

Complete the Title Sheet (page 5 of 12) and put as the first page on the binder. Supplier/Manufacturer/Contractor should list ALLproducts he (including his affiliates) can provide under the scope category specified by SEC that matches with the general definition given above. Supplier/Manufacturer/Contractor can also add products in the list, if he thinks it matches with the definition but not mentioned above.

STEP TWO:Critical Questions

The purpose of the Critical Questions is to ensure that the Supplier/Manufacturer/Product has the minimum capability that must be met for the expected quality and performance for providing the intended product to SEC.

STEP THREE:Product Supply Questionnaire

  1. The purpose of this set of questions is to rate the Supplier/Manufacturer’s capability/Product of providing the intended products.
  2. Supplier/Manufacturer must answer all set of questions on the attached questionnaire, preferably on the soft copy (excel spreadsheet).
  3. Note: Please enter only the information on the table as mentioned in each question. DO NOT enter detail answers; instead attach them separately.
  4. Supplier/Manufacturer/Contractor must attach all supporting documents for each question in a binder having separate tabs for each set of questions.

The binder should be submitted in Duplicate and also Electronically along with the questionnaire sheet for each case of prequalification.

STEP FOUR: Submittal of the PQ Package

The complete package to be submitted to:

Manager, vendors affairs division, Purchasing Department,

Saudi Electricity Company, Head Quarters

Building: Granada (A6) - Floor: G

Riyadh

P.O.Box 22955 Riyadh 11416, KAS

Phone +9661 18079651

e-mail :

website:

Make sure that you obtain the signed acknowledgement for the receipt of the submittal from SEC.

STEP FIVE:Supplier/Manufacturer/Product Facilities Audit:

When the documents submitted to SEC are satisfactory, auditof theManufacturing/Blendingfacilities, sample collection for analysisof the offered product from an independent Laboratory shall be organized.

STEP SIX:Field Trial Testing (FTT) for Fuel addidtives:

  1. FTT shall be conducted as per the procedureof SECand shall bemutually agreed by SEC and Supplier/Manufacturer, prior to the commencement of FTT.
  2. FTT shall be conducted by the respective Power Plant in coordination with GTSD.
  3. FTT in SEC facilities shall be conducted to establish the "Dosing Rate", "Treatment Cost" and to confirm the "Performance" as claimed by the Supplier/Manufacturer / Contractor.

STEP ONE:

TITLE SHEET

Local Supplier/Manufacturer / Name:
Postal Address:
Phone:
Fax:
Contact Person:
e-mail Address:
http:
International Supplier/Manufacturer / Name:
Postal Address:
Phone:
Fax:
Contact Person:
e-mail Address:
http:
List of all products whichare Manufactured by the same Manufacturer and Supplied to SEC and other organizations:
Sr. No / Product Brand Name / Composition / Organization / Application
1
2
3
Information of product requested to beprequalifiedby SEC:
1
2
3

STEP TWO:

CRITICAL QUESTIONS

(Technical Products)

Critical Questions to be answered: / Reply
(Yes or No)
  1. By Supplier:

  1. Is the Supplier of the proposed “Product” “Registered” with SEC?

  1. Is the Supplier of the “Product” requested for prequalification already “Pre-Qualified” for the supply of similar products to SEC?

  1. Do you possess, atleast,threeyears of experience in the supply for such productsto SEC?

  1. Was your company never barred from bidding or blacklisted or called to replace a delivered product due to substandard quality of product/materials or for schedule delay within last five (5) years?

  1. Does the Supplier have valid certification from PME? (Applicable for Environmental related products)

  1. By Manufacturer:

  1. Is the manufacturer already “Pre-Qualified” for such products by SEC?

  1. Is the manufacturer already “Pre-Qualified” for such products by the respective OEM?

  1. Wasthe manufacturing facility never blacklisted or called back to replacea delivered product due to substandard quality of product or for schedule delay within last five (5) years?

  1. Do you possess at-least 10 years of manufacturing experience for the product proposed to SEC?

  1. Does the Manufacturer have valid certification from EPA, MCerts, TÜV or PME? (Applicable for Environmental related IP)

  1. Offered Product:

  1. Is the product offered for prequalification to SEC recommended by the respective OEM?

  1. Is the product offered for prequalification in conformance with respect to the “Physical and Chemical Characteristics and Composition" with the products recommended by the respective OEM,that arealso already prequalified by SEC?

Are you willing to demonstrate (Field Trial Test)?
  1. Is the intended product tested satisfactorily under any National/International Standards/Procedures recognized in Saudi Arabia? Attach certificate.

  1. Does the offered product have valid certification from PME?

D. Local Manufacturing / Blending Facilities:
1. Do you have local manufacturing facility(s) of the offered product? If yes, provide details.
2. Do you have local Blending facility(s) of the offered product?If yes, Provide details.
3. Do you have agreement with the "Raw Material Manufacturer" for the supply and local blend agreement? If yes, Provide details?

STEP THREE

Answer all 8 sets of questions (as applicable). Enter response to sub-questions that apply in your case. Attach all required details and supporting documents in a binder with tabs referring to each question number below.

Treatment Chemicals and Laboratory SuppliesQuestionnaire
PURPOSE: Determine experience / geographical suitability
1 / Enter number of similar Industrial Productsand Laboratory Supplies handled in the last 5 years. Provide (attach) detailed information in table format, including location, contact information, product description, product value/sales, etc.
Completed / Active
In SEC
In Saudi Arabia
In Mid-East
Elsewhere
PURPOSE: Determine Supplier reputation and capabilities
2 / Provide all details regarding your organization. Enter (Y)es, (N)o, or number below. Attach all supporting documents, e.g., organization chart, financial statements, licenses, and certificates, and answer all questions, etc.
Y, N or Number
Are you registered with SEC?
How long were you engaged continuously in the supply of these products in Saudi Arabia?
In the last five (5) years, has your company been barred, disqualified or blacklisted?
Do you have local representation in Saudi Arabia?
Do you or your representative have full timetechnical staff in the Kingdom?
Do you provide local after-sale customer service for the product? Attach a description of the extent of the customer services provided by your local vendor in Saudi Arabia.
Do you provide international after-sale customer service for the product? Attach a description of the arrangement you can make for providing customer services from out of Saudi Arabia, in case you do not have a local customer service in Saudi Arabia.
Do you warrant your supplied product? Attach details of the nature of warranty and its standard provisions.
Will you take responsibility for COMPANY losses in case the supplied material is not of the approved quality and/or its performance is not satisfactory?
Do you have local blending facility(s) for the product?Provide details (Profile, Address).
Does the local blending facility possess ISO or equivalent standard/Local certification?
Do you have an agreement with the product's manufacturer showing permission to re-blend their product locally? Provide copy of the agreement.
Is your local blending process supervised by the representative of the actual manufacturer of the offered product(s)?
Does the local blending facility have analytical facilities? Provide list of Laboratory equipment and provide copies of calibration certificates.
Are you ready to provide unrestricted access to your blending facility to SEC representative for assessment on your account?
Provide number of Employees in the blending facility.
Number of Management (Non-Technical)employees
Number of Management (Technical)employees and their CVs.
Number of Technical (Analyst/Specialists) employees and their CVs.
Number of Technicians (Technicians, Samplers etc.) and their CVs.
Semi-Skilled (Helpers, etc.)
Un-Skilled (Helpers, etc.)
PURPOSE: Determine Product Information
3 / Provide list of all the products manufactured in your factory. Specify the products that you intend to be covered by this pre-qualification. Please provide specific answers to the following specific questions on separate sheet with supporting evidences. Enter Y(es) or N(o) and attach your answers.
Y, N
Provide details of your recommended/offered product under consideration, including specifications, data sheets and MSDS
Offered product shall be accompanied with complete physical and chemical analysis. The analysis certificate shall contain results of each parameter as specified in the tender specification.
Are there any unique features of your product? Provide details on quality improvements.
What National / International standards do you follow for your products? Describe in detail.
Provide detailed technical information on the main raw material used in the product. e.g. Source, supplier, quality
Does your product meet the applicable SEC standard specification?
Provide a clause-by-clause compliance statement and list of deviations, if any to SEC standard specification.
Provide the shelf life of the offered product. Shall not be less than two (2) years with proper storage. Provide also storage instructions.
List all analytical equipment used to for the analysis and testing proceduresfor the product you want to be qualified.
How long have you been producing the offered product(s) for:
  • Domestic Market
  • International Market

PURPOSE: Determine manufacturing capabilities and the physical details of the facility
4 / Provide the following details regarding your manufacturing capabilities. Check the appropriate box or enter the number, and attach all required details.

Provide details of the owner of the Manufacturing Plant.
Provide Organizational Chart.
Is the manufacturing facility shared with other partners?
State the nature of ownership (Proprietary, Partnership, Stock, Limited, State owned).
Do you have subsidiaries/Joint ventures around the globe? (Attach details, if applicable).
Complete address and location of the manufacturing plant to be provided.
Provide the history of your Company and its evolution.
How do you store incoming, in-process, on-hold, rejected materials, and the finished product? Attach details (floor plan) of the area designed for these items.
Describe the detailed procedure for packaging your product and shipping. Describe the procedures for safe-stocking the raw materials.
Attach a list of your sub-manufacturer(s), if any, with full address(es) and details of the product provided by each of them.
Attach a list of your suppliers with full addresses and the details of the raw materials and/or components supplied to you.
Give annual production capacity, last 3 years annual average and % export of the subject product.
How is the quality of the manufactured product(s) controlled?
Does the manufacturing plant have analytical facilities? Provide details regarding manufacturing and quality testing.
Details of your relevant Labs and Testing facility; include all capabilities of the facility.
Are laboratory equipment regularly calibrated?
Are you ready to provide unrestricted access to your manufacturing facility to the client representative?
Provide details of employees and their qualification in the following departments of manufacturing plant:
  • Production section:
  • Research and Development (R&D) Section:
  • Sales Section:
  • Purchasing Section:
  • QA/QC section
  • Storage Section:

PURPOSE: Determine Product Design and R&D Capabilities
5 / Provide specific answers to the following specific questions on separate sheet with supporting evidences. Enter Y(es) or N(o) and attach your answers.
Y, N, Number
How long have you been producing the products for domestic and international markets?
Provide performance certificates from product end users?
Do you manufacture the product yourselves or by others under your license?
Describe the participation with other manufacturers, if you don't completely manufacture the product.
Provide the name of your licensor, nature and duration of your agreement. Attach evidence.
Describe any technical development in your products and manufacturing process.
What is % allocation of R&D from your total annual budget?
Is your company a member of any National/International research organization? Give details.
Describe all on-going and future research activities/projects. List all original published research papers.
PURPOSE: Determine practice and commitment for working with high standards
6 / Do you have written standards and procedures for ensuring work quality? Check all that applies showing whether developed in-house or by other recognized institutions. Provide a separate list of all checked items. Copies (hard or soft) should be available for viewing at our request.
In-House / By Others
Product manufacturing procedures
All applicable testing and inspection procedures, including Calibration etc.
Various Lab testing procedures
Job receiving, progress reporting, documentation, and archiving procedures
Quality Control Procedures
Material Control and Management Procedures
Equipment Management Procedures
PURPOSE: Determine availability and use of design/analytical and office software
7 / Check all applicable software packages (in-house developed or standard) you have and use. Attach a list separately giving details of the software.
In-House / Standard
Process Engineering and Plant Maintenance
Plant Performance Monitoring / Modeling
Plant Equipment Performance Analysis
PURPOSE: Determine commitment to maintaining and delivering high quality product
8 / Provide details related to Quality Assurance / Control Program in your organization. Supply general information; please provide specific answers to the following specific questions on separate sheet with supporting evidences. Enter Y(es) or N(o) and attach your answers.
Y, N, Number
List key personnel in QA/QC group.
Do you have an established Quality Assurance and Control Program / Manual?
Provide a copy of the Quality Control Plan for the subject product(s) and QA/QC activities.
List all quality records/documents controlled in your company. Do you have a written policy on developing, updating, and disseminating various work procedures?
Do you have a written policy on conducting audits for quality assurance, and what are the standards for auditing? Give details.
Does the audit plan include audit schedules and scope of each audit? Give details.
Describe the criteria used by you in selecting your suppliers and sub-manufacturers. Give details of QA/QC programs you have to ensure your suppliers/sub-manufacturers conform to your requirements. Attach copies of all related procedures.
Describe your design and production control programs; include flow charts and related details.
Give details of the controls that are applied for non-conforming items; what corrective actions are taken to prevent, eliminate such occurrences and how are they documented.
Attach a copy of product tracking procedure to know its status at any stage of its production.
Number of Employees and their Qualification:
  • QA Department:

  • QC Department/ Inspections:

  • Design Section:

  • Research and Development:

  • Chemical laboratory:

Specify the quality control steps taken to ensure the quality of the offered manufactured products(s). Please submit QA/QC documents (process control/inspection/ measurement and testing/non-conforming product/quality records).
Do you have a documented Quality control system for the following:
  • Quality Manual
  • Quality Procedures
  • Work Instructions

To whom does quality assurance department report?
Do your quality control procedures include:
  • Receiving inspection?
  • Formulation Control?
  • Calibration of Equipment?
  • In-process Inspections?
  • Final Inspections?
  • Non conformation disposition?
  • Statistical Techniques?
  • Servicing?

Describe quality responsibilities of each department in various areas of activities:
  • Does your manufacturing plant have QA system?
  • Does QA have the authority to stop the work if the quality standard is not being met?
  • Are written quality control manuals, procedures and check list Used?
  • Does QC/QA review raw material certificates?
  • Is final inspection performed by QC Department?
  • Is quality certified /inspected prior to delivery?
  • Are written record of certification/inspections maintained?

Provide a copy of the Quality Control Plan for the subject product(s) AND the manufacturing flow chart showing QA/QC activities.Name the industrial standard(s) normally applied
List all quality records/documents controlled in your company. Do you have a written policy on developing, updating, and disseminating various work procedures?

Acknowledgment of Submittal of Pre-Qualification Package