Invitation to Tender for Heywood Terminal Station Upgrade

SECTION E:TENDER FORM

Heywood Terminal StationUpgrade

Australian Energy Market Operator Ltd
Level 22, 530 Collins St
MELBOURNE VIC 3000

(AEMO)

Tender

From:

Tenderer:
ABN:
Address:
Contact Person: / Name:
Title:
Telephone No:
Facsimile No:
E-mail:

E.1Offer

The Tenderer hereby tenders to provide the Upgradeand submit a Tender in accordance withthe requirements of this ITTas specified in the Statement of Compliance in Section F.

E.2Copies

The Tenderer must ensure the hard and electronic copies of its Tender are identical and agrees that AEMO may rely on either version when evaluating this Tender.

E.3Agency

The Tenderer is not acting as agent or trustee for another person.

E.4Statement of Compliance

The Tenderer provides details of any departures from the requirements in this ITT, PCRs and/or PFRs as requested in Section F.

E.5Financial and Commercial Capability

The Tenderer provides details of its financial and commercial capability as requested in Section G.

E.6Project Management Capability

The Tenderer provides details of its project management capability as requested in Section H.

E.7Technical Capability

The Tenderer provides details of its technical capabilityas requested in Section I.

E.8Charges

Should AEMO accept this Tender, the Tenderer will deliver the Upgrade for the charges specified in Section J.

E.9Validity Period

This Tender and the offer it contains will remain open for acceptance by AEMO for the Validity Period.

E.10Agreements

The Tenderer provides in the attached copies of AEMO’s proposed agreements provided in Section Kdetails of any requested changes in “track changes” mode and the reasons for those requested changes in “comments” mode.

E.11Addenda to Tender Documents (only if Addenda received)

In the preparation of its Tender, the Tenderer acknowledges having received the following Addenda, if any, to the Tender Documents:

Addendum No.[Insert number]Dated: [Insert date]

NOTE: Capitalised terms in this Invitation to Tender are defined in the ITT.

Dated this[insert day] of[insert month] 2013

EXECUTED by [Insert Name]by its duly appointed representative in the presence of: / )
)
)
...... ……..
Signature of witness
...... ……..
Name of witness (print) / ...... ……..
Signature of authorised representative
...... ……..
Name of authorised representative (print)

SECTION F:STATEMENT OF COMPLIANCE

[Tenderers must cross out the statement below which does not apply]

I [Tenderer]confirm that this Tender conforms in every respect with the ITT.

OR

I [Tenderer]confirm that this Tender does not conform with the ITTin the following ways:

[Tenderers must provide details of each instance where their Tender does not meet a requirement or where they have not submitted any required information, giving reasons]

Tender Reference / Issue / Reasons
Tenderer’s Name / Signature of authorised representative / Date

SECTION G:FINANCIAL AND COMMERCIAL CAPABILITY

Please provide all information requested in thisSectionG using the Tender Information Provision Spreadsheetlocated on the Heywood Tender web site.

G.1General Corporate and Financial Background

The Tenderer provides details of its general corporate background, including details of its corporate structure, any related corporate bodies and other associate entities.

G.2Financial Stability

The Tenderer provides details of:

a)Credit rating (or equivalent);

b)Key features in the financial statements, such as current ratio, total equity size, last 1-2 year cash flow; and

c)Any other published information that may have a bearing on the company’s financial position or ownership.

The information provided should focus on the company that is providing the majority of investment into the Upgrade.

AEMO may obtain a credit report in respect of any Tenderer.

G.3Financing Arrangements

The Tenderer provides details of financing arrangements generally and for the Upgrade.

G.4Banking Arrangements

The Tenderer provides details of banking arrangementsgenerally andfor the Upgrade.

G.5Details of Ownership and Conditions

The Tenderer provides the details of ownership structure and any conditions applied for the owning of the Upgrade.

G.6Insurance

TheTenderer provides details of the insurance program proposed for the Upgrade.

Tenderer’s Name / Signature of authorised representative / Date

SECTION H:PROJECT MANAGEMENT CAPABILITY

Please provide all information requested in this Section Husing the Tender Information Provision Spreadsheetlocated on the Heywood Tender web site.

H.1Current and Previous Project Experience

The Tenderer provides details of current and past projects it has been involved in (starting with the most recent), which involved the construction of infrastructure that is similar to that contemplated by this Upgrade and is of similar size and type. These examples must demonstrate the Tenderer’s capability to comply with all relevant approvals and relevant provisions of the Rules.

H.2Project Management Methodology

The Tenderer provides its Project Management Methodology including detailsof:

  • The Tenderer’s skills, capability and systems to deliver turnkey engineering and construction services that will meet AEMO’s requirements and expectations for this Upgrade;
  • Initiatives developed with other customers for reducing total construction costs and cost of ownership;
  • How the Tenderer isplanning to monitor construction costs and identify cost saving opportunities; and
  • The Tenderer’s approach to innovation and how the Tenderer intends to innovate during this Project.

H.3Project Plan

The Tenderer provides its Project Plan for this project which includes the following elements:

(a)Procurement

  1. Project team

The Tenderer submits an organisation chart of its project team for each phase of the Upgrade (including design, construction and operations and maintenance), including all key personnel and details of the percentage of time they will be dedicated to the Upgrade and for each team member.

  1. Design consultants and other advisers

The Tenderer submits details for the proposed team for this Upgrade involved in the design phase or in some other advisory capacity who is not in the Tenderer’s employ.

  1. Suppliers

The Tenderer submits details of all suppliers from whom the Tenderer proposes to purchase equipment (including spares) or other plant to be used in the Upgrade.

  1. Construction sub-contractors

The Tenderer submits details for the proposed team for this Upgrade involved in the construction phase who is not the Tenderer’s employee.

(b)Project Program

  1. Milestones

The Tenderer submits milestone dates for this Upgrade. In the case where the Tenderer is able to achieve an earlier completion date than 1 July 2016 of more than one month, the Tenderer is to fill out the ‘Expedited Milestones’ table in the Tender Information Provision Spreadsheet with its expedited project program. The Tenderer must advise of any increased expense and risks associated with the expedited program and describe how they intend to achieve an earlier completion date.

  1. Gantt Chart

The Tenderer submits a Gantt chart in MS Project detailing the proposed project program thattakes into account the proposed milestones detailed in this section and identifies any required input from AEMO.

(c)Cost

The Tenderer provides a break-down of the costs associated with Project Management for the Project.

(d)Quality Assurance

  1. Certification

The Tenderer provides copies of the most recent compliance certificate for its quality assurance system.If it is not certified externally, the Tenderer is to advise whether it is in the process of having its system certified and against which standard, and details of when and by whom it is expected to be certified.

  1. Audits

For the most recent audit of each quality assurance system, the Tenderer provides the following details:

  • Date of audit
  • Outcome of audit
  • Name and firm of auditor
  • Management response to audit
  • Any work performed to address any issues raised by the audit

(e)Human Resources

The Tenderer provides details of the project structure, governance arrangements and details of the standards the team will use during the project lifecycle. These include communication standards, documentation standards, and change control procedure standards.

In addition, the Tenderer is to demonstrate that its Project Manager is accredited with the Australian Institute of Project Management (AIPM) or alternatively with the Project Management Institute (PMI).

(f)Communication

The Tenderer provides a stakeholder management and communications plan.

(g)Risk

The Tenderer provides a risk management plan for the project which details the key risks for this project and how it proposes to mitigate them.

(h)Integration

If applicable, Tenderer provides information on the proposed integration of consortium members' or joint venture partners' quality, safety and environmental systems and who will be responsible for each element of the work.

H.4Workplace Health, Safety and Environment Program

(a)The Tenderer’s Workplace Health, Safety and Environment Program must address the following (for both the construction and operation phases of the Upgrade):

  • the safety of persons in the vicinity of the site at which the Upgrade will be constructed and operated;
  • Bunding, and any other oil or water containment and separation facilities;
  • Hazardous goods handling and treatment and waste management;
  • Noise abatement;
  • Drainage;
  • Sewerage; and
  • Treatment and disposal of hazardous and other waste.

(b)The Tenderer confirms that its Workplace Health, Safety and Environment Program accords with applicable laws.

(c)The Tenderer is to provide details of any Prosecutions or Process Improvement Notices as follows:

  1. Prosecutions
  • Has the Tenderer been prosecuted for any alleged breach of any Safety Legislation[1] at any time in the last 10 years? If yes, please provide details of when, and where, the charges, the outcome and the background to the prosecution.
  • Has any sub-contractor or supplier proposed to be engaged by the Tenderer in the delivery of the Project been prosecuted for any alleged breach of any Safety Legislation at any time in the last 10 years? If yes, please provide details of when, and where, the charges, the outcome and the background to the prosecution.
  1. Process Improvement Notices
  • Has the Tenderer ever received any process improvement (or similar) notice under any Safety Legislation at any time in the last 10 years? If yes, please provide details of the background leading to the issue of the notice, and how it was addressed.
  • Has any sub-contractor or supplier proposed to be engaged by the Tenderer in the delivery of the Project ever received any process improvement (or similar) notice under any Safety Legislation at any time in the last 10 years? If yes, please provide details of the background leading to the issue of the notice, and how it was addressed.

H.5Industrial relations

(a)The Tenderer advises how its industrial relations policies will impact on its ability to comply with the proposed PCCD and NSA.

(b)Has any project which the Tenderer, or any engaged sub-contractor or supplier, has previously worked on in the last 10 years been the subject of any industrial action or bans or other industrial activity that caused the project to be delayed or disrupted?

Tenderer’s Name / Signature of authorised representative / Date

SECTION I:TECHNICAL CAPABILITY

Please provide all information requested in this Section I using the Tender Information Provision Spreadsheetlocated on the Heywood Tender web site.

I.1Design Capability

The Tenderer provides details of its design capability, experience and approach with regard to the following technical areas with an emphasis on sustainability and least impact on the environment:

  • HV power transmission and network assets
  • Civil design
  • Structural design
  • Primary configuration and design
  • Protection design
  • Fire suppression and security
  • Remote and local monitoring and control

The Tenderer provides a description of designs it has prepared similar to the Augmentation,that the Tenderer has produced in the past.

The Tenderer also provides detailed examples of shortcomings in previous designs and how the Tenderer has learned or changed its systems based on this experience.

I.2Construction Capability

The Tenderer provides details of:

  • its approach to the construction of this Augmentation.
  • its experience and buying power in the procurement of plant and equipment similar to those to be used in this Upgrade.
  • its approach to managing the commissioning and testing phases of the Upgrade, where it will be required to work closely with SPIPowerNet, including:
  • Which parties would be involved with commissioning;
  • Roles and responsibilities of each party during commissioning;
  • Proposed co-ordination and communication between these parties; and
  • The commissioning success criteria.
  • Testing and implementation methodologies that will allow AEMO to evaluate the likely impact on the network during the implementation of the Upgrade.

The Tenderer also provides detailed examples of shortcomings in previous construction projectsand how the Tenderer has learned or changed its systems based on this experience.

I.3Drawings and Plans

The Tenderer submits the following:

(a)Detailed Single Line Diagram

  • Showing the electrical connections of primary equipment referred to in Attachment D.3such as surge arresters, CTs, VTs etc.
  • Showing proposed AC and DC auxiliary supply arrangements (including sources, chargers, batteries, etc).

(b)Protection Concept Diagrams

These should show:

  • CT and VT inputs;
  • Protection types;
  • Primary protection zones for each scheme;
  • CB fail, dead zone and back up protection;
  • Protection relay contacts;
  • Timers and interlocks; and
  • Proposed ownership boundaries with ownership details.

I.4Key Primary Plant

The Tenderer provides details for all key items of plant or equipment as listed in the Tender Information Provision Spreadsheet.

Tenderers must not just submit their own data sheets.

I.5Key Secondary Plant

The Tenderer provides details for all key items of secondary plant or equipment as listed in the Tender Information Provision Spreadsheet.

Tenderers must not just submit their own data sheets.

I.6Factory and Commissioning Tests

(a)Factory and Type Tests

The Tenderer provides:

  • Details of the scope for each proposed factory acceptance test, including whether the Tenderer will witness;
  • Type test reports; and
  • For each test, the corresponding reference to any relevant Australian Standards (or IEC Standards if no Australian Standards exist).

I.7Operations and Maintenance Capability

Tenderer provides details of:

a)The Tenderer’s maintenance plan for the new or modified assets including parties involved.

b)The Tenderer’s proposed actions to respond to and repair equipment failures, including details of response times for the deployment of personnel to evaluate and rectify any failure.

Tenderer’s Name / Signature of authorised representative / Date

SECTION J:CHARGES

Please provide all information requested in this Section J using the Tender Information Provision Spreadsheet located on the Heywood Tender web site.

J.1Transmission Charges

No payments will be made to the Successful Tenderer until the Upgrade has been commissioned and is operational. Payments will then take the form of a monthly transmission charge over the term of the TNSP NSA.

(a)The Tenderer submits monthly transmission charges, payable over the proposed 30-year term of the proposed NSA for the provision of network services using the expanded terminal station in $AUD, with provision for an annual CPI escalation, and on a GST-exclusive basis.

(b)The Tenderer submits a full breakdown of the costs used to calculate the Transmission Charge.

(c)The Tenderer submits capital costs.

J.2Early Payout

(a)The Tenderer submits a Pay-out Amount, as contemplated by the proposed TNSP NSA in $AUD, with provision for an annual CPI escalation, as at the Reference Date and on a GST-exclusive basis.

(b)The Tenderer submits details of how the proposed Pay-out Amount was calculated, including details of any savings due to early termination, such as the cost of insurances and maintenance foregone.

J.3Quantum of Outages

Tenderers are requested to provide an estimate of their proposed number of outages, their duration and estimated cost that the Upgrade will have under the AIS and STPIS for reimbursement to SPI PowerNet.

J.4Transformer Losses Incentive

The Tenderer nominates its estimate of transformer losses for the purposes of the Transformer Losses Incentive adjustment to the Transmission Charges.The quantum for cost of iron losses is $46 per kW per month and the cost of copper losses of $17 per kW per month both adjusted by the CPI Escalator each calendar year from the date of contract signature.

J.5AEMO Delay Costs

AEMO delay costs are payable at the rate of:

1 Aug 2016 – 30 June 2017$31,854 per day

1 July 2017 onwards$38,417 per day

which represents the Successful Tenderer’s costs of delay in achieving the date for practical completion. It is proposed that the delay costs be capped at 30% of the total non-adjusted charges payable under the TNSP NSA.

The Tenderer provides an analysis of the impact of this requirement on its proposed transmission charges.

Tenderer’s Name / Signature of authorised representative / Date

1

[1] ‘Safety Legislation’ means any electrical safety, occupational health and safety, and environmental legislation applicable to the state in which the Tenderer operates.