O.OO Nadadores 17.27 17.27

- Anticipated Cost

CONTRACTOR shall solicit competitive bids from equipment rental sources, consistent with schedule of equipment requirements.

CONTRACTOR shall develop and submit for EMPLOYER’s approval necessary bid tables and recommendation.

In any event, EMPLOYER will retain option of inspecting the Contractor-furnished equipment and those ones it deems appropriate.

C. Subcontracting 1. Scope of Services

CONTRACTOR shall perform all necessary subcontract strategy, planning, development, award, implementation, and administration required to accomplish subcontracted work (including procurement of agency services) for which CONTRACTOR is responsible under the Contract.

CONTRACTOR shall prepare all required price estimates to be used as the basis for analysis of subcontractors' bids for subcontractor work packages and as the basis for negotiating subcontract changes and claims.

2. Procedures

Contractor shall develop and implement subcontracting procedures that satisfy EMPLOYER's requirements for subcontracting.

3. Planning and Development

a. Within three (3) months after initiation of Contractor's preliminary engineering work but no later than three (3) months prior to any subcontract bid solicitation activity, Contractor will prepare and submit to EMPLOYER for approval a Master Subcontracting Plan. This plan will:

• Identify with explanation those portions of the project which Contractor proposes to subcontract and indicate intentions for non-subcontracted work;

• Set scope and limits intended for each proposed subcontract work package;

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• Describe overall subcontracting strategy, policy, and bidding philosophy to be followed for the project;

• Establish a coordinated schedule to reconcile proposed subcontracted work with the project schedule;

• Contain an outline of CONTRACTOR's proposed Project Subcontracting Specifications together with itemization of any significant anticipated deviations from EMPLOYER's subcontracting requirements.

CONTRACTOR will periodically review and update approved Master Subcontracting Plan until all work to be subcontracted has been awarded.

b. Within thirty (30) days after approval of the CONTRACTOR's subcontracting plan and at least thirty (30) days prior to any subcontract bid solicitation activity, CONTRACTOR shall prepare, and submit to EMPLOYER for approval, Project Subcontracting Specifications. These specifications are supplemental to the Master Subcontracting Plan and will contain:

• Comprehensive description of Contractor's organization and staffing to carry out subcontractor selection and subcontract administration including duties, responsibilities, authority, and interfaces of proposed staff;

• Detailed procedures (including flowchart and schedule criteria) for bid solicitation, bid receipt, bid review and subcontract award;

• Detailed procedures for carrying out subcontract administration (e.g.

preparation of field administration plan and audit program for each subcontract);

• Specific project subcontracting ground rules covering such items as qualification of bidders, personnel screening, planning and scheduling coordination requirements, reporting, etc. (Without jeopardizing quality and schedule, preference shall be given to local subcontractors);

• List of construction facilities available to subcontractor(s), indicating source, and on what basis;

• Definition of procurement responsibilities/interfaces;

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• Subcontract terms and conditions, subcontract language tailored to the project, and other standard bidding documents such as information and instruction to bidders, etc.;

• Subcontract change provision information;

• Recommended bidders' lists (firm, tentative, or subsequently developed) for each proposed subcontract package. (EMPLOYER's review and designation procedure will be consistent with that in III.A).

c. CONTRACTOR shall carry out all subcontracting activities in strict accordance with the Master Subcontracting Plan and the Project Subcontracting Specifications, approved by EMPLOYER.

4. Source and Qualification of Subcontractors

a. EMPLOYER will enclose herein, a listing of qualified subcontractors for the work as shown in Exhibit 5-3.

b. Subcontracts may be solicited from any acceptable source in the World Open Market, subject to EMPLOYER's prior written approval.

c. Acceptability of any potential subcontractor will be based solely upon commercial, technical, project execution, safety performance, and financial considerations.

d. When selective bidding is used, CONTRACTOR will pre-qualify all bidders. Pre-qualification requires that CONTRACTOR confirm (and be able to support such confirmation to EMPLOYER's satisfaction) that a potential bidder is:

• Financially sound,

• Fully competent to carry out proposed subcontracted work, and

• Generally willing to accept proposed subcontract terms and conditions including type of contract (i.e., fixed price, unit price, etc.), and

• Free from potential conflict of interest implications as in III.A.3.

• Meets or exceeds EMPLOYER’s Health, Safety and Environmental requirements.

CONTRACTOR shall confirm the acceptability of subcontractors and agencies to be employed by its own subcontractors and by Supervised

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Contractors (See Project Instruction 11 – Responsibility for Other Contracts).

5. Competitive Bids

Except where only a single source is available, all subcontracts shall be based on competitive bids from three or more acceptable subcontractors.

Subcontracts may be awarded without formal competition, for change in scope or for inclusion of significant additional work, only with prior approval of EMPLOYER's Project Manager.

6. Content and Distribution of Subcontract Inquiry a. Inquiry documents shall consist of:

• Information to bidders,

• Job Specification (including Project Instructions),

• Agreement/General Provisions (Terms and Conditions),

• Proposal Form (including closed bid package).

b. Documents must meet all Project Subcontracting Specifications requirements, conform to the Master Subcontracting Plan and schedule, and be compatible with Contract between EMPLOYER and CONTRACTOR. All of EMPLOYER's rights under the Contract must be preserved. Any exceptions to the requirements of this Paragraph must be specifically approved by EMPLOYER’s Project Manager or to release of the subcontract.

c. Inquiry "packages" which meet the foregoing requirements may be normally released to bidders without any the EMPLOYER’s approval.

However, Project Manager will designate specific inquiries which cannot be released without prior approval.

d. Complete copies of all subcontract inquiry "packages" (including a list of bidders’ names and addresses) are to be provided to EMPLOYER’S Project Manager at the same time they are issued to bidders.

7. Fair Price Estimate

A fair price estimate will be prepared for all subcontracted work including subcontract changes and claims.

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Depending upon the anticipated dollar value of a particular subcontract, fair price estimate may take form of:

- A reasonable cost range,

- An estimate derived from the Control Estimate, or

- A detailed cost estimate prepared independently from the Control Estimate.

EMPLOYER's Project Manager will specify what form of estimate will be acceptable when anticipated dollar value change a lot.

CONTRACTOR will exercise same degree of security for fair price estimates as required for handling bids to which estimates apply.

8. Closed Packages Bid Procedure

For subcontractor inquiries the following closed packages bid procedure shall be used. The procedure may also be invoked by Project Manager for special cases of lower value whenever the Project Manager judges that such procedures are justified.

Inquiry documents will include a closed bid package, and will describe in detail:

- Use of closed bid package;

- How proposals must be delivered, to whom, and when, and

- Separation of closed bid information (i.e., commercial terms) from technical and project execution aspects of proposal.

Closed price bids will be received by CONTRACTOR, deposited in a secure location, and remain under Contractor's care, custody and control until formal bid opening.

Closed priced bids package will be opened only on the bid due date unless all bids have been received earlier and EMPLOYER's Project Manager agrees to an earlier opening.

Once closed packages have been opened, any bids subsequently received shall be ignored for any award consideration.

CONTRACTOR will take all necessary measures to maintain security of closed bids packages.

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9. Subcontract Award Recommendation

a. When CONTRACTOR has completed its bid analysis, it will prepare and submit to EMPLOYER a Subcontract Award Recommendation.

EMPLOYER will accept or reject within five (5) days after the Contractor submits its recommendation.

b. The Subcontract Award Recommendation shall contain following:

• Statement recommending subcontract award to a specific bidder;

• Summary statement in support of recommendation;

• Commercial analysis;

• Summary and analysis, if required, of any non-commercial (e.g., technical, project execution, or risk considerations) factors (e.g., Health, Safety, and Environmental) which affect bid evaluation;

• Any proposed deviations from the Master Subcontracting Plan or the Project Subcontracting Specifications;

• Comparison of projected total cost and schedule versus the price estimate, Control Estimate, and project schedule. Any significant deviation is to be explained.

• A field Administration Plan for the proposed subcontract;

• Confirmation of proposed subcontractor's commercial, technical, and financial acceptability;

• Any special features and considerations.

c. As a general policy, subcontract award will be made to that Bidder who will afford the best technical - economical proposal to EMPLOYER considering all economic factors including price and other commercial terms, risk considerations, performance, schedule, previous experience, availability of competent personnel, and other technical considerations.

10. Field Administration Plan

a. CONTRACTOR will prepare and submit for EMPLOYER's approval a Field Administration Plan for each subcontract as in paragraph (10.b)

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b. The Field Administration Plan will contain the following:

• Name of person in Contractor's organization who is directly responsible for administering the subcontract;

• Subcontract reporting requirements;

• Audit program;

• Details of work measurement and progress determination;

• Subcontract close-out criteria (checklist).

11. Reporting

a. Subcontracts reporting will be an integral part of the project's overall cost/schedule control system. Level of detail to which subcontract elements are broken out and specifically identified shall comply with work breakdown structure and earned value requirements in Project Instruction 15.III – Measurement of Percentage Completion.

b. In addition to subcontract reporting as defined above, CONTRACTOR will prepare, as a minimum, the following reports specifically related to subcontracting:

• Subcontract log;

• Subcontract status (pre-award);

• Subcontracting Schedule (pre-award);

• Invoice and payment summaries.

c. Reports may be numerical, geographical, descriptive, or a combination thereof.

D. Expediting

CONTRACTOR shall be responsible for expediting all material and equipment purchased by CONTRACTOR and its subcontractors. (Per Section II.A this responsibility includes those purchases initiated by EMPLOYER.) Accordingly, CONTRACTOR shall submit prior to Agreement Signature, for EMPLOYER’s review and comment, its standard expediting procedures which CONTRACTOR shall amend as EMPLOYER’s Project Manager deems necessary to comply with EMPLOYER requirements as follows:

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1. Functional Scope a. Document Control

CONTRACTOR shall expedite across the CONTRACTOR/vendor (and subcontractor) interface all purchase order related documentation including but not limited to:

• Purchase order revisions, including vendor change quotations;

• Detailed engineering drawings and calculations;

• Fabrication procedures;

• Installation instructions;

• Operating and maintenance manuals;

• Spare parts data;

• Vendor orders to subvendors;

• Invoices;

• Order Execution Program status reports and updates.

b. Time Management

Contractor shall insure strict and continuing adherence to vendor's Order Execution Schedule as established at order placement. (Where Contractor is drawing upon the support of its subsidiary offices, it shall determine that these offices are provided with all necessary documentation to provide this support.)

c. Quality Management

Contractor shall establish that the requirements of Quality Management (Project Instruction 4) pertaining to procurement are understood and followed by its expediters and vendors that vendor's delivery date(s) accommodate time required for inspection.

2. Functional Mechanism

a. Prior to issuing a purchase order for any material or equipment item, Contractor shall prepare and submit to EMPLOYER’s Project Manager for approval its proposed expediting plan for said order.

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b. Upon issue of each purchase order, revision or amendment, or a letter of intent to purchase, CONTRACTOR shall initiate a continuing series of vendor and subvendor visits, the number and frequency of which shall be consistent with the order's criticality. Although they may provide supplementary contact, substitution of telephone advice or vendor advice regarding suborders as a primary means of control is unacceptable.

c. CONTRACTOR shall expedite all vendor documents and data as defined in Section III.D. CONTRACTOR shall assign an individual to its project team with the complete responsibility for expediting, logging, and reporting receipt, status, and transmittal of said information. (This control shall be evidenced by means of the Vendor Print Log per Project Instruction 7, Section III.B.2 – Document Control).

d. CONTRACTOR, through its vendors, shall maintain full and complete control over activities of subvendors by:

• Obtaining full particulars of suborders including factory addresses, reference numbers, and delivery schedules;

• Determining that programmed deliveries of said suborders are compatible with vendor's Order Execution Program;

• Insuring that subvendors use only materials from approved sources and that the relevant provisions of Project Instruction 4 – Quality Management are satisfied.

e. CONTRACTOR's expediting group shall anticipate impending delays in critical equipment, advising CONTRACTOR's Project Manager.

CONTRACTOR's Project Manager shall immediately contact EMPLOYER’s Project Manager, advising of the problem and the status of remedial action.

f. CONTRACTOR shall monitor production to identify and resolve potential scheduling problems due to material unavailability. Should substitute materials be required, CONTRACTOR shall secure prior EMPLOYER’s approval.

g. Assistance of vendor's senior management shall be solicited as required to maintain compliance with quality and schedule requirements of the order.

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3. Control Reporting a. Expediting Reports

• An expediting report shall be prepared by Contractor's expediter and forwarded to EMPLOYER’s Project Manager within three (3) days of each visit or contact.

• The report shall cover all information relevant to the order by addressing points in Exhibit 5-2 and noting latest delivery status and promised delivery. A marked-up copy of the order execution program shall be attached to document present status and shall be submitted to EMPLOYER’s Project Manager on a monthly basis or less often if required.

• The report shall note, in particular, contact with vendor senior management as in D.2.g. above.

b. Material/Equipment Status (M/ES) Report

• CONTRACTOR shall produce Material/Equipment Status Reports on a monthly basis (or less often if required) for distribution per Exhibit 1-3.

Said reports may be combined with the Purchase Order Record (POR) noted in III.B.5.b. The information contained in these reports shall be current within ten days.

• The M/ES shall display the status of all purchased material and equipment and shall include highlights of the expediting reports in D.3.a. above.

• Minimal content of the M/ES shall be:

- Purchase order number;

- Description of item;

- P.O. value

- Vendor and source country;

- Due dates and status of vendor drawings and data;

- Date required at Site;

- Original ex-works promised and present ex-works dates;

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- Transportation details;

- Port of export and vessel;

- Port of entry;

- Scheduled and actual sailing dates;

- Scheduled and actual arrival dates;

- Date and type of last vendor contact;

- Listing of all suborders, including numbers, place of manufacture, and all other data as above;

- Customs requirements.

• CONTRACTOR shall be responsible for continually monitoring these reports to verify their accuracy and reliability. Verification checking of vendor-provided information must be undertaken on an ongoing basis by Contractor's expediting group.

E. Traffic

1. Traffic Terminology

For overall consistency and clarity of communication, CONTRACTOR shall submit for EMPLOYER information, a listing of general traffic terms and commercial abbreviations used in international trade, freight, and insurance, as applicable to the project.

2. Functional Scope

CONTRACTOR shall describe procedures to be employed and identify parties responsible for the traffic-related various tasks and activities including but not limited to:

• Compiling and consolidating information relating to movements of freight to and from the jobsite;

• Conducting port survey;

• Conducting a marine survey

• Arrange and coordinate cargo movements at marshalling yards and points of shipment worldwide;

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• Obtaining charter and/or line tonnage for the transportation of freight to control and operate an economic and efficient service;

• Contracting and monitoring freight forwarders;

• Arranging for all required export/import and shipping documentation;

• Ensuring proper and expedient customs clearance;

• Maintaining proper and expedient customs clearance;

• Monitoring contracts with a traffic content;

• Keeping all participants informed of freight and vessel movements;

• Maintaining costing records and schedules;

• Contracting and supervising cargo handling Sub-contractors;

• Maintaining OS&D records and arranging for processing of claims;

• Specifications for export boxing.

3. Assembled Units

All equipment covered by any resulting award shall be shipped in assembled units consistent with good shipping practice. When items must be disassembled for shipment they shall be match marked. All units and their containers shall be piece marked and show the award and item number.

Machined and other unpainted surfaces shall be fully protected from impact and weather damage with all holes and nozzles plugged or covered.

Protection provided shall be suitable for extended outdoor storage.

4. Contractor Departmental Interfaces

Contractor shall define all interfaces between its traffic department and the various other functions within its organization (engineering, procurement, legal, etc.) describing the flow and content of information across each interface.

5. Traffic Management

To adequately define the scope of traffic management efforts, Contractor shall identify:

a. The various parties who will be interfacing within each effort, and

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b. By means of schematic presentation, the various possible worldwide freight routes (air, land, and sea) to project Site from which will be selected the most time effective for each shipment.

6. Traffic Documents

Contractor shall identify, by description of format and content and by definition of preparation responsibility, all traffic-related documents to be employed on the project including but not limited to:

• Purchase Order;

• Pro Forma Invoice;

• Vendor's Commercial Invoice and Certificate of Origin;

• Vendor's Packing List;

• Export Declaration;

• Consular Certification;

• Ocean Bill of Lading;

• Ship’s or Plane’s Manifest;

• Stowage Plan;

• Air Waybill;

• Insurance Declaration;

• Notice of Claim;

• Overage, Shortage or Damage Report;

• Container Content List;

• Master Voyage Summary Report;

• Weekly Shipping Schedule;

• Various Communications.

7. Freight Forwarders (Forwarding Agents)

In selecting forwarding agents for this project, CONTRACTOR shall:

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a. Comply fully with the applicable portions of Subcontracting requirements (See Section III C of this instruction);

b. Define duties and responsibilities of each forwarding agent vis-a-vis the responsibilities of its own traffic department.

8. Insurance

CONTRACTOR shall define the responsibilities, function and interfaces within its own traffic department for executing procedures set forth in Project Instruction 10 – Finance and Insurance, Section D.

9. Customs

CONTRACTOR shall define the duty status of imported equipment and materials, describe necessary custom documents and processing thereof, and define areas of interface between Customs, Company and Contractor.

10. Flow of Freight and Documentation

CONTRACTOR shall outline (using schematic presentation) the flow of freight, documentation, responsibilities, and interfaces related to transporting equipment and materials from source to Site.

F. Spare Parts

This section addresses specific portions of procurement relating to Contractor's responsibilities for spare parts, and in particular, those of Category III - Parent Equipment Spares. (Contractor shall appoint a spare parts coordinator who shall be held accountable for the satisfactory discharge of these responsibilities which shall take precedence over any other of the coordinator's assigned duties).

1. Definitions

a. Category I - Designated Spares

Spare parts required by EMPLOYER - provided pursuant to Basic Design Specification/General Engineering Specification and special operating maintenance tools not within the scope of the parent equipment purchase order.

b. Category II - Construction Spares

Required for putting equipment in order immediately prior to turnover to EMPLOYER. (As such items will be replacements for those damaged/lost by Contractor or its subcontractor during construction, Contractor shall note

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that it is not Company's intent to support Contractor's activities by providing said items from Company's stock).

c. Category III - Parent Equipment Spares

Spares (other than those items of Category I) which are required to support one or two years of continuous operations. Items so included are those:

Subject to normal wear, erosion, or corrosion;

Critical to equipment/facilities operations;

Subject to breakage during normal inspection/maintenance.

All parent spare parts will be tagged with EMPLOYER’s stock code

All parent spare parts will be tagged with EMPLOYER’s stock code

In document REPÚBLICA MEXICANA (página 104-151)