Title:

DOC. No:

FAST TRACK PROCUREMENT

GH-AA-B-005

Page 1 of 10

QADOCS/AA-B-005/0/1 of 10

ISSUE No:

DOCUMENT REVISION RECORD

Issue

Date

Dec 90

Description

Prepared

Checked

Approved

Issued for IDC

PG

MF

5.2.90

Issued for Corporate Approval

PG

MF

8.2.90

Approved for Use

PG

MF

SJC

15.11.91

Document converted to Word

Perfect

PG

SW

PB

Procedure:

Approval: P Baron
FAST TRACT PROCUREMENT
Page 2 of 11

Document No:

QADOCS/AA-B-005/0/2 of 10

GH-AA-B-005

Issue No: 0

CONTENTS

1.0

PURPOSE

2.0

SCOPE

3.0

RESPONSIBILITIES

4.0

PROCEDURE

5.0

4.1

General

4.2

Task Force

4.3

Long Lead Enquiries

4.4

Quotations

4.5

Bid Summaries

4.6

Commitment to Purchase

4.7

Expediting

4.8

Material Status Report

4.9

Inspection

REFERENCES

APPENDICES

QADOCS/AA-B-005/0/3 of 10

PROCEDURE FLOWCHART

1.0

PURPOSE

This procedure defines the actions required to reduce project enquiry and
commitment phases and identify by competitive tender those supplier's
prepared to participate in achieving a "Fast Track" project schedule.

2.0

SCOPE

The scope of this procedure is to identify those areas of a project, such as

critical path items (long lead equipment and materials), whereby with
co-operation between Company and the supplier, target dates can be agreed,
to reduce the normal enquiry, commitment, manufacturing and delivery periods.

3.0

RESPONSIBILITIES

The appointed Project Procurement Manager shall be responsible for

controlling and reporting all procurement matters, ensuring that competitive
tenders are received and that quality is not compromised.

4.0

PROCEDURE

4.1

General

This procedure identifies and describes those areas where normal timescales
can be reduced to achieve "Fast Track" procurement of materials/equipment.
Areas outside this scope are covered in Procedures GH-AA-B-001,
Purchasing;

GH-AA-B-002,

Expediting;

GH-AA-B-004 Vendor Data Control.

QADOCS/AA-B-005/0/4 of 10

GH-AA-B-003,

Inspection

and

4.2

Task Force

Procurement services shall be provided by a dedicated task force reporting to

the Project Procurement Manager to achieve fast track procurement in
accordance with the Procedure Flowchart (see Appendix I).

Procurement services may be provided using Company standard procurement

documentation or Client documentation, as required.

4.2

Long Lead Enquiries

Long lead material/equipment shall be identified as soon as possible after

project contract award.

Preliminary telex enquiries shall then be issued to approved suppliers, to

establish their willingness to respond to a formal enquiry and to meet delivery
requirements. The telex enquiry shall include:

A brief description of the equipment/material

An indication of the anticipated formal enquiry issue date

The required period for quotation submission (maximum of 4 weeks)

The required delivery period

A request for the suppliers' co-ordinator to be nominated for inclusion

on the formal enquiry package

A request for dates of suppliers holiday/shut down period(s).

A formal enquiry shall be limited to a maximum of 4 bidders only and be issued

to those suppliers who respond positively to the telex enquiry.

Formal enquiries shall be issued within 24 hours of receipt of the enquiry

requisitions, from the engineering disciplines, and a courier delivery service
shall be used.

QADOCS/AA-B-005/0/5 of 10

4.4

Quotations

Suppliers shall be requested to submit 3 copies of their quotation to the Project

Procurement Manager as follows:

1 off unpriced copy

2 off priced copies

Quotations shall be expedited directly by the responsible Buyer, to ensure a

prompt response.

4.5

Bid Summaries

All quotations shall be received by the Project Procurement Manager.

Quotations subject to sealed bid procedure shall be handled in accordance with
the requirements of Procedure, GH-AA-B-001, Purchasing.

On receipt of the quotations, one unpriced copy of each shall be passed to

engineering for technical evaluation whilst the initial procurement commercial
evaluation is being performed. This shall produce a preliminary evaluation
within 24 hours of receipt of quotations which, in conjunction with the Project
and Procurement Managers, will establish the order and priority of completing
the formal evaluation.

Bid clarification meetings (BCM) shall only be called if essential to the technical
evaluation, and preferably should be restricted to the bidder who is ranked as
number one in the preliminary commercial evaluation. If possible such
clarification should be carried out at the pre-order meeting with the
recommended bidders.

On receipt of the technical evaluation and formal commercial bid tabulation a

standard recommendation letter shall be prepared by the Buyer in conjunction
with the responsible Discipline Engineer.

QADOCS/AA-B-005/0/6 of 10

The selection criteria used shall be as follows:

Delivery

Quality

Price

The bid summary and preliminary recommendation shall be signed and

approved by the following personnel prior to submission to the Client:

Project Procurement Manager

Discipline Engineer

Quality Assurance

Project Manager

This formal recommendation shall be issued within 3 weeks of receipt of

quotations together with a pre-order meeting agenda. Client approval cycle
shall normally be limited to 1 week maximum.

Providing that the results of the BCM/pre-order meeting (as appropriate) do not
affect the recommendation criteria (delivery, quality, price) then the
commitment to purchase can be made.

4.6

Commitment to Purchase

Commitment to purchase shall be issued using an approved letter/telex of

award format, in accordance with the authorised project approved signatories.

Formal Purchase Orders shall be issued within 2 weeks of telex award.

QADOCS/AA-B-005/0/7 of 10

4.7

Expediting

Supplier documentation and material/equipment shall be expedited by the

nominated Expeditor generally in accordance with the requirements of
Procedure GH-AA-B-002, Expediting. Initially, the expediting effort shall be
concentrated on the following:

Return of acceptance copy of Purchase Order

Supply of GA drawings

Supply of QA plans and procedures, including witness and hold point

Supply of copies of sub-orders

All first issue documentation shall be submitted within 4 weeks of telex award
date unless otherwise agreed at pre-order meeting.

Expediting activities shall be carried out throughout the delivery period by

telephone and telex contact. Desk expediting effort shall be supplemented by
field expediting visits as required and approved by the Project Procurement
Manager. Field expediting visits shall be arranged using field personnel based
in the area location of manufacture where possible. An itinerary of field visits
shall be issued weekly, in advance.
All sub-orders shall be reviewed and confirmation of delivery dates established
by the Desk Expeditor. In addition this may be supplemented, for selected
sub-orders, by field expediting.

4.8

Material Status Reports

Material Status Reports shall be issued by the Senior Desk Expeditor on a

weekly basis.

4.9

Inspection

Inspection of material/equipment shall be carried out in accordance with the

requirements of Procedure GH-AA-B-003, Inspection.
QADOCS/AA-B-005/0/8 of 10

Materials shall be inspected and released, as and when available, using

inspectors based in the area location of manufacture and/or Discipline
Engineers as appropriate, in accordance with the approved QA Plan.

The Project Procurement Manager shall control and approve all field inspection
visits to maximise compliance with the approved project planning schedule.

5.0

REFERENCES

GH-AA-B-001

Purchasing

GH-AA-B-002

Expediting

GH-AA-B-003

Inspection

GH-AA-B-004

Vendor Data Control

Specific relevant attachments to above include:

Purchasing

Material Status Report

Sample Enquiry Letter
Enquiry Index List
General Conditions of Purchase
Special Conditions of Purchase
Form of Proposal
Packing, Marking and Loading Instructions
Instructions to Bidders
Confidentiality of Information Statement
Contract Conditions for the Services of Supplier's Representatives - Offshore
Contract Conditions for the Services of Supplier's Representatives - Onshore
Sealed Bid Label
Sealed Bid Opening Record
Commercial Bid Evaluation
Technical Bid Evaluation
QADOCS/AA-B-005/0/9 of 10

Sample Recommendation Letter

Purchase Order
Purchase Order Amendment

Expediting

Expediting Brief Worksheet

Field Expediting Intinerary
Expediting/Inspection Report
Expediting Status Reports
Material Received Record
Unsatisfactory, Overage, Shortage and Damage Report (U, 0, S and D.)

Inspection

Typical QC/Inspection Plan

Field Expediting/Inspection Itinerary
Expeditng/Inspection Report
Witness Points (Typical)
Hold Points (Typical)
Material Deficiency/Non Conformance Report
Inspection Release Certificate
IRC Register
IRC Attachment for Bulk Items
Inspection Release Waiver Certificate

QADOCS/AA-B-005/0/10 of 10