PROCUREMENT PLAN

1.0 THE PROJECT..............................................................................................2

2.0 OBJECTIVE..................................................................................................2

3.0 SCOPE.........................................................................................................2

4.0 PROCUREMENT PLAN...................................................................................2

5.0 ATTACHMENTS............................................................................................5

PROJECT EPC CONTRACT 30” x 300 KMS. FOR BHARUCH JAMNAGAR GAS PIPELINE PROJECT
TENDER NO. GSPL/BJPL/120-203/ADD-1 BID DOC. NO. PROP/06-094/IND/P-L/153-A
DOC. NAME PROCUREMENT PLAN REV. A PAGE 1 OF 5
1.0 THE PROJECT

This is Turnkey EPC Contract for Laying gas Transmission pipeline originating from Anand and
terminating at Rajkot terminal.

The Project includes two packages ‘1’, ‘2’. Package 1 will have two spreads Spread 1 and
Spread 2. Spread 1 shall be originating from Bhadbhuth and terminating at Gana Receiving
and Despatch station and includes Approx. 108 K.M. long, 30” Diameter Pipeline. Spread 2 will
start from Gana Receiving and Despatch station and terminating at Receiving Station Hadala
and includes Approx. 91.4 K.M long 30” Diameter Pipeline. Package 2 (Starting at Rajkot
Terminal and Terminating at Receiving station Reliance and Receiving station Mota Lakhaiya)
includes Approx. 110 K.M. long, 30” line.

2.0 OBJECTIVE

The purpose of the Procurement Plan is to describe how the procurement will be planned, done
& controlled in order to provide the necessary project deliverables in an efficient and cost
effective manner consistent with schedule, quality and Health, Safety and Environmental (HSE)
requirements.

3.0 SCOPE

Contractor will procure and supply all materials other than supplied free issued to us, required
for temporary / permanent installation of pipeline and associated systems in a timely and
effective manner. Material take off with complete description of size, rating, material, thickness
and specifications shall be made available to the owner for approval prior to start the
procurement activity.

Contractor will procure all materials, components, equipment, consumables, spares for pre-
commissioning and commissioning/start up etc. for successful completion/commissioning of
entire system as per project specifications, codes, standards and other statutory requirements.

4.0 PROCUREMENT PLAN

The procurement shall be done from Corporate Office. Procurement Manager shall be
responsible for all procurement activities of BIDDER’s supplied project material, consumable,
temporary material required for construction. Procurement Manager will directly report to
Project Manager. He will be responsible for evaluation of supplier, purchasing evaluation,
approval of supplier from CLIENT, coordination with suppliers, expediting control, inspection
control and coordination with engineering department, logistic and transportation of BIDDER’s
supplied material, logistic and material tracking, etc. He will also be responsible for custom
clearance and forwarding of material, which will be imported. Well-experienced team of
personnel will assist procurement Manager. The Activity Flow Chart for Procurement has been
enclosed Attachment-1.Following key factors during procurement shall ensure efficient
procurement for the project.

PROJECT EPC CONTRACT 30” x 300 KMS. FOR BHARUCH JAMNAGAR GAS PIPELINE PROJECT
TENDER NO. GSPL/BJPL/120-203/ADD-1 BID DOC. NO. PROP/06-094/IND/P-L/153-A
DOC. NAME PROCUREMENT PLAN REV. A PAGE 2 OF 5
4.1 Supplier Quality System

Vendors of equipment and material (line pipe, joint coating, paint, pipe fittings, valves,
electrical equipment, structural steel, re-bars, and other as may be required) shall implement
adequate quality systems to meet the project specifications. For critical items, Vendor
assessments shall be conducted and deficiencies in their systems shall be overcome by
increased quality assurance and surveillance activity by BIDDER QA team.

4.2 Critical Assessment

All items of equipment and material to be purchased are assessed and as may be needed given
a critically rating. These ratings shall determine the required control of the vendor or supplier
based on previous experience with their quality and delivery time.

4.3 Requisition Control

Requisition for the supply of material and equipment will be compiled detailing the following:

 Scope of supply
 Detailed technical requirements
 Supplier qualification criteria
 Suppliers quality plan requirements
 Inspection and/or test requirements
 Certifying authority requirements (if any)
 Supplier document requirements
 Packing and Preservation requirements

Requisitions shall be subject to full design control and verification processes to ensure that the
requirements specified are adequate to obtain fitness for purpose.

4.4 Purchasing Evaluation

Following the issue of inquiry packages to approved Vendors and Manufacturers and upon
receipt of bids, a controlled system of evaluation by experienced personnel will be performed
(as needed or as required) reflecting their quality plans and technical capability.

The technical recommendations will be assessed in conjunction with the commercial bid
analysis. Final recommendation for purchase approvals will be made to CLIENT with the un-
priced copy of technical recommendation and vendor technical documents and following
approval, negotiations shall be carried out with the selected Vendor prior to purchase order
placement. Flow Chart for Purchase Ordering Process has been enclosed (Refer Attachment 3).

4.5 Purchasing Control

The Vendor, Supplier or Manufacturer shall be monitored for (if needed) engineering and other
project related activities by a formal interchange of data, which is reviewed by the responsible
engineer and other associated disciplines. These data will be approved for compliance with the
purchasing specifications and their interfaces with other parts of the design. Plans, procedures
and test methods shall be submitted to CLIENT for approval, and full details of inspection,
witness and hold points incorporated for all special materials and supplies as required under
the contract.

PROJECT EPC CONTRACT 30” x 300 KMS. FOR BHARUCH JAMNAGAR GAS PIPELINE PROJECT
TENDER NO. GSPL/BJPL/120-203/ADD-1 BID DOC. NO. PROP/06-094/IND/P-L/153-A
DOC. NAME PROCUREMENT PLAN REV. A PAGE 3 OF 5
4.6 Expediting Control

Following award, a monitoring and status control activity shall be performed to ensure
submission of required data in accordance with specifications and promised deliveries. Formal
records of all contracts and visits shall be made and a material status report covering all
purchase order shall be periodically submitted to CLIENT for their review. Order Expediting and
Monitoring Matrix has been enclosed (Refer Attachment-2).

4.7 Inspection Control

Inspection in conjunction with the ”CLIENT Inspection Authority” when required, shall be
carried out by CLIENT’s Inspectors or their delegated agency to ensure satisfactory Vendor
surveillance. Inspection activities shall be detailed and recorded as required.

Quality Control Inspectors will comprise of area and discipline inspectors supplemented, where
necessary, by specialist as needed. They shall use approved data as a base line specification
and shall be supplied with specific instructions for performing inspection as may be required.

Only prescribed equipment and materials shall be subject to the issue of an inspection release
certificate by the assigned inspector, which shall only be made on satisfactory completion of all
work and testing, acceptance of any deviations, approval of all manufacturing documentation,
approval of protection and packing for shipment.

4.8 Material Trace ability

Principal components of equipment and significant bulk material shall be specified to have
identification against material certificates issued by the original suppliers. This documentation
together with Certifying Authority approvals, certification and relevant test records shall be
compiled, compared and archived to provide documentary evidence of fitness of purpose.

4.9 Material Control

Following inspection release, material and equipment shall be packed and shipped in
accordance with requisition requirements and as indicated in the purchase order. Traffic control
shall be exercised to ensure safe, efficient and cost effective movement of material and
equipment in accordance with relevant statutory and mandatory requirements within the state
of traffic movement, including liaison on forwarding, customs clearance and insurance. Control
of Material Receipt Reports and Non-Conformance Reports (unsatisfactory, overage, shortage)
and Damage Reports shall be maintained to ensure corrective action, whenever necessary.

Qualified Materials Control personnel will ensure correct storage and issue of all Project
permanent materials, and will maintain computer-controlled records for CLIENT review and
ultimate inclusion into the “as built” Project records.

Materials issued to site will be tracked and particularly with pipe stringing, their ROW location
logged for incorporation into the electronic pipe book.

Materials tracking and control shall be computerized utilizing BIDDER in-house software
developed and successfully utilized on many similar pipeline and station construction contracts.
The system is in the form of a database with a query system to enable identification and
location of all project permanent materials from point of origin to ultimate incorporation into
the permanent works. The key objective is to ensure that the final hand-over package accurately

PROJECT EPC CONTRACT 30” x 300 KMS. FOR BHARUCH JAMNAGAR GAS PIPELINE PROJECT
TENDER NO. GSPL/BJPL/120-203/ADD-1 BID DOC. NO. PROP/06-094/IND/P-L/153-A
DOC. NAME PROCUREMENT PLAN REV. A PAGE 4 OF 5
 and in detail records the location of every item of permanent material installed within the Project
works.

5.0 ATTACHMENTS

1 Activity Flow in Procurement

2 Issue of Request for Quotation
3 Ordering Process
4 Ordering Expediting and Monitoring

PROJECT EPC CONTRACT 30” x 300 KMS. FOR BHARUCH JAMNAGAR GAS PIPELINE PROJECT
TENDER NO. GSPL/BJPL/120-203/ADD-1 BID DOC. NO. PROP/06-094/IND/P-L/153-A
DOC. NAME PROCUREMENT PLAN REV. A PAGE 5 OF 5