OPEXCOM MEMORANDUM

1.0 INTRODUCTION: Maintenance attempt to execute the job of replacement of perforated 3 service air line as requested by Production Lubes in the first instance was unsuccessful because, available pipes issued from the Ware House were rejected by ETSD (I& T) on report number 2445 of November 24, 2010. Action was then initiated through MRF to enable MMD replace the 14 lengths of pipes needed to execute this job. Necessary fittings were sourced as a prelude for execution of this job. When it became obvious that available in-house welders were engaged in identical/emergency jobs plant-wide, KRPC Management was entreated to approve invitation to competent service providers in this job area to bid for its execution. The request was granted by management and the bids returned are herein analyzed. 2.0 PROCEDURE/ SCOPE OF WORK:
The scope of work includes but is not limited to the following: Cut and remove perforated pipes Prefabricate new pipes. Install prefabricated piping Complete welding of new pipes. Provision of welding machine. Provision of crane (KRPC to provide). Provision of grinding machines (big and small) Provision of scaffolds (KRPC to provide). Provision of cutting discs (180 X 3 X 22.23 mm)-20 pcs Provision of cutting discs (115 X 3 X 22.23 mm)-25 pcs Provision of grinding discs (180 X 3 X 22.23 mm)-25 pcs) Provision of grinding discs (115 X 3 X 22.23 mm) -25 pcs Provision of welding electrodes (LB52-E7018-3.2 mm)-10pkts Provision of welding electrodes (LB52-E7018.2.6 mm)-10pkts Provision of oxyacetylene gas set (KRPC to provide) Provision of pick-up towing van/staff transportation. Provision of 3 (14 lengths) STD pipes (KRPC to provide). Provision of 3 x 90deg Elbows STD 4pcs (KRPC to provide) Provision of 3 x 150# flanges 3sets (KRPC to provide) Provision of 3 equal Tee 1pc (KRPC to provide) Provision of 1 boss (KRPC to provide) Provision of 1 boss (KRPC to provide) 3 end flange 1 (KRPC to provide) Provision of Labour. Mobilization/Demobilization. Housekeeping. Testing and commissioning of lines.

3.0 IN-HOUSE COST ESTIMATE: The in-house cost estimate, which is exclusive of costs of radiography, and hydrostatic pressure test is N933,350.00 was derived from NNPC standard rate on labour and equipment hiring (see detailed attachment1). The radiography and hydrostatic tests are statutory functions of ETSD which are to be performed after job execution. 4.0 BIDS BENCH-MARKING: Find in the table below the BIDS returned by the approved short-listed service companies in ascending order with the in-house estimate of N933,350.00 also indicated.
S/N NAME OF BIDDERS PARSOUL VENTURES. IKEDIOBI IRON & STEEL SAUKO ENGRG COMPLIANCE WITH W/SCOPE QUOTATION (N) MOBILIZATION PERIOD COMPLETION PERIOD VALIDITY OF QUOTATION

1. 2. 3. 4. 5. 6.

OKAY OKAY. OKAY N/A

344,100.00 678,900.00 709,020.00 817,000.00 1,272,700.00 933,350.00

1 DAY 1DAY N/A

5 DAYS 5 DAYS 10 DAYS 5DAYS

30 DAYS 60 DAYS 60 DAYS N/A

OKORO METAL LAFO ENGG IN-HOUSE ESTIMATE

5.0 BIDS ANALYSIS The sum of N344,100.00 returned by Messrs PARSOUL VENTURES was the lowest price quoted for this job. The sum of N678,900.00 was returned by Messrs IKEDIOBI IRON AND STEEL VENTURES as second lowest, while the third lowest quotation of N709,020.00 was submitted by Messrs SAUKO ENGINEERING AND CONSTRUCTION LTD. The highest quotation of N1,272,700.00 was returned by Messrs LAFO ENGINEERING LTD. The in-house estimate of N933,350.00 was derived from NNPC standard rate on labour and equipment. Analysis of the bids shows that Messrs PARSOUL VENTURES who returned the lowest cost estimate of N344,100.00 for this job were the lowest bidders. All the companies are adjudged equally competent.

6.0 NOTATION: Management is invited to kindly note; That in- house Maintenance teams were engaged in identical start-up jobs in other locations of KRPC at the time. Only coded Welders and coded Fitters who pass KRPC statutory test shall be allowed to work. That the IN-HOUSE cost estimate of N933,350.00 was derived from NNPC Corporate Labour and Equipment hiring rate. That the N344,100.00 submitted by Messrs PARSOUL VENTURES as cost of executing this job not convincing, considering the quotations submitted by other companies on the one hand and the in-house estimate on the other. That PARSOUL VENTURES should be requested to re-confirm their quotation in writing prior to final contract award. 7.0 PRAYER:

OPEXCOM is prayed to consider and approve award of contract for the replacement of perforated 3 service air line in LUBES Area 5 in favour of Messrs PARSOUL VENTURES at their quoted price of N344,100.00 subject to a written re-confirmation letter from the Service Company to that effect.

MAINTENANCE MANAGEMENT

KADUNA REFINING AND PETROCHEMICAL COMPANY LIMITED (A Subsidiary of Nigerian National Petroleum Corporation) INTERNAL MEMORANDUM

KRPC
TO: CHAIRMAN PC

THE PRIDE OF THE NATION

REF: KRPC/MTCE/MM/019 DATE: SEPTEMBER 25, 2011.

FROM: MANAGER MAINTENANCE

RE- replacement of perforated 3 service air line in LUBES Area 5. Please, find attached OPEXCOM MEMORANDUM on award of contract for replacement of perforated 3 service air line in LUBES Area 5 for your review and endorsement to OPEXCOM. Award is recommended in favour of Messrs PARSOUL VENTURES at their quoted price of N344,100.00 subject to a written re-confirmation letter from the Service Company to that effect.

ENGR S. A. GARBA.

OPEXCOM MEMORANDUM

FOR

REPLACEMENT OF PERFORATED 3 SERVICE AIR LINE IN LUBES AREA 5.

SEPTEMBER, 2011