VES-1000

GENERAL TECHNICAL CONDITIONS FOR TENDER AND PURCHASE

OF
EQUIPMENT AND MATERIALS

TABLE OF CONTENTS
Page

1.0

SCOPE ...........................................................................................................

2.0

INFORMATION AND INSTRUCTIONS TO BIDDERS.....................................

2.1
2.2
2.3
2.4
2.5

Definitions ...........................................................................................
Instructions for Tender .........................................................................
General Engineering Requirements ..........................................................
Order of Control of Documents..............................................................
Proposal Data and Information Requirements...........................................

3
4
5
5
6

POST ORDER REQUIREMENTS .....................................................................

3.0

3.1
3.2
3.3
3.4
3.5

Drawings, Data, Documents and Instruction Books ..................................

Production Schedule and Status Reporting...............................................
Inspection, Testing and Documentation...................................................
Shipping Preparation .............................................................................
Warranty .............................................................................................

7
9
9
10
11

APPENDIX - 1 ...........................................................................................................

12

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1.0

SCOPE
This document defines the general technical conditions for tender and purchase of equipment and
materials. Specific technical requirements for the equipment and materials are defined on the data sheets,
drawings, specifications, referenced professional society codes, and the Purchase Order for each
particular order.

2.0

INFORMATION AND INSTRUCTIONS TO BIDDERS

2.1

Definitions
The following definitions shall be applicable throughout this specification and all other Company
documents, unless specifically stated otherwise:
a)

Company/Owner/Purchaser/User - Virginia Indonesia Company LLC or a third party

which is purchasing equipment and materials on Company's behalf.

b)

Vendor/Supplier/Manufacturer/Fabricator - Refers collectively to the Indonesian agent to

whom the purchase order is awarded, the manufacturer or fabricator of the primary
equipment or materials and all his sub-suppliers, and all other parties involved in the supply
of equipment and materials for Company's use.

c)

Sub-supplier - Those corporations, firms or persons providing equipment, parts or

assemblies to Vendor/Supplier/ Manufacturer/Fabricator.

d)

Bidder - Indonesian agent, corporation, firm or person authorized by BP Migas to receive

inquiry documents for the purpose of tendering materials to Company.

e)

Base Proposal - Vendor's quotation response, prepared with strict adherence to the
specifications, data sheets, and drawings defined in the inquiry documents.

f)

Alternate Proposal - Vendor's suggested deviation from the specifications, data sheets
and/or drawings defined in the inquiry documents.

g)

Inquiry Documents/Tender Documents/Bid Documents - All drawings, specifications,

codes and standards, and data sheets listed on the Request for Quotation (RFQ) issued by
or on the behalf of Company.

h)

Late Change Order Date - That date, until which, Purchaser may modify the purchase
order, with agreed upon impact of price and delivery. The date is specifically defined as
the date on which the final approval drawing is stamped, by Purchaser, "Approved", or
"Approved As Noted".

i)

Responsible Government Authority - BP Migas and all other regulatory agencies with
jurisdiction over the design, fabrication, testing, importation and operation of the
equipment specified in the Purchase Order.

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2.2

Instructions For Tender

The intent of this section is to ensure that the data required for comparative price and
engineering analysis of all proposals is submitted. Those Vendors supplying exact detail, as
requested, will be given primary consideration. Failure to provide requested data and clarity of
detail may result in disqualification of the Bidder's proposal. Bidders proposal shall comply with
the following general requirements:
a)

All brochures, leaflets, catalog pages and other descriptive literature, supplied with the
proposal, shall be clearly marked to identify those specific accessories, characteristics or
features applicable to that proposal. Assumptions will not be made by the evaluating
parties.

b)

Proposals, data, documents, literature, drawings and correspondence shall be presented in

the English language.

c)

Company uses a mixture of metric and Imperial units. Therefore, it is required that all
proposal drawings, data and documents shall be annotated in the following hybrid system
of units:
Gas Flow
Liquid Flow
Pressure
Temperature
Length
Pipe size
Head
Pipe wall thickness
Weight
Force
Power
Other parameters

Std. Cubic Feet per Hour (SCFH)

U.S. Gallons per Minute (GPM)
Pounds per square inch (PSI)
Degrees Fahrenheit (o F)
Millimeters (mm)
Inches
Feet of liquid
Inches
Kilograms (Kg)
Pounds (Lb)
Horsepower
Imperial units

d)

All pricing shall be shown in U.S. Dollars, and the conversion rate given for any
calculation involving other currencies.

e)

Vendors requiring progress payments for equipment, or letters of credit, must incorporate
Company's receipt of satisfactory approval drawings, receipt of certified drawings,
critical material deliveries and all final documentation into the payment schedule. In no
case will final payment for goods be authorized until all documentation requirements have
been satisfied.

f)

Should it be necessary for Vendor to take exception to any of the requirements of this
inquiry, he shall state such exception on a separate list of "Comments and Exceptions to
the Specifications", and the reason for such. Vendor, in his proposal, shall declare
"complete compliance with all remaining requirements".

g)

If Vendor wishes to make apparent the expense involved in complying with a particular
requirement of this inquiry, he may break out the price of that specific item. This price,
however, shall also remain in the total price figure of his "Base Proposal".

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2.3

h)

Vendor is welcome to submit alternatives, but such deviation shall be clearly identified as
an "Alternate Proposal" and remain separate from Vendor's "Base Proposal". These
alternative selections shall also include a list of "Comments and Exceptions to the
Specifications". No "Alternate Proposal" will be accepted from a Bidder who has not
submitted a "Base Proposal".

i)

In the event of any conflict between this standard and any referenced specification,
drawing, data sheet, code, etc. the order of control shall be per Section 2.4 of this
Specification.

j)

All equipment and materials shall be new and unused.

k)

Proposals will not be accepted from Vendors who cannot demonstrate that they have been
continuously engaged in the manufacture or supply of the specified or similar equipment
for a minimum of 2 years. In the case of an association of interests or companies, at least
one partner must satisfy the requirement.

l)

Each Bidder shall, upon completing his initial review of this document, telex to Purchaser,
his intention to either "bid" or "no bid" the material being tendered.

General Engineering Requirements

The following general engineering requirements shall apply to all equipment and materials
purchased for Company's use:

2.4

a)

Sound level - Maximum permissible sound level for any piece of equipment shall be 90
decibels, measured on the "A" weighted scale, at a distance of 920 mm from the edge of
the source. In the instance of equipment provided with a full enclosure by Vendor, for
the specific purpose of attenuating machinery noise, the 920 mm dimension shall be taken
from the external surface of the enclosure.

b)

Accessibility for maintenance and control of equipment will be a major criteria for judging
proposals, approval drawings and acceptability after final inspection. Convenient location
of controls, valves, dial indicators, lubrication points, filters, parts requiring service and/or
removal during routine maintenance, etc. shall be a fundamental design objective of the
supplier.

c)

All equipment shall be tropicalized, suitable for a hot, humid, dusty, salt laden
environment. Motors shall be tropicallized and furnished with space heaters.

Order of Control of Documents

The order of control in case of conflict among Company documents shall be as defined in the
following, with the uppermost document on the list governing:
a)

Purchaser Specified Drawings

b)

Engineering Data Sheets

c)

Company Standards and Specifications

d)

These General Technical Conditions for Tender and Purchase of Equipment and Materials

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e)

Referenced Codes and Standards

In the event of conflict, Vendor shall immediately notify Purchaser in writing with a complete
description of the conflict, and his proposed resolution.
2.5.

Proposal Data and Information Requirements

Data and information supplied with the proposal shall include, but not be limited to, the
following:
a)

Firm shipping schedule, provided an order is placed within 120 days of Purchaser's
receipt of the quotation.

b)

Expiration date of proposal pricing and firm escalation formula to extend pricing in
monthly increments, up to 120 days, from expiration of the quoted price. Progress
payment schedule, if required by Vendor shall also be included.

c)

Prices and quantities of all spare parts plus manufacturer's recommended spare parts and
special tools for start up and, separately, for two (2) years continuous operation, including
liberal quantities of expendable items such as filter elements, V-belts, gaskets, seals, Orings, etc.
All items shall be unit priced. Vendor shall state the lead time of the longest delivery
items in the spare parts quotation. Vendor shall include a statement of guarantee that
spare parts will be available for at least ten years after purchase.

d)

Field service day rates for (i) normally required installation, startup and test personnel, and
(ii) any special startup equipment. Estimated number of days personnel and/or equipment
will be required.

e)

Itemization of any equipment utility requirements for external power, fuel, air, coolant,
lubricants, etc.

f)

Current worldwide user list of similar systems supplied by Vendor

g)

Estimate outline dimensions and weight of the proposed equipment, including spare parts,
for freight and crafting cost estimating by Company.

h)

Freight cost to Houston, Texas for all equipment manufactured in North America. Freight
cost to Batam Island for all equipment manufactured elsewhere outside of Indonesia.
Freight cost to Samarinda/Saliki for all equipment manufactured in Indonesia. All freight
cost shall include, as separate item, export crating and preparation for long term storage.

i)

Name of manufacturer and model number of all externally purchased items, such as
valves, heat exchangers, pumps, instruments, etc.

j)

For any pressure vessels supplied: design calculations covering wall thickness, corrosion
allowance, connection sizes, material, design conditions and operating conditions including
a description of any vessel internals, design drawings including flow diagram or P&ID
and fabrication schedule.

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3.0

k)

The metallurgy of any items exposed to process fluids.

l)

Process and mechanical warranties, and price, terms and conditions for any extended
warranty programs available from the Supplier or Sub-suppliers.

m)

Materials of construction for driven equipment mechanical parts, i.e. bearings, shafts,
impellers, couplings, casings, wear parts, seals, etc.

n)

Motor nameplate horsepower rating and horsepower requirement of the driven equipment
including losses.

o)

Listing of Vendor's and Sub-supplier's standard tests, both NDT and performance, and
copies of standard test data forms.

p)

Other specific data as required by the equipment specifications.

q)

Pricing for supplying all data as specified, if extra charges are applicable.

r)

Copy of letter of agent appointment in the case bidder is acting as an agent for
manufactured product or is a fabricator of primary equipment or materials and warranty
statement from manufacturer or fabricator that the equipment or materials supplied will be
delivered on schedule as proposed.

s)

In the case of valve and pipe fitting the data and information in the Appendix-1 shall be
supplied.

POST ORDER REQUIREMENTS

3.1

Drawings, Data, Documentation and Instruction Books

a)

Within two (2) weeks after the date of the purchase order, Purchaser's representatives
shall meet with those of the Supplier at the facility occupied by the Supplier's design
group, for the purpose of resolving all schedule and engineering detail. Purchaser may
waive the meeting with written or telex notice.

b)

Within four (4) weeks after the purchase order date, Vendor shall supply to Purchaser an
outline drawing of the base plate or skid base showing only plan and elevation dimensions
of both centerlines and faces of all skid edge connections with connection sizes,
foundation bolt plan, and estimated completed skidded assembly dry and wet weights.

c)

Within six (6) weeks after the purchase order date, approval drawings shall be issued by
Vendor, direct to Purchaser. All drawings shall be transmitted in the same mailing.
Approval drawings shall be submitted as one (1) reproducible (sepia) and three (3) prints
each stamped "For Approval".

d)

Within four (4) weeks after Vendor's receipt of approval drawings marked "Approved" or
"Approved as Noted",final drawings stamped "Certified", in the form of two sepias and
three prints, shall be issued to Purchaser.

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e)

Vendor shall, prior to final shipment of mechanical equipment, issue to Purchaser, five (5)
copies each of all required material certificates, certified factory test and inspection
reports with any required certified code compliance documents. Purchaser shall be
allowed eight (8) days after receipt of said documents and/or data, to either accept or
reject shipment of the equipment.
In the case of pressure vessels, all material certificates, certified for construction
drawings and design calculations, and hydrotest procedures must be in Purchaser's
possession four (4) weeks prior to hydrotesting, for distribution to government authorities
who will witness the test.

f)

Prior to shipment of the first unit, Vendor shall have transmitted, to Purchaser, two (2)
copies of the complete "Installation, Operation and Maintenance Manual", for approval.
Each "Installation, Operation and Maintenance Manual" issued by Vendor shall include a
full set of "as built" certified drawings, certified test/ inspection reports, complete
illustrated priced spare parts lists, unpacking/cleaning directions and recommended
storage practice for spare parts.
Ten (10) copies of Purchaser approved manual shall be issued within three (3) weeks of
Vendor's receipt of the original marked "Approved" or "Approved as Noted".
Particularly for pressure vessels, three additional bound sets (one original + 2 copies) of
the manufacturing reports containing code compliance documents, certified
test/inspection reports, material certificates, design calculations, etc. must be provided for
Company distribution to appropriate government authorities for obtaining the operating
permit.

g)

All "general arrangement" drawings (approved and certified) shall include detailed plan and
elevation views, showing conduit entrance sizes (NPT) and centerline locations of all
electrical and piping connections, pipe sizes, rotation direction, package dry weight, wet
weight, center of gravity, weights of major components, weight of heaviest piece for
maintenance and maximum horizontal/vertical clearances required for maintenance.

h)

No drawing will be accepted by Purchaser as certified until all outstanding comments

and/or revisions are incorporated in the approval drawing or explained, in writing, to
Purchaser's satisfaction.

i)

All drawings and data shall be identified with Company's name, Purchaser's name and
purchase order number, equipment tag number, AFE number and other data as may be
shown on marked-up and returned approval drawings.

j)

Vendor drawings shall include diagrams of the maximum moments and forces allowed on
the skid process piping connections.

k)

It will be required that the successful Vendor prepare all drawings, data, manuals, etc.,
utilizing the system of units defined in Section 2.2 (c).

l)

Vendor shall comply with all other terms and conditions as set forth in the purchase
documents, and in addition to those requirements, shall submit also one copy of the
packing list to Purchaser.

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m)

3.2

All drawings, data and other documentation prepared by Vendor shall be signed, checked
and approved prior to submittal to Purchaser for review and approval. Purchaser will not
accept documentation which does not comply with this requirement.

Production Schedule and Status Reporting

a)

Commencing with return of approval drawings, Vendor shall submit engineering and
manufacturing status reports to Purchaser every two weeks. Reports shall also include a
minimum ten (10) line bar chart indicating current production activities as well as
estimated test, final inspection, and shipping dates, for each major fabricated assembly.
Reporting shall cease with shipment of the final equipment item and/or the first spare parts
order.

b)

Vendor shall allow, in his scheduling, four weeks for mail time, review and approval of
drawings by Purchaser, for each transmittal.

c)

Vendor shall notify Purchaser a minimum fourteen (14) days in advance of:
i)
ii)
iii)

3.3

Start of fabrication,
Start of equipment testing,
Final inspection of completed assemblies.

d)

Vendor shall, in the case of pressure vessels and shell and tube exchangers, advise
Purchaser of any pending hydrotest, at least four (4) weeks in advance, to allow proper
notification of government authorities who will witness the test activity.

e)

Vendor shall not proceed with fabrication of manufacturing until his receipt of all
drawings stamped "Approved" or "Approved As Noted". Vendor may, however, solicit
written approval from Purchaser to order "long lead" or "buy out" items affecting delivery
of the finished goods prior to receipt of Purchaser approved drawings.

Inspection, Testing and Documentation

a)

Specific inspection and test requirements are outlined in the engineered equipment
standards and specifications for each item.

b)

Purchaser or its representative shall, with sufficient notice, be allowed access to Vendor's
facility, during normal working hours, to observe and inspect any phase of
manufacturing, assembly, testing, any required teardown after testing and preparation for
shipment. Vendor shall also secure, from his suppliers, the same access privileges for
Purchaser.

c)

Four (4) weeks prior to the start of equipment and/or pressure vessel testing, Vendor shall
provide, to Purchaser, a full test agenda with a corresponding estimated schedule of
events.

d)

All equipment supplied on a single purchase order shall be accumulated after manufacture
for testing at the same time, either simultaneously, or in immediate sequence, unless
specific exception is granted, in writing, by Purchaser.

e)

Each test performed by Vendor and his suppliers shall result in a certified test report being
issued to Purchaser, within two (2) weeks of test completion, and prior to shipment.

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3.4

f)

Vendor shall assume that all tests will be witnessed by Purchaser or its representative.
The price for witnessing each test shall be broken out, in the proposal, as a separate item.
Purchaser may, at any time, waive witnessing of any test, resulting in an immediate price
deduct, equal to the amount quoted by Vendor in his original proposal, provided that
notice of such is given to Vendor, at least two weeks in advance of the scheduled
witnessed test.

g)

All hydrotesting shall be performed with inhibited water. All internals shall be thoroughly
dried and preserved after test completion.

h)

If it is determined by Purchaser, or its designated representative, during factory testing

and/or final inspection of the goods at the factory, that the purchase order documents
have not been complied with, the equipment or material will be rejected as unacceptable
for shipment. Purchaser's representative will then return to his point of origin, until such
time as the situation has been declared corrected by Vendor. The travel cost and daily
living expenses for Purchaser's representative to repeat any inspection or test trip shall be
Vendor's responsibility and will be deducted from Vendor's final invoice amount and
withheld by Purchaser.

i)

Records of all inspections, heat analyses, radiographs, test results, heat treatment, repair
procedures, reinspection reports, and any further NDT results shall be kept available for
reviewed by Company for a minimum of ten years from the date of shipment ex works.

j)

Approval of testing and inspection and final acceptance of the equipment by Purchaser
shall not relieve Vendor of his warranties or his responsibility to comply with the
requirements of the Purchase Order.

k)

Vendor shall not ship material or equipment from his factory until written authorization
from Purchaser's (Company's Project Engineer in Jakarta) to proceed with shipment has
been received.

Shipping Preparation
a)

When specified in the Purchase Order, Vendor shall be responsible for preservation and
protection of equipment. A separate price shall be quoted for waterproof export crating.
Vendor shall also quoted pricing for protection of equipment for long term storage, in
excess of six months, at site conditions.

b)

Marking, tag numbers, and special nameplate data will be issued in the Purchase Order.

c)
d)

Lifting points shall be boldly identified on all crates and skids.

All openings to internals shall be plugged and temporary plugs shall be clearly identified.

e)

All exposed, machined surfaces shall be covered with rust preventive which is easily
removable with commercial solvent.

f)

Special care shall be taken to insure against shock and moisture damage to
instrumentation, electrical equipment and controls while in transit.

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3.5

g)

Loose shipping items shall be packed in as few crates as practical, placed on the
equipment skid, when possible, and securely fastened. All items shall be forwarded
together. No partial shipments shall be allowed without prior written approval from
Purchaser. Any item discovered missing from any shipment shall be air freighted to a site
designated by Purchaser, at Vendor's expense.

h)

The initial spare parts order, when purchased with the equipment, shall be shipped with,
and as part of, the original equipment order. Spare parts shall be crated, clearly identified
and preserved in a manner suitable for extended storage, not to exceed two years.
Storage instructions shall be included in the "Installation, Operation and Maintenance
Manual".

Warranty
a)

Vendor shall provide a written performance guarantee stating that the equipment supplied
by him will perform in accordance with the design conditions set forth in the Purchase
Order.

b)

Vendor shall warrant that all equipment, material and workmanship shall be free of defects
for a period of eighteen (18) months from the date of delivery to the job site or twelve
(12) months from the date of startup whichever occurs first. Vendor shall, at his
expense, correct any defect to the satisfaction of both Purchaser and Company.

c)

The final process design, mechanical design and fabrication of the equipment shall be
responsibility of Vendor.

d)

Vendor shall pass on to Company all warranties on components purchased from subsuppliers.

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VES - 1000
APPENDIX-1
DATA AND INFORMATION REQUIREMENT
FOR VALVE, FLANGE AND PIPE FITTING REQUISITION

I.

Vendor shall state in their proposal that new and genuine material will be supplied.

II.

In the case of valve proposal, Vendor shall include in their proposal the detail technical specification of
the proposed valve. Valve brand shall be specified and technical brochures may also be included in the
bid proposal.

III.

For fittings and flanges, Vendor must include with the proposal, a list of proposed distributors and a list
of proposed manufacturers. After purchase order award, Vendor may not substitute distributors and/or
manufacturers without VICO approval. Unapproved substitutions will be basis for VICO rejection of the
Goods.

IV.

In the case of flange and pipe fittings, maximum one week after receiving the order, Vendor shall advise
the source of the material to be supplied and submit copy of the mill certificate (when the material is in
stock) for VICO review. Company may also request for the manufacturer's quality control procedures.
If Vendor's supplied document is not satisfactory, Company will reject it and may cancel the order with
no cancellation fee.

V.

Vendor may submit alternate proposal with a list of comments and exceptions to the specifications stated
in the Material Requisition document. Company will consider the alternate proposal if it is advantage
technically and commercially to Company.

VI.

The material shall be supplied with proper mill certificate and marking as outlined in the following:
1.

The marking system applies to valves, fittings, flanges (forged flanges, cast flanges), and unions
used in piping connections, which include flanged, welded and threaded joints.

2.

Each product of a size and shape permitting legible marking shall be marked in accordance with
the provisions of the standard practice of the Manufacturers Standardization Society of the Valve
and Fittings Industry, Inc. (MSS SP-25) and ANSI Standard Specifications (ANSI B16-3, B165, B16-9, B16-11, B16-34).

3.

Each fitting shall be permanently marked (i.e. markings cast, forged, or stamped) to show the
following:
a)

Manufacturer' Name: Trade Mark or Symbol.

b)

Rating Designation: This includes the intent of the expressions "Pressure Rating Class",
"Pressure Designation" and "Service Designation".

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c)

Material and Product Identification: Conforming materials shall be marked in

accordance with ASTM, ASME or other recognized materials specifications.

d)

Melt Identification: Carbon, alloy and stainless steel castings and forging, used for
fittings, flanges, valve bodies, bonnets and covers shall be marked with a melt
identification and material system.

e)

Valve Trim Identification: Marking is required on the identification plate for all flange
end and butt welding end steel or flanged and ductile iron body.

f)

Size Designation: The nominal pipe size shall be given.

g)

Schedule Number or Nominal Wall Thickness.

h)

Other designation as required by ANSI standard shall be applied preferable located

adjacent to the rating designation to indicate conformance to the corresponding ANSI
standard (B16, etc.)

4.

Vendor shall furnish certified mill test reports for each valve, fitting, or flange. Mill certificates
must show the melt number and be traceable to the mail. Material markings do not match the
mill certificate, including melt number, the materials shall be rejected.

5.

Materials not marked in accordance with this specification shall be rejected.

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