Original Equipment Manufacturers Service and Material Supply Contracts

Original Equipment Manufacturers Service and Material Supply Contracts

Daewoo needs to secure the ongoing services of the equipment manufacturers that have been chosen by competitive tender to supply the major equipment used on the Shwe platform and at the Onshore Gas Terminal .

This document proposes a method of securing these services at a committed schedule of rates for the initial period of operation.

 As operator Daewoo needs to have the option to call off the support of these OEM companies after the warrantee period defined in the HHI purchase orders expires.

 The scope of work for these contracts is almost identical and so all the required contracts can follow a similar call off contract format.

 They will all:

• Be sole sourced contracts negotiated with the in house service provider for the manufacturer.
• Include the provision of service staff that will travel from outside Myanmar to the platform or OGT plant at an agreed maximum response time.
• Include the provision of fault finding and trouble shooting test equipment on their plant including the ancillary package equipment that has been used to install their plant.
• Include the provision at agreed prices, and delivery to site times, of all parts required for the routine servicing of the equipment.
• Include the provision at agreed prices, or quoted in valid price lists, for all parts identified as maintainable items on the Bill of Materials.
• Include how the manufacturer proposes to implement any service updates or modifications to the plant that they determine as required to allow the equipment to perform.  
• Include any plans they can offer for remote condition monitoring or time based condition monitoring of their plant.
• Include the fact that the contracts will not be exclusive and Daewoo retains the right to choose any part of their proposal or to use in-house or other resources to maintain the equipment.
• State what are the Daewoo standard terms and conditions that will be applied.
• State that any proposal does not affect the original warrantee provided under the original purchase order which HHI will pass on to Daewoo.

The proposal, for which approval is sought, is to send each company a standardized invitation to make a proposal for a call off contract with Daewoo for a three year period starting from April 2013.

 Each contractor will be asked to propose a fixed working day rate and a mobilization cost for each class of person that would be involved in servicing or repairing their equipment. They will also be asked to state how the prices of their spare parts can be contracted, detail what relevant spare parts are held in which Asian support base, and what maximum required lead time is for delivery to Yangon for both suitably qualified technicians and materials.