Proven performers good neighbors 1 Agenda Proven

Proven performers, good neighbors 1

Agenda Proven performers, good neighbors § Safety Topic § Overview of Agenda § Introductions – – – Richard Rife, Deputy Project Manager Lori Baker, Acquisition Services Manager Behle Burns, Design Manager John Walczyk, Construction Area Superintendent Evan Carlson, Field Procurement Manager Glenn Franklin, Project Procurement Manager 2

Proven performers, good neighbors 3

Overview Proven performers, good neighbors – Identification, Prequalification and Selection of Potential Bidders – What is the process and what are the requirements – Request for Proposal – Section by Section Review – Complete Proposals – What does it take to provide a complete proposal – e. RFP (Electronic Request for Proposal) R: /Administration/Presentation/Subcontractor. Training/Prequalification Requirements for Subcontractors June 2006 4

Prequalification Process Potential Bidders List Proven performers, good neighbors § Potential Bidders are identified as follows: – Bechtel Global Supplier Information System – Expressions of Interest through the BGCAPP Website – Industrial Search Engines (Thomas Register, Construction Blue Book, etc. ) – Small Business Advocate input 5

Proven performers, good neighbors http: //supplier. bechtel. com Information needed by Supplier for FREE Registration • Dunn and Bradstreet Number • Bonding capacity, bid range • Annual sales • Area of expertise, work experience to enter commodity code information • Business size classification 6

Identification, Qualification and Selection of Potential Bidders Proven performers, good neighbors Prequalification § Procurement Professional issues Prequalification Requirements to Potential Bidders – Potential Bidders MUST respond completely and timely – Subcontractor’s Certification Form to be completed/signed § Satisfactory completion of the Prequalification requirements normally qualifies that the prospective offeror will be issued an RFP (Request for Proposal) § Prequalification Requirements are unique to each Request for Proposal (Scope of Work). § Prequalification Requirements will typically be divided between 1) Commercial 2) Technical 7

Identification, Qualification and Selection of Potential Bidders Proven performers, good neighbors 1) Commercial – Is the potential supplier capable of furnishing a complete scope for the materials/equipment? – Contact Information has been completed – Similar Scope Experience List, including a summary of performance and Customer Contact Information – Audited Financial Statements and/or current Comprehensive Dun and Bradstreet Report 8

Identification, Qualification and Selection of Potential Bidders Proven performers, good neighbors 2) Technical § Is the Bidder capable to perform the Scope of Work? § What is the Bidder’s experience with this Scope of Work? § Do they have capable personnel? § What work is Subcontracted? (Work performed by others) § Does the Bidder have an acceptable QA Program (e. g. ISO Certificate, or Table of Contents) ? § Shop Capacity, and Work Load - does the Bidder have the ability to meet the shipment schedule? 9

Request for Proposal Proven performers, good neighbors § BGCAPP will issue formal, written Request for Proposals (RFP) for all permanent plant equipment § The content for each RFP will be unique depending on the requirements of the Material Requisition. § An RFP typically includes the following documents: § Request for Proposal Letter (including attachments) – – Information and Instructions to Bidders Representations and Certifications Commercial Form of Proposal (including attachments) Technical Form of Proposal (Evaluation criteria) 10

RFP Letter - SAMPLE Proven performers, good neighbors 11

RFP Form of Proposal Proven performers, good neighbors ALL FIELDS MUST BE COMPLETE! If field is not applicable state N/A 12

RFP Section 1 Scope of Work and Pricing Proven performers, good neighbors 13

RFP Section 2 Technical Specifications Proven performers, good neighbors 2. 3 – Drawings 2. 4 – Technical Notes 14

RFP - Section 3 Drawings and Data Requirements Proven performers, good neighbors G 321 -E SAMPLE 15

RFP - Section 3 Drawings and Data Requirements Proven performers, good neighbors G 321 -EX SAMPLE 16

RFP - Section 3 Drawings and Data Requirements Proven performers, good neighbors G 321 -V - SAMPLE 17

Material Safety Data Sheet Proven performers, good neighbors The Dow Chemical Company Product Name: Adhesion Promoter AP 8000 Issue Date: 11/09/2005 Print Date: 10 Aug 2006 * Indicates a Trademark Page 1 of 8 The Dow Chemical Company encourages and expects you to read and understand the entire (M)SDS, as there is important information throughout the document. We expect you to follow the precautions identified in this document unless your use conditions would necessitate other appropriate methods or actions. 18

RFP– Sections 4 a, Flow-Downs, and Section 4 b Proven performers, good neighbors § Section 4 a: General Conditions § Flow-Downs (Appendix FOA-1) are an appendix of the General Conditions and are specific points contained in our Prime Contract that MUST BE flowed down to the Suppliers § Section 4 b: Special Conditions § Remember, exceptions to Terms and Conditions is an evaluation consideration! 19

RFP - Section 5 Supplier Quality Surveillance Proven performers, good neighbors 20

RFP Section 6 Expediting Instructions Proven performers, good neighbors § Expediting Instructions offer specific guidance on submission of: – – – – Schedules Progress reports Organization charts Seller purchase orders Packing lists Shop loads/schedules Supplier Deviation Disposition Requests BUYER’s Expediting Contact 21

RFP Section 7 Packing, Marking, and Shipping Instructions Proven performers, good neighbors Provides specific instructions on the requirements for Packing, Marking and Shipping equipment/goods including US Export Control Compliance 22

RFP Section 8 Invoicing Instructions Proven performers, good neighbors § Invoicing Instructions are provided to summarize the Invoice payment process requirements. It includes instructions on: –Payment Terms (where they are located) –Electronic Payment –Invoice Preparation Instructions –Bechtel Electronic Funds Transfer Authorization Form FAILURE TO PROVIDE A PROPERLY PREPARED INVOICE MAY RESULT IN THE INVOICE BEING REJECTED! 23

RFP Section 9 Supplier Quality Assurance Program Proven performers, good neighbors 24

RFP Representations and Certifications Proven performers, good neighbors § Representations and Certifications are required with all proposals. This document requires the Offeror to make Representations and Certifications about their company. § Reps and Certs must be completed by an authorized agent of the company § Failure to complete Reps and Certs may result in removal of your proposal from further consideration 25

Complete Proposals What constitutes a complete proposal? Proven performers, good neighbors § The million dollar question, literally. It is IMPERATIVE that a Bidders proposal is complete and on time. Incomplete or untimely proposals may not be considered. § What it takes to provide a complete proposal: – READ THE ENTIRE RFP. Even if you are an experienced offeror, the requirements may change from RFP to RFP. It is IMPERATIVE that Bidders read and understand the entire RFP. – In a typical RFP, the following documents are required to be provided with the proposal: Any requirements of the Information and Instruction to Bidders. Examples are as follows: – Financials – Experience Statements – Copies of Code Stamps – Resumes – Execution Plans – Copy of QA Manuals 26

Complete Proposals What constitutes a complete proposal? Proven performers, good neighbors – Continued A completed Form of Proposal. – THAT MEANS NO BLANKS. EVERY FIELD SHOULD BE FILLED OUT, IF IT IS NOT APPLICABLE, TELL US! – Include all attachments, such as (but not limited to): » » Optional Pricing Worksheets Unit price breakdowns A summary of Commercial or Technical Exceptions (if any) Technical Form of Proposal, including any submittal requirements A completed Section 1 Scope of Work and Pricing. If your company requires you to use a specific application to provide an offer, that’s fine, but the Section 1 document must be complete! Signed and dated Representations and Certifications form. 27

Review What you should know Proven performers, good neighbors – QUESTIONS? 28

Procurement Status Proven performers, good neighbors 32% Complete 29

Forecast of Acquisitions Proven performers, good neighbors § Construction Materials – Construction Equipment, Tools, & Consumables Trucks and Gators Welding Machines, Shop Fabrication Equipment – Construction Materials – Electrical Materials – Miscellaneous and Specialty Fabrication Pipe/Fitting/Valves/Pumps/Flanges Schedule is subject to change! 30

Forecast of Acquisitions Proven performers, good neighbors § Engineered Equipment & Materials – – – – – Vertical Embeds Carbon Steel Pressure Vessels Bridge Monorail Crane Stainless Steel, Carbon Steel Clad & High Alloy Pressure Vessels Jib Crane Observation Windows Evaporative Coolers Chiller and Air Compressors Shield Doors 31

Forecast of Acquisitions Proven performers, good neighbors § Subcontracts and Service Contracts – – – – – Potable Fire/Water Tanks Firewater Pump House Non-Destructive Examination Services Architectural Doors, Windows & Hardware Snow Removal & Road Sweeping Parking Lot Paving Personnel Maintenance Building Utility Building Laboratory Building 32

BGCAPP Project Website Proven performers, good neighbors Website Link: www. bechtelparsonsbgcapp. com Please click on the link below to view a forecast of upcoming opportunities • Construction and Services • Awarded Company-138 kv Main Substation and Pole Lines • Awarded Company- Maintenance Building • Awarded Company- Personnel Support Building • Engineered Equipment • Materials 33

Tips for Doing Business with Bechtel Parsons Blue Grass Proven performers, good neighbors § Complete and current registration on Bechtel Supplier and Contractor Portal § Look for opportunities on the project website § Market directly to project via Small Business Advocate and other Acquisition staff § Identify small business socioeconomic status § Complete documents for prequalification § Fully read and understand Request for Proposal § Ask questions 34

Contact Information Proven performers, good neighbors Diane Osbourne Small Business Program Advocate 301 Highland Park Dr. Richmond, KY 40475 (859) 624 -6204 dosbourn@bechtel. com 35