Project Procedure 1.0 PURPOSE 2.0 SCOPE 3.0 REFERENCES 4.0 DEFINITIONS. No.: P /11/2011 PAGE 1 OF 6 SUBCONTRACTOR/SUPPLIER QUALIFICATION

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1 Project Procedure SUBCONTRACTOR/SUPPLIER QUALIFICATION 11/11/2011 PAGE 1 OF PURPOSE The purpose of this procedure is to assure appropriate processes are followed when qualifying potential new Suppliers of equipment and/or material, as well as Service Suppliers and Subcontractors. Proper evaluation and documentation is critical to the integrity of the Procurement process and the success of the Project. 2.0 SCOPE This procedure applies to evaluating and approving potential new Suppliers of equipment and/or material, as well as Service Suppliers and Subcontractors. This procedure is applicable for Pike Energy Solutions only. 3.0 REFERENCES 3.1 Project Procedure P 5 2, Bid Solicitation and Evaluation 3.2 Project Procedure P 5 3, Requisitioning 3.3 Project Procedure P 5 4, Issue of Purchase Order 3.4 Project Procedure P 5 5, Expediting 3.5 Project Procedure P 5 6, Subcontractor/Supplier Insurance and Bond 3.6 Project Procedure P 5 7, Small Business Plan 3.7 Project Procedure P 5 8, Subcontractor and Supplier Contract Review 4.0 DEFINITIONS 4.1 Approved Suppliers List: A database of all qualified subcontractors that resides on the Procurement web site and maintained by the Procurement department that includes qualified Material, Equipment, and Service Suppliers, as well as Subcontractors. In order to perform any work, provide materials, or provide services on a Pike Project, these Suppliers and Subcontractors shall meet the required criteria in the following areas, as applicable:

2 PAGE 2 OF 6 Acceptable QA/QC manufacturing processes in place for approved products, if required Quality program ISO or equivalent, if required Acceptable Environmental, Health, and Safety records for the previous three (3) years, if required Financial strength and stability (acceptable Dunn and Bradstreet report and/or reviewed/approved audited financials), if required Appropriate insurance coverage from a carrier rated A or greater as determined by Pike Terms and Conditions or any overriding Project specific flowdowns Provided references contacted and verified 4.2 Material Suppliers: Companies that are only required to complete and return the following: W 9, Request for Taxpayer Identification Number and Certification (see Attachment 7.1 for an example) Terms and Conditions (see Attachment 7.2) Form QF 5 1 A, Supplier Registration Form (see Form 8.1) Form QF 5 1 C, Supplier QA/QC Qualification Form (see Form 8.3) if required Insurance certificate 4.3 Equipment Suppliers: Companies that are bare rental or operated. Bare rental Equipment Suppliers are required to complete and return the following: W 9, Request for Taxpayer Identification Number and Certification (see Attachment 7.1 for an example) Terms and Conditions (see Attachment 7.2) Form QF 5 1 A, Supplier Registration Form (see Form 8.1) Insurance certificate Operated Equipment Suppliers are required to complete and return the following: W 9, Request for Taxpayer Identification Number and Certification (see Attachment 7.1 for an example) Terms and Conditions (see Attachment 7.2) Form QF 5 1 A, Supplier Registration Form (see Form 8.1)

3 PAGE 3 OF 6 Form QF 5 1 B, Supplier EH&S Qualification Form (see Form 8.2) Form QF 5 1 C, Supplier QA/QC Qualification Form (see Form 8.3) if required for the Project 4.4 Service Suppliers and Subcontractors: Companies that are required to complete and return the following: W 9, Request for Taxpayer Identification Number and Certification (see Attachment 7.1 for an example) Terms and Conditions (see Attachment 7.2) Form QF 5 1 A, Supplier Registration Form (see Form 8.1) Form QF 5 1 B, Supplier EH&S Qualification Form (see Form 8.2) Form QF 5 1 C, Supplier QA/QC Qualification Form (see Form 8.3) if required for the Project Insurance certificate 4.5 Packagers: Companies that are required to complete and return the following: W 9, Request for Taxpayer Identification Number and Certification (see Attachment 7.1 for an example) Terms and Conditions (see Attachment 7.2) Form QF 5 1 A, Supplier Registration Form (see Form 8.1) Form QF 5 1 C, Supplier QA/QC Qualification Form (see Form 8.3) if required for the Project Insurance certificate 5.0 RESPONSIBILITIES The responsibilities of the roles below may be executed by a number of individuals as detailed or by a single individual. For example, a single individual, based on the size of the project, may perform the duties listed below. Note that these are roles and do not indicate actual employee titles. 5.1 The Procurement Manager is responsible for the implementation of this procedure. See Paragraph 6.1 for more details. 5.2 Procurement personnel or other personnel performing this role are responsible for reviewing and ensuring that the potential Supplier s financial security, levels of insurance

4 PAGE 4 OF 6 coverage (depending on the dollar amount of the Purchase Order or Contract), and other requirements of the Terms and Conditions or Project specific flowdowns, if any, are met. 5.3 The Safety Manager is responsible for reviewing Environmental, Health, and Safety information and ensuring that any new potential Supplier has acceptable and verifiable records for the past three years. 5.4 Engineering personnel are responsible for providing a technical assessment of each Supplier and for identifying which of the products or services provided by the Supplier are approved, if applicable (engineered equipment/material). 5.5 Quality Assurance personnel are responsible for assessing the QA/QC programs of the Supplier to assure compliance with the Pike Quality Program, ISO , or equivalent standards. 5.6 Construction Management personnel are responsible for assuring that the Supplier or Service Supplier has the capability to meet Pike standards. 6.0 PROCEDURE 6.1 The Procurement Manager or designee is responsible for the following, as applicable: Ensures all applicable forms are sent to the potential Supplier under consideration for inclusion on the Approved Suppliers List. Requests the insurance certificate from a carrier with a rating of A or better. Ensures all forms are returned in a timely manner and contain all required information. Reviews information related to commercial aspect for acceptable information. Performs Dunn and Bradstreet review if required based on the size of the Contract (>$500,000.00) and/or review/approve audited financial statement. Ensures insurance coverage meets or exceeds Pike Terms and Conditions or any flowdown amounts according to Client Contract. Ensures that the Pike Engineering, QA/QC, and Construction personnel, as applicable are satisfied with the information provided by the Supplier and agree that they should be included on the Approved Supplier List, if applicable. Maintains the Approved Supplier List and updates periodically with changes in the Supplier status. This list needs to include the specific products and services that are approved on a broad basis. Checks the references provided by the Supplier, if applicable.

5 PAGE 5 OF 6 Forwards Environmental, Health, and Safety information to the Safety Manager for review, if applicable. Forwards documentation to QA/QC Manager, Engineering and Construction Management for approval, if applicable. If all information is acceptable, contacts potential Supplier to make them aware of acceptance and includes information on the Approved Suppliers List. If Supplier does not meet required criteria and is deemed unacceptable, the Procurement Manager contacts Supplier and informs them of reason(s) for rejection. Supplier may re apply after 120 days. 6.2 The Safety Manager or designee is responsible for reviewing and approving/disapproving all provided Environmental, Health, and Safety information. 6.3 Engineering personnel are responsible for reviewing and approving/disapproving all provided Supplier technical information and specifications. They will supply the Procurement Manager with a list of approved equipment/material. 6.4 The QA/QC Manager or designee is responsible for reviewing and approving/disapproving all provided Quality documentation, if applicable. 6.5 Construction Management is responsible for reviewing and approving/disapproving all data provided regarding the Supplier or Service Supplier s capabilities, if applicable. 6.6 To maintain approval, Suppliers will be reevaluated on an annual basis one year from original approval date or 30 days prior to insurance certificate expiration (whichever comes first). 7.0 ATTACHMENTS 7.1 Sample W 9, Request for Taxpayer Identification Number and Certification 7.2 Applicable Terms and Conditions 7.3 Subcontractor/Supplier Qualification Process Flowchart 8.0 FORMS 8.1 Quality Form QF 5 1 A, Supplier Registration Form 8.2 Quality Form QF 5 1 B, Supplier EH&S Qualification Form 8.3 Quality Form QF 5 1 C, Supplier QA/QC Qualification Form

6 PAGE 6 OF REVISIONS AND APPROVALS Revision Level Revision Date Revision Description Department Head (Approver) 0 04/01/2010 Original Issue John M. Rhyne 1 08/01/ /11/2011 Updated logo and company name; revised to corporate document Updated text, attachments, and flowchart John M. Rhyne John M. Rhyne

7 ATTACHMENT 7.1 SAMPLE W 9, REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION PAGE 1 OF 4

8 ATTACHMENT 7.1 SAMPLE W 9, REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION PAGE 2 OF 4

9 ATTACHMENT 7.1 SAMPLE W 9, REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION PAGE 3 OF 4

10 ATTACHMENT 7.1 SAMPLE W 9, REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION PAGE 4 OF 4

11 ATTACHMENT 7.2 TERMS AND CONDITIONS PAGE 1 OF 1 Applicable Terms and Conditions 1. Terms and Conditions for Services (plus any additional supplemental Terms and Conditions) 2. Terms and Conditions for the Purchase of Goods.

12 ATTACHMENT 7.3 SUBCONTRACTOR/SUPPLIER QUALIFICATION PROCESS FLOWCHART PAGE 1 OF 1

13 FORM 8.1 PAGE 1 OF 1

14 FORM 8.2 PAGE 1 OF 2 SUPPLIER EH&S QUALIFICATION FORM Supplier EH&S Qualification Form Policy/Program 1. Does your company have a Health and Safety policy and programs/ procedures to assure compliance with safety regulations and laws? If yes, please submit copies with this form. 2. Does your company have an Environmental policy and programs/procedures to assure compliance with environmental regulations and laws? If yes, please submit copies with this form. Commitment 3. Does your company have an Officer(s) or Senior Manager(s) responsible for Environmental, Health, and Safety compliance? If yes, then please enter the following information: Environmental Name Title Health and Safety Name Title Training 4. Does your company provide and document initial and ongoing Environmental, Health, and Safety training required by governmental agencies? Company Record 5. Has your company received a confirmed fine, citation, or Notice of Violation from a governmental agency such as OSHA, EPA, DOT, etc., in the past three years? If yes, please provide details. Yes No Quality Form QF 5 1 B, Rev. 1 Last Revised: 07/26/2011 Project Number: Project Procedure P 5 1 Page 1 of 2

15 FORM 8.2 PAGE 2 OF 2 SUPPLIER EH&S QUALIFICATION FORM Safety Record 6. Is your company required to maintain the OSHA log? If yes, use Supplier s OSHA 300 Log for the past 3 years to fill in number of injuries and illnesses: Yes No a. Number of CASES involving lost workdays: b. Number of CASES involving restricted activity: c. Number of CASES with medical attention: d. Number of fatalities: e. Total Recordable Rate: Last Year 2 Years Ago 3 Years Ago 7. List the states that your company is currently licensed to work in: 8. Enter the Employee hours worked, number of full time employees, and Experience Modification Rate (EMR) for the last 3 years: Hours Worked: Number of Employees: EMR: Last Year 2 Years Ago 3 Years Ago Quality Form QF 5 1 B, Rev. 1 Last Revised: 07/26/2011 Project Number: Project Procedure P 5 1 Page 2 of 2

16 FORM 8.3 PAGE 1 OF 2 QA/QC QUALIFICATION FORM Policy/Program QA/QC Qualification Form 1. Does your company have a QA/QC Program as well as Quality Control Procedures that conform to national and international quality requirements such as ISO ? If yes, please submit copies with this form. 2. Does your company have a set of manufacturing procedures, as well as quality check off forms? 3. Does your company have a fabrication and inspection plan showing inspection and hold points? 4. Does your company have appropriate storage, packing, and shipping procedures? 5. Does your company maintain control and traceability of in process materials? 6. Does your company maintain Nonconformance Records for materials and product? Commitment 7. Does your company have a Quality Standards Committee responsible for compliance with the QA/QC Program and procedures? If yes, then please list the present members with their respective titles. Yes No Name Title Name Title Name Title Name Title Name Title Quality Form QF 5 1 C, Rev. 1 Last Revised: 07/26/2011 Project Number: Project Procedure P 5 1 Page 1 of 2

17 FORM 8.3 PAGE 2 OF 2 QA/QC QUALIFICATION FORM Training 8. Does your company provide and document initial and ongoing QA/QC training? Company Record 9. Please provide an installation list for identical or similar equipment. 10. Please provide Operating Experience records showing operating, maintenance, and replacement histories for the past three years. Name: Title: Date: Yes No Company Name: Phone #: Primary Business of the company: How Long has your company been in business: References: Company Name: Contact Person: Telephone Number: E mail: Company Name: Contact Person: Telephone Number: E mail: Quality Form QF 5 1 C, Rev. 1 Last Revised: 07/26/2011 Project Number: Project Procedure P 5 1 Page 2 of 2