HomeMy WebLinkAbout1995-150ORDINANCE NO. 95-' ,, v
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD
OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City has solicited, received and tabulated
competitive bids for the construction of public works or
improvements in accordance with the procedures of STATE law and
City ordinances; and
WHEREAS, the City Manager or a designated employee has
received and recommended that the herein described bids are the
lowest responsible bids for the construction of the public works or
improvements described in the bid invitation, bid proposals and
plans and specifications therein; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the following competitive bids for the o construction f public works or improvements, as described in the
"Bid Invitations", "Bid Proposals" or plans and specifications on
file in the Office of the City's Purchasing Agent filed according
to the bid number assigned hereto, are hereby accepted and approved
as being the lowest responsible bids:
BID NUMBER
CONTRACTOR
AMOUNT
1781 SIEMENS POWER CORPORATION $398,822.00
SECTION II. That the acceptance and approval of the above
competitive bids shall not constitute a contract between the City
and the person submitting the bid for construction of such public
works or improvements herein accepted and approved, until such
person shall comply with all requirements specified in the Notice
to Bidders including the timely execution of a written contract and
furnishing of performance and payment bonds, and insurance
certificate after notification of the award of the bid.
SECTION III. That the City Manager is hereby authorized to
execute all necessary written contracts for the performance of the
construction of the public works or improvements in accordance with
the bids accepted and approved herein, provided that such contracts
are made in accordance with the Notice to Bidders and Bid
Proposals, and documents relating thereto specifying the terms,
conditions, plans and specifications, standards, quantities and
specified sums contained therein.
SECTION IV. That upon acceptance and approval of the above
competitive bids and the execution of contracts for the public
works and improvements as authorized herein, the City Council
hereby authorizes the expenditure of funds in the manner and in the
amount as specified in such approved bids and authorized contracts
executed pursuant thereto.
SECTION V. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the day of ,1995.
CASTLEBERRY,
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
HERBERT L. PROUTY, CITY ATTORNEY
BY:
DATE: AUGUST 15, 1995
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: BID # 1781 - TURBINE GENERATOR INSPECTION
RECOMMENDATION: We recommend this bid be awarded to the lowest bidder,
Siemens Power Corporation, in the amount of $398, 822.00.
SUMMARY: This bid is for the technical services and material to perform scheduled
maintenance on Denton's Spencer Plant unit #5 turbine generator.
Turbine/generator dismantle inspections are performed on a periodic basis to
maintain integrity and efficiency of machine operation. A complete disassembly of
the steam path and generator are typically performed on a 5-6 year, 40,000 hour
interval dependent on service. Unit Five was last inspected in the fall of 1988, and
was returned to service in March, 1989. Operation since that time has totaled 57, 000
equivalent hours. Equivalent hours of operation take into account thermal operating
cycles inherent in peaking service operation typical of Denton steam units.
Other non -routine factors are involved in the work scope for this particular
dismantle inspection. General Electric has recommended through Technical
Information Letters (TIL's) that the 1st stage nozzle and retaining rings supplied
with this unit are subject to failure and should be replaced. The scope of supply for
this outage includes those items and funding for anticipated but unknown repairs to
steam path components typically encountered during turbine repair.
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Electric Utility Department,
Electric Production Department.
FISCAL IMPACT:
Option 1:
General Electric was the only supplier capable of responding to the work scope as
specified. Specifically, GE capabilities include: technical service; new 1st stage
nozzle supply and installation; new retaining ring supply and installation. Firm
pricing for this scope totaled $670, 592. An additional $50, 000 for contingent repairs
would increase the purchase order amount to $720,592.
Option 2:
Purchase of a new nozzle from GE, and utilizing an alternate supplier (Siemens) for
technical service and retaining rings, would result in work scope pricing of
$602, 307. With contingent repairs of $50, 000, the order amounts would total
$652,307.
Alternate proposals have been received from MD&A and Siemens to repair rather than
replace the 1st stage nozzle. MD&A did not furnish pricing for retaining ring
supply.
Option 3:
Utilizing the repair method rather than replacement for the 1st stage nozzle, would
result in considerable savings. Siemens offers the capability for this repair scope,
supply of the retaining rings and technical service. Contingent repairs and material
supply for this option are estimated at an additional $100,000, due in part to
unknown costs associated with removal and replacement of existing nozzle (bolting,
caulking, austenitic ring, etc) . These costs have been assumed in the GE new
nozzle quotation. The purchase order for this work scope options totals $398,822,
amounting to savings of $253,485 over option 2 and $321,770 over option 1.
Option 3 offers the lowest cost alternative to the planned work scope assuming that
the repaired 1st stage nozzle is an acceptable compromise to new replacement. Our
insurance carrier has been contacted regarding this matter and has responded with
authorization to proceed with repair as an alternative to the OEM TIL.
The purchase recommendation is based on low evaluated bid allowing repair of the
1st stage nozzle as an acceptable alternative to replacement.
Funds are available in the 1994/95 budget for maintenance of generating equipment;
Account Number 610-101-1011-5130.
peecttfully submitted:
4
Lloyd V . Harrell
City Manager
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Purchasing Agent
620.AGENDA
CONTRACT AGREEMENT
STATE OF TEXAS
COUNTY OF DENTON §
THIS AGREEMENT, made and entered into this 1_ 5day of
AUGUST A.D., 19_9S , by and between
CITY OF DENTON
of the County of DENTON
and State of Texas, acting
through LLOYD v. HARRELL
thereunto duly authorized so to do, hereinafter termed "OWNER," and
SIEMENS POWER CORPORATION
1040 SOUTH 70TH STREET
MILWAUKEE, WI 53214
of the City of MILWAUKEE , County of MILWAUKEE
and State of WISCONSIN hereinafter
termed "CONTRACTOR."
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by
OWNER, and under the conditions expressed in the bonds attached
hereto, CONTRACTOR hereby agrees with OWNER to commence and
complete performance of the work specified below:
BID # 17RI - TURBINE GENERATOR INSPECTION
in the amount of g3 s s , 00 and all extra work in
connection therewith, under the terms as stated in the General
Conditions of the agreement; and at his (or their) own proper cost
and expense to furnish all materials, supplies, machinery,
equipment, tools, superintendence, labor, insurance, and other
accessories and services necessary to complete the work specified
above, in accordance with the conditions and prices stated in the
Proposal attached hereto, and in accordance with all the General
Conditions of the Agreement, the Special Conditions, the Notice to
Bidders (Advertisement for Bids), Instructions to Bidders, and the
Performance and Payment Bonds, all attached hereto, and in
accordance with the plans, which includes all maps, plats,
CA - 1
blueprints, and other drawings and printed or written explanatory
matter thereof, and the Specifications therefore, as prepared by
ELECTRIC PRODUCTION DEPARTMENT
all of which are made a part hereof and collectively evidence and
constitute the entire contract.
Independent Status
It is mutually understood and agreed by and between City and
Contractor that Contractor is an independent contractor and shall
not be deemed to be or considered an employee of the City of
Denton, Texas, for the purposes of income tax, withholding, social
security taxes, vacation or sick leave benefits, worker's
compensation, or any other City employee benefit. City shall not
have supervision and control of Contractor or any employee of
Contractor, and it is expressly understood that Contractor shall
perform the services hereunder according to the attached
specifications at the general direction of the City Manager of the
City of Denton, Texas, or his designee under this agreement.
Indemnification
Contractor shall and does hereby agree to indemnify and hold
harmless the City of Denton from any and all damages, loss, or
liability of any kind whatsoever, by reason of injury to property
or third persons occasioned by any error, omission or negligent act
of Contractor, its officers, agents, employees, invitees, and other
persons for whom it is legally liable, with regard to the
performance of this Agreement, and Contractor will, at its cost and
expense, defend and protect the City of Denton against any and all
such claims and demands.
Choice of Law and Venue
This agreement shall be governed by the law of the State of
Texas and venue for its construction and enforcement shall lie in
the courts of Denton County, Texas.
The CONTRACTOR hereby agrees to commence work on or after the
date established for the start of work as set forth in written
notice to commence work and complete all work within the time
stated in the Proposal, subject to such extensions of time as are
provided by the General and Special Conditions.
The OWNER agrees to pay the CONTRACTOR in current funds the
price or prices shown in the Proposal, which forms a part of this
contract, such payments to be subject to the General and Special
Conditions of the Contract.
CA - 2
IN WITNESS WHEREOF, the parties of these presents have
executed this agreement in the year and day first above written.
ATTEST:
:A - 3
SIEMENS POWER CORPORATION
CONTRACTOR
1040 S. 70th St
Milwaukee WI 53214 /`
MAILING ADDRESS
414/475-2298
PHONE NUMBER
414/475-2173
FAX NUMBER
BY i _ V&
TITLE Vice -President Turbine Services
Pritam Bhavnani
PRINTED NAME
(SEAL)
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AvrT4WAAy.O tEEo -e.0 dw cwwe
fAK�3�s�s� ✓/.,r Tivr�.vl �....
PAO 412.t919i
CITY OF DENTON
INSURANCE REQUIREMENTS FOR CONTRACTORS
Bidder's attention is directed to the insurance requirements below. It is highly
recommended that bidders confer with their respective insurance carriers or brokers
to determine in advance of Bid submission the availability of insurance certificates and
endorsements as prescribed and provided herein. If an apparent low bidder fails to
comply strictly with the insurance requirements, that bidder may be disqualified from
award of the contract. Upon bid award, all insurance requirements shall become
contractual obligations which the successful bidder shall have a duty to maintain
throughout the course of this contract.
STANDARD PROVISIONS:
Without limiting any of the other obligations or liabilities of the Contractor, the
Contractor shall provide and maintain until the contracted work has been completed
and accepted by the City of Denton, Owner, the minimum insurarfee coverage as
indicated hereinafter.
As soon as practicable after notification of bid award, Contractor shall file with the
Purchasing Department satisfactory certificates of insurance, containing the bid
number and title of the project. Contractor may, upon written request to the
Purchasing Department, ask for clarification of any insurance requirements at any
time; however, Contractors are strongly advised to make such requests prior to bid
opening, since the insurance requirements may not be modified or waived after bid
opening unless a written exception has been submitted with the bid. Contractor shall
not commence any work or deliver any materiauntil
he or nod byetreceives City of Dentation
approved, that the contract has been accepted, 9
All insurance policies proposed or obtained in satisfaction of these requirements shall
comply with the following general specifications, and shall be maintained in
compliance with these general specifications throughout the duration of the Contract,
or longer, if so noted:
• Each policy shall be issued by a company authorized to do business in
the State of Texas with an A.M. Best Company rating of at least A .
• Any deductibles or self -insured retentions shall be declared in the bid
proposal. If requested by the City, the insurer shall reduce or eliminate
such deductibles or self -insured retentions with respect to the City, its
AFF MAI
REVISED 10/12/94
Insurance Requirements
Page 2
officials, agents, employees and volunteers; or, the contractor shall
procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
• Liability policies shall be endorsed to provide the following:
• • Name as additional insured the City of Denton, its Officials,
Agents, Employees and volunteers.
• • That such insurance is primary to any other insurance available to
the additional insured with respect to claims covered under the
policy and that this insurance applies separately to each insured
against whom claim is made or suit is brought. The inclusion of
more than one insured shall not operate to increase the insurer's
limit of liability.
• All policies shall be endorsed to provide thirty(30) days prior written
notice of cancellation, non -renewal or reduction in coverage.
• Should any of the required insurance be provided under a claims -made
form, Contractor shall maintain such coverage continuously throughout
the term of this contract and, without lapse, for a period of three years
beyond the contract expiration, such that occurrences arising during the
contract term which give rise to claims made after expiration of the
contract shall be covered.
• Should any of the required insurance be provided under a form of
coverage that includes a general annual aggregate limit providing for
claims investigation or legal defense costs to be included in the general
annual aggregate limit, the contractor shall either double the occurrence
limits or obtain Owners and Contractors Protective Liability Insurance.
• Should any required insurance lapse during the contract term, requests
for payments originating after such lapse shall not be processed until the
City receives satisfactory evidence of reinstated coverage as required by
this contract, effective as of the lapse date. If insurance is not
reinstated, City may, at its sole option, terminate this agreement
effective on the date of the lapse.
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SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS:
All insurance policies proposed or obtained in satisfaction of this Contract shall
additionally comply with the following marked specifications, and shall be maintained
in compliance with these additional specifications throughout the duration of the
Contract, or longer, if so noted:
[ I A. General Liability Insurance:
General Liability insurance with combined single limits of not less than _
2, 000, 000. 00 shall be provided and maintained by the contractor. The policy
shall be written on an occurrence basis either in a single policy or in a
combination of underlying and umbrella or excess policies.
If the Commercial General Liability form (ISO Form CG;;'0001 current
edition) is used:
• Coverage A shall include premises, operations, products, and
completed operations, independent contractors, contractual liability
covering this contract and broad form property damage coverage.
• Coverage B shall include personal injury.
• Coverage C, medical payments, is not required.
If the Comprehensive General Liability form (ISO Form GL 0002 Current
Edition and ISO Form GL 0404) is used, it shall include at least:
• Bodily injury and Property Damage Liability for premises,
operations, products and completed operations, independent
contractors and property damage resulting from explosion, collapse
or underground (XCU) exposures.
• Broad form contractual liability (preferably by endorsement)
covering this contract, personal injury liability and broad form
property damage liability.
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[X] Automobile Liability Insurance:
Contractor shall provide Commercial Automobile Liability insurance with
Combined Single Limits (CSL) of not less than 500,000.00 either in a single
policy or in a combination of basic and umbrella or excess policies. The policy
will include bodily injury and property damage liability arising out of the
operation, maintenance and use of all automobiles and mobile equipment used
in conjunction with this contract.
Satisfaction of the above requirement shall be in the form of a policy
endorsement for:
• any auto, or
• all owned, hired and non -owned autos.
PX] Workers Compensation Insurance
Contractor shall purchase and maintain Worker's Compensation insurance
which, in addition to meeting the minimum statutory requirements for issuance
of such insurance, has Employer's Liability limits of at least $100,000 for each
accident, $100,000 per each employee, and a $500,000 policy limit for
occupational disease. The City need not be named as an "Additional Insured"
but the insurer shall agree to waive all rights of subrogation against the City,
its officials, agents, employees and volunteers for any work performed for the
City by the Named Insured. For building or construction projects, the
Contractor shall comply with the provisions of Attachment 1 in accordance
with §406.096 of the Texas Labor Code and rule 28TAC 1 10.1 10 of the Texas
Worker's Compensation Commission (TWCC).
[ ] Owner's and Contractor's Protective Liability Insurance
The Contractor shall obtain, pay for and maintain at all times during the
prosecution of the work under this contract, an Owner's and Contractor's
Protective Liability insurance policy naming the City as insured for property
damage and bodily injury which may arise in the prosecution of the work or
contractor's operations under this contract. Coverage shall be on an
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"occurrence" basis, and the policy shall be issued by
company that carries the contractor's liability insurance
at least combined bodily injury and
occurrence with a aggregate.
[ 1 Fire Damage Legal Liability Insurance
the same insurance
Policy limits will be
property damage per
Coverage is required if Broad form General Liability is not provided or is
unavailable to the contractor or if a contractor leases or rents a portion of a
City building. Limits of not less than each occurrence are required.
[ 1 Professional Liability Insurance
Professional liability insurance with limits not less than ,` per claim
with respect to negligent acts, errors or omissions in connection with
professional services is required under this Agreement.
[ 1 Builders' Risk Insurance
Builders' Risk Insurance, on an All -Risk form for 100% of the completed value
shall be provided. Such policy shall include as "Named Insured" the City of
Denton and all subcontractors as their interests may appear.
[ 1 Additional Insurance
Other insurance may be required on an individual basis for extra hazardous
contracts and specific service agreements. If such additional insurance is
required for a specific contract, that requirement will be described in the
"Specific Conditions" of the contract specifications.
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ATTACHMENT 1
[X] Worker's Compensation Coverage for Building or Construction Projects for
Governmental Entities
A. Definitions:
Certificate of coverage ("certificate") -A copy of a certificate of insurance,
a certificate of authority to self -insure issued by the commission, or a
coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84),
showing statutory workers' compensation insurance coverage for the
person's or entity's employees providing services on a project, for the
duration of the project.
Duration of the project - includes the time from the beginn{hg of the work
on the project until the contractor's/person's work on the project has been
completed and accepted by the governmental entity.
Persons providing services on the project ("subcontractor" in §406.096) -
includes all persons or entities performing all or part of the services the
contractor has undertaken to perform on the project, regardless of whether
that person contracted directly with the contractor and regardless of
whether that person has employees. This includes, without limitation,
independent contractors, subcontractors, leasing companies, motor
carriers, owner -operators, employees of any such entity, or employees of
any entity which furnishes persons to provide services on the project.
"Services" include, without limitation, providing, hauling, or delivering
equipment or materials, or providing labor, transportation, or other service
related to a project. "Services" does not include activities unrelated to the
project, such as food/beverage vendors, office supply deliveries, and
delivery of portable toilets.
B. The contractor shall provide coverage, based on proper reporting of
classification codes and payroll amounts and filing of any overage
agreements, which meets the statutory requirements of Texas Labor Code,
Section 401.01 1(44) for all employees of the contractor providing services
on the project, for the duration of the project.
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C. The Contractor must provide a certificate of coverage to the governmental
entity prior to being awarded the contract.
D. If the coverage period shown on the contractor's current certificate of
coverage ends during the duration of the project, the contractor must, prior
to the end of the coverage period, file a new certificate of coverage with
the governmental entity showing that coverage has been extended.
E. The contractor shall obtain from each person providing services on a
project, and provide to the governmental entity:
(1) a certificate of coverage, prior to that person beginning work on the
project, so the governmental entity will have on file certificates of
coverage showing coverage for all persons providing,,services on the
project; and
(2) no later than seven days after receipt by the contractor, a new
certificate of coverage showing extension of coverage, if the coverage
period shown on the current certificate of coverage ends during the
duration of the project.
F. The contractor shall retain all required certificates of coverage for the
duration of the project and for one year thereafter.
G. The contractor shall notify the governmental entity in writing by certified
mail or personal delivery, within 10 days after the contractor knew or
should have known, of any change that materially affects the provision of
coverage of any person providing services on the project.
H. The contractor shall post on each project site a notice, in the text, form and
manner prescribed by the Texas Workers' Compensation Commission,
informing all persons providing services on the project that they are
required to be covered, and stating how a person may verify coverage and
report lack of coverage.
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The contractor shall contractually require each person with whom it
contracts to provide services on a project, to:
(1) provide coverage, based on proper reporting of classification codes and
payroll amounts and filing of any coverage agreements, which meets
the statutory requirements of Texas Labor Code, Section 401.01 1(44)
for all of its employees providing services on the project, for the
duration of the project;
(2) provide to the contractor, prior to that person beginning work on the
project, a certificate of coverage showing that coverage is being
provided for all employees of the person providing services on the
project, for the duration of the project;
(3) provide the contractor, prior to the end of the coverage period, a new
certificate of coverage showing extension of coverage,'if the coverage
period shown on the current certificate of coverage ends during the
duration of the project;
(4) obtain from each other person with whom it contracts, and provide to
the contractor:
(a) a certificate of coverage, prior to the other person beginning work
on the project; and
(b) a new certificate of coverage showing extension of coverage, prior
to the end of the coverage period, if the coverage period shown on
the current certificate of coverage ends during the duration of the
project;
(5) retain all required certificates of coverage on file for the duration of the
project and for one year thereafter;
(6) notify the governmental entity in writing by certified mail or personal
delivery, within 10 days after the person knew or should have known,
of any change that materially affects the provision of coverage of any
person providing services on the project; and
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(7) contractually require each person with whom it contracts, to perform
as required by paragraphs (1) - (7), with the certificates of coverage to
be provided to the person for whom they are providing services.
J. By signing this contract or providing or causing to be provided a certificate
of coverage, the contractor is representing to the governmental entity that
all employees of the contractor who will provide services on the project will
be covered by workers' compensation coverage for the duration of the
project, that the coverage will be based on proper reporting of classification
codes and payroll amounts, and that all coverage agreements will be filed
with the appropriate insurance carrier or, in the case of a self -insured, with
the commission's Division of Self -Insurance Regulation. Providing false or
misleading information may subject the contractor to administrative
penalties, criminal penalties, civil penalties, or other civil actions.
K. The contractor's failure to comply with any of these provisions is.a breach
of contract by the contractor which entitles the governmental entity to
declare the contract void if the contractor does not remedy the breach
within ten days after receipt of notice of breach from the governmental
entity.
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BID NUMBER 1781
BID PROPOSALS
Page 2 of Z1
ITEM
DILSMIPTION
OUAN.
PRICE
AMOUNT
B.1
TECHNICAL SERVICE FEES
A.
Cost per five day week for the seven week outage
7
$6040.00
$42,280.0(
duration
B.
Cost per sixth day if additional
1
$1350.00
$1350.00
C.
Cost per day beyond seventh week if additional
1
$ SchedulE
$ B
D.
Cost for report and docuinentation if additional
1
$2000.00
$2000.00
B.2
RETAINING RINGS
A.
Cost per set of rings and installation material
1
$110500.
Q 110500.1
B.
Cost per set of rings to remove and install
1
$26000.0
$ 26000.01
B.3
FIRST STAGE'NOZZLE
A.
Cost per nozzle assembly and installation material
1
------
$
------
$
B.
Cost to remove and install nozzle assembly
i
$8851.00
$ 8851.00
B.4
GENERATOR TESTS (ADDENDUM I1)
A.
Cost per OEM equivalent generator tests
1
$,8800.0
$ 8800.00
C.1
PRICING ALTERNATIVE - Furnish pricing applicable
to pac age supp y of:
A
Technical Service see Schedule B "Alternative Prici
q" 1
$
$
B
Retaining Rings furnished and installed
1
$
$
C.
1st Stage N6zzle furnished and installed
1
$
$
D
Generator Testing
i
$
$
SUBMITTALS MUST ACCOMPANY.THIS BID PER SECTION-JV-:
;T.
PL
ASH USE THIS ADDENDUM #1 FORM TO SUBMIT YOUR BID PRO
OSAL
TOTALS
We quota the above f.o.b. Denton. Texas. Shipment can be made days from receipt of order. Terms net
union otherwise indicated.
In submitting the above bid, the vendor agrees that socMurm of any or all bid items by tht City of Denton, Texas within a
reasonable period of time constkuss a contract.
1040 S. 70th Street
►.rube Addrou
Milwaukee, WI 53214
city state sis
414/475-2298
Siemens Power Corporation
ayn.wr.
Project Engineer
T4140ane TItN
Schedule B
Exceptions and Clarifications
Technical Service Fees
The technical service fee for work performed past the seventh week are as follows:
Monday through Friday $1,110.00 per day
Saturday $1,470.00 per day
Sunday and Holidays $1,920.00 per day
Note: Any Portion of a day worked will be prorated.
1st Stage Nozzle Assembiv
The proposed prices offered does not include destructive removal of nozzle assembly
bolting. Replacement material or parts, as required, to install the nozzle is to be
supplied by the Customer. New bolting can be quoted upon request.
The steam turbine work schedule supplied with this proposal does not reflect the work on
the nozzle assembly. To remove the old nozzle plate and install new will not impact the
final completion date requested. Performance of the partition repairs will not impact the
final completion date requested. Schedules reflecting the alternative options can be
supplied upon request.
Retaining Rings
The work requested for the generator rotor and retaining rings has been priced to be
performed in our Milwaukee, Wisconsin repair facility. Transportation is not included in
the price. Transportation can be invoiced at cost should the City of Denton require this
service. We estimate the round trip transportation cost to be approximately $9,000.
In the event Siemens Power Corporation is awarded the portion of the specification for
provision of retaining rings, the City of Denton will have to make the old retaining rings
available for dimensional inspection in our Milwaukee repair facility. Manufacturing of
replacement rings will take place after dimensional inspection is complete.
Generator Testing
The prices proposed are based on Siemens Power Corporation having an established
Jobsite presence for the major portion of the workscope. The generator price proposed
does not include any electrical disconnection's or cleaning. If work is required in addition
to the actual testing it will be performed on a time and material basis.
Generator (Stator) testing proposed is in accordance with General Electric TIL 1154-3
and GEK 103566 with several exceptions. The exceptions are:
• Siemens Power Corporation recommends a stepped d.c. overvoltage test to 150% of
rated voltage instead of a hi -pot. Our test scope includes a stepped d.c. overvoltage
test.
• EL CID testing, recommended by General Electric is considered an optional test by
Siemens Power Corporation. We can perform an EL CID test for a firm price of
$7, 500.00.
• We have not included any tests identified by General Electric as being "Optional or
Diagnostic" in nature.
Pricing Afternative
Should the City of Denton award Siemens Power Corporation with a contract to perform
the technical services, retaining ring services and generator tests, we will offer a 2%
reduction in the total cost of this contract.
MaoilLps Power Corporation takes exception to the "General Conditions of the
Agree " and "the Special Conditions" referenced on the Contract Agreem rm
pages CA 1 A-2. At this time, we are not aware of what is includ ese
conditions. The sa true for the statement "Proposal attache o" referenced on
the bottom of page CA- . are not aware of the "Propos "
Siemens Power Corporation would offer o lowing changes to the
Indemnification section of the Contract ent Form.
Delete "Property or persons" and replac `third persons and their
property".
'This indemnification shall become ineffective 18 months the date the
Contractor ships the goods or completes the services required by th ract
whichever date is later, except that claims made against the Contractor un
this indemnity during that 18 month period shall be honored pursuant to the
4 IWOTE: T404 L^V&r1J14t was s✓rice SjOCO gY j..&t4&44C
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TELEFAX COVER SHEET
Siemens Power Corporation
Turbine Services
66th and Greenfield Avenue
West Allis Wl 53214
Fax: (414) 475- 346.1
Phone: (414)475-3553
DATE: 9 Z/ 9s� Number of pages including cover: 3
O
FROM: �7.
Subject:..., END • U�dN " o f
404
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Siemens Power Corporation
Siemens Power Corporation 1 46 oFz
Installation, Parts & Service Departments
Standard Terms
It,e wS'Eo Foe 0:r y o
ONDITIONS OF SALE -Unless otherwise agreed to in writing by a
representative of Siemens Power Corporation (herein referred to as SPC), these Standard
Terms shalt be a part of each quotation and contract for Parts and Equipment Services.
WARRANTY - SPC warrants that the Services will be competent and conform to the
recognized standards of the industry and further warrants that any new part(s) or new
material(s) provided hereunder are merchantable and free of defects in workmanship and
material.
When SPC installs Purchaser supplied parts) and/or manufactures part(s) at Purchasers
direction utilizing Purchaser supplied information or by copying said part(s); e.g. providing
the same configuration and the same or equally acceptable material(s), SPC only warrants
that said installation and SPC part(s) provided hereunder are free from defects in
workmanship and material. SPC does not warrant the operation of said part(s)or thatthey
will achieve the results intended by Purchaser.
THE FOREGOING WARRANTY STATED ABOVE IS EXPRESSLY IN LIEU OF ALL
OTHER WARRANTIES, INCLUDING BUTNOT LIMITED TO IMPLIED WARRANTIES OF
MERCHANTABILITYOR OFFITNESS, ANDCONSTITUTES THE ONLY WARRANTYOF
SPC WITH RESPECT TO THE SERVICES PERFORMED AND MATERIAL(S) OR
PARTS) FURNISHED UNDER THIS CONTRACT.
If within one year from date of shipment by SPC of the part(s), material(s) or services
from SPC's facilities or from the date SPC notes Purchaser the services have been
completed where the services are performed on other than SPC's Facility, Purchaser
discovers that the part(s), material(s) or workmanship are not as warranted and promptly
notifies SPC in writing thereof, SPC shall remedy such nonconformance by, at SPC's
option; adjustment or repair or replacement of the nonconforming part(s), material(s) or
services. Purchasershall assume all responsibilityand expensefor removal, reinstallation,
and freight in connection with the foregoing remedies. The same warranty obligations and
conditions as expressed herein shall apply to warranted services, part(s) or material(s)
repaired or replaced by SPC. SPC shall have the right of disposal of the part(s) and
materal(s) that it replaces.
3. DELIVERY/DURATION SCHEDULES- Shipping and completion schedules are based
on typical manufacturing cycles and anticipated conditions prevailing at the time of
contract award and are premised upon prompt receipt of all information and approvals (if
required) from Purchaser. SPC will make every reasonable effort to meet schedules.
4.
5 'ERMITS AND TAXES - The Purchaser shall, at his own expense, secure any work
permits, labor permits, tax exemption certificates, or any other authorization which may be
required to permit SPC to perform the requested services.
Any applicable duties or sales, use, excise, value-added or similar taxes will be added to
the price and invoiced separately. In lieu thereof, the Purchaser may provide SPC with
an exemption or direct -pay certificate acceptable to the taxing authorities.
If a valid exemption certificate is provided after an invoice has been issued, a credit or
refund of the taxes will be issued to Purchaser after such taxes have been received in full
by SPC from the taxing authorities.
6. TERMS OF PAYMENT - Net 30 days, in U.S. Dollars, from the dated invoice
7. TITLE - The title and right of possession of equipment repaired, modified, inspected,
tested or maintained under this contract shall remain with the Purchaser subject to any
applicable lien rights of SPC and to its right of sale in the event of nonpayment as provided
In the contract.
E. NONTERMINATION - Purchaser may not terminate for convenience or direct
suspension of performance except on mutually acceptable terms.
9. SUBSTITUTION OF PERSONNEL - SPC's obligation is to furnish services and not
specific personnel. SPC reserves the right at any time, and from time to time, to substitute
any of its personnel.
10. MODIFICATIONS- it is recognized that the nature of the services provided are such that
changes in the scope of the services as originally contemplated often occur. SPC will
undertake additional services within the normal scope of such services but reserves the
right to require the Purchaser to confirm in writing any extension of the services and
delivery originally ordered. Pending receipt of requested written confirmation, SPC shall
be entitled to rely upon oral orders, including instructions of Purchaser's representatives.
Any additional services performed by SPC pursuant to such written or oral orders or
Instructions shall be paid for as mutually agreed upon.
11. DELAYS, SUSPENSION, DEFERMENT- It the services are suspended or delayed due
to no fault of SPC, such as, but not limited to, act of God, war, act of Purchaser, fire, flood,
strike, sabotage, embargoes, labor disputes, dots, civil disorders, accidents, delay of
carriers, SPC's voluntary or mandatory compliance with a governmental act, regulation
or request, shortage of materials, single source supplier, Purchaser directed supplier, or
by any other cause orcauses beyond SPC's reasonable control, the time of performance,
If any is specified, shall be extended for a period of time equal to the period of the delay
and its consequences.
If forany reason the Purchaser defers start of the work, the Purchaserwili give SPC written
notice immediately. SPC, at its option, shall be relieved of its obligation to provide service
hereunder without further obligation If the Purchaser defers start of the work beyond three
months of the starting date originally specified, or it the work is suspended for more than
three months.
for Parts and
F DENson�
n authorized 12•
Equipment Services 02110-ro
7st E3/o /✓= /78/ A%
STORAGE - Any equipment on which manufacture or shipment is delayed by causes
within Purchaser's control, or by causes which affect Purchasers ability to receive the
equipment, may be placed in storage by SPC for Purchasers account and risk.
13. PATENTS - SPC may, in the performance of this contract, furnish or install equipment,
components, materials and supplies which may be (a) standard commercial products of
SPC, (b) purchased from other sources, (c) manufactured by or a repair method/process
used by SPC to meet the specific circumstances arising under this contract, (d)
manufactured by SPC in accordance with the Purchaser's instructions, and (a) supplied
by Purchaser.
Purchaser understands that SPC has made no investigation of the risk of possible patent
Infringement as to items in categories (b), (c), (d) and (a) above, and accordingly, the
Purchaser agrees to hold SPC harmless with respect to such risks.
As to hems in category (a), SPC shall pay costs and damages finally awarded in any suit
against Purchaser or its vendees to the extent based upon a finding that the design or
construction of the Services as furnished infringes a United States patent (except
infringement occurring as a resultof incorporating a design or modification at Purchaser's
request) provided that Purchaser promptly notifies SPC of any such claim and SPC Is
given the right at Its own expense to settle such claim and to defend or control the defense
of any suit based upon such claims. THIS PARAGRAPH SETS FORTH SPC'S
EXCLUSIVE LIABILITY WITH RESPECT TO PATENTS.
14. NUCLEAR INDEMNITY - When the services sold are to be performed on or in
connection with a nuclear facility the Purchaser agrees to indemnify and hold SPC, its
employees and agents, and its suppliers of any tier harmless from any loss, liability or
claim resulting from a nuclear incident (said term is defined in section I I (Q) of the Atomic
Energy Act as amended) occurring at said facilities (or any other facility where the
services may be used) whether or not such incident is due to anyone's fault or negligence
including thefaufior negligence of SPC. This indemnity shall prevail overany otherterms
in any contract or sale of equipment, parts or services.
15. HAZARD COMMUNICATION - Purchaser acknowledges that 29 CFR 1910.1200
entitled Hazard Communication maybe applicable tothe services underthiscontract and
it it is, Purchaser is in compliance therewith. Furthermore, Purchaser agrees it will
provide SPC (whose employees in the performance of this contract may be exposed to
Purchaser's equipment) with the same information Purchaser is required to provide to Its
own employees pursuant to 29 CFR 1910.1200.
Purchaser shall indemnify and hold SPC harmless from any loss, liability or claim
resulting from Purchaser's failure to comply with this clause.
16. LIMITATION OF LIABILITY & INDEMNITY - SPC SHALL NOT IN ANY EVENT OR
UNDER ANY CIRCUMSTANCE WHETHER IN CONTRACT, IN TORT (INCLUDING
NEGLIGENCE) OR UNDER ANYOTHER LEGALTHEORY, BE LIABLE FOR SPECIAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT
LIMITED TO, LOSS OF PROFITS OR REVENUE, LOSS OF USE OF A POWER
SYSTEM, COSTOF CAPITAL, COSTOF PURCHASED OR REPLACEMENT POWER,
FUEL COST DIFFERENTIAL, OR CLAIMS BY PURCHASER FOR DAMAGES OF
PURCHASER'SCUSTOMERS.
THE REMEDIES OF PURCHASER SET FORTH IN THESE STANDARD TERMS ARE
EXCLUSIVE, AND THE SUM TOTAL LIABILITY OF SPC TO PURCHASER WITH
RESPECTTOTHE SERVICES, OR ANYTHING DONE IN CONNECTIONTHEREWITH,
SUCH AS PERFORMANCE OR BREACH THEREOF WHETHER IN CONTRACT, IN
TORT (INCLUDING NEGLIGENCE), UNDER ANY WARRANTY OR OTHERWISE,
® SHALCNOT EXCEED 7AE0@N�81:PR19E. Tu/d(Z )T/NfS THE
E
17. GENERAL - No waiver, alteration or modification of these provisions shall be binding
upon SPC unless made in writing and signed by an authorized representative of SPC.
SPC will comply with all laws applicable to SPC. '
�r yy..eef-0urreI���.t�4RCNA,IL�Q G//Z4 CGtXaGJ�4I�NrG.G.C..Gr7G/S
A�l not
responsible
the
SPC shall not be responsible for the ads and workmanship of the employees,
contractors, subcontractors, or agents of the Purchaser.
Any assignment of this contract or any rights hereunder by the Purchaser without written
consent of SPC shall be void.
Title to the equipment and Its risk of loss shall always remain with the Purchaser
notwithstanding the fact that SPC is performing services pursuant to this contract.
GOVERNING LAW -The interpretation of this contract shall be governed by the laws
of the State of lillm, U.S.A.
Fern114ABE.
20. COMPLETE AGREEMENT -This contract contains the complete agreement between
the parties. All previous and collateral agreements (including letters of intent of purchase
orders issued by the Purchaser), representations, warranty, or conditions not incorporated
in this contract shall not be binding on either party.
PROPRIETARY INFORMATION OF SIEMENS POWER CORPORATION
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21.
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4�VY L,OTE/Vr 13E'FEC'T o,P WaWp-.t /ter Ti/E 4egr' PVT
A1116 ✓ oW"46 ,.w.v.r T-4W.-VEQ ovE.< TO .SAC'.
„f'/pG' =f Fo.PEyoiN� •G�.4•GS/GiTy FO•P I�/7icI.99G TO T,SIEEu�owcQv
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RE •�7CEMENT'G1�T.4E.Ei�►tI ENTG�sT� J�.4�1A O�.eT� O.0
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/NOW^e^OVF/C,Orie O/ .... oo
Contractor shall and does hereby agree to indemnify and hold
harmless the City of Denton from any and all damages, loss, or
liability of any kind whatsoever, by reason of injury to property
or third persons occasioned by any error, omission or negligent act
of Contractor, its officers, agents, employees, invitees, and other
persons for whom it is legally liable, with regard to the
performance of this Agreement, and Contractor will, at its cost and
expense, defend and protect the City of Denton against any and all
such claims and demands.
"This indemnification shall become ineffective 18 months after the date the
Contractor ships the goods or completes the services required bX�the contract
whichever date is later, except that claims made against the Confractor under
this indemnity during that 18 month period shalt be honored pursuant to the
terms of this indemnity clause."
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07/21/95 15:12
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PAGE . 002
** TOTAL PAGE.002 **