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HomeMy WebLinkAbout1981 `f, i ~ 1 • COM'RACT AGRED ENT aid t 8957 , Po 'MIS MYPRACT AGRM- M, made and entered into this 12 day of March .g8. y an--- a CITY OF DeMN, TEXAS, party o t e First Part-~ heilafter called the "Owner and RTE/ASFA Corporation of the Second Part and hereinafter called the "Contractor"s WI NFSSEM: TMT I*IEREAs, the Owner has caused to be prepared, in accordance with law, spec cations, plans and other contract docunents for the work as herein specified; and WHEREAS, the said Contractor has submitted to the Owner a Proposal in acco~an;e with the terms of this Contract Agreement.; and WV OM S, the Owner, in the manner prescribed by law, has determined and ec ared the aforesaid Contractor to be the lowest and best bidder for the said work and has duly awarded to the said Contractor a contract therefor, a copy thereof being paro this Contractor's made named to and sums Agreement; for the attached sum or NOW THEREFORE, in consideration of the compensation to be paid to the ntractor an of the mutual agreements herein contained, the parties to these presents have agreed and hereby agree, the Owner for itself and its or itself, h, hislor or'hemselves, or andts' successors essors t and Contractor his or their administrators, as follows. ARTICLEo1. That the Contractor shall furnish fob, Denton, Texas, substation rams rmer complete as specified and required in accordance with the provisions of the contract &naiments wfLich are attached and made a part hereof, and -shall Owner's execute thisl Contract A inluded in to the and Contractor. official award of ARTICLE II. That the Owner shall pay to the Contractor for the work and mate"" ri rs embraced in this Contract Agreement, and the Contractor will accept as full compensation therefor, the sum for all work covered by and included in the contract awards designated in the foregoing Article I; payment to be made in cash or its equivalent in the manner provided in the specifications attached hereto. ti CA-1 Bid 6 8957 • ARTICLE III_, That time of completion is of the essence of the Contract Agreement, and that the Contractor shall proceed with the specified work and shall conform to the following schedule: (Guaranteed delivery date as shown in proposal data) Last half of March or April 1983. IN WrINESS WHEREOF, the parties hereto have executed this Contract Agreewnt as of the y and year first above written. CITY OF DEMON, TEXAS (SEAL) By 2 test RTE/ASEA CORPORATION (SFAL) • Attest The foregoing Contract Agreement is in correct form according to law and is hereby approved. ----Attorney or er YPROVED e ! ~ 1982 CIT OF DENTON PURCHASING DEPT. I CA-2 N PERF ORMIWCE BOND Bid / 8457 KNOW ALL M BY THESE PRESENTS that we, RTE/ASSN Corporation hereinafter referred to as "Contractor", mid Northwestern National Insurance Company of Milwaukeoi Wisconsin a corporation organized under the laws of the Stato of Wisconsin and authorized to transact business in the State of Texas, "fie T, sand held and firmly bound unto the CITY OF DWON, TEXAS hereinafter referred to as "Owner", in the penal sum of Two Hundred sixty six thousand, four hundred fifteen dollars for the payment of which sum, well and truly to be made to the Owner, we bind ourselves and our heirs, executors, administrators,successors, and assigns, jointly and severally, by these presents: WHEREAS, on the day of 19 the Contractor entered into a written contract with Me (Amer or urnis ~u-i'~'"ig materials, supplies, and equipment not furnished by the Owner, construction tools, equipment, and plant, and the performance of all necessary labor, for , and in connection with the construction of certain improvements described in the attached contract doc+,mdnts; and WHEREAS, it was a condition of the contract award by the Owner that these presents by executed by the Contractor and Surety; NOW THEREFORE, if the Contractor shall in all particulars, well, duly, and faithfully observe, perform, and abide by each and every covenant, condition, and part of the said contract, and the conditions, specifications, drawings, and other contract'docLments thereto attached.or, by reference made a art thereof, according to the true intent and meaning in each case, Jen this obligation shall be null and void; otherwise it shall remain in full force and effect. PROVIDED R9R ER, that if the Contractor shall fail to pay all just claims and demands by, or in behalf of, any employee or other person, or any firm, association, or corporation, for labor performed or materials, supplies, or equipment furnished, used, or consumed by the Contractor or his sub- contractors in the performance of the work, then the Surety will pay the full value of all such claims or demands in any total amount not exceeding the amount of this obligation, together with,interest as provided by law. PB-1 Sid i 8957 • , ~ 7HU U4MRSIGNED SURETY, for value received, hereby agrees that no entensron of timo, change in, addition to, or other modification of the terms of the contract or work to be performed thereunder, or of the specifications or other contract doamient, shall in any way affect its obligation on this bond, and the Surety does hereby waive notice of any such entension of time, change, addition, or modification. IN 77M MJIVY WHEREOF, the Contractor has hereunto sot his hand and the Surety has caused these presents to be executed in its name and its corporate seal to be affixed by it.s attorney-in-fact at DALLAS, TEXAS on this the 21st day of APRIL. 12 . (STAG) By NORTtI'JESTERN NATIONAL INSURAN E COMPANY OF M I W LLWANT) . (SEAL) ( U0. Yt 12,-V ttorney-in- a t By V ate presentative (Accompany this bond with attorney-in.-fact's authority from the Surety Company certi:ied to include the date of the bond.) FS-2 1A u Vg u V1 P g a 8 F L) im uy~ jao.3 0 WGgC 5, Cc 0 LU V_9 o 04 04. % O ~ 44 id E~ A Zvi 11 u _ _ ~W z R g p IS V4 of q On A,,rTwj V~ NCip JOE 1-O U~ ~~pp O ~l YyI {yg~ i~ yy g~ U H a C7O E3 =.Y=3 r~a4d v 7fa7 LL. I U fa ' ; I Be C) 44 : I ll w o " $ ~ -fi R y A eo I s o A ~ - ~ % = ~ VON 0-3 [ 0 .0 w- a aE T 14 1E _ _j y O Y Q g 1.3 13 q ~ y ~ 8 a1 ~ ii~~ ~ r U ° ,o~OI ~ ~°a ~ ~ rAoy, ~U l1 Y IE e a e.'1 A Vl o evl X W O a~ -6 i ro y std $ i ~.S uyM i X' f W UN O W ,,sgw o. o QS W ~'A~' W A8 { 44 0 u> ' a 1 " K% W~ c~c-Q gad $ ~n_ pa= n w! -no w = 01 g~ s~- U. sus o. C) LLJ cc, Zi a ^ •N w S U_ ~U yf~ j s 115 :5 ;1 ja 4116 32 U1.2 Is 04 3CH.2 .2)1 4A C. &j 412 o, d q b AP &j A 13 g N 2i ~8A s~ RTE ASEA RTE•ASEA CORPORATION • 400 SOUTH PRAIRIE AVENUE • WAUKESHA. WISCONSIN 33186 • (414) 547.0121 January 12, 1982 City of Denton, Texas Municipal Building Denton, Texas 76201 Attention: Mr. John J. Marshall - Purchasing Agent Reference: Your Bid No. 8957 - Power Transformer Our Proposal No. L-10288 Gentlemen: Attached is our proposal for your power transformer requirements. We would like to invite your particular attention to some of the unique features offered by RTE/ASEA Corporation: Five Year Power Transformer Warrflnty: This warranty covers our trans- formers fully, c i g a accessories, for a five year period and has h- and-out coverage during the first year. Installation assistance by one of our factory trained field servicemen is required for this coverage. 2. F.O.J. Destination Basis: This standard feature means we accept respon- s ty or gett g t e transformer to you in the condition you expect. 3. ASEA UZD Load Top Changer. Manufactured by RTE/ASEA, this mecha- nism s capable o oVe-r-56 ".00 operations before contact replacement. This is compared to the norms 100,000 operations expected from reactance type load tap changers. 4. Design: The transformers being quoted have been computer designed by t- writer using the specifications you have given to customise each unit for your unique requirements. a~ RTS-ASEA Proposal. No. L-10288 January 12, 1982 Page Two S. Reliability: All of our designs are based on an ASEA short circuit test program which has proceeded for more than 23 years with field experi- ence of 18 years. RTE/ASEA built transformers have been in the field since 1972 with no through-fault failures reported anywhere. Using ASEA designs and processing techniques, we believe we are producing the most reliable transformer available in the world today. RTE/ASEA requests that you evaluate the exclusive features mentioned above and on the back of this proposa . ey are of considerable value and are offered at no additional charge. If you have any questions or would like to meet with us to discuss specific aspects of our proposal, please contact Mr. Bob Korman who can arrange a meeting. Yours truly, RTE/ASEA Corporation S&;~W PNOW." Steven P. Moore Sr. Application Engineer ms Enclosures cc3 R. H. Korman J. W. Kinyo PURCHASING DEPARTMENT t;ty or BID 1NVITATI9N R (,v, a~ton 716 Eon MCx:6 *v ft, f. I Oenton,Tesae 76201 !MY OF DENTON, TEXAS Dote 12/22/81 AcctJW.O. No. BID NUMBER 8957 - ADDENDUM 01 TITLE POWER TRANSFORMER Sealed bid proposals will br received until 2100 p.m. RTE-ASEA Corporation JANUARY 199 198[ ,at the office of the 400 Prairie Ave. Purchasing Agent, Municipal 812d., Denton, Texas 76201 Waukesha, WI 53186 For additional information contact John J. Marshall Ph. 817/566.8311 or 0/FW Metro 817/267-0042. JOHN J, MARSHALL, C.P.M. Purches/ng Agent INSTRUCTIONS TO BIDDERS 1. Sealed bid proposals must be received in duplicate, on this form, prior to opening date and time to be considered. Late proposals will be returned unopened. 2. Bids shall be p'ninly marked so to the bid number, nuns of the bid, and bid opening data on the outside of completely waled envelope, and addressed to the Purchasing Departmenk, City of Denton, 215 E. McK;nney St., Denton, TX. 78201. 3. Any submitted article dovlating from the specifications must be identified and have full descriptive dapi accompanying same, or it will not be considered. 4. All materials are to be quoted FOB Oenton, Texas, delivered to the floor of the warehouse, or as otherwise indicetW. 5. The City of Denton, Texas reserves the right to accept separate items in a bid unless this right is deniad by the bidder. 6. In case of default after bid acceptance, the City of Denton, Texas may at its option hold the occopted bidder or ton- tractor liable for any and all resultant increased cosh as a penalty for such default. 7, The City of Denton reserves the right to reject any and all bids, to waive all informatities, and rewire that submitted bids remain in force for a sixty (601 day period after opening or until award is made; whichever comes first. 8. The quantities shown its approximate and may vary according to the requirements of the City of Denton throughout the contract period. 9. The items are to be priced, each net. (Packaging or shipping quantities will be considered.) 10. The Purchasing Oaportment assumes responsibility for the correctness and clarity of this bid, and all information and/or questions pertaining to this bid shall be directed to the City of Denton Purchasing Agent, 11. Any attempt to slegotiate~or gne information on the contents of this bid with the City of Denton or its roprlsenistives prior to award shall be grounds for di,tqualific4tions. 12. The conditions and terms of this bid will be considered when evaluating for award. 13. The City of Denton Is exempt hom all sales and excite taxes. (Art+Ne 20,C4•8) i ~ ` IOVK~ f BID 8957,,, ~rtfl'o6(0A0.1 -~'~l (t)ip NUMBER d PO$ALS Pag. ? of ITEM STOCK NU1,t8EA DESCRIPTION OUAN. PRICE AMOUt ADDENDUM 0 1 NOTE: Bid duo date of 1/12/82 has been changed to read 1/19182. No other changes. NEW BID DUE DATE OF 1/19/82 at 2:00PM TOTALS r We quote the above f.o.b. Denton, Texas. Shipment an be made In deyy from reaipt of order, Terms net unless otherwise Indlated. 11 In submitting the above bid, the vendor agrees that acceptance of any or all bid items by N/ City of penton, Sexes w+thiA e reasonable period of time constitues a contract. 400 S. Prairie Avenue _ RTE-;%A~~S~~E~~AACJiorrfp~oration aaell(neAeereee / Waukesha, WT 53186 S`Y/t/Z/Y~~ i r city state tie lgneture (414) 547-0121 9r. Application Engineer Tetapaeae Title PROPOSAL City of Denton, Texas Municipal Building Denton, Texas Attention: Mr. John Marshall, Purchasing Agent PROPOSAL FOR POWER TWMFORM BID No. 8951 Gentlemen: The undersigned bidder having read and examined these specifications and associated contract documents for the above desig,-ated equipment does hereby propose to furnish the equipment and provide the service set forth in this Proposal. All prices stated herein are firm and shall not be subject to escalation provided this Proposal is accepted within 60 days. The undersigned hereby declares that the following list states any and all variations from, and exceptions, to, the requirements of the contract documents ar.d that, otherwise it is the intent of the Proposal that the work will be performed in stRct accordance with the contract documents. t. ft-rog•aph GC-24-.- RTE-ASEA's standard 5 year warranty will apply in lieu of all others specifl.ed. Also, the performance bond will cover the- first year only of the five year warranty. 2. Paragraph Gd-29-- Payment of 108 monies withheld will be due and payable not more than 90 days after shipment. 3. Paragraph 1B.9-- RTE-ASEA standard paints and finished will be used but color will be "Denton Green". 4. Paragraph 1C.4-- Approval drawings will be sent 14-16 weeks ARO. 5. Page 2-1 The 65°C rise ratings of the transformer will be 16.8/22.4/28 MVA. i I C-1 J Bid / 8937 The undersi ted bidder hereby proposes to furnish the one (1) Power Transformer cdMltte fob, Denton, Texas, in accordance with these specifications and associated contract documents listed in GENERAL MITIONS, Article X-1, for the firm lump sum price of ` Three hundred thirty two thousand two hundred twenty dollars. rice in Words) The undersigned hereby declares that only the poisons or firms interested in the Proposal as principal or principals arc naiad heroin, and that no other persons or firms that heroin mentioned have any interest in this Proposal or in the Contract Agreement to be entered into; that this Proposal is made without connection with any other person;' company, or parties likewise submittini a bid or proposal; and that it is ir: all respects for.and in good fath, without collusion or fraud. If this proposal is accepted, the undersigned bidder agrees to submit drawings ,;Ulu engineering data in accordance with Section 1C and to complete delivery of equiprr.nt and materials in accordance) with the shipping schedule Tho undersigned fully understmuds that the time of drawings 'and data submittal and equipment and nraterials delivory is of the essence. Dated at Waukesha, Wisconsin this 1r 12 day of 2482 Bidder RTE-ASEA Corporation BY_~ s o/ Steven P. Moore Title` $r. Appli.ati Engineer Attest; / r::: . C c ~-i7 C ice/ .1 Business Address of Bidder 40400`S.__Prairie Avenue- Waukeiha, Wisconsin 53186 State of Incorporation Wisconsin Address .f principal Ofiico Same as above r,.2 Bid 18957 PROPOSAL DATA 1.0 ORAL. The following information on the proposed equipment and materiaM s-M l be submitted with the Proposal: A complete description of all proposed equipment 2.0 SPARE PARTS. Bidders shall submit a list of recommended spare parts which the Nner s ould stock for normal maintenance purposes. The spare parts list shall be organized in the following format: Item No. required Unit price 3.0 PINT DATA. The information required on the following pages is to assist the Owner in evaluation the Proposal. The data listed herein shall not relieve the Contractor of his responsibility for meeting the requirements of the detailed specifications.. Note: Trite entries boldly with black ink or type entries using carbon black ribbon. 1 I D-1 Bid / 8957 RTE-ASEA Cor oration z er s ame Section 2A - Power Transformer Class Substation Gallons of oil 7000 Gallons of oil shipped separately, 200 gal. Total shipping weight, lb 135000 Total weight of assembled transformer including oil, lb 144500 _ Weight of tank and fittings, lb 32000' Weight of oil, lb 52500 Weight of largest piece for handling during erection, lb 135000 Will transformer be shipped completely assembled No If not, what parts will require field assembly W Bushings, radiators, arresters • Fans Prz VS Total Power requirements of cooling equipment at 1001 rated load, kw . 1.25 0 1.25 Maximmam calculated sound level, • te 6S C FOA or FA load, 75 0 75 9c b lels Approximate dimensions Height, inches 228 Width, inches 157 _ Depth, inches 172 Unit Price for each additional identical Power Transformer. $332,220.00 Last date an identical Power , Transformer unit could bo cancelled if ordered without. 6 months prior to shipment penalty, I Price deletion to omit the Not included in price short circuit tests, G price adder is $53,000.00 . D•2 Bid 0 8957 RTE-ASEA C or ion • i r s Name). Total loss at SS C OA rating, kw 64.5 Total loss at 7S% rat;_.: C OA load, lu 44.8 No load loss at '1101 rated voltage, kw 27.6 100% rated voltage, W 19.5 901 rated voltage, ] w _ 15.0 Guaranteed efficiency at SS C OA . rating 100% rated load, 1 99.57 7S% rated load, % 99.60 50% rated load, % 99.59 1 2S% rated load, % 99.41 Exciting current in 1 of full SS C OA rated load current at 1101 rated voltage 0.96 100% rated voltage 0.38 90% rated voltage 0.-20 Iapedance of winding at nameplate. SS C OA rating, % 7.0 Voltage regulation at 1001 SS C OA rating 1001 power factor, 1 0.54 80% lagging power factor, % . 4.59 80% leading poorer factor, % . High voltage bushing Wnufacturer and type OB or G.E. - Type TBI Guaranteed date of delivery Last half March or April 1983 . D-3 CUSTOMER PROPOSAL PROCOSALNo L-10288 OWYATIONIOR City of Denton, Texas DATE 1/11/82 ATTENTION: Mr. John J. Marshall _ NOwArnE,wu+u 8957 ITEM MANt DESCII I~TiON NET "Oct EACH No AND SNIOM ENT 1 1 Transformer, 15/20/25 MVA, OA/FA/FA, three phase, 60 Hz., 55/65°C rise, 138000 volts delta to 13200 volts wye with high voltage do-energized taps, low voltage load tap changing and acces- sories in accordance with your specifications (with exceptions listed below), ANSI and NEMA standards. This transformer has been designed with continuous disc type HV windings, helical type LV windings and a separate regulating winding to fully distribute ampere turns for the loa4 tap changer. All windings will be copper. The following options are offered for considera- tion by the City of Denton. 1. If the City of Denton will accept shipment in December 1982, deduct . . . . . . . . . . $ 13,685.00 2. If the City of Denton will accept ANSI #70 Sky Gray or ANSI 145 Berkshire Green paint coi.or, deduct . . . . . . . . . . . . . . . $ 71500.00 3. If the price is subject to the attached Material Pass-Through Price Adjustment Clause, deduct . . . . . . . . . . . . . . . $ 28,800.00 4. The quoted base price includes 5% sales tax. If this does not apply, deduct $ 154820.00 Recommended Spare Parts: 1. HV Bushing . $ 2,372.00 2. LV Bushing . . . . . . . . . . $ 466.00 3. Set of gaskets . . . . , a . $ 200.00 TIt1a ~rogoN: wlil Nmaln In aHacl loT 60 CayE unless sy: - S tv_ " Pt/ W ~ cimnlad in tme Inlarim by wrlnEn noucE. teven P. Moore Sr. Application Engineer CUSTOMER PROPOSAL vnooosALNo. L-102 88 ouoTATONror+ City of Denton, Texas CATE 1/11/82 ATTENMN Mr. John J. Marshall ;NOUIPYAMPENCE 8957 4T[M OUANL N!T VNCe tACM NO O(SCRIOTPON iwr SMIIMfNT The above transformer is quoted with the RTE-ASEA Five Yc ar Warranty. The quoted price includes our field serviceman for supervision of the installation for one day. To qualify for the RTE-ASEA Five Year Warranty, an RTE-ASEA serviceman Must be present at the time the transformer is dressed out. The above quoted transformer will be shipped oil'i:illed by rail, F.O.B. rail siding nearest j specified destination. Approval drawings will be sent 14-16 weeks ARID and final drawings and instruction books will be sent before shipment. OPTIONAL PRICE ADJUSTMENT POLICY: The price quoted is subjl:ct to the RTE-ASEA Material Pass;-Through Price Adjustment Policy. rlease note that fir the purpose of evaluation, approximately 60 percent of the price is firm and only materials (approximately 40 percent of the price) are subject to adjustment. All materials, including oil, are in the price at current costs. The price shall be adjusted only by the increase or decrease in material costs RTE-ASEA incurs on each transformer. The material cost will be determined from actual material invoices and contracted price lists. These costs will be used to extend the material cost for each design at the month of quotation and two months prior to scheduled shipment. (If oil is not to be shipped in the transformer, the escalated ,~/1 This proposal will remain In effect for 60 days unleu By.. S / , ' changed In the Interim by written notice. eve n F. Moore Sr. Application Engineer c CUSTOMER PROPOSAL PAwO+AL NO. L-10288 City of Denton, Texas OATS 1/11/82 QUOTATION fOR. ATTENTION. Mr. John J. Mars bat 1 ,NOUIRVPErtACNCE 8957 ITEA1 NET PRICE EACH NO WANT OE SCRIiTION ANO aNIOMENT Oil cost will be based on our costs at the time the oil is shipped.) The difference between these cost extensions is the price adjustment. The accounting procedures and records relating to the determination of price a0ijustments will be subject to audit by our Independent accoun- tants who will report to RTE-ASEA the results of their review. A copy of this report will be forwarded with each invoice. For the quoted shipment of March 1983, RTE-ASEA estimates the escalation will be approximately 2.2% of the quoted price. This is an eatim,3te only and not a guarantee. This estimate is based on shipments currently being invoiced per RTE-ASEA's Material Pass-Through Policy and a projection of current trends into the covered time period. Please review the attached infor- mation, which covers a complete history of Material Pass-Through. Performance specifications, outline drawing, Five Year Warranty, Cancellation and Delay Policy, Short-Circuit Test List, Resolution of Board of Directors, and product information are enclosed with this proposal. This propose will remain in at}act IN 60 days unlaa 8y:. I changed lnthe mtHimby wrttannotice. gr Steven F, Moongineer RTE ASEA Performance Specification FOR City of Denton, TX Proposal No. _ L-10288 Date 1/12/82 Inquiry No. 8957 spec. No. Item No. 1 RATING Class H Winding X Winding V Winding Phase 138 Kv 1 Kv Kv Hertz 60 OA 15 Mve 15 Mva Mvs Tamp. Rise 55/65 'C 20 Mva 20 Mva Mvs FA 25/28 Mva 25/28 Mva Mva ADOITIONAL TAP VOLTAGES H Winding XWinding i 10% LTC in 16 t 5/8% steps - R.C. BASIC IMPULSE LEVEL P FORMANCE DATA LOADING E VOLTS e H Line 550 Kv H Winding v My ) 7 at v H Neutral Xv X Winding 13 - 2Y xv 15 Mva H Y a Mva X Line 110 Kv Y Winding Kv Mva t v at Mve X Neutral 110 Kv Y Line PERCENT REGULATION Auxiliary Sound Level 100% PF 80%PF Transformer MVA Class Watts d b 0.54 1 4.59 1 15 OA 0 72 Percent Exciting Current 20 FA 750 74 100% v 25 1250 75 0.5 LOSSES EFFICIENCIES Excitation No Load Load Total Load % t00% V 19,500 Watts Werra watts 1/4 99. 461 110% V Watts Watts Watts 1 /2 99, C;q 3/4 99, r'n Full 99. APPROXIMATE DIMENSIONS AND WEIGHTS Not for construction purposes) Dimensions in Inches Net Weight in Pounds Outline Ow g. No. 993550T0001 Core and Calls 60000 Height Overall A 228 Tank and Flttin s 32000 Hai ht Over Cover a 174 Oil (3ais.) 52500 Width C 157 Total Weight 144500 Depth 0 172 o ' D r I 1 n s, u, Y V • ` J r ry ✓ V INJ 1 1' I V a N C g i 4 ry , o EO w f_ • • N N p f J ' or J V p 40 I I1} u IYi - ~ M 'f • " i N -p ~a I 1 ~ V ~¢f~ ~ gym- 1I D f p 'J J V T JI f y y J O V f f y p V• V N f r y N f N S n n . i N a• i w _ in ii • • ^ ? : S i 14 ID7 4 ~S ~ a ~ r' a r, B ~ ~ ~ ~ S ~ i " RESOLUTION OF THE BOARD OF DIRECTORS OF RTE-ASEA RESOLVED: Under Authority of Section i of Article V of the By-laws that: 1. Contracts A. Employment No contract of employment, for more than month to month may be entered except on the signature of two officers, one of whom must be the president. Consulting contracts are purchases, not employment. Each officer is authorized to employ personnel under his management and may deputize an employee or employees under his management with power to employ. B. Future Contracts Any two officers, one of whom must be the president, are authorized to execute copper futures contracts not In excess of deliveries which together with firm commitments will cover budgeted sales In the next 15 months, Other futures contracts must Fa authorized by the Board of Directors. C. Thirty Day Cancellation; CoMracts_Beyond One Year All commitments except product sales and quotations, purchases of production materials and commitments approved by the Board of Directors must be terminabl,t on 30 days notice unless otherwise authorized by two officers, one of whom must be the president or an officer deputized by him In each case. For example, scrap sales. Any commitment f,ir more than one year may be made (other than one authorized by the Board of Directors) only on the signature of two officers one of whom must be the president or an officer deputized by him In each case. 11. Purchases L Sales Product Sales and Quotations No commitment for product sale for more than $2 million Is authorized except on slgn.;ure of the president. He may deputize the marketing manager in a particular case or as to commitments under $2 million on the signature of the president or the marketing manager, either of whom Tray designate other marketing personnel at a management level to authorize product sales or quotations up to $1 million, Where the expression "in a particular case" Is used the deputizing may be oral but will be followed up by a written confirmation. fll. Claims, Filings, Warranties, Losses No compromise of any personal Injury or liability claim against the corporation or governmental filings such as EPA, OSHA, Worker's Compensation may be made without reference to legal counsel maintained by the corporation except adjustments to product sale or materials purchase contracts which are within the scope of the authority to contract. No new warranties or changes in warranties may be made without reference to legal counsel maintained by the company. All warning decals or the advisabi'''y of such are to be cleared by the legal counsel maintained by the corporation. All losses or events that may involve coverage by insurance are reportable immediately to the Secretary-Treasurer except routine cargo damage which is reportable to the corporate traffic manager. CANCELLATION AND/OR DELAY POLICY Pagel of 1. Cancellation of an order will be accepted after the purchaser has given written notice. If the cancellation occurs during the period from date of order to six months prior to scheduled shipment, the cancellation charges will be the actual engineering design time performed at a rate of $50.00 per hour, plus 30% of selling price. 2. Cancellation charge during the period from six months prior to scheduled shipment to date of scheduled shipment will be 100% of the selling price. 3. Delays will be considered the same as cancellations If market conditions prohibit filling vacated production space. 4. if, when a delay is requested, the vacated production space can be filled, charges for the delay during the period from date of order to six months prior to scheduled shipment will amount to 6% of the selling price. This 6% will be treated as an advance payment and will be invoiced on the original scheduled shipping date. 6. Charges for delays requested during the period from six months prior to scheduled shipment to date of scheduled shipment will not exceed 100% of the selling price. 6. If a delay changes the calendar year of scheduled shipment, a mutually agreed upon adjustment to the base price may be necessary. j RTE-ASEA'S APPROACH TO PRICE ADJUSTMENT Page 1 of 2 EXPLANATION OF RTE•ASEAS APPROACH TO PRICE ADJUSTMENT Introduction: Escalation standards can be based on government indices, labor contracts, price lists or a company's own incurred costs. To implement escalation, a base price must be established from which to increase or decrease. This point tends to confuse evaluations of escalations because different suppliers may have different base periods !or their prices. It is important to check the base periods of escalation when comparing prices. The RTE•ASEA Answer: RTE•ASEA has evaluated varlous forms of price escalation, including maximum fixed escalation, Bureau of Labor Statistics (BLS-using material and labor Indices), and the committing to a firm price based on various cost estimates on the part of this firm. Our conclusion is that none of these methods are fair in the long run to either the customer or the supplier. In the case of firm fixed escaletiona, if the material and labor increases do not go as high as anticipated by the supplier, then the customer is paying a higher than fair price. If the escalation goes above this maximum escalated price, then the manufacturer is suffering. In the txse of Bureau of Labor Statistics, the composition of the Indies does not relate to a power transformer supplier's actual material prices; especially if he is unable to obtain materials from his primary source because of allocation reductions. In that case, the supplier is paying a premium In order to supply the purchaser his Uansformer without the purchaser assuming any of these Increased costs beyond the manufacturer's control. The escalator does protect our customers from RTE•ASEA buying the highest priced materials in the market and passing them through unfairly. If RTE-ASEA Corporation allows material costs to increase dramatically without any control, then our subsequent bid prices would either be too high or ovr profit margins would be too low. Since the material costs will pass through from the time of quotation to the time of shipment, it is important for RTE•ASEA Corporation to obtain materials at the lowest price possible In order to keep competitive. There Is no guarantee for any specific customer, but the need for subsequent RTE•ASEA orders will keep the price paid for materials low. If the supplier is able to purchase materials at a discount from list, then the purchaser is paying unwarranted escalation. Also, the Bureau of Labor Statistics moves rather slowly and material prices are swinging rather rapidly, so that during any one given month, either the supplier or purchaser will not be treated fairly. Establishing a fixed price that anticipates these cost Ifvessas has the same problems as a maximum fixed escalator. In quoting a fixed price, %he manufacturer will quote a sale price which incorporates the expected s%aletion index f,t the period to be covered. In short, a fixed price bid may be the Wl;liest prise or higher than necessary. RTE=ASEA'S APPROACH TO PRICE ADJUSTMENT Page 2 of 2 RTE-ASEA feels that the fair way to escalate is to pass through our price increases or decreases on the materials that we purchase. We call this material only pass-thru price adjustment. However, on a customer's insistance, we will quote BLS or firm price. It Is to our customer's advantage to become familiar with the RTE-ASEA material pass-thru escalation, as it could be a significant cost savings to a purchaser. We wish to note, that in every case to date, the RTE•ASEA material pass-thru escalation has always been less than the BLS escalation used by other transformer manufacturers. Why Does Material Pass•rhru Favor the Customer? We feel we are able to control our labor cost and overhead cost withio our estimates. We are not, however, able to control material costs because the pricing of our vendors is beyond our control In most cases. Therefore, we have established the following policy: The price shall be adjusted only by the increase or decrease In material costs A T E•ASEA incurs on each transformer. The material cost will be determined from actual material Invoices and contracted price lists. These costs will be used to extend the material cost for each design at the month of quotation and two months prior to scheduled shipment. Tha difference between these cost extensions is the price adjustment. The accounting procedures and records relating to the determination of price adjustments will be subject to audit t / Independent account. ants who will report to RTE-ASEA as to the results of their review. A copy of this report will be forwarded with each Invoice. The RTE•ASEA escalation policy eliminates the need for argumentative discussion on the procedures used to exalate the selling price. When first reading ou- escalation policy, It is difficult to comprehend there Is no item which will discriminate either against the customer of the supplier. We will pass through our price variations on materials both up and down. There Is substantial documentation showing RTE-ASEA refunding money to its customers, due to negative price fluctuations. TERMS AND CONDITIONS Page 1 of 1 1 ' ATI ASEA worm to Ne Origimai purth Wf Nat the COAlO1,18 trlnlfor, 10 1 lion will infcmation and erl,lraMcl far the Ol of such claim, Md /ether with all part imclud4d in the prig,nal punlaw, it trio aI do lost 'A wxkmyn RTE ASIA COfposas,on shalt pay all damages and Cost award". but this in. ship lid moil and if designed to ora,d long Icomal life baud on the demmry Nall not o.t0m0 to ny infring ro l posed on a corral of much e mrrlanus of boon Mtuflomer and ATE ASIA, ism or any part or pares Thleam with Other epulpment mot tu,mthd by ATE. ASIA Ccpontes wiles RTI ASIA Corpagtiod is a cona.bulory infr,egee, Cr.r earl atMd it, ore year trpnl the dies of wilral It destimat,M loom NI 'It ^SEA Corpaanon shall not a ruo, blf fa am walmal made wish0ul r,. _ry and Caen any defect and moNnttionl of the te6mslolmar orcpf Time its welnsn consent If ATE: SEA C,wpara0on shall rhdke 1 senl/mMt robe wel ruvsd Cy vandalism improper mstalial,oe, mamlonenn, mromee furnished ad much that the Continuod use of muoss dim t lammatd, RTE ASIA Cordiantion malsoall of 000tenon. Noll at it polities and frpemla silver pool for this buyer the not IQ Continue Use ar notice such tam wish a Man ;nfrin9,nl often Or manly, {,1C J1 item 10 bf Ginnie hill period, tranuoratiol ma l and winits tenon cost are excluded learn man ,Mhinpinl W refri Such Ism and refund tie purchase price, trantool laternry, In so acne, RTE ASIA small Most be liable lose special, ,indirect, of coo- 04 mlttelulipn Carl The }arbor[ little tha entire liability Of RTk ASIA Corp. Ieavercial dar ign. THIS WARRANTY It IN LIEU OF ALL WARRANTIES OF cation with repel to permit i tringamMt MERCHANTASIUTY, FITNESS FOR PURPOSE, OR OTHER WARRANTIES OF OUALITY. EXPRESS OR IMPLIED; THIS REME0f11 OF THE CUSTOMER To the eltent sul 'ism Or part s lxrpplid Ktadins to bryer'tdewied deign or HEAEIN PAOVIOED AS TO QUALITY FULfiLL ALL LIA%JLiTiq OF Aft. insteuetioned of nsod,hd c combined by buyer .'rh Door Icii sunset lwM. NIA wMther in warrnry,eonrxt nep,garce, c ooerwiw. d by ATE-ASEA CORPORATION 1wipp1 to tow fi l AT[ ASIA C ,0wil,on h a Iostrill infun r1. of is used by Dora in a rol WMdla cosy w oat Owsion on ten method ted exert at rpairl to be mane inn solely with Ill h brought blest rTl ASIA Cwpcahon, buyer pay to imdmnily FITE• ATE ASIA. ASIA Corporation in the Items manner Md ertenl a ATE ASkA Corporation Ufueal otmar agred. Aft ASIA win In,p the Irenafamer Ill I0a Manna agnet to indemnify buyer in the 9rKMng perpian, lion other nearest rill tiding Weil by MtOmar Or N MOO n ate SP#Crfid IUYIR AGAEES THERE la NO WARRANTY OR LIAIILITYOF SELLIA FOR be customer oraided ma unusual Nrmmllaxet unknown to RTE ASEA occur ANY IN/AI146EMINC CLAIM IXIPT At NtAIIN SIT FORTH. (uch N no asatinl raadl. Woo labla C"t,M6, wsreme gldrl. Svdl ah,pm Ml Foe antination, stows RTt ASIA dire•Ov to process any possibly harNn clamor It- The COmItNCt,M Ma. PWfWMVKI Of 11111 Conlrlct ark the right lid remedies dumL Q61011141' pin to iMMI IrMelxrrer w1Nm 77 boon at srrtral of del of the parties hereto small be laernad by the cwt oil Me flame Of Wisconsin, nnotion and to advise All ASIA and ths earlier Of any obtar11df damp" or irroduf4i pursuers td AKaiving Imtrusil mil by ATE ASIA at did time of IL Limblitin lid inamnlier. thin nML Any detenl,on charge by Carrier vo customers fnOMLblity. a Unless 0140rseiw armed in o l by 1 duty su NOriad lproynnli,re of Art ASIA CarOvettorl, product aotd neraunMr w nor ntandod far use AdIsol shipment h 101 dntulatidn a abOre, rile at ION put to loci or God shall in COnMCUOn wAth Noy nuclear feceliry ar Ictiyify, If so used, lid are PM to uslomer 11 time at it delivery to call maryar damage, ifMury a tiarrammat,an occur, ATE-ASIA Corpxltion aoclalml all liability as airy kind ter evil that indrmrfty Aft ASIA 1. The WCa tool be adluttd only by ten inunu at decrease n material Costs Corporation h0m any Sects habliry ncludinl ATE ASIA Corpcaf,on's Aft ASIA incur on eaao bamfarmor. The material cat will a asrmmd lions nooipfto scfwl material imam and ConnKlld price lion Tense Cat win be used to w itsid thomect ial Colt No a" desiams at the MOMM 01 Quotation and two months 1) In me aenl, wMNer N I rny11 Df pryydl al Tonle all, aff,6 N. Ion prix to sdhedutd Ih,pMML The x rIMCS belwmn thaw Cat 1alenNons is the (imcltiary npigMUl x oNlewiN, shall ATI ASIA Corpcu,on a pil adjustment to /upplarl be liable far any eanwpulntial, Incidental of exemplify The mccountlnl pocedsif s end sepal relatin to Ill denrm,habM of twice d• dampM mtludml but mat Ifm,ld is, lea N Plohl of ratewee, loll to be t sew qt the poducn of Mr atya'uld douipment, etenpl to Outclassed ju will sueleel to audit but rsdolve f Cho who will report 1all,pment cat of Capital , tell If substitute Produces. facilities, Ilnica to AT$ Tl dtlA a to thI rowan at of their resiew , A A Coov OpY o of dais rporl x111 W tor rlolaclmnt pOAtt, desert timl doll of claims of ouyar'1 Customers for forwarded with goo invoke. wco darslalM r buyM Vnalare o94 10 OW Iona M ppdrebl sold sial J. Ur,1ea edleMiY IplCi fieO, terms OI plymMl be Aft 10 Oay1 barn Oel1 of umdw to lorry third parry, buyle Nn swee n from still sti party a Rea Vision affording Aft ASIA CorparlttdM and it upcol M evolution nipmenl TTNe twill be a IK; eharp per motth of the total rman pies bodies of the "Odin) Nntlesco, nine 16 days Our Ind data of the ,man, but 'M amount shall not be in widows of the applicable wive u{rate. C, Except a plaid on the arneil nhtld "►swmb°, ATI ASIA COrpe a• non's liability on pry elalm of My kind IafCludial ragigteCd tar mfr 1 AN nlurm are subject to return outhorllw on lid mltruefws by home of ION of damage All Out 01, Or Passeltlnl Iran Ni{ agnfma 1, c ffens ies before nom dlipmMl it mad, perfurmence of Dr1Kh, be Nom tie pradvcts of YrriCM 1wmlohe here. under, Mall In n0 tatf aped Na all of the 1Gedfa peppgt me lanai l hies i1 without Was, Yw, 11Ciw of O',Sr Taal far when buyer Ntumft wn'chl"al to lie Ulrm liability wheraer p0litablf to Me context d. If AT[ ASIA Corporation turmoil t.yw with ldRd or any esanealxe L This W WWI falleces al privipa w,mn nd/x pal Ilndlr106641,0491 and n which Comtarm My peode l Iuabl d hNUndN p ny boa. ryttorn me ubjeCT toCxni for Clarke! Orion, duamnt in yrhiall My such podv" may to unfold ane which is nor rpuind pursuant to the a0reeel the suMiallwll of *At duct be 1 It in the fudldrol at ATI ASIA CO1pOrNlon, fimani comaGbOM of buyer au+ttace will not lugyct AT[ ASIA Corporation tear fiat li ry, at nytime MCCnd ow wro, till pQVTMI M can oonre th,pmfnl Ally be whfthN in Contra". wanner, tort l,ndoconl fag,P ACOI at olhersol Sumsesdd M ATE ASIA Ccpo lnM and stoppage in Irnti1 n umawy 1ol IM, Title end riltil to pONnuon of any matMal heraurow ramUnt m ATI ASIA a lover pin to indmmfy Ail ASIA COrpcelion for any aM ate M. Co,onltion lid reman{ personal blowsy until full Plymrsnt a mod Norl Mnea arum/ out of Informal or damps 00 ny 01 Na IVrer's en pOlim ,aml kedm N note Man not conatibN payment. Buyer agrees to do all Kb el wuIo on Md/ar near the promise of All ASIA Caroeman however Warr to aIobltsl lid maintain SuM riot end title in AT[ ASIA Corporation ludm mfuner or death may be fa l and fstho agrNe to ussfaml unta full too PhmMl it Tad, ATI "ASIA Corporation for troy too, damage, injury. or col gumd by buys i he9i,g,np while RTE ASIA td abort dDerfdrmil l @my wn,co T, All $WtlmoMta We Wbutt to ►nae0r11 Iryhoml office - WIL411114, WIK0161M, on Mdlc MN avyel'l Offmi/el. 1, ATE ASIA Carpasnon Nall nit bf liable far d'ay in pNicife f doll t the ,aalidtty, ,n whole c M sal, of any 01 me fcrpoml pwpaphl from rim, floods, attAlfemt, hats, gorwomonlR nnrfNenC a. 11,461. NWts" 41 will hot flow of menthol of ucfl aaralreah as all other parpap in ' Iabse, rem 1, mipmnt, meal, pnloarnr,on, Of any nnm tail blyald its Nil wool conVa, t Aft ASIA CorparanM may elect to coat performaeCl of this remit if 11 Conseil` Any pducn daov fd by Ills RTI ASIA Composition some be pd. a9r decd n CWMO;nco with 00 Pall Labe Standards Acs of 1971, is armendad and mill AlEA barer Corp it at tiny y and Rlime vI Weill TC ASIA similar t1l a x My other aysemnt O Lf l t• 10alCedl fears, Het end !peal loon lid roguimlionl a of the daft of My duals. isrsh payment to auM im Owl Ot on addilnan ASIA to Corporation she arpercallon a shall be ASIAA IQ o c Mont *RKA related to III monsegr owed fec.14'" all eoual ormpioyment 6000f. y isms, nmd:n AT[ [ ASIA Cp ppramOm tumty (including Me win oardermal 10MNn a No. 207 of IrKi tree Order men AFa 11214, N ImMdd1, fill w0ssifo / camplrsess ,lid lihl the Waducs,on in ATt ASIA Carpar 10on7 minufNlurng fKintia of Advil fur mined M•nrnder 10. Aft ASIA Corpcatlon small it its Own ol of 0 Umefemnd e treln po any jua foCNO PFCC and, i1 MOCMWV, cWivlfy, will M Iaftt&VV alRurtd loo carobvil Aft imp cloves poop will for eded InNin/ermw , ntutu ue O llnl ASIA Corle atlm fa the cast of conptamca with arty ethar law of eelulat,on, to the use of surnamed hareurdn, in nt ooil of ewipmans ww of f m the e burr's 1ul,fyw aM in the ImtndN purpose Remitted leech earn it mN,piatllyd N Thl dele/ebM p aalgnmMf by brYar N My M fill of Ism ossified a too herb didl a bRTI ASIA Casenllen, All Cakdled ar ASIA n/ naps avpOp move her „Adif willsout RTI ASIA CwM~'t So lw "Mosih ton1M1 010 be rile urp a au,l.d IHIi ln M /o/a id bnM hN Tad of NyAlMO then move In wheat " All ASIA C*owow it oven seal written nanC1 of eny claim aril u o r ° L u c tt1 N O Cp ax N i O N R - 41 .16 61 N V U LI ~g R Y1 E 6! r r r " U i'7 L N O d Vr EDA O L• ."ai v 41a c xv,4+o M 4 vs 94.. 0 C a- 3 4f $ ' 9 0%- 4 O C u V O 41 'a L d '1O'. 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