1995-150 ORDINANCE NO.
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
construction of 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.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
HERBERT L. PROUTY, CITY ATTORNEY
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.
SU~RY: 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, D]~PARTMENTS 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 instaliation. 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
]st 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.
LlovPeltfully submitted:
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 15 day of
AUGUST A.D., 19 95 , by and between
cITY OF DENTON
of the County of DENTON and State of Texas, acting
through LLOYD V.
thereunto duly authorized so to do, hereinafter termed "OWNER,', and
SIEMENS POWER CORPORATION
1040 SOD'£H 70TH STREET
MILWAUKEE, WI 53214
of the City of MILWADK~E , 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 # 1781 -~ORBINEGENERA~OR INSPE ION
in the amount of $398.822.00 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
RLRCTRIC 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 ~s 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 ~EREOF, the parties of these presents have
executed this agreement in the year and day first above written. .
ATTEST:
ATTEST:
SIEMENS POWER CORPORATION
CONTRACTOR
1040 S. 70th SS,
MilwaUkee WI 53214/
M_AILING ADDRESS
414/475-2298
PHONE NUMBER
414/475-2173
FAX NUMBER
TITLE Vice-President Turbine Services
Pritam Bhavnani
PRINTED NAME
APPROVED AS TO : (SEAL)
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 Iow 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 b, een completed
and accepted by the City of Denton, Owner, the minimum insurance 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 material until he or she receives notification
that the contract has been accepted, approved, and signed by the City of Denton.
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
· 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(K)IJA 1
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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REVISED 10112194
Insurance Requirements
Page 3
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:
[ ] 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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REVISED 10112194
Insurance Requirements
Page 4
[ ×] Automobile Liability Insurance:
Contractor shall provide Commercial Automobile Liability insurance with
Combined Single Limits (CSL) of not less than -g00~000.00 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.
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 110.110 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
AFF001]A 1
REVISED 10/12/94
Insurance Requirements
Page 5
"occurrence" basis, and the policy shall be issued by the same insurance
company that carries the contractor's liability insurance. Policy limits will be
at least combined bodily injury and property damage per
occurrence with a aggregate.
[ ] Fire Damage Legal Liability Insurance
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.
[ ] 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.
[ ] Builders' Risk Insurance
Builders' Risk Insurance, on an Ali-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.
[ ] 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.
AFFOOBAI
REVISED 10112194
insurance Requirements
Page 6
ATTACHMENT I
[×] 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 begin~ng of the work
on the project until the contractor's/person's work on the p~oject 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 401.011(44) for all employees of the contractor providing services
on the project, for the duration of the project.
A FF00B A I
REVISED 10112194
Insurance Requirements
Page 7
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.,__________________~ervices 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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REVISED 10/12194
Insurance Requirements
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I. 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 401.011 (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
AFFOOBA I
REVISED 10/12/94
'Insurance Requirements
Page 9
(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 isa 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.
A FFOOBA I
REVISED 10112/94
1781 BID PROPOSALS Pas, z
ITEM O~.~C~l IFTION QUAN. PRICE AMOUNT
B.1 TECHNICAL SERVICE FEES
A. Cost per five day week for the seven week' outage 7 $6040.00 $42,280.(
duration
B. Cost per sixth day if additional' I $1350.00 $1350.00
C. Cost per day beyond seventh week if additional i $Schedulc$ B~
D. Cost for report 'and documentation if additional 1 $2090.00 $2000____.0~0
B.2 RETAINING RINGS
A. Cost per set of rings and installation material 1 $110500. ~ 110500 )(
B Cost per set of rings to remove and install 1 $26000.0($ 26000.1
B.3 FIRST STAGE'NOZZLB
A, Cost per nozzle assembly and installation material 1 $ $
B, Cost to remove and install nozzle assembly 1- 38.851.00 $ 8851.0,
B.4 GENERATOR TESTS (ADDENDUM ~1)
A. Cost per OEM equivalent ggnerator tests 1 $,8800.0C$ 8800.0
C.1 PRICING ALTERNATIVE - Furnish pricing applicable
'~% packaged supply of:
A! Technical Service See Schedule B "Alternative Pricil,g" 1 $ ,,, $.,
B Retaining Rings .furnished and installed 1 $
C 1st Stage Ndzzle furnished and installed 1 $ $
D. Generator Testing 1 $,
SUBMITT.ALS MUST 'ACCONI~,ANY.:THIS BID PER SECTION' .I.¥-~ %~., T~d 6-
'PLI,ASE USE THIS ADDENDUM #1 FORM TO SUBMIT YOUR BID PRO[ 'OSAL
TOTAl5
W~ quo~l the .bore f.o.b.O.nto~. T~__~_~_: Shipmlnt c~n bi midi i~ , ~? dlyI from receipt of or4lr. Term!
unle# othefwIII indlclted.
In submitting the above bid, the vendor Nlre~ thlt io:e~lnCe of any m' ell bid iterm by the City of Demon, Tax. within
re.,,'.fleble period of time constitues e
1040 S. 70th Street Siemens Power Corporation
Milwaukee, WI 53214
414/475-2298 Project Engineer
TM~MI~
Schedule B
Exceptions and Clarifications
Techni(;~,l Service F~(~S
The technical service fee for work pedormed 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 StaQe Nozzle Assembly
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 opfi~3ns can be
supplied upon request.
R~tainino Rings
The work requested for the generator rotor and retaining rings has been priced to be
pedormed 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 Testino
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 pedorm 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.
Pricina Alternative
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.
~s Power Corporation takes exception to the "General Conditions of the
and '1he Special Conditions" referenced on the Contract
At this time, we are not aware of what is include
conditions. The ; true for the statement on
the bottom of , are not aware ¢
Siemens Power Corporation ~g changes to the
Indemnification section of the Contract Form.
Delete "Property ,rsons" and their
property".
. indemnification shall become ineffective 18 'the date the
ps the goods or completes the services
whichever date is later, except that claims made against the
this indemnity during that 18 month period shall be honored pursuant to the
Siemens Power Corporation
Turbine Services
66th and Greenfield Avenue
West AJlis Wl 53214
Fax: (414) 475- 34.G.I
Phone: (414) 475- ...~.5'~.5
DATE: ~~//9.~"" Number of pages including cover: (~
Siemens Power Corporation
Siemens Power Corporation
Installation, Parts & Service Departments
/~'e" Standard Terms for Parts and Equipment Service, s
I. 3NDITIONS OF SALE - Unless otherwise agreed to in wdting by an authedzed 12. STORAGE - Any equipment on which manufacture or shipment is delayed by causes
representative of Siemens Power Corporation (herein referred to as SPC), these Standard within Purchaser's control, or by causes which affect Pumhaser's ability to receive the
Terms shall be a pad of each quotation and contract for Pads and Equipment Services. equipment, may be placed in storage by SPC for Pumhaser's account and risk.
2. WARRANTY - SPC warrants that the Services will be competent and conform to the 13. PATENTS- SPC may, in the pedormance of this contract, furnish or install equipment,
recognized standards of the industry and fudher warrants that any new pad(s) or new components, matadals and supplies which may be (a) standard commercial products of
matarlel(s) provided hereunder are merchantable and free of defects in workmanship and SPC, (b) pumhasad from other sources, (c) manufactured by or a repair method/procass
material, used by SPC to meet the specific circumstances arising under this contract, (d)
When SPC installs Purchaser supplied pad(s) and/or manufactures pad(s) at Purchaser's manufactured by SPC In accordance with the Pumhaser's instructions, and (e) supplied
direction utilizing Purchaser supplied information or by copying said pad(s); e.g. providing by Purchaser.
the same configuration and the same or equally acceptable mateqal(s), SPC only warrants
that said installation and SPC pad(s) provided hereunder are free from defects in Purchaser underetande that SPC has made no investigation of the dsk of possible patent
workmanship and matedel. SPC does not warrant the oparetlen of said pad(s} or that they infdngemeot as to items in categories (b), (c), (d) and (e) above, and accordingly, the
will achieve the results intended by Purchaser. Purchaser agrees to hold SPC harmless with respect to such dsks.
THE FOREGOING WARRANTY STATED ABOVE IS EXPRESSLY IN LIEU OF ALL As to items in catagmy (a), SPC shall pay costs and damages finally awarded in any suit
OTHER WARRANTIES, INCLUDING BUTNOT LIMITED TO IMPLIEDWARRANTIES OF against Purchaser or its vendees to the extent based upon a finding [fiat the design or
MERCHANTABILITYOROFFITNESS, ANDCONSTITUTESTHEONLYWARRANTYOF construction of [fie Services as furnished infringes a United States patent (except
SPC WITH RESPECT TO THE SERVICES PERFORMED AND MATERIAL(S) OR infdngementoccurringasarosultofincorporetingadasignormndificationatPurchaser's
PART(S) FURNISHED UNDER THIS CONTRACT. request) provided that Pumhaser promptly notifies SPC of any such claim and SPC is
If within one year from date of shipment by SPC of [fie pad(s), material(s) or services given the dght at its own expenseto settle such claim and to defend or control[fie defense
from SPC's facilities or from the date SPC notifies Pumhaser [fie services have been of any suit based upon such claims. THIS PARAGRAPH SETS FORTH SPC'S
completed where the sawises are performnd on other [fian SPC's Facility, Purchaser EXCLUSIVE LIABILITY WITH RESPECT TO PATENTS.
dlssovere that the pad(s), mstedal(s) or workmanship are not as wan-anted and promptly 14. NUCLEAR INDEMNITY - When the sen/ices sold are to be performed on or in
notifies SPC in writing thereof, SPC shall remedy such nonconformance by, at SPC's connection with a nuclear facility the Purchaser agrees to indemnify and hold SPC, its
option; adjustment or repair or replacement of the nonconforming part(s), material(s) or employees and agents, and tis suppliers of any tier harmless from any loss, liability or
services. Purchaser shall assume all responsibili[y and expense for removal, ralnstallation, claim resulting from a nuclear incident (said term is defined in section 11 (Q) of the Atomic
and freight in concaction with the foregalng remedies. The same warranty obligations and Eneq]y Act as amended) occuning at said facilities (or any other facility where [fie
conditions as expressed herein shall apply to warranted services, pad(e) or msterial(s) services may be used) whether or not such incident is due to anyone's fault or negligence
repaired or replaced by SPC. SPC shall have the right of disposal of the pad(s) and includingthefauIfornegligenceof SPC. Thlsindemnityshallprevailoveranyofherterms
material(s) [fiat it replacas, in any contract or sale of equipment, pads or services.
3. DEUVERY/DURATIONSCHEDULES-Shippingandcompletionsshequlesarebased 15. HAZARD COMMUNICATION - Purchaser acknowledges that 29 CFR 1910,1200
on typical manufactudng cycles and anticipated conditions prevailing at the time of ectitledHazardCommunicationmaybeapplicableto[fieservicesunderthiscontractand
contract award and are premised upon prompt receipt of all information and approvals (it if it is, Pumlraser is in compliance therewith. Furthermore, Purchaser agrees it will
required) from Pumhaser. SPC will make every reasonable effmt to meet schedules, provide SPC (whose employees in the pedormanca of this c(>ntraol may be exposed to
. _S.~.,._,.~_._.-~;T ,,_, ..... ~__.,= ....... ~.~ .,,A~ ....... ~_,,~.~ _~.o-,-~= ..... Pumhaser'sedulpment)withtbesameinformationPurchaserisrequiredtoprovidetoit's
5 'ERMITS AND TAXES - The Pumhaser shall, at his own expense, secure any work Purchaser shall indemnify and hold SPC harmless from any loss, liability or claim
~ermits, labor permits, tax exemption sedificates, or any other authorization which may be resulting from Pumhaser's failure to comply with this clause.
required to permit SPC to perform the requested services. 16. EMITATION OF LIABILITY & INDEMNITY - SPC SHALL NOT IN ANY EVENT OR
Any applicable duties or sales, use, excise, value-added or similar taxes wll be added to UNDER ANY CIRCUMSTANCE WHETHER IN CONTRACT, IN TORT (INCLUDING
~ prica and invoiced separately. In lieu thereof, the Pumhaser may provide SPC with NEGLIGENCE)ORUNDERANYOTHER LEGALTHEORY, BELIABLE FOR SPECIAL,
an exemption or direct-pay cerfificata acceptable to the taxing authorities. INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT
LIMITED TO, LOSS OF PROFITS OR REVENUE, LOSS OF USE OF A POWER
If a valid exemption ced~cata is provided after an invalca has been issued, a credit or SYSTEM, COSTOF CAPITAL, COSTOF PURCHASED OR REPLACEMENT POWER,
refund of [fie taxes will be issued to Purchaser after such tm(es have been received in full FUEL COST DIFFERENTIAL, OR CLAIMS BY PURCHASER FOR DAMAGES OF
by SPC from the taxing authorities. PURCHASER'SCUSTOMERS.
6. TERMS OF PAYMENT - Net 30 days, in U.S. Dollars, from the dated invoice. THE REMEDIES OF PURCHASER SET FORTH IN THESE STANDARD TERMS ARE
EXCLUSIVE, AND THE SUM TOTAL LIABILITY OF SPC TO PURCHASER WITH
7. TITLE - The title and right of possession of equipment repaired, modified, inspected, RESPECTTOTHESERVlCES, ORANYTHINGDONEINCONNECTIONTHEREWITH,
tasted or maintained under this contract shall remain with the Pumhaser subject to any SUCH AS PERFORMANCE OR BREACH THEREOF WHETHER IN CONTRACT, IN
applicable lied dghts of SPC and to ifs dght of sale in the event of nonpayment as provided
&. TORT (INCLUDING NEGLIGENCE), UNDER ANY WARRANTY OR OTHERWISE,
in
the
contract.
0. NONTERMINATION - Purchaser may not termisate for conveolence or direct
any of its personnel. 17. GENERAL - No waiver, aiferaifon or modification of [fiase provisions shall be binding
10. MODIFICATIONS - If is recegnized that [fie nature of the services Provided are such that upon SPC ualess made in writing and signod by an authorized representative Of SPC.
changa~ in the scope of the services as originally contemplated often occur. SPC will SPC will comply with all laws applicable to SPC.
undertake additional services within the normal ssope of such services but reservee the
right lo require [fie Pumhsse, to confirm in writing any extension of the senecas and ~~,~,~...~
delivery edginaliy ordered. Pending receipt of requested written confirmation, SPC shall
be ant~ed to rely upon oral orders, including instructions of Purchaser's representatives. SPC shall not be responsible for the acts and workmanship of the employees,
Any additional sen/ices performed by SPC pursuant to such written or oral erdere or contractors, subcontractors, or agents of the Purchaser.
instructions shall be paid for as mutually agreed upon. Any assignment of this contract or any rights hereunder by the Purchaser without w~ften
11. DELAYS, SUSPENSION, DEFERMENT- If the servicas are suspended or delayed due consent of SPC shall be void.
tonofauitofSPC, suchas, butnotlimifedto, act of God, war, actor Purchaser, ifre, tieed, Title to the equipment and its risk of loss shall always remain with the Pumhaser
strike, sabotage, embargoes, labor disputes, riots, civil disorders, accidents, delay of notwithstanding [fie fact that SPC is performing services pursuant to this contract.
carriers, SPC's voluntary or mandatory compliance with a govemmental act, regulation ~1~18. GOVERNING LAW- The interpretation of this contract shall be governed by the laws
or request, shodaga of matsdals, single source supplier, Purchaser directed supplier, or I of the State of ~, U.S.A.
by any other cause or causes beyond SPC's reasonable control, the time of performance,
it for any reason [fie Purchaser defers stad of the work, the Pumhaser will give SPC wdften
coticaimmediataly. SPC, st its option, shall be relleved of its obligafion to provide sen/ice 20. COMPLETEAGREEMENT-Thiscontractcantainsthecompieteagreementbetween
hereunder withcut further obligation if the Purchaser defers stad of the work beyond three the padles, Att previous and collateral agreements (including letters of intent of pumhase
months of the starting date edginaliy spocified, or it the work is suspended for more than ordereissued bythe Purchaser), representations, warranty, or condifionsnot [nserporeted
three months, in this contract shall not be binding on either party.
PROPRIETARY INFORMATION OF SIEMENS POWER CORPORATION
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, ~mpIoyees, invitees, and other
persons for whom it is legally liable, with regard to the
performance of this Agreement, and Contractor will, at its cost
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 b~the com~.ct "-
whichever date is later, except that claims made against the Contractor under
this indemnity during that 18 month period shall be honored pursuant to the
terms of this indemnity clause."
PAGE. 007/OLd~
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