Moving Energy Forward
Supply Chain Management at GPR
By Turnaround Contracting Coordinator in GPR
The Netherlands is a highly regulated country where Human Rights infringements are not likely to occur. However, we are always cautious when prequalifying new contractors and vendors, especially from countries other than The Netherlands.
For contractors (both domestic and foreign), we always use a prequalification form. We assess the amount and type of works that they subcontract. Among other questions, we directly ask about their policies on Corporate Social Responsibility, and Alcohol and Drugs. Further, we indirectly assess the companies “social health” by asking about their absence percentage and staff turnover rate.
When we are tendering large contracts (e.g., for a turnaround project), we make sure to visit the company’s headquarters and connect with senior management. If prefabrication in their local workshop is part of the contract, we insist on visiting the shop to check on local working conditions, HSE awareness and compliance, and employment status of the workforce.
When contactor employees are required to spend longer periods abroad (in The Netherlands), we discuss and check up on temporary housing conditions.
Of course, the amount of time and effort we spend on the prequalification and selection process can vary according to expected risk exposure and contract value. In general, the steps in the prequalification and selection process are:
- Draft contracting strategy based on determination of scope, volume, timing
- Determine long list based on experience and desktop research
- Send out Request for Information (RFI)
- Analyse received information
- Finalise contracting strategy
- Compile short list
- Send out Request for Quotation (RFQ) including draft contract
- Analyse bids (separate technical, commercial and legal assessment)
- Arrange bid clarification meeting (preferably at contractor’s HQ including visit prefabrication shop)
- Finalise bid evaluation and tabulation
- Determine recommendation
- Presentation of tender results and recommendation to Tender and Contracting board (TCB)
- Formal decision by TCB, when needed further escalation to GSA
- Contract award