2015
[RFP: PUC15-004]
Project: APP Tank Farm Repair; Tank
Number 4, 7 and 9.
Issue Date: November 21, 2014
Closing Date: December 22, 2014
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
I.
EXECUTIVE SUMMARY
The Palau Public Utilities Corporation (PPUC) is soliciting proposals for repair of Tanks 4, 7, 9 at
Aimeliik Power Plant (APP) in Aimeliik State. PPUC seeks through this RFP a qualified
Contractor to repair Tanks 4, 7, 9 and related infrastructure.
Ideal Contractor shall specialize in the repair and construction of Large, Welded, AtmosphericPressure Fuel Storage Tanks. Interested contractors can submit sealed proposals beginning
November 21, 2014 and no later than December 22, 2014 at 4:00 PM, Palau-time. Sealed
proposals will be accepted at address [P.O. Box 1372, PPUC Main Office, 1st Floor--Oldiais
Building--Koror, Palau 96940]. A mandatory pre-bid conference shall be conducted at the PPUC
PDD Conference Room on December 02, 2014.
If you have any inquiries please contact Sofronio “Pons” Mahor at e-mail [email protected]. Further
details and information such as the scope of work, work duration, payment terms, contract clauses, and
other relevant details relating to the RFP are provided below and in the following pages.
II.
BACKGROUND
The Republic of Palau comprises of 350 tropical islands and islets located in the westernmost
part of Micronesia about 600 miles (960 kilometers) East of Mindanao, Philippines and some
800 miles (1,280 kilometers) southwest of Guam. Palau lies between 8°10’N/3°N Latitude and
132°45’/134°25’E Longitude. The main group of Palau Islands is dominated by the 150 square
mile (390 square kilometers) island of Babeldaob—Palau’s largest land mass.
PPUC was created in 1994, the same year Palau gained independence as a sovereign nation.
Since then, PPUC has been operating the national electric utility and the distribution facilities,
which now cover about 47 linear miles of 34.5KV transmission and 114 linear miles of 13.8KV
distribution lines. Palau has an installed rated capacity of slightly over 30MW with power plants
located at Malakal, Aimeliik, Peleliu, Angaur and Kayangel. Malakal and Aimeliik provide power
to the central grid supplying Koror and Babeldaob. PPUC electrical facilities in the Republic of
Palau are government owned, and have had minimal maintenance since construction.
The Aimeliik Power Plant (APP) together with the Malakal Power Plant (MPP) serves the
customers in Koror and Babeldaob. From 1983 to 2011 the APP operated four (4) 3.2MW
Pielstick generators. APP now has a new power house with two new 5MW Mitsubishi
generators. Commercial operation of the new facility in Aimeliik State commenced May 2014.
An On-stream/In service was conducted on Tanks 1 -- 8 in May of 2001. The same third party
inspection company also inspected the associated pipelines of the tank farm. The inspection
consists of ultra-sonic thickness gauging on the shell and roof plates and thorough visual
inspection. In 2004, an Out-of-Service Inspection (OOSI) was conducted on Tank 5 and 6, which
includes bottom plates Magnetic Flux Leakage (MFL) Floor scanning.
RFP: PUC15-004
Page 2 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
In 2008, Shell (now IP&E) did minor refurbishment works to Tanks 5 & 6. A copy of this
assessment is available from the PPUC Procurement Officer. A simple diagram of the tank farm
follows:
Tanks 5 and 6 are in relatively better condition and require less maintenance works. Nominal
capacity per tank for Tanks 1 - 8 is approximately 750,000 USG and Tank 9 is 50,000 USG.
Tank
Tank
Tank
Tank
Tank
Tank
Tank
Tank
Tank
1
2
3
4
5
6
7
8
9
OUT OF SERVICE
OUT OF SERVICE
DIESEL OIL
III.
REFERENCES
READY FOR REPAIR
READY FOR REPAIR
READY FOR REPAIR
DIESEL OIL
DIESEL OIL
WASTE OIL
The following publications form a part of this RFP to the extent referenced:
CSI Section 13360
Steel Tanks with Fixed Roofs
CSI Section 13355
Fueling System Painting
API RP 2009
Safe Welding, Cutting, and Hot Work Practices in the Petroleum and
Petrochemical Industries
API STD 653
Tank Inspections, Repair, Alteration, and Reconstruction
API STD 650
Welded Steel Tanks for Oil Storage
IV.
PROPOSAL DETAILS
RFP: PUC15-004
Page 3 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
The proposals shall be sealed in a package with contractor name, address, contact information,
RFP number and project name in large font on the front. The sealed package shall include
original proposal + SIX (6) COPIES of original proposal.
PROPOSALS MUST BE SUBMITTED ON OR BEFORE 4:00 PM, PALAU-TIME ON THE CLOSING
DATE.
To facilitate review of the proposals, Contractor shall submit proposal(s) in conformance with
the following format:
Cover page with contractor contact information, RFP number and project name
Table of Contents
Executive summary
Scope of work summary
Pricing concepts summary
Start date and duration of project
Proposal submittals
Key assumptions
Personnel and equipment safety program
Quality assurance and control program
Scope of work
Preparation
Tank 4
Tank 7
Tank 9
Wrap up
Pricing concepts detailed cost breakdown
Materials
Special tools and equipment
Shipping to Palau
Support expertise and sub-contractor rates
Man-hours
Travel and accommodations
Repair plan and project schedule in bar-chart format
Corporate biography
Similar services technical expertise history
Organization chart with key personnel bios
Audited financial statements for last three (3) years
Credit history from a global credit agency
Minimum of five (5) references with contact information
Any other features which will contribute to the overall value of the proposal.
RFP: PUC15-004
Page 4 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
The PPUC shall have the full right and authority to use any and all information contained in the
RFP submittals for any other purpose it deems appropriate in its sole discretion, unless the
vendor clearly specifies the information in the vendor’s RFP which shall be used only for the
limited purpose of evaluating the RFP, and so specifies in writing such information with the
following statement: “This particular data/information furnished in connection with our
proposal shall not be disclosed to any third party or for any other purpose except to the extent
provided in the contract or as ordered by the Court.”
All responses to the RFP will be held by PPUC in strict confidence until the contract to the
successful Contractor has been executed, whereupon PPUC shall have ownership rights to all
proposals received, as constrained.
V.
SCOPE OF WORK
Scope of works based on API 653 Tank Inspection report dated May 2014. Inspection report and
requirements therein forms part of this RFP. All work shall be in accordance with CSI Section
13360, CSI Section 13355, API STD 650, API STD 653, API RP 2009. All work shall ensure uninterrupted supply of fuel from in-service tanks to new power-house.
Kick-Off Meeting:
Prior to commencement of repair work, Contractor shall meet with PPUC to
discuss any relevant PPUC policies, key assumptions, Contractor and PPUC
obligations and responsibilities, quality assurance and control procedures
program, personnel and equipment safety program, project participants,
and others.
Progress Meetings: Contractor shall meet with PPUC on a weekly basis throughout the duration
of the project. Progress report shall include previous, current, and
following week repair schedule with proposed vs. actual work progress.
Kick-off meeting submittals list
Three (3) copies of API STD 650, API STD 653, API RP 2009
Materials specifications and manufacturer test data
Welding procedures and procedure qualifications
Nondestructive test examiners qualifications
Tank calibration experience
Successful bidder shall submit complete tank repair detailed shop drawing to PPUC for review
and approval prior to performing repair work. Shop drawings of required repairs to be based on
information provided in the Tank Inspection Report which is part of this RFP.
Closeout submittals
Tank calibration record
RFP: PUC15-004
Page 5 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
Weld inspection reports
Tank hydro-test report
Inspection logbook
PREPARATION
1. Isolate Tanks 4, 7, 9 electrically and mechanically from system. Properly ground all tanks.
2. Prepare all necessary safety equipment i.e. fire hoses, fire extinguishers, and construction
barriers per specifications referenced herein. Construction barriers must ensure uninterrupted supply of fuel from in-service tanks to Aimeliik Power Plant.
3. Prepare ground around tanks for construction work to ensure a clean and safe work
environment. Lay gravel or cement as needed for forklift or Bobcat access to tanks.
4. Prepare scrap area to be specified by PPUC for removal of scrap metal and debris from
construction works.
5. Prepare storage area for materials’ containers, special tools and equipment.
6. Test old coating for lead and ensure old-coating removal methods are per coating and
sandblasting specifications referenced herein.
TANK 4
1. Install new double-bottom with sump through a slotted shell 4-in above existing bottom .
Space under new bottom to be filled with concrete per specifications referenced herein. In
addition, an 80mil liner will be installed per specifications referenced herein. Weld repairs
to the tank bottom shall be per API 653 report. New bottom shall be ASME A36 steel ¼-in
lap-welded with 5/16-in butt-welded annular ring.
2. Raise all shell nozzles, man-ways and other appurtenances to comply with API 653 distance
from shell/bottom connection.
3. Install 2 x 11-ft lap-patch over holes in upper-most shell course.
4. Remove 24 x 21-ft heater house and heater coil elements to scrap area. Heater coil nozzle
shall be closed with steel plate cover and new gasket and galvanized steel bolting hardware.
5. Remove 2: 30-in heater control units and electrical control boxes.
6. Install grounding strap to new tank shell.
7. Replace seeping threaded plug on the first course with welded component.
8. Repair broken handrail support on roof deck near cat walk.
RFP: PUC15-004
Page 6 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
9. Sandblast and recoat 100% of external tank surface, appurtenances, access structures and
supports for protection from the elements per coating and sandblasting specifications
referenced herein.
10. Install protective epoxy coating per coating specifications referenced herein on new doublebottom and tank interior.
11. Replace bird screens on 4:8-in open goose-neck vents.
12. Repair or if necessary replace Whessoe Level Gauge to ensure proper functioning.
13. Install nameplate with “Basic Tank Information” from API 653 report along exterior shell.
14. Inspect all welded joints to ensure conformance with applicable standard.
15. Hydro-test or fill-test tank per specifications referenced herein.
16. Calibrate tank per specifications referenced herein.
17. Replace all valves including new gaskets and galvanized steel bolting hardware. Exclude 12in supply line valve.
18. Return to in-service operation status.
TANK 7
1. Install new double-bottom with sump through a slotted shell 4-in above existing bottom. 4-in
space under new bottom to be filled with concrete per specifications referenced herein. In
addition, an 80mil liner will be installed per specifications referenced herein. Weld repairs
to the tank bottom shall be per API report. New bottom shall be ASME A36 steel ¼-in lapwelded with 5/16-in butt-welded annular ring.
2. Raise all shell nozzles, man-ways and other appurtenances to comply with API 653 distance
from shell/bottom connection.
3. Install grounding strap to new tank shell.
4. Remove 8 x 8-ft heater house and heater coil elements to scrap area. Heater coil nozzle shall
be closed with steel plate cover and new gasket and galvanized steel bolting hardware.
5. Remove 2: 30-in heater control units and electrical control boxes.
6. Sandblast and recoat 100% of external tank surface, appurtenances, access structures and
supports for protection from the elements per coating and sandblasting specifications
referenced herein.
7. Install protective epoxy coating on new double-bottom and tank interior per coating
specifications referenced herein.
RFP: PUC15-004
Page 7 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
8. Replace handrail on access structure along spiral stairway.
9. Repair or if necessary replace Whessoe Level Gauge to ensure proper functioning.
10. Install nameplate with “Basic Tank Information” from API 653 report along exterior shell.
11. Replace gasket and outer flange and galvanized steel bolting hardware on 2-in blinded nozzle
on first course.
12. Inspect all welded joints to ensure conformance with applicable standard.
13. Hydro-test or fill-test tank per specifications referenced herein.
14. Calibrate tank per specifications referenced herein.
15. Replace all valves including new gaskets and galvanized steel bolting hardware. Exclude 12in supply line valve.
16. Return to in-service operation status.
TANK 9
1. Install new double-bottom with sump through a slotted shell 6-in above existing bottom.
Space under new bottom to be filled with concrete per specifications referenced herein. In
addition, an 80mil liner will be installed per specifications referenced herein. Weld repairs
to the tank bottom shall be per API report. Steel plates shall be ASME A36 steel. New
double-bottom shall be ¼-in lap-welded..
2. Raise all shell nozzles, man-ways and other appurtenances to comply with API 653 distance
from shell/bottom connection.
3. Sandblast and recoat 100% of external tank surface, appurtenances, access structures and
supports for protection from the elements per coating and sandblasting specifications
referenced herein.
4. Install protective epoxy coating on new double-bottom and tank interior per coating
specifications referenced herein.
5. Install safety drop bar at the top of exterior vertical ladder.
6. Remove and repair section on end of the goose neck vent and replace bird screen.
7. Repair or if necessary replace Whessoe Level Gauge to ensure proper functioning.
8. Install automatic level gauge/switch and associated wiring to transfer pumps.
9. Install nameplate with “Basic Tank Information” from API 653 report along exterior shell.
10. Puddle-weld deep pitting along roof man way neck.
RFP: PUC15-004
Page 8 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
11. Inspect all welded joints to ensure conformance with applicable standard.
12. Hydro-test or fill-test tank per specifications referenced herein.
13. Calibrate tank per specifications referenced herein.
14. Replace all valves including new gaskets and galvanized steel bolting hardware.
15. Return to in-service operation status
WRAP-UP WORKS
1. Install all valves and system connections. Remove construction barriers.
2. Ensure Tanks 4, 7, 9 have stable, in-service operation status.
3. Remove all salvageable scrap from construction site to scrap area.
4. Clean and remove all debris and ensure area around tanks is safe for in-service operation.
5. Complete all items on punch-list prepared by PPUC.
6. Prepare Final Construction Report to include:
Proposed vs. actual repair schedule to include all repair activities
Safety record and all unusual incidents and/or issues
All materials used and remaining materials inventory
Tank calibration records
Weld inspection reports
Tank hydro-test reports
Completed punch list
Recommendations for maintenance of repaired tanks
VI.
PAYMENT TERMS
VII.
EVALUATION AND SELECTION PROCESS
RFP: PUC15-004
Page 9 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
Each proposal will be evaluated initially by a specially convened committee in line with the
criterion set forth in this section. All proposals and their separate components will be subjected
to the same evaluation criteria and process.
The following criteria (NOT in any particular order) will be used to evaluate proposals:
Compliance with proposal requirements. All proposals will be reviewed for their compliance
with instructions set forth herein by PPUC and meets the requirements of this RFP.
Contractor Qualifications. All proposals will be evaluated as to the quality of the "team" and the
background and experience of the organization submitting proposals. Main focus of
Contractor evaluation would be Contractor ability to deliver products and services in this
RFP. Screening analysis to identify areas of each proposal which needs clarifying will also be
done.
Commercial Terms (Price). The evaluation of proposals will be heavily weighted toward price.
The easier this section is to understand and the more definitive the offer is regarding
assumptions and key financial factors, the better the chance of receiving a high score in this
critical area of the RFP.
Payment Terms.
Responsiveness in providing Value Added Services.
VIII.
GENERAL CONDITIONS
Vendors are required to submit their proposals based upon the conditions expressed in these
instructions
i. Assignment of Contract: The contract shall not be assigned to any party
without prior written consent from PPUC.
ii. RFP Modification: This RFP does not commit PPUC to award a contract, to
pay any costs incurred in the preparation of the proposal under this request, or to
procure or contract for services. PPUC also reserves the right to accept or reject
any or all proposals received under this request, to negotiate with qualified
offeror, or to cancel in whole or in part this RFP, if it is in the best interest of
PPUC to do so. Offerors under this RFP may be required to participate in
negotiations and to submit any price, or technical revisions to their proposals as
may result from the negotiation process.
iii. Performance Bond: PPUC requires that all contractors with contracts in excess
of $50,000 should acquire performance and payment bonds tendered in a
manner and through a surety acceptable to the PPUC General Manager, which
RFP: PUC15-004
Page 10 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9
guarantees satisfactory completion of a project. The performance and payment
bonds shall be in an amount equal to the total price specified in the contract.
iv. Transfer of property: All proposals shall become PPUC property.
v. Proposal Errors: All information provided by a Contractor in its proposal is
warranted by the Contractor to be complete and accurate in all material respects.
vi. Conformity: The PPUC procurement regulations shall apply to all proposals
and bids and all winning bidders and contractors shall be bound by them.
vii. All proposals shall be submitted in the following format:
1. A cover page with a table of contents
2. An executive summary page that summarizes the corporate history,
contractor’s ability to satisfy the requirements of this RFP, project cost
and a synopsis of salient details required in this RFP.
3. The proposals shall be sealed in a package and should include:
a. The Contractors information (i.e., Name, Address, and Contact)
on the outside package
b. The RFP# on the outside of the package that should be submitted
NO LATER THAN 4:00 PM of CLOSING DATE-Palau Time.
[Note: The RFP # should be in big fonts.]
c. The sealed package should include the original plus six (6)
copies of the proposal.
viii. Inquiries: Any inquiries, requests, clarification, or additional information
pertaining to this RFP shall be made in writing, by email or fax through the
contacts provided
IX.
CONTRACT CLAUSES
All contracts shall, at a minimum, contain the following clauses:
 Governing Regulations
 Penalties for Violation of Regulations
 Contract Disputes
 Gratuities
 Kickbacks
 Representation of Contractor Concerning Contingent Fees
 Changes
 Stop Work Order
RFP: PUC15-004
Page 11 of 12
Request for Proposals
PUC15-004
Project: APP Tank Farm
Repair Tank No. 4, 7& 9















X.
Termination for Defaults or Convenience
Approvals, Certificates, Permits and Licenses
Laws and Regulations
PPUC’s right to inspect
Commencement of Work
Liquidated Damages
Schedule
Clear Title
Taxes
Contracting Officer
Force Majeure
Relationship
Entire Agreement
Assignment
Subcontracts
CONTACT DETAILS
Sofronio Mahor
R. Manny Adelbai
PPUC CPO /Civil Engineer
PPUC Mechanical Engineer
PPUC Administration Division
Power Generation Division
Tel: (680) 488-3870 Fax: (680) 488-3878 Tel: (680) 488-0510 Fax: (680) 4885436
Email: [email protected]
Email: [email protected]
Tmetuchel Baules
Jacqueline Alexander
PPUC Administrative Director
PPUC Chief Financial Officer
PPUC Administration Division
PPUC Accounting & Finance Division
Tel: (680) 488-5320 Fax: (680) 488-4499
Tel: (680) 488-5320 Fax: (680) 4884499
Email: [email protected]
Email: [email protected]
RFP: PUC15-004
Page 12 of 12