KKC Procurement and Contracting Strategy

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Kiewit-Kvaerner Contractors (KKC) was initially awarded a contract for Phase One Work on the Hebron Project Gravity-Based Structure (GBS) in late 2010. Phase One Work included the Front End Engineering and Design (FEED) Package and Work Site development at the Nalcor Energy Bull Arm Fabrication site. Subsequently, in 2012 KKC was awarded the GBS Phase Two Work contract. Phase Two Work involves full turn-key Engineering, Procurement, Construction, and Installation (EPC) of the GBS Facility.

In support of KKC’s execution of the GBS FEED and EPC scopes, KKC will procure a wide range of goods and services typical of oil & gas and heavy civil/industrial EPC projects, thereby creating significant opportunities for local Newfoundland and Labrador and other Canadian firms, as well as the global marketplace, to participate in the Hebron Project. Contracting opportunities are divided into four (4) major work breakdown groups:

Phase One Work - Early Works: Bull Arm GBS Work Site and Common Areas

1. Early Work, Site Upgrades and Site Operations

Phase Two Work - EPC

2. GBS Construction (Civil Works)

3. GBS Construction (Mechanical Outfitting)

4. Marine Operations

More detailed descriptions of the scopes of supply and scopes of work to be procured within each of these work breakdown groups are further described under the links above. Depending on the type and scope of goods and services to be provided, KKC uses various contractual forms of contract agreements such as, purchase orders, subcontracts, marine charter contracting agreements, and other specialized professional and/or service agreements.

KKC carries out all procurement activities in strict accordance with the provisions of the Atlantic Accord Acts and Hebron Benefits Agreement, giving full and fair opportunity to Newfoundland and Labrador firms, and other Canadian firms, on a competitive basis. KKC actively communicates contracting opportunities for its major procurements packages to the marketplace by request for interest from suppliers and subcontractors through postings of Expression of Interest (EOI) on KKC’s website. In addition, KKC works very closely with industry organizations such as Noia and Bids.ca by sharing detailed information regarding package forecast EOI and award dates, bidders lists, and contract awards. In March of 2011, 2012 and 2013 general Supplier Information Sessions were held across the Province to inform the business community about the Hebron Project, the procurement process, and potential contracting opportunities. A Supplier Information Webcast was held in May of 2014.

From time to time and in conjunction with the EOI process (either before or after), KKC’s Engineering, Procurement, and Quality Departments may conduct technical and commercial market research, and Prequalification evaluations. Market research is used to support engineering studies and project budgeting. Requests for Prequalification, including requests for plant/facility visits and inspections, are used to confirm a potential vendor’s ability to meet the Project’s requirements and standards and to confirm their capacity and capability to perform a specific scope of work. Both KKC’s market research and prequalification process are not to be construed as an invitation to bid, and any information provided by vendors is for technical, quality and budgetary analysis purposes only.