We have reviewed the information in your proposal. However, there are a few points that we would like you to confirm:
1) Please Confirm the price you proposed is under the “Preferred Supplier” condition which means Company will consider Preferred Supplier as its first choice for mechanical seal repair, recondition and conversion services unless any of the following occurs:
- Preferred Supplier is unable to offer the new mechanical seal (conversion) or re-condition for intended application
- Preferred Supplier is unable to meet Company’s delivery requirement
For example, if Preferred Supplier is working on a big lot of mechanical seals from Company and the additional 2 units in Company’s backlog will become overflow, Company may consider to send these 2 units to other sources.
- Provided mechanical seal services by Preferred Supplier causes technical or quality problems to Company’s operations
For example, if there is technical problem occurred after resume the re-conditioned seal to operation, Company has the right to stop sending seal to Primary Source until the failure analysis has proven that the root cause is not from Preferred Supplier. During the investigation, the urgent mechanical seals may be sent to other sources.
Company will consider if the above events occurred or not on its own discretion.
Note: “Preferred Supplier” has same meaning with “Primary Source Supplier”. However, Chevron would like to keep the term “Preferred Supplier” consistent with our existing contract language. “Company” means Chevron Thailand Exploration and Production Ltd.
Supplier Answer:
2) Are the price list you proposed the same with new mechanical seal prices in agreed Blanket Purchase Agreement (BPA) with Chevron? If different, which one give the better price and how many % difference. Chevron prefer to apply the better new mechanical seal price in re-condition and conversion services agreement. Please make sure you have proposed the better price in your proposal.
Supplier Answer:
3) Since you claimed that you have capability to repair seal of the other brands and if Chevron decides to not use your conversion proposed since it does not comply with our intended application and the re-engineering cost is too high (nearly equal to new seal), can you repair the seal by sourcing the parts from OEM (other brands) and you repair it yourself?
Supplier Answer:
4) The prices of mechanical seal recondition of other brands are not proposed in your proposal, please kindly send us the price of mechanical seal re-condition of the other brand or please clarify how you will charge Chevron.
Supplier Answer:
5) Please confirm the name of your sub-contractor, the place and the price to perform de-contamination. Please be reminded that it will be one of criteria of bidding evaluation. Please also estimate the de-contamination price per unit. What will be the de-contamination price we will agree in the contract?
Supplier Answer:
6) Please confirm whether you will give Chevron the volume discount tier offer. If you do, please clarify or give an example how to calculate your volume discount tier.
Supplier Answer: