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HomeMy WebLinkAbout02/01/2011 14 Wastewater Treatment Plant Turblex Blowers Factory Field Service - Sole Source BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.' For Meeting Of 02/01/11 ITEM TITLE: Consideration of a resolution authorizing a Sole Source Purchase of required factory field service for the maintenance of Turblex Blowers at the Yakima Wastewater Treatment Plant. SUBMITTED BY: Scott Schafer, Wastewater Division Manager Max Linden, Wastewater Utility Engineer CONTACT PERSON/TELEPHONE: Maria Mayhue, Senior Buyer, Purchasing, (509) 575 -6094 SUMMARY EXPLANATION: Staff respectfully requests City Council consideration of a resolution declaring a Sole Source and waiving the formal bid process in order to purchase required factory field service for the Turblex Blowers at the Yakima Wastewater Treatment Plant. This is required routine maintenance that Siemens, the owner of Turblex Blowers, provides. Siemens is the only provider of such service. Please see attached Quotation. dl Resolution X Ordinance _ Contract _ Other (Specify) Funding Source: 473 - 473 - 232 -S232- 535.84 -480 APPROVED FOR SUBMITTAL: � Acting City Manager STAFF RECOMMENDATION: Adopt resolution declaring a Sole Source and authorizing the City Manager to execute all applicable contracts to purchase factory field service maintenance for the Turblex Blowers at the Yakima Wastewater Treatment Plant. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: RESOLUTION NO. R -2011- A RESOLUTION authorizing the City Manager to purchase the factory field services from Siemens to perform required routine maintenance for the Turblex blowers at the Yakima Wastewater Treatment Plant, and further directing the City Manager to execute all appropriate and necessary documents to complete the purchase and transaction. • WHEREAS, Article VI, Section 6 of the City of Yakima Charter and Yakima Municipal Code Chapter 1.80 generally require that purchase of equipment, materials, or services in excess of $25,000 be done by competitive bid, subject to certain exceptions; and WHEREAS, the law recognizes a "sole source purchase" exception from these competitive bidding requirements when, due to the uniqueness of the product to be purchased and the fact that there is only one source, it would be futile to utilize competitive bidding for such products and services; and WHEREAS, this factory field service is only provided by Siemens; and WHEREAS, this is required routine maintenance that will avoid potential costly breakdowns; and WHEREAS, Siemens is the only source that has the products and services that are 0 compatible with the current equipment; and WHEREAS, the City Council finds that it would be futile to call for bids since Siemens is the only vendor that provides these field services; and WHEREAS, the City Council finds that it is in the best interest of the City to authorize the factory field service for the Turblex Blowers as a sole source purchase without calling for bids, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to purchase the factory field service as a sole source purchase from Siemens without calling for bids for this required Wastewater blower maintenance. The City Manager is further directed to execute all appropriate and necessary documents to complete the purchase and transaction. ADOPTED BY THE CITY COUNCIL this 1st day of February, 2011. ATTEST: Micah Cawley, Mayor City Clerk dl . • Page l of l 2/1/11 Resolution Sole Source Turblex Field Services • ' r I • 1fAK� City of Yakima/Yakima County �-= SOLE SOURCE JUSTIFICATION • Your Name: Max Linden /Steve Brown . Your Department: Wastewater Your Phone: 509- 249 -6814 or 249 -6821 Requisition Number: Requested Vendor: Siemens Cost Estimate: $23,711.00 + tax I Vendor's Address: 4654 W. Farm Road 130 . Springfield Missouri 65802 1 Vendor E -Mail & Website: tracy.vinsand @siemens.com • Vendor Contact Name: Tracy Vinsand Vendor Phone: (417)- 447 -3259 1. Describe the product, service or system. Attach all information: Maintenance requiring do Factory Field Service for Turblex Blowers at the Yakima Wastewater Treatment Plant. This is Class 1 service by the equipment manufacturer. See proposal. • 2. Below are eligible reasons for sole source. Check all boxes below that apply to your sole source situation and attach any useful documents to justify the sole source. X Compatibility to existing City /County standard or to existing equipment, inventory, systems, data, programs or service. Describe. List efforts to find other sources. Siemens bought Turblex and is now the equipment manufacturer. There was one other service provider that is not in business any longer. Siemens is now the only provider of this service. X Licensed or patented product with only one dealer. Describe. Attach documentation if available, to confirm your source is the only dealer or supplier for this region. Siemens is the equipment manufacture and service provider. X Only authorized Service Provider, Repair and /or Warranty Services. Describe. Siemens is the only service provider available for this type of service. ❑ Unique design: Requires unique features that are essential, aesthetic requirements, or not practical to match to existing design or equipment. Describe. ❑ Used item: Surplus item bought through an auction or distributor that would represent good value and is advantageous to the City /County. Describe. 0 . . . 111 Delivery Date: Only one supplier can meet required delivery date: Describe and list efforts to find other suppliers to meet the delivery date. ❑ Project or Research Continuity: Product, systems, services or data must comply with an ongoing project, research, data, testing or analysis. Results would be interrupted or compromised without continuity. Describe. ❑ Other: Please describe: STATEMENT OF NEED: My division's recommendation for sole source is based upon an objective review of the good /service being required and appears to be in the best interest of the City /County. I know of no conflict of interest on my part or personal involvement in any way with this request. No gratuities, favor, or compromising action have taken place. Neither has my personal familiarity with particular brands, types of equipment, materials or firms been a deciding influence on my request to sole source this purchase when there are other known suppliers to exist. Max Linden, Wastewater Utility Engineer 01/20/2011 Signature of Requestor Date „ ( v2.0,,, ignature of Department Head Date Please complete entire forth and forward to Purchasing. 1 412 Lthil\2, 3 12.0 " Recommendatio of approval by Purchasing Mgr. Date io eoun61 C >251C_ Approval by City Mgr./ Date Note — Board of Counl■ Commissioners approval required for over $5.000 I ... Er S 4654 W. Farm Road 130 Springfield, Missouri 65802 Telephone (417) 864 -5599 Fax (417) 866 -0235 • FAX COVER LE 1TTE E-. DATE: January 4, 2011 REF. NO.: Site #280, City of Yakima WWTP — Yakima, WA Model KA5SV GL210, S/N 7062 -7064 SUBJECT: Proposal #F280 -2660 - Class 1 Service ATTENTION: Steve Brown — City of Yakima, WA E -mail: jbrown @ci.yakima.wa.us FROM: Tracey Vinsand TOTAL NUMBER OF PAGES (INCLUDING COVER LETTER): 9 Please find attached Proposal Number F280 -2660 to perform Class I Service on the do above - mentioned blowers. Also attached is our Pre - Service Checklist for your reference. Should you have any questions, please don't hesitate to contact us. Regards, 6 ( ra.0..t : ?�.rj t. wd Tracey Vinsariel Customer Service Representative E -Mail: tracey.vinsand @siemens.com 417- 4474259 Attachments LA Turb _FORMSIP ROPOSAL_FAX.doc • SME i E 4654 W. Farm Road 130 Springfield, Missouri 65802 Telephone (417) 864 -5599 PROPOSAL Fax (417) 866 -0235 Steve Brown Proposal Number F280 -2660 City of Yakima Date: January 4, 2011 Tel: 509 - 249 -6821 Model: KA5SV -GL210 E -mail jbrown ©ci.yakima.wa.us S/N's: 7062 -7064 Ref: City of Yakima WWTP Advantages of Factory Authorized Field Service Factory Certified Service Personnel with Electrical and Mechanical Expertise Service Personnel Supported by Siemens Engineering Department STE NS (original manufacturer in Helsingor, Denmark) Engineering Support Guaranteed Field Service Work Factory Parts Warranty • Financial Strength of Siemens Access to the Most Recent Equipment Improvements/Enhancements Siemens provides the following as an estimate, only, of the costs for this service. All labor and traveling/ living expenses she bo billed por Siemens' current Service Rate Schedule. A copy is attached for your reference. Class I Service fair end,onlvl ).abor (When an overhead one is not available, add an additional day oer unit.) Two days' travel ©$150/hr ($1200 /day) 52,400.00 Four days' labor per blower @$150/hr ($1200/day) 54,800.00 S7,200.00 Airfare (billed at cost, plus 15 %) This fare is subject to availability and requires 14 days advance notice. • $1,150.00 Per Diem (includes: lodging, car rental fuel. meals, etc.) 5290 /day Six days at $290 /day $1,740.00 Laser Alignment Equipment Fee $495.00 Typical Replacement Paris Cost (Per Blowerl O�(t Part# Description Price 1 N17L05479 0-RING D119 $69.00 1 89412019 0-RING 1-1110 $3.00 2 89412020 0 H111 $4.00 1 KA5DH025 SEALING RING HSO3 $40.00 1 GL210T0092 SHIM SET T213 $228.00 1 GL210T0092 SHIM SET T214 $228.00 1 89027296 0-RING T231 $3.00 1 N17V3135 0-RING T246 $28.00 3603.00 Estimated cost for this service on one blower $10,585.00 Adder for two additional blowers $13,126.00 ($4800 Labor + 31180 Per Diem + 3603 Parts = S8563/Blower) Total estimated cost for: three units $23,711.00 For weekend waiting time. allow $250 /day, if applicable. This proposal assumes that al least one local helper will be available lo assist the Siemens technician. This proposal does not include any major replacement components. Any significant wear or abnormalities idenllfied requiring extra labor and parts shall be billed per Siemens' standard Service Rale Schedule. Siemens will provide an estimate of time and materials required. All pricing Is In U.S. Dollars and valid through December 31.2010. Prices excludes sales/use lax. My applicable faxes should be paid direct to the proper authority by. the - customer. .Payment terms are Net 30 days. Freight costs on domestic shipments will be prepaid and added to the invoice; freight costs on intemational shipments will be for the customer's account, including all duties. taxes, etc. Attachments: Rate Schedule, Service/Parts Warranty, Suggested Preventative Maintenance Schedule. Factory Authorized Service Statement, Terms and Conditions & Pre - Service Checklist. THE RATES ABOVE ARE OUR STANDARD WHICH INCLUDE TECHNICAL SUPPORT FROM SIEMENS AND STE'S ENGINEERING DEPARTMENTS L:1TurbUOBSITESl28012660_F01 SVC_PROPOSAL.xIs Tiff 4654 W. Farm Road 130 Springfield, Missouri 65802 Telephone (417) 864 -5599 • Fax (417) 866 -0235 ITEM A 2010 INSTALLATION & COMMISSIONING ENGINEERING RATE SCHEDULE USD DESCRIPTION HOUR/DAY /MILE Factory Representatives normal working hours (Monday through Friday) • $150.00/hr 1st through 4th working hours in excess of normal working_hourc And working_on..Saturday - --- — 225,00/hr Additional overtime hours and working on Sunday and national holidays $300.00/hr Engineering Personnel normal working hours (Monday through Friday) $200.00 /hr 1st through 4th working hours in excess of normal working hours and working on Saturday $300.00/hr • Additional overtime hours and working on Sunday and national holidays $400.00/hr • Traveling hours • • $150.00/hr Helper working /traveling hours $75.00/hr Airfare • Cost, plus 15% • Per diem (domestic), including: lodging, car rental, telephone, fax, meals, gas $290.00 /day International per diem, including: lodging, car rental, telephone, fax, meals, gas, Cost, plus 15% . Helper per diem (less car rental) $205.00 /day Traveling expenses by Company carltruck per mile $0.65 /mi Charge for waiting time on Saturdays, Sundays and holidays: $250.00lday Replacement parts /supplies (Le., special sealants, etc.), if necessary: as per Invoice Delivery of replacement parts (domestic), if any. • Prepaid/Added to the invoice • Delivery of replacement parts (international), if any. Collect • TRAVEL TIME • All travel time from home base of operation to jobsite and return shall be charged in accordance with the above defined workday rates. Daily travel time to and from lodging will not be included and billed as part of the workday. STAND -BY TIME All time the Factory Representative is on stand - by or is available to work Monday through Friday, but is unable to due to reasons other.than his own sickness or injury, shall be charged in accordance with the normal workday rates. TRANSPORTATION AND LIVING EXPENSES All transportation and living expenses during the service period from the time the Factory Representative leaves his base of operation until the time he returns shall be charged as defined above. RESPONSIBILITY The Factory Representative shall interpret the Company's drawings and data for the equipment and advise /assist the Customer regarding the sequence of steps and procedures for installation, start -up, dismantling, repairing and assembly of the equipment as the case may be. The Customer shall supply, at their own expense, all labor, material, replacement 'parts, special tools (other than Company- supplied tools and instruments required for unique procedures and/or collection of operating data), equipment cranes, rigging tools, outside balancing /machining and facitiiies required to perform the physical work on the equipment. L:\Turb \SERVICE1Forms \SIEMENS \Svc_Rate_Scli 2O10.doc • _ _ _ _ . L JEMUEEN SERVICE AND PARTS WARRANTY - WARRANTY- - This is a non - transferrable warranty for the sole benefit of the original service and parts Purchaser. Siemens warrants our workmanship and factory parts replacement for a period of i one year after said service work is completed. This warranty is limited to include only those services and /or parts installed by Siemens, Inc., or its designee. This warranty, including the stated remedies, Is expressly made by Siemens and p Y Y accepted by Purchaser in lieu of all other warranties, and Siemens disclaims any implied warranty of merchantability or fitness for any particular purpose. We will not be liable for any consequential, incidental or liquidated damages, and in no event shall be liable for any amount in excess of the purchase price of the service performed. This warranty shall not apply to equipment or parts thereof which have been altered or repaired outside of a Siemens factory, or damaged by improper installation, application, erosion or corrosion of any sort, or subjected to misuse, abuse, neglect or accident. Siemens will make no allowance or reimbursement for repairs, alterations, replacements or work of any kind, done or ordered by others without Siemens' prior, written authorization. This warranty does not include any installation, removal or freight expenses that might be associated with warranty repair or replacement. Siemens makes no warranty with respect to parts, accessories, or components manufactured by others. The warranty applicable to such items is that offered by their respective manufacturers and will be passed through Siemens to the original user. The Purchaser shall supply, at their own expense, all labor, material, replacement parts (other than defective parts still covered by warranty), tools (other than special tools and instruments which must be supplied by Siemens), equipment cranes, rigging tools, outside balancing /machining and facilities required to perform the physical work on the equipment. 4654 W. Ferm Road 130 _ _ . Springfield, Missouri 65802 Telephone: (417) 864 -5599 Facsimile: (417) 866 -0235 L:\1'ur b1S ERV ICE \Forms \SIEMENS \Svc Ly. d oc -' E 30 r .� �t 4654 VV. Farm Road 1 c ?��=' = �� - f " Springfield, fVlissouri 65802 130 Telephone (417) 864 -5599 Fax (417) 866 -0235 ITEM A SUGGESTED PREVENTATIVE MAINTENANCE SCHEDULE ROUTINE INSPECTIONS (by Plant Personnel) • Inspect for cleanliness and general condition of compressor assembly unit Inspect and replace inlet filter(s) as required Inspect and clean/change oil filter(s) as required (if applicable) Check lube oil level and sample/change oil as. required Test safety switches . • Verify all 4 -20 mA current loops are operating properly • • "Verify surge detection.unit operates properly (See item I — 1370) ANNUAL INSPECTIONS (by Plant Personnel) Repeat routine inspections, plus - - - Inspect inlet silencer for cleanliness and general condition Verify discharge check valve operates properly to prevent back Flows • Inspect control arm(s) of variable control vanes for slippage inspect and tighten all mechanical and electrical connections Check coupling alignment and tightening torques of all bolts 18,000 HOURS - CLASS I INSPECTION (air -end only) • • First inspection, after 18,000 hours of service (or sooner if site conditions dictate); thereafter, based on conditions and appearance of operating mechanisms. Estimated service time: 2-4 days, per unit, assuming one (1) local helper and crane facilities. A Class I Inspection includes the following: • Repeat routine and annual inspection, plus - - - Dismantle compressor air -end inspect and clean variable vane system Check variable vane geometry Check axial movement on high and low -speed shafts Check unit alignment before re -start as required CLASS II INSPECTION (air -end and gearbox) Class II inspections only based on conditions and appearance of operating mechanism during Class I inspection. Estimated service time: 2 -7 days, per unit, assuming one (1) local helper and crane facilities. A Class 11 Inspection includes the following: :... _.... - - Repeat Class -I Inspection, plus - - ..... .... ...... .. _ .. _. .. - Dismantlegearbox Inspect gearwheels, bearings & seals and check clearances Replace flexible seals (O- rings) Inspect electric motor, oil pump, oil cooler, coupling, valves, etc. DRIVE MOTOR (by Plant Personnel) Keep motor clean and ventilation openings clear of dust, dirt, or other debris. Lubricate hearings every 3 months. Follow instructions found in the Components section of this manual (Item I). • • DRIVE COUPLING (by Plant Personnel) • N10 Coupling: Check alignment and outer blades of disc -pack for fatigue cracks every 12 months. Check tightening torques of all drive bolts. Follow instructions found in the Components section of this manual (Item I). AUXILIARY OIL PUMP MOTOR (by Plant Personnel) Keep motor clean and ventilation openings clear of dust, dirt, or other debris. Lubricate bearings every 3 years. Follow instructions found in the Components section of this manual (Item I). LUBE OIL FILTER (by Plant Personnel) Check filter indicator frequently to determine when the element needs servicing Follow instructions found In the Components section of this manual (Item 1). CHANGE OF LUBE OIL (by Plant Personnel) The lube oil should be changed after the first 500 hours of operation. Subsequent oil samples should be evaluated by an oil analysis service every three (3) months, with change of lube oil to take place according to the recommendation of the oil analysis service. SOLENOID VALVE AND BUTTERFLY VALVE (by Plant Personnel) While unit is off -line, operate the valve once a month to insure proper opening and closing. To schedule a SIEMENS Field Service Technician for assistance, please contact the SIEMENS Service . Department (Tel: 417- 864 -5599; Fax: 417- 866 -0235) approximately two weeks prior to shut -down. Rates 4110 would be per the most current published SIEMENS Service Rate Schedule. Estimates are available upon request. • L :Turb1 SERVICE 'Forms1SIEMENS \Sugg_PM_Sch.doc 4654 W. Farm Road 130 Springfield, Missouri 65802 • Telephone (417) 864 -5599 Fax (417) 866 -0235 FACTORY AUTHORIZED SERVICE Siemens, Inc. is an equipment manufacturer of single -stage centrifugal compressors Chimers) in partnership with STE A/s-Helsingor, Denmark -(the- manufacturer of the -bare compressor). The compressors provide large volumes of aeration as used in the treatment of wastewater in municipal and industrial plants and provide a critical service to their process. Siemens is the only factory- authorized service center and distributor of OEM components in North America for these machines (including those sold by Cord - Turbo, Rexdale, Ontario during the early 1980's). Our commitment to exemplary operating installations is demonstrated by the Company's investment in the Customer Service /Parts Department. This highly trained group of professionals includes In -house technical and parts departments, as well as Mechanical and Instrumentation field servicemen. 4110 Each of our field service technicians is factory certified. They attend periodic classes at the manufacturing plants in Helsingor, Denmark and Springfield, Missouri in order to have the latest service and repair expertise for our operating installations. Instrumentation field service engineers not only attend Siemens factory training schools, but sub - vendor training, such as Allen Bradley, Bentley- Nevada, Eaton, and other technical schools. The Siemens field service group is supported by a staff of over 50 mechanical, electrical, and instrumentation engineers from our engineering centers in Springfield, Missouri and Helsingor, Denmark. - - - - - - -- - - -- Technical questions related to field service are often discussed between Siemens field servicemen and factory engineers, to provide the best solution to a particular situation. This inter -play of factory engineering and field service is vital to providing proper and correct service and preventative maintenance for compressors and accessories provided by Siemens. Siemens' field service work is guaranteed for one year and backed by a multi - million dollar insurance policy and the financial strength of the Siemens, STE A/S and Siemens. or technical support an or spare parts for your Siemens - equipment, contact - us at toll free: 800 -299 -1035. L: 1Turb1SERVICEIFormsISIEMENS1Factory _Aulh Stmt.doc • 1 I!� ( I FFY \, � 4654 W. Farm Road 130 1L „ � `119 `1= ”' `' Springfield, Missouri 65802 4110 Telephone (417) 864 -5599 Fax (417) 866 -0235 SIEMENS PRE - SERVICE CHECKLIST This checklist is designed specifically to save you time and money! We have found that if you can check yes to these items, you will minimize unnecessary --delays, - unexpected - waiting -time, and_adthtianal labor and _expenses. YES MO ❑ ❑ Sufficient lifting equipment is available. ❑ ❑ Siemens special tool kit is complete and available onsite for disassembly /reassembly of the compressor(s). To inventory your tool kit, reference the Siemens O &M manual for a complete listing of these special tools with illustrations. • • These tools are required for disassembly /reassembly of your Siemens compressors(s). If you do not have a Siemens special tool kit, please let us know. ❑ ❑ At -least one local helper will be available to assist Siemens personnel with service work. ❑ ❑ Inlet filter system and sound enclosure (if applicable) will be removed prior to arrival of Siemens personnel. (We would be happy to assist with removal of this, but this is one way for you to reduce the number of Siemens labor hours required.) We look forward to working with you in the near future! If you have any questions, please contact us at toll -free: 800 -1035. t-:\ Turb\SERVICE\Forms\SIEMEIVS\Pre -Svc Checklist.doc • ' SIEMEhIS ENERGY -- TUREOMACHINERY SOLUTIONS . • di/ TERMS AND CONDITIONS 1. ACCEPTANCE Warranties vet expire eighteen (18) moms after shipment or (wawa (12) months alter start- M orders shall be made otd to Stamens Energy Inc. and subject to acceptance by Siemens el up (which shall loo the Stamens cef'fl date the equipment is available for beneficial our plant located In Springfield, Missouri. This proposal may be revoked by Siemens Ndthoul use), whichever occurs first. Expendable items such as V- bells, fitter media, aft, and ' 'lability at any lime prior to our written acceptance. The quotation is based on Siemens terms grease are excluded from this warranty. and conditions as staled herein. Any modifications must be communicated in writing and This warranty, including staled remedies, is expressly made by Siemens and arrBpled by accepted by an officer of Siemens, Modifications to our terms may affect the quoted price. This agreement is governed by and subject to the lawn of the Slate of Missouri. Purchaser In lieu or all other wanramles, and S amens d sdanis any Implied wananfy d merehanlabifity or fitness for any particular purpose. 2. SHIPMENTS, DEUVERY eh "FORCE IMAJEURE" U the equipment Siemens is to rovfde ts contractually subject to the final e Shipment dales are our best ealkreta, and not guaranteed. Siemens will make all reasonable consulting P y i approval of a efforts to meet specified' shipment dales including expediting subvendors, but will have no o m engineer, who disapproves our equ(pmem prior lo err pio n, the Pudiase liability for any failure or delay in performance web respect to delivery or olheniese, if such order may be canceled by either party, without Iiabifey to the goner, provided Ihsl Stamen facture or decay is due to any cause beyond our control including but not limited to: any act of shell have the right to appeal the w end consulting engineer's the decision, n such ngh1 Is available God, war. civil disturbance, riot, labor difficulty, fire, other casually, accident, new export under line contract tAapplieable law end regulations. In the avant the consulting engineer restrictions or our supplier's failure or Ina bay to perform. has not given final approval to our equipment within 12 weeks after original sulanliels are forwarded, Siemens may cancel the Purchasers order without liability. Ail shipments, whether partial or complete, call be accompanied by a detailed shipping list with the quantities certified correct by a Siemens Inspector. (1 is the Purdhene, s responsiblSy to inspect This warranty shaft not apply to equipment or pads thereof which i have been altered c each item carefully for damage or shortages. Siemens shag not be obligated 10 consider any claim repaired outside d a Siemens factory, or damaged by imprope installation, application, for shortages unless notified %Olin ten (10) twrkbfg days after the Purchasers receipt of erosion or corrosion of any sod, or subjected to misuse, abuse, neglect or accident equipment. Seller snail fwlhar be obligated to ooniply Weft any natlonai or mtemagenereepert work cif any kind, done ar ordered or by others tnX repairs priest an replacements or control regulations es colleted in the Siemens Export Control Clause for any third party This t et any kind, done an ordered by others without Siemens' prior, written that mi zaton. transfers of the works provided Or performed. warranty does not induce any installation, removal a freight expense That might ba associated with warranty repair or replacement. Free and clear access to the equipment Siemens pricing is based on FOB point of shipment (factory), which means lithe passes to the shall be provided for Siemens warranty repair work Repair, replacement or refund of the Purchaser when loaded an trucks at the paint of marudadure. Any damage or claims for purchase price by Siemens, al our sole option, shall be the exclusive remedy for breech of shipment damage are the Purchaser's responsibgty. Siemens shall retain a security interest this warranty. . in the equipment as enumerated in item five (5) below. • Siemens waists nu warrahl w ith b Y respect parts, accessories, or components manufactured 3. APPROVAL DRAWINGS & SUBM)UALS • by others The wartanUy applcable to such items is that offered by the'r respective Any preen drawings and accompanying information attached to the Siemens quotation manufacturers and w t be passed Ihrough Siemens to the original user. ere for Illustration purposes only to show approximate dimensions and arrangement. Siemens warrants for each Tram of Technical Services that (1) Ube advice,, Submittal drawings, engineering dale and catalog cuts will be forwarded after receipt of the recommendations and performance of its personnel will reflect competent knowledge and order, in the period indicated on the quotation. This estimate of submittal time may be affected judgment end (11) the technical information, reports and analyses transmitted by Siemens by our backlog at the time of order acceptance end timely receipt of specifications, drawings will raged competent knowledge and judgment, beginning with the start of the Item of and details from the Purchaser. Negotiation of terns and conditions will also affect the Technical Services and ending one (1) year after completion of Technical Services by submittal date. Siemens (the 'Technical Services Warranty Peliodi. 4. CREDIT APPROVAL PAYMENT 11 during the Technical Services Warranty Period, Siemens is promptly notified in writing AR enters are subject to the approval of Purchasers cedes. Siemens' hems of payment are that any portion of the Technical Services fails to conform to the 'Technical Services e 100:6 of the invoice anoint without deduction, net 30 days der Invoice dale for any partial or S Warranty, Siemens will promptly re perform the nonconforming portion of the Technical ry ces. complete shipments made. Other temps may elect our pricing. Orders written to Siemens providing for retention of monies until total job completion are not acceptable. Purchasers 9. INDEMNITY dill payment obligation shag not be in any way dependent or contingent upon payment from any Unlg the expiration of the applicable Warranty Period, Siemens shall indemnify, held oche pony. Any balance owed Siemens after Ihiny (30) days is subject to a 1.555 par month harmless and defend Purchaser Its officers, directors and a to es from end a ehst delinquency charge until paid. If Purchasers financial cendlUanl becomes impaired, or d any claims, demands, suits, liabilities, judgments, losses, d e nrages • costs or expenses payments are delayed for any reason, Siemens may; at our discretion, suspend work on the equipment demand prepayment beiore any future shipments are made or fie a lien on any (including reasonable legal fees, costs and charges)'for personnel Injury or death or loss manuals, certification of equipment or equipment we provided. We may withhold instruction manuals, or damage to third party properly (except property of customers of Purchaser or startup services es required 10 secure paymenL Any additional charges for toltecllon, including property incorporated or arising o to or Intended to be Incorporated in the misconduct to the extant attorneys fees, shall be paid by the Purchaser. caused by or arising out err any negligent act or omission r willful misconduct of Siemens, or any of Its dicers, directors, agents, employees or Suppliers In connection with When the Purchaser is responsible for any delay in shipment, the date of completion of performance of work under the Agreement. equipment may be treated by Siemens as the date of shipment and the Purchaser invoiced accordingly. Completed equipment stall be hel by Siemens, and Siemens has Ire right to Siemens also agrees to held Purchaser harmless from any infringement or alleged In bill the Purchaser for reasonable storage and insurance expensesinfringement of any patents or copyrights for any erpripmep(ftarnGfhed by Siemens. The Purchaser shall furnish Siemens wile a copy of the Purchasers performance and Siemens will not be labia fa any consequential, liquidated or incidental damages including bri payment bond (if applicable), to be utilized In the event of non - payment by the Purchaser. to the loss 01 Mall, toss of production or loss of Iwslness, and in no event shall 5. SECURITY INTEREST Siemens be g m recess for any amount in ess of the purchase pike of ice equipment. Unlit al amounts due us have been paid In full, Siemens shall raisin a security in the equipment and 10 TAXES . have all fights eif a secured party under the Uniform Commercial Code, including the right to Taxes em nal included In our pricing. Any applicable taxes will be added to the price and repossess the equipment without legal process. invoked separately. 6. SOFTWARE LICENSE & CONFiDENTiALJTY 11. NOISE TESTS Siemens grants to Purchaser a nonexclusive, nontransferable ncenso to utilize the Siemens Siemens will not certify et guarantee a anal installed noise level because of the many Software furnished. Such license Is limited to Purchasers Internal use at or for the Equipment variables that affect sound levels, l.e. size of room, ream construction materials, other • with which such Software is incorporated. All title and ownership of the Siemens Software, equipment in room, equipment spacing. ventilation, piping, etc. Refer to propose] for any including, without limitation, the copyright to such Software, shall remain exclusively with specific details. Siemens. Purchaser may make u reasonable number of backup copies of trio Software for evaluation, tnsialletion, and maintenance of the Siemens Equipment. Purchaser shall not kale 12. ST or with the assislancca.ol others, roverse compile, reverse engineer, or in any other manner Unless specifically slated In Siemens' quotation, Installation, startup, service supervision attempt to decipher in whole or in pad the logic or coherence of any Software licensed end training me not inotuded in our pricing, These responsibilities shall be the exclusive hereunder, nor have any right to seg, assign nor other wlse disclose Software to any third responsibility of the Purchaser, ft shall further be the responsibility of the Purchaser 10 party. Third party Software provided by Siemens may be subject to a separate license ensure that there is no asbestos or stellar environmental or health and safely hazard ' agreement and/or registration requirements and fimitabons on copying and use. present during the performance of Me order. Purchaser hereby agrees that any confidential information we provide will be expressly A trained factory senvicerran is avanaba at the rate staled In our quotation, with al travel end protected at all times. Purchaser's rights to tide information shall he limited solely to the use In living expenses bilked at cost plus fen percent Service 111515es am based on a standard eight operation, repair and/or maintenance or the designated project. At no lime win any permanent _ _ _ (8) hour wort day with tins charged from the date of hie departure from the home office to "" ' transfer of title be created for any drawings o Intelleetuaf property, nor sting any of the data of reWm-Ovefbme and weekend travel will be charged at erne and ono -half and this specifically designated information be discloser, other than for the above staled purposes, double•time, respectively. 7. CANCELLATION OR DELAY • 13. VARIATIONS Should this order be canceled by the Purchaser without Siemens' consent, the Purchaser My variation from the Siemens terms and conditions herein must he approved in writing by shall be obligated to pay for work performed and equipment purchased by Siemens, plus a an officer of the company, Of Siemens eel] not be bound thereby, reasonable profit. Any costs related to suspension or delays caused of required :by the Purchaser shall be for the Purchasers account R. WARRANTY do For the fit of the original user only, Siemens wan that the equipment and software or our manufacture with be free from defects in material and wrxY.maneltip when installed. Siemens Energy Solutions operated. and.'rnaintained under design conditions and In accordance with our written ry instructions. Siemens will replace or repair FOB, our factories or other orations designated by Terms F. Conditions 2010 Rev. I us, any parts or defective software returned which examination shall show It to have failed under normal use and service by r original user, normal wear and tear excepted.