HomeMy WebLinkAbout _ 4.5(a)--Siemens Energy Long Term Parts Change Order 45 � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: May 21,2024 FROM: Nick Zettel, Director of
ITEIVI NO. 4.5(a) Redding Electric I7tility
***APPROVED BY***
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nzettel@cityofredding.org
SUBJECT: 4.5(a)--Change Order 45 to Contract 5661 with Siemens Energy to Replace
Generatin Unit 5's Gearbox
Recommendation
Approve the following actions related to the Long-Term Parts, Services and Inspections Contract
(G5661) between Siemens Energy Inc. and the City of Redding for repairs at the City of
Redding Power Plant:
(1) Ratify approval of Change Order 45 to Contract 5661 to complete the replacement of
Generating Unit 5's gearbox in the amount of$1,982,447; and
(2) Authorize the City Manager, or designee, to sign any documentation or change orders
necessary to finalize the project; and
(3) Find that the Change Order 45 is categorically exempt from review under the California
Environmental Quality Act pursuant to Sections 15301 (Existing Facilities) and 15302
(Replacement or Reconstruction).
Fiscal Impact
The total Change Order Na. 45 cast, including contingency, is listed below:
Descri tion Estimated Cost
Gearset Unit $586,950
Installation Services 1,136,917
Contin ency(20%) 344,773
TOTAL $2,068,640
Adequate funds are available for this change order within the City of Redding Electric Utility's
(REU) Major Maintenance Fund. If Unit 5 were to remain inoperable due to the gearbox fail�ure,
the cost of replacement power for July through September 2024 would be approximately $9.6
million.
Report to Redding City Council May 15,2024
Re: 4.5(a)--Siemens Energy Long Term Parts Change Order 45 Page 2
Al�ernative Action
The City Council may choose not to ratify the change order for the repair of the Unit 5 gearbox
and provide alternative direction to staff. It should be noted that emergency work has begun and
the City of Redding (City)would be liable for work performed to date.
Background/Analysis
Unit 5 has a power output of approximately 45 megawatts (MW) and uses waste heat recovery to
produce an additional 15 MW of steam power for Generating LTnit 4. The combined power
generation of 60 MW accounts for approximately 30 percent of the 185-MW total capacity of the
Redding Power Plant. Unit 5 is a critical resource and will be needed during the 2024 summer
months to provide power to the City.
During the regular inspection of the Unit 5 gearbox in April 2024, the inspection team
discovered the low-speed gear had shifted approximately 14 millimeters off of center,
compromising the unit's operability. The manufacturer of the gearset is Flender-Graffenstaden,
but the parts are supplied through Siemens Energy. Siemens Energy and the manufacturer advise
REU not to operate the unit in this condition. A detailed inspection of the generator began on
May 6, 2024, and work to remove and replace the gearbox began on May 15, 2024.
As part of the gearbox restoration plan, the Unit 5 electrical generator will also require inspection
as there is a possibility of collateral damage due to the gearbox failure. Examples of possible
damage to the generator could include bearing liner damage, exciter damage, or cooling fans.
This will be assessed during the gearbox work and additional costs will be covered by the
contingency.
�nvironmental Review
This repair is categorically exempt from review under the California Environmental Quality Act
pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).
Attachmen�s
C-5661 Change Oder No. 45 Siemens Contract
CHANGE ORDER N(7. 45 Gantract: Long Term Parts, Services and
Inspections Contract C-5661
Effective Date: April 25, 2024 Buyer: City af Redding
Se11er: Siemens Energy, Inc.
1. Intr ductian. This Change Order No. 4 5 {this "Ghange Order") is agreed to pursuant to
that certain Long Term Parts, Services and Inspections Contract, dated as of September 6,
2011 (the "Contract"} by and between SIEMENS ENERGY, Inc. {"S�Iler") and the CITY OF
REDDING, a municipal corporation ("Buyer"}. Capitalized terms used but not defined
herein shall have the meaning given them in the Contract. This Change Order as
submitted by one Party to the other shall constitute a request for a Change Order. Upon its
counter-signature in the space provided below, this Change Order shall constitute a Change
Order within the meaning of the Contract.
2. Sca�e of Ghange. Buyer has agreed to purchase the parts and Time and Materiai (T&M)
services described below:
Item Sco e Descri tion Quote Final Price
1 Re lacement Gearbox and Misc Parts Flender TZ100/3C '�4 20275796 $586,949.4Q
2 Gearbox and Generator Labor T&M basis 2 167278 $1,136,916.90
3 Contin enc 15°l0 3 N/A $258,579.95
Tatal $1,982,446.24
Note 1 — See Attachment 1.
Note 2 — See Attachment 2.
Note 3 — This allowance is to cover emergent parts andlor T&M services considered as
additional parts and/or service beyond Items 1 & 2 which may be faund during execution af this
work. This extra scape will be handled under an Extra Work Authorization (EWA) at current
Siemens Energy, inc. (SEI) T&M Price list minus applicable contract discounts (10% for parts
and labar). The EWA form is included as Attachment 3.
Note 4 — The gearbox and miscellaneous parts are not pragram parts as defined in Exhibit B
(Program Parts List) of the Contract.
3. �irr�inc� This Change Order shall be effective as of the Effective Date stated above.
4. Payment and Term. The invoicing schedule far each Ifiem supplied above is as follows:
Line Item �, Invoieing (Gearbox and Miscellaneous Parts)— 100°lo upon delivery to site.
�ine Item 2, Invoicing (Gearbox& Generator Services) — �OQ°lo upon campletion of the wark.
Line Ifiem 2's pricing reflected above is an estimated value and does not represent the actual
value of work to be performed. Estimated Pricing is based on Siemens Energy Inc.'s scope of
supply using a 111217 shift arrangement for the manpower as detailed in Attachment 2 of this
Change Order.
invoicing is based on the overall duration, manpower type, manpower quantify, shift
arrangement and expenses incurred as required to camplete the Services described herein and �
may be higher or lower depending upon actuals incurred. Pricing is based on the 2024 Siemens
�
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Long Term Parts, Services and Inspections Contracfi C-566�, Ct745 � ��
Siemens Energy Confidential & Proprietary Information
Energy Inc. Price (�ist 1727 dated at the time the work is performed less 10% of the hourly rates.
All Invaices shall not exceed the total listed in section 2 of this Change Qrder.
5. ��h,gr Terms and Gonditi�ns.
Except as otherwise specifically provided in this Change Order, all other terms and
conditions of the Gontract shall remain in full farce and effect.
IN WITNESS WHEREQF, the Parties, intending to be legally bound, have caused this Change Urderto
be executed by their duly autht�rized representatives.
Siemens Energy, Inc. Gity of Redding
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�ong Term Parts, Services and Inspections Contract C-5661, CC?45 2
Siemens Energy Confidential & Proprietary Information
Atfiachment 1 —Siemens Energy, Inc Gearbax and Miscellaneous Parts Quofie 20275796
�ong Term Parts, Services and Inspectians Contract G566�, CC745 3
Siemens Energy Confidentiai & Proprietary Information
Siemens �nergy, Inc. Quot4
� � The Quadrangle Pag�� �f 3
4400 Alafaya Trail
Orlanda, FL. 32826-2399
April 17,2024
Mi•. Ryan McCat�tin
City af Reciding
17120 C1ear Creek Rd
REDDING CA 96001
IJSA
Quote#�:20275796
Dear Mr. McCartin,
Siemens Energy,Inc. �is plcased to acklzowledge receipt ofyaur i,nquiry Gearbox,dated April 12,2024.
Sieinens Energy,Ine. offers to supply the equipment detailed bclaw at the prices and exclusively an tl�e terms a11d conditions set
forth in tt�is offer, �iileluding those set fortl� in: This LONG T'�:RM PARTS, SERVICE,AND INSPF,CTIONS CONTRACT is
entered into as of September 7,2011, by and between the CITY OF REDDING, a municipa�ity,and SIEMENS ENERGY, INC.,a
Delaware corporation.
This offer is valid until M�y 12,2024 unl�ss otherwise extended,modified, or withdrawn in writulg,by Siemens Erlergy,Inc. and
limits acceptance to the terms set forth herein. The rcturn of a purchase orcler or any othcr reasonat�le manner of accepta�nce
communicated t�Siemens Energy, Ine. durin�such validity period wiIl t�e sufficient to form an agreement on the terms and
conditions of this offer, incluciing those set forth in: This I.ONG TERM PARTS, SERVICE,AND INSPECTIONS CONTRACT is
entered into as of September 7,2011,by and between the C'ITY (�F RBDDING,a municipaity,and SIF,M�NS TNERGY,INC.,a
Delaware colporation.
1. The priees sbowi� are on the basis ofthe cnrrent EuX-opean currency exchange rate and include fxeight and duty. Siemens reserves
the right to adjust the sellin�price on the basis of the exchange ra�e in effect at the time o�f o�rder entry�
2.A11 purchase orders are to be made out in the�nalne of
Siemens Ener�y Inc.
AA00 N Alafaya Txail
�rlanclo,FL 32826
3. `I'he worldwide outbreak af the coronavirus disease{"COVID-19"),affects or is likely to affect usual bt�siness activities and/or the
execution of work under this offei•. As t1�e impacts fram COVID-19 a�-e unknawn at tl�is time, Siemens Energy commitments
regarding the scope contemplated hereunder including p�rocurement lead-ti,me,delivery date,resQurces, and schedule are provided
without consideration of sUclz potential impacts�i•om COVID-19. Siemens Energy is closely tnonitoring the developznent of
COVID-19 and its associated impacts, and wi11 endeavor to infoi-m you,the customer,c�fthe impacts that COVID-'1911as or may
have on Sie�nens Tnergy's manuFactL�ring,supply chain, opei�ations, logistics, and personnel relatin�to Siemens Energy seape af
supply eol�templated hereundel-. If requii�cd to overcome the consequences dit-ectly or indireetly caused by the outbreak of
COVID-19, Siemens Energy shall be entitled to reliefof its ablig�tions in schedu]e,price,ar any other reasonably,required
adjust�nent of this ofFer. In the event eq�ipment delivery is contemplated hereunder, Siemens Energy shall be entitled to postpone or
provide partial deliveries to the extent Siernens Energy's al�ility to supply,or deliver is iinpacted by COVID-19.
4. The Parties aeknowledge that�here is an uneertain political and security situation in the world, in particular due to the invasion of
Ukraine("Ui�certain Situation"),which effects are difFcult to foresee at the time of Contract signing and which can directly aizd
indirectly affect the execution of this Contract including bti�t nat limited to the availability of certain egL�ipment,commadities,
metals, and materials as we1'1 as the availability of transportation means and services, In the l,ight of the above,tl7e Parties agree th�t
the Supplier sha11 be entitled ta reasonablc adjust�nents ofthe delivery term and/or the Contract price ta the extent any delay and
costs are caLlsed directly or indirectly by the above-mentioned Uncertaiz�Situation and any related consequences.
Th1� dectuaent lwhethor in eleetroiiic or hard copy form} and its contEnts cont�ins propriot�ry and corfident.ial informat.i.on owna,d by Si2men� Eiler.gy,
Inc.. Your acceptance of this documenT, is an acY.nowledyemenT, of a confideati.al r.elatiranship betwc.en the parti.es with re�pzet to i.t. The document and
the inEormati.on contair.ed tkierein i> not to be reps�aduced, transmi.tted, di.sc7.osed or used in who].e or part without tlie prior written authorization
of Siecne�is r.nergy, Tnc., ai�d must be s�eturned or destrnyed when no longer. r.equired. All rights reserved.
Siemesis Fnergy is a tradcmark lic,ensed by Siemens AG.
Siemens Energy, Inc. uote
� � The Quadrangle Pab�2�f 3
44Q0 Alafaya Trail
Orlando, FL 32826-2399
Quote#:20275796
�T'hank you for the opportunity to provide this offer. Please feel free to call ifyou have any questions or r�equue further assistance,
Sincerely,
s; � � ,
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�Qr-
IKENE GRAFfAM
Phone :407-274-8142
Fax : 407-243-3110
EMail : Irene.I_,.Graham@siemens-energy.cam
This documon.t tUrhether in eler„troni.c or haz�d copy foszn} and its cant,ents contains pr.oprietary arld confi.denti.al information owned k'�y Sie�mens Fncrgy,
Zac.. four acceptance of this documenT, i:a an acknowledgement of. a coniidential. rel.atiorishi.p between the, parties with re.>pect to it. The document and
the infox�nation containcd thc;r�.i.ri i> not� �to be reprc�duced, transmit�ed, disclvsed or used in w?ic�1e or part without the z�rior writfen authorizatioi�
of Si.emtns Ener�9y, Inc., and must Ue reLurned or destr.pye,d when no l.�nger requirzd. A7.1 rights reserved.
Siemens Eneryy is a trademark licensed by Siem�ns �G.
Siemens Energ�r, Inc. uot�
� � The Quadrangle page 3 of 3
4400 Alafaya Trail
Orlando, FL 32826-2399
Quote#:20275796
Std.Lead Amounts in USD
Stack r��
Item No Material No Description G2ty UOM AYaII. (Weeks) Unit Price TotalPrice
10 80049Q�9-3 GEAR 60HZ 1800RPM 1 EA NA�' 23 644,697.a0 644,697.00
Commercial Discount: 10.OQ°f -64,469.70
20 T3711-220 SHEET GASKET 2 EA Yes"�" 6 14.00 28.00
Commercial Discount: 1Q.00°I _2 gp
30 T3711-316 SHEET GASKET 2 EA Yes*�� 5 5.00 10.00
Commercial Discount: 10.00°/ -1.00
40 T3711-176 SHEET GASKET 3 EA No 7 47.00 �41.00
Commercial Discount: �0.00°l -14.10
50 T3711-220 SHEET GASKET 2 EA Yes��* 6 14.d0 28.00
Commerciai Discount: 10.00°/ _2 gp
60 T376'I-187 SEALING RING 2 EA NA*� $ 31.00 62.00
Commercial Discount: 10.00°/ -6.20
70 T3761-194 SEALING RING 2 EA NA�� 8 12.00 24.00
Commercial Discount: 10.60°l -2.40
80 A6403589-186 LOCK NUT 72 EA NA'`� 9 85.00 6,120.�0
Gommercial Discount: 10.00°/ -612.00
90 T3167-132 LOCK NUT 48 EA NA�� 4 22.00 1,056.00
Commercial Discount: 10.d0°/ -105.60
Tatal Price 586,949.4Q
Materi I availability is based on c rrent stock levels and subject to rior sales.Sfand rd lead fime{ eeks}a plies to items where s ock is not
availab e. If ordering in less than tandard lead time,handling fees ay apply.
`"�Ship t e of available stock is on week.
Attaehment 2 —Siemens Energv, Irre. Gearbox and Gener�tar Labor Quote 16727�
Long Term Parts, Services and Inspections Cantract C-5661, C045 q
Siemens Energy Canfidential & Proprietary Information
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Customer Contact Details Siemens Energy Contact Details
Redding Power Plant Name Lee Van Kirk
17120 Glear Creek Road Mobile +1 (949}3003480
Telephone +1 (949)300-3480
Redding Califarnia E-Mail lee.vankirk@siemens-energy.com
96001-5107
United States Request For Quotation Date 4125l2024
SFDG Opp.ref. SF242230784
Customer RFQ
Validity 5I2512024
S/N Equipment 8000532
TAG ref. �
Siemens Energy
Subject: Clienfi Tag#: 5, Client Ref: Gear Set Replacement
Siemens Energy appreciates the oppartunity to present this proposal to Redding Pawer Plant for the services described
therein. Siemens Energy hereby offers to perform the services detailed in this letter and the attached proposal, at the
prices and exclusively on the terms and conditions set forth in this proposal, including those set forth in the Long Term
Parts, Services and Inspections Contract Between City of Redding And Siemens Energy, Inc. Dated as of September
6, 2011 Redding Project and as amended via change orders {hereinafter, "Contract"), except if stated differently in the
"Terms and Conditions" Section of this proposal.
For your review and evaluatian, this proposal is divided into the following sections.
Section 1 Scope of Work
Section 2 Commercial Conditions/ Pricing
Section 3 Division of Responsibilities
A review of this proposal will demonstrate the overall value added benefit Siemens Energy brings as it relates ta 5.
More than 100 years of experience with stearrr turbines, gas turbines, generators, compressors and pumps is a key
component of the Siemens Energy portfalio af services designed to support your aperating plant. We are confident in our
ability to deliver the highest quality service.
Confidential—This proposal, including all af its attachments, exhibits, appendices, etc., ("Proposal"} is provided "as-is"for
your evaluation of Siemens Energy as the provider of work discussed herein and contains information that is confidential
Siemens Energy,inc.Confidential
Siemens Energy is a trademark Iicensed by Siemens AG.
Page 1 of 14
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to and solely owned by Siemens Energy. Your accepfance and viewing of this Proposal is an acknowledgement of a
confidential relationship between Redding Power Plant and Siemens Energy. We require that this Proposal be returned ar
destroyed when no longer required for the purpose identified herein. This Proposal and any information obtained from this
Prapasal may not be reproduced, transmitted, disclased or otherwise used, in whole ar in part, without the priar written
authorization of Siemens Energy.
This Proposal is valid 30 days fram receipt unless otherwise extended, modified, or withdrawn in writing by Siemens
Energy and limits acceptance to the terms set forth herein. The return of a purchase order or any other reasonable
manner of acceptance communicated to Siemens Energy during such validity period will be suffiicient to form an
agreement on the terms and conditions of this Proposal.
Thank yau for considering Siemens Energy to perform this service. Please feel free to cantact me if you have any
questions regarding this Proposal.
With best regards,
�ee Van Kirk Torrey Goadwin
Siemens Energy Siemens Energy
Client Manager MGT �leet Manager
lee.vankirk@siemens-energy.com torrey.goodwin@siemens-energy.com
Siemens Energy,Inc.Confidentiai
3iemens Energy is a trademark licensed by Siemens AG.
Page 2 of 14
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SECTICIN 1
SCOPE UF WdRI�
VVork�cope 1:
• Siemens Energy to provide support for U5 Gear Set Replacement
Cammer�ts and Clarifications
This offer is subject to the comments and clarifications specified below. The intent of these comments is ta better define
the scope of work and responsibilities of all parties in performing the required work.
• Removal of bolts, studs, pins, keys and other parts by burning, freezing, drilling, machining or by ather
abnormal means if required shall be provided on a T&M basis as Extra Work u�der our current published
rate sheet. The customer shall furnish new hardware when destructive removal is necessary at no charge
to Siemens Energy. Siemens Energy will discuss this abnormal pracedure with the customer unless the
problem occurs off hours, and a schedule delay would result.
• Insulation removal and disposal is customer's responsibility. The timing af insulation remaval is critical ta
the schedule. R milestone schedule can be reviewed by the customer and Siemens Energy after the bid
is accepted. Insulation removal must be completed in ane shift in order not to impact the overall schedule.
(Machine, machine deck and lower levels cleaned). Insulatian installation is part of cus#omer's scope as well.
If required Siemens Energy can pravide these services on a T&M basis.
• Monitoring for and removal andlor disposal of all hazardous material such as asbestos bearing materials,
lead carbonate, etc. are not included in this propasal.
• Removal and reinstallation of the fire protection system, including fire protection instrumentation, machine
electrical equipment and instrumentation, conduit and piping are not included in this proposal.Ail electrical
disconnects {motors, generatar bus, etc.} are to be perfarmed by customer.
• The customer will provide all spare parts. Lack of spare parts when needed may delay the completion of
work and adversely impact the "ready for turning gear" date. Rny such delay will be billed to the customer on
a T&M basis per the current rate sheet. Large spare parts and materials, which cannat be transported easily
by hand, are to be pravided by the customer directly on the machine floar or under the station crane prior to
the outage start date.
• All special OEM tools and devices for the machinery are to be pravided by the customer. Siemens Energy
will provide normal hand tools typically used for millwright work. Verificatian of the special tooling is
recommended prior to the outage and can be quated after Siemens Energy is awarded the contract far
the packaged overhaul. Any missing tooling that requires manufacturing onsite to facilitate assembly ar
disassembly will be considered extra work.
p The custamer is responsible for the proper operation and availability af the overhead crane. A crane
inspection is required priar to the outage (no more than 12 months prior). If the crane has been overlaaded,
shock loaded, modified or newly commissioned a load test is required. The crane shall be made available
Siemens Energy,Inc.Confidentiai
Siemens Energy is a trademark licensed by Siemens AG.
Page 3 of 14
�� uo� tion 1 _7 7 _. �v�
to Siemens Energy and its subcontractors on a priority basis; however, Siemens Energy will share the use
of the crane in order not to adversely impact the outage completion. Rny and all crane delayslproblems will
result in a delay charge to customer.
• In the event that the Customer provides scaffolding, Siemens Energy Quality Assurance guidelines require
that the Customer ensures that the scaffolding is inspected by qualified personnel prior to each shift. The
Customer is to ensure that qualified inspection personnel are available each day that the scaffalding is in
use.
• The customer is responsible for directing Siemens Energy regarding where to place heavy loads on the
machinery deck (i.e. upper case lay down location, rotors, etc.) in order to comply with the design floor-
loading plan.
• In order to assure effective communication and timely response to project needs, it is expected that the
customer will provide a Plant Contact with EWA signatory authority on a 24 hour basis for the work duration
for assistance during the oufiage to avoid delays af the project. The customer and Siemens Energy would
each provide persons for interfacing, with the authority to represent their companies during the time Siemens
Energy is performing work.
° The craft manpower loading and work schedule may change depending on the work scape, inspection
findings and at Siemens Energy discretion. Any schedule float on Siemens Energy tasks will be the exclusive
property of Siemens Energy.
• Rotating and stationary component repairs beyond what is explicitly included in this proposal are not included
in the price. Siemens Energy can offer repair as an option and, dependent an requirements, can either
complete the repair on site ar ship parts to a workshop authorized by Siemens Energy.
• Customer will remove and replace the lubrication oil and the control fluid, if required, and inspect and clean
the tanks. The customer will provide the necessary jumpers andtor fittings to complete lube oil and control
fluid flush. Normal flush time is 12 haurs and Siemens Energy recommends this duration even in cases when
new oil is supplied.
• It is anticipated that there will be no delays caused by the customer for safety related issues, special
permitting requirements, work area admittance, plant admittance, ar safety meetings and pre-autage
orientatian during the entire outage exceeding a total of 2 hours per person. Such delays impact the schedule
and will be billed on a T&M basis per the current rate sheet. Siemens Energy shall not be held responsible
for delays resulting from the actions of the customer or other personnel not subcontracted by Siemens
Energy.
• Checking the coupling alignment is included when listed in the Scope of Work. (The Siemens Energy
standard mefihods are rim and face dial indicator, reverse dial indicator, and straight edge/feeler gauge).
Major realignment{moving the machine casing or frame), if required, will be considered Extra Work and will
affect the outage duration and cost. The determination will be made when the coupling reference readings
are recorded following the unit cool dawn.
• Alignment of the internal flow path is limited to an initial inspection of the alignment, one adjustment, and final
verification of the internal alignment. Abnormal conditions present that increase the effort required to align
the flow path will be considered extra work. Such conditions include, but are not limited to, internal or external
Siemens Energy,Inc.Confidentiai
Siemens Energy is a trademark licensed hy Siemens AG.
Page 4 af 14
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distorted components that could affect the alignment condition, realignment of the casing, andlor realignment
af the bearing pedestals.
• Final oil circulationlflushing is recommended prior to placing the machinery in service and is not included in
the scope of wark. This service may be provided on a Time and Materials basis.
• The above scope of work does not include mechanical start-up support unless listed in the Scope of
Supply and Pricing sections. Rny required time for start-up support will be billed on a Time and Material
basis.
• Siemens Energy and the Customer will coordinate a milestone schedule for infierface points {i.e. insulation
remaval, oil tank draining, electrical hook-up and disconnects, I/E personnel needs etc.) after the receipt of
the order. One pre-outage meeting at site is recommendad to review this prapasal, tooling and parts.
Tenting Requirements
� Adequate tenting is required for the inspection (see tenting requirements below}. Tenting is not included in
this proposal.
• The customer will provide the tenting requirements, which shall meet Siemens Energy Process Spec for
white light intensity when performing a black light examination in a dark area maximum of 2 ft./candles. Tent
size must cover the companent being inspected to allaw the inspectar sufficient room to perfarm the NDE
examination.
Electrical Requirements
• 110V, 30 amp service
• 480V, single phase, 60 amp service
• 480 volt, single phase, 100 amp service
Pneumatic Air Requirements
• 110-150 psi shop air for pneumatic toaling
Inspecfiion Chemicals
• Containment and disposal af inspection chemicals are the customer's responsibility.
Di�rision of Responsibilities
• Section 3 contains a Division of Responsibilities which expands on the customer and the Siemens Energy
scope of supply during this outage.
Siemens Energy,Inc.Confidential
Siemens Energy is a trademark licensed by Siemens AG.
Page 5 of 14
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Pro;ecfi Schedule
Field Service Bundie
Preliminary Start Date 2024-05-18 Duratio� Shift schedule
Estimated Completian Date 2024-06-01 15 Days 1-12-7 Shift
Pricing quoted at the foilowing rates:
SEI PL1727 2024
Final pricing will be billed in accordance with the Terms and Conditions and fZate Sheets in effect at the time of work execution.
Manpow�r
Rate Type Personnel l Day ShPft Personnei/ Nig#�t €�M
Day Shift Rate Night Shift Shift Rate Manpower
'Price
Field Service Bundle
Gommissioning Engineer �
Speeia!Services Engineer
Standard Time Hourly 16.0 USD 399.00 0.0 USD 399.00 USD 6,384.00
Overtime Hourly 20.0 USD 599.00 0.0 USD 599.00 USD 11,980.00
Premium Time Hourly 12.0 USD 798.00 0.0 USD 798.00 USD 9,576.�0
t?n-Site PM 1
Special Services Engineer
Standard Time Hourly 8Q.0 USD 399.00 0.0 U5D 399.00 USD 31,920.00
Overtime Hourly 76.0 USD 599.00 0.0 USD 599.00 USD 45,524.d0
Premium Time Hourly 24.0 USD 798.00 p.p USD 798.00 USD 19,152.00
IV#illwrights �
Technical Field Assistance
Standard Time Hourly 480A USD 333.00 0.0 USD 333.00 USD 159,840.00
Overtime Hourly 456.0 USD 500.00 0.0 USD 500.00 USD 228,000.00
Premium Time Houriy 144.0 USD 667.00 0.0 USD 667.00 USD 96,048.00
GT Engineer <`1
Techr�ical F�e1ci Assistance
Standard Time Hourly 80.d USD 333.00 0.0 USD 333.00 USD 26,640.00
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Manpc�wer
Rate Type Personnei i Day Shiit Personnel l Night T 8�Ni
Day Shift Rate Night Shift Shift Rate Manpawer
Price
Overtime Hourly 76.0 USD 50�.00 p,p USD 500.00 USD 38,000.00
Premium Time Hourly 24.0 USD 667.00 0.0 USD 667.00 USD 16,008.Od
FSR=Job Planning 1
Technicai Field Assisfance
Standard Time Hourly 40.0 USD 333.00 p,p USD 333.00 USD 13,320.00
Subtotal USD 702,392.00
Manpower Hours Total USD 702,392.00
Tool'sng&IlHaterial Quantity U(}M Duration Frice Rate Tota!
Field Service Bundle
BrandSafeway Scaffolding 1.00 Gost+20% 0.00 87,500.00 87,b00.d0
Tool Transportation-Standard 1.00 Gost+20°l0 1.00 25,000.00 25,Od0.00
Toaling 1.00 Monthly 1.00 27,910.00 27,910.00
ABg 1.d0 Cost+20°l0 0.00 87,500.00 87,500.00
FGGS Engineer 1.00 Cost+20% 0.00 75,000.00 75,000.00
Mobile Grane Services 1.00 Cost+20% 0.00 75,d00.d0 75,OOd.00
Heavy Lift Services 1.d0 Gost+20°l0 0.00 125,000.00 125,OOd.00
Subtotal 502,910.00
Expenses UQM D�rratian Price Rate Tota]
Daily Accommodation&Allowance Per 5hift 133.00 383.00 50,939.00
MoblDemob(Specialist Persannel) Per Shift 4.00 1,750.00 7,000.00
Subtotal
b7,939.00
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Subtotal USD 1,263,24�.OQ
1Q°lo Discount -USD 126,324.10
Estimated Total USD 1,136,916.90
Currency U.S. Dallar
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�r��nns�,N� ca�Qorio�s:
Long Term Parts, Services and Inspections Contract Between City of Redding And Siemens Energy, Inc. Dated as of
September 6, 2011 Redding Project and as amended via change arders {hereinafter, "ContracY')
Client Purchase C?rder must include Terms and Conditions
Thank you and remit purchase order ta:
Siemens Energy
Lee Van Kirk
+1 {949) 300-3480
lee.vankirk@siemens-energy.corrr
18502 S Dominguez Nills Dr.
East,CA
90220
US
Purchase Qrder
The following statement must be printed on the face of your purchase arder un►ess mutualfy agreed terms are in place in
advance:
Natwithstanding any statement to the contrary in this purchase order, the parties agree that the anly fierms and conditions
that shall be applicable to this purchase order are contained in the Lang Term Parts, Services and Inspections Cor�tract
Between Gity of Redding And Siemens Energy, Inc. Dated as of September 6, 2011 Redding Project and as amended via
change orders (hereinafter, "Contract"}. Na ather conditions printed on the face or back of this purchase order shall apply.
Please include the following on your order:
Quote#: Q-169047
Terms and Conditions: Long Term Parts, Services and Inspections Contract Between City of Redding And Siemens
Energy, Inc. Dated as of September 6, 2011 Redding Praject and as amended via change orders (hereinafter, "Contract"}
Brief Scope!Summary: Gear Set Replacement
Shipping: C)rigin
Project to be invaiced by the follawing schedule: Weekly, at sight: Based an clients signed timesheets
Pricing Notes
1. Total labar price does not include additional non forecasted hoursJday� and processing fees.
2. Service representative/crew cannat travel to site without a purchase order with pre-existing/negatiated
terms or acceptance of the standard terms and conditions. These terms must be identified on the purchase
order by dacument number or the acceptance of the standard terms and conditions.
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3. Firm start date required, if the expected start date changes, a standby rate of 8 hours per day plus living
expenses may apply. If the start date is delayed prior to the travel date, you can choose to postpane the start
date without a standby charge; hawever, new resources maybe allacated based on rep i crew availability
once a revised start date has been determined.
4. The service representative will work directiy with the site contact when providing hislher fechnical
assistance. Company will nofi provide a service representative where the crew performing the wark is not
directly employed by the end user(i.e. 3rd party, EPC contractor, etc.}
5. The service representative is not responsible far the personal instructions of the crew or any delays
encountered due to the crew's ability
6. The service representative may assist with planning the day-to-day acfiivities but is nat responsible for the
creation and execution of assigned schedules.
7. Any tooling required to perform the task provided in the scope will be supplied by the client if not listed.
8. Prices quoted are in the currency stafied above and do not include State, �ocal or Federal tax, do nat include
tariff or import export duties.
9. Prices quoted are valid 30 days fram date af issue.
10. If travei on Saturday, Sunday or a Haliday is required, the premium portion of the overtime for the travel days
wiii be invoiced to purchaser per the rate sheet in effect at the time the work is performed.
11. FSR pricing is based on an 8 hour minimum day for onshare and a 12 hour minimum day for offshore.
T'erms of Payment
Final invoices will be issued based an 100°la completion of the work scope. Payments are due and payable net within
thirty (30} days from the date of each invoice.
Custorner Outage Satisfaction Survey
Siemens Energy is dedicated to providing our customers with exceptional worid class service. Within five to fifteen days
after completion of your outage, yau may be asked by ComSim to participate in an outage satisfaction survey. As a valued
customer, your participation in this process is greatly appreciated. Your feedback allows us to continually improve the
quality of the service that Siemens Energy provides. Please include the name and phone number of your company's
representative that should receive this survey on your purchase order, or provide to your Siemens Energy Client Manager.
Scheduling
Scheduling of our crews will nat occur until a purcnase order is received and Siemens Energy has issued a formal Order
Confirmation document. Upon this event, Siemens Energy will confirm resource availability.
Proposal Validity
This proposal is valid for thirty (30} days from the date of this lefiter unless otherwise extended, modified, or withdrawn in
writing by Siemens Energy.
Shift ArrangementlDuration
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"Any change in the shift arrangements or averall duration specified above may result in price changes for additional
overtime and inefficiencies that resulfi from either acceleration or deceleration of the work or as a resuit af extra wark.
Siemens Energy holidays are not included and the premium portian would be extra."
�xtra Work
Any additional work including but not limited to, repairs, additional fitting of components, and re-alignment of internai or
external camponents performed by Siemens Energy which is beyond the scope of work defined in this offer will be billed
on a time and materials basis in accordance with Field Service Rates in effect at the time the work is performed andlor as
a firm price offer if performed in ane of our repair facilities.
Mobilizat'son
Mabilization is alsa contingent upon assembling the necessary equipment from our tool facilities. We have pre-assembled
kits which contain as much of the required equipment as can be generally applicable.
Additianally, aur estimated costs far mabilization are based upon being able to use a dedicated truck shipment of
tools from our facilities to your site. Should less than the requested time of 9Q Days between receipt af an order and
site mobilization require the use of expedited shipping arrangements and/or overtime in preparing the equipment, the
additional cost will be charged as extra work.
Cantingency Planning
Should inspections findings and subsequent Engineering recommendations show that additional repairs are required;
Siemens Energy will make every attempt to provide any needed repairs depending upon the immediate availability of
resources. Immediate cantact should be made with your District �ffice representative to identify resources and/or to
develop a contingency plan.
Replacem�nt Parts
Purchaser warrants that any and all third party parts which may be the subject of any performance under this agreement
shall be (a} fully compatibie with the corresponding part, component, equipment or material of the Original Equipment
Manufacturer(OEM) in terms of form, fit, and function; (b) timely provided to Siemens Energy hereunder; and (c) capable
of instailatian in the same manner and within the same time as the corresponding OEM part, component, equipment, or
material. �
Purchaser assumes the entire liability and risk arising out of or resulting from third party parts. The warranties and
remedies set forth in this affer does not apply to third party parts or performance relating to third party parts, and Siemens
Energy disclaims any and all warranties and remedies, whether statutory, express or implied (including all warranties of
merchantability and fitness for a particular purpose, and all warranties arising from course of dealing or usage of trade),
or otherwise, for or with respect to third party parts or services an third party parts, or any OEM components repaired or
replaced by a third party.
Obstacles of Interferenc�
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Any obstacles of interference that may be encauntered by Siemens Energy prior ta or during the outage which may hinder
ar prevent Siemens Energy fram performing the work outlined in this offer will be remaved by the Purchaser, if required, or
Siemens Energy wiil complete the necessary removal and invoice as extra work.
Site Safety and Security
Safety and security training and screening are based on Siemens Energy standard policies. This proposal does
not include additianal time and/or expenses that may be required to meet site/project specific safety and security
requirements unless specified otherwise in this proposal. Special requirements including, but not limited to, site!
project specific background checks, drug testing, safety training or certificatians, or badging will be eonsidered Extra
Work.
Delays
Delays in performing the work, out of Siemens Energy contral, will be considered and biiled as extra work. The price
and schedule offered assumes that Purchaser will supply or arrange for the required support resaurces as defined in the
Divisian of Responsibilities, in a timely manner.
V�/eather Delays
The priees and sehedule durations make no allowanee for ex#ension in outage durafion and/ar delays in work pragress
as a result of inclement weafiher. Rny oufiage extension and/ar delays in work progress due to inclement weather
will be documented and billed additionally in accordance with the exfira wark and outage extension provisions of this
propasal. Purchaser is responsibie for providing weather protection.
Crane(s), L.ifting Deviees and Rigging
Purchaser is responsible for ensuring that all Purchaser supplied cranes, lifting devices and rigging are available
in good Working candition and are inspected and certified per all applicable local, state and federal safety
requirements. Purchaser is responsible far making sure that all documentation and certifications are available for review
by Siemens Energy prior to the outage.
Pric�rity Use of Crane
The above price is based on Siemens Energy having priority use of the crane during all work. Delays in work due to the
crane not being available, would be cansidered extra wark.
Contract Exfiension
This offer is based on performing all the required wc�rk in continuaus successian. Any extensians to the cantract in
performing the work out of the control of Siemens Energy shall be considered Extra Work and billed according to the rate
schedule valid at the time work is performed. This also applies to Stand-by charges and additional expenses incurred.
Additional equipment or taal rental shall be billed as necessary {if applicable).
Hazardous Material and Waste
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Siemens Energy has adopted a waste minimization program and will anly bring to the site the quantity of these materiais
necessary to perfiorm the intended work scope. Material Safety Data Sheets for all applicable materials brought on site
shall be submitted to Purchaser for review and acceptance.
Any hazardous material or waste generated, as a result of the work performed Siemens Energy, or any unused portians
thereof, will be disposed of by and to the account of Purchaser.
Siemens Energy will not be responsible for the removal or disposal of any asbestos material, which may be encauntered
during the project. The price offered assumes that Purchaser has removed all asbestos bearing material priar ta the start
of the Siemens Energy wark scope.
Asbestos Containing Materials
In no event shali Siemens Energy be obligated ta install, disturb, handle, remove or dispose of any asbestos containing
material (ACM} and/ar any presumed ACM that may be encountered during the project. The price offered assumes that
all AGM has been removed by Purchaser prior to the sfiart of Siemens Energy Work scope. There may be additianal costs
associated with Working in or around an asbestos environment. These include, but are not limited to, asbestos education
and protective clathing. Siemens Energy will infarm Purchaser of these costs as they arise. This effort, if required, will be
Extra Work.
Thermal Insulation
Removal, replacement and clean-up of thermal insulafiion will be perfarmed by Purchaser. Should Purchaser require that
this Work be performed by Siemens Energy as part of the outage Work scope, Siemens Energy will subcontract this Work
ta a qualified subeantractor. Siemens Energy persannel are to be protected from any environmental hazards associated
with the removal, replacement and clean-up of thermal insulatian. Disposal of all thermal insulation material generated as
a result of this Work will be performed by Purchaser.
l�ead Coatings
Testing far lead content in paint and other coatings must be performed by Purchaser prior to the start of the
outage. Nowever, if requested by Purchaser, Siemens Energy can perform the testing for lead content prior to
disassembly as Extra Work. In either case if lead is detected, in any concentration, using any recognized analytical
method (including but not limited to XRF, Field XRF, Chemical Spot Test, etc.), Purchaser is responsible for the lawful and
timely removal and dispasal of the lead-containing materials. Purchaser is also responsible for any Delays to Siemens
Energy as a result of the lead coatings.
Lead Carbonate
In the event that lead carbonate contamination is encountered in the generator or exciter, the defined Scope of Work
will immediately stop until the lead carbonate has been addressed. Purchaser is responsible for testing the suspected
contaminafiion, air monitoring and for notifying Siemens Energy personnel on site of the test results. If required, Siemens
Energy will remove the lead carbonate from the generator and perform air monitoring as Extra Work. Delays incurred
by Siemens Energy while waiting for the contamination to be tested or the lead carbonate issue to be resolved will be
billed as Extra Work. Purchaser is responsible for the disposal and transpartation of any lead and contaminated materials
including supplies used for the decontamination.
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C�nfined Space
This inspection on Purchaser's Unit may require Siemens Energy persannel to enter and Work in a canfined space and
wauld be affected by OSHA 29 CFR 190.146, "Permit Required Confined Space Law". This law requires the monitoring of
air in confined spaces as well as a written permit system, the training of attendants and entrants, constant communicatian
and a rescue team. Siemens Energy requests the following support from Purchaser in order to comply with this Law.
1. Perform air sampling of fihe confined space and clear the vessel for entry.
2. Provide a dedicated "qualified attendant" to stand by the opening, maintain contact with the entrants and ta activate the
rescue team, if necessary.
3. Provide access to a rescue team. The members of the rescue team must all be Red Cross/GPR certified,
SCBA certified, etc. and must have successfully performed a rescue at that location with a mannequin or
employee.
Siemens Energy can provide items 1 and 2 at an additional cost, if requested by Purchaser. However, due to the unique
requirements of the rescue team, Purchaser is to provide the requirement of item 3.
Welding
ASME Gode rules shall be fully complied with where fihis procedure is used on ASME B & PV Code, ASME 831.1, ar
National Board Inspectian Code RNSIINB-23 fabrication.
For non-Code appiicatians Siemens Energy Engineering may waive specific WPS variable rules. Turbines and electrical
generators and their associated equipment are not covered under the scope af the ASME B & PV Code Sections or
under ASME 831.1 and therefore the welding operations are not specifically gaverned by any ASME construction code
requiremenfis. Wherever practical the intent of these Codes is met in the engineering design and fabrication, hawever, the
final acceptance of the design and fabrication shall be determined by Siemens Energy Engineering.
When the fabrication is not covered under the scope of the ASME Code, welding procedure and welder performance
may be qualified in accordance with ASME B & PV Gode Section IX or, where applicable, in accardance with EN ISO
15609-1: latest revision (contents of a WPS for arc welding), EN ISO 15614-1: latest revisian {weld procedure qualification
for arc and gas welding of steels and arc welding of nickel alioys) and EN 287 Part 1-latest revision (welder qualification
far steels}. Final interpretation of this specification or of Code questions associated with this specification shall be made
by Siemens Energy Engineering.
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Attachrr��nt 3 — Siemens �n�rc�y, Inc. Exfra ork Authoriz�tion Form
Long Term Parts, Services and Inspections Contract G5661, C045 5
Siemens Energy Confidential & Proprietary Information
C?riginai to: District Office cc:Customer
cc:Site Praject Manager
cc:Field Sales Office
cc:LTP Project Manager
Siem�ns Energy, Inc.
E�fra 1�lork Ord�r �4cathc�rs��ti�n
EWA No.
Work to be performed at The Cifiv af Reddinq , Unit#5 tB000532�
DESCRIPTIOPi l"?F�XTf2,4 WC7RK:
C] Parts Included ❑ Parts Not Inciuded
� Customer to Revise�riginal PO ❑ Customer to Issue New PO ❑ LTP Contract
GO#: Suffix#: {Completed by DSO}
Shift Arrangement:
Total Estimated Biliing: ❑ Firm Price ❑ T&M Estimate
Total Estimated Man-Hours:
Note:
Based on best estimates,the extra work will delay/impact the scheduled completion date. (Circle Answer} Yes / No
If yes,what is the new campletion date?
Any additional costs incurred by Company resulting from the e�ra work extending the original schedule shall alsa be
compensated under the extra work provisions of the Maintenance Inspection ContracULTP Contract(if applicable).
The City of Redding (Purchaser) hereby authorizes Siemens Energy, Inc. (Company), to perform the above described
work, which shall be performed and compensation paid for in accordance with the Base Scope contract between Siemens
Energy Inc. and the City of Redding dated September 6, 2011 .
CUSTOMER DEC151�N: ❑ APPRt�VE ❑ REJECT
CUSTOMER SIGNATURE:
Date: Time: Customer Purchase Order: Implement under C-5661 �TP C045
Section 2, Outaqe Cantingency Allocation
SIEMENS EN�RGY, INC. Praject. ManagerlLTP Engineer:
Date: Time:
This document contains information confidential and proprietary fo Siemens Energy, Inc. It F -FP0236-1-Q�
is submitted in confidence and is to be used solely far the purpose for which it is furnished
and returned upon request.This dacument and such information is not to be reproduced, EX'�C� ark lltriOPlZatliaCl
transmitted,disclosed or used otherwise in whole or in part without the written authorization
ofSiemens Energy, Inc. Confidential
_2009 Siemens Energy, Inc.
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