Attached this completed form to requisitions when competitive bids are not solicited. Required for requisitions ≥ $1,000
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REASON FOR THE PROPOSED SOURCING IS:
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Reorder based on previous bid or analysis (within 6 months)
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Repair services or parts unavailable from any other source except original equipment manufacturer or their designated servicing dealer
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Vendor has exclusive rights to supply and/or maintain
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Favourable Terms: i.e. Lowest price, Delivery, Payment
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Insufficient time to competitively source, to maintain operation
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Other – Details to be provided below
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DETAIL OF JUSTIFICATION
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Single Source Justification for AE's Hiring of a 3rd Party Local Engineering Company for the Internal Hull Strengthening of the Neptune Rig:
Since the Subsea Exploration/Appraisal U-01A well concept has been approved for the Umid South Flank field, it has been identified that the Neptune Rig requires structural modifications and construction activities for Constant Tension Deck (CTUD).
AE is currently performing the CTUD engineering for the Neptune Rig. During the ongoing engineering work by AE, it has become evident that additional engineering is necessary for the internal hull strengthening of the Neptune Rig in order for the Rig to withstand the considerable size and loads of CTUD on its hull. This additional engineering work is vital to maintain the structural integrity and operational safety of the Neptune Rig
The purpose of JUSTIFICATION is to allow AE, the current Constant Tensioning Deck (CTUD) engineering provider for the Neptune Rig, to engage with a local 3rd party engineering company for the internal hull strengthening. While cost-effectiveness is a crucial consideration, there are strategic advantages that make AE's direct involvement with the 3rd party more advantageous, despite potential higher costs.
Seamless Integration and Accountability: Extending AE's involvement to include the internal hull strengthening through their chosen 3rd party engineering partner ensures a seamless integration of various engineering aspects. This approach eliminates potential misalignments, minimizes communication gaps, and fosters a cohesive understanding of project complexities. Having AE directly engage the 3rd party will place them in a better position to oversee the entire engineering process, enhancing accountability and facilitating smoother project execution.
Mitigation of Coordination Risks: Engaging AE and the 3rd party separately could lead to coordination issues, delays, and conflicts between these entities. Entrusting AE with the responsibility of hiring and managing the 3rd party centralizes accountability, significantly reducing the potential for conflicts. This promotes efficient collaboration and safeguards against disruptions arising from inter-company disputes that might hinder the overall project progress.
Long-Term Project Viability: While the immediate cost implications of AE's direct involvement with the 3rd party might be higher, the cohesive engineering strategy guarantees a more reliable project outcome. Preventing project delays, rework, and disruptions due to conflicts far outweigh the initial financial difference. This approach ensures the Neptune Rig's structural integrity and long-term operational viability, ensuring a sustainable and robust investment.
Considering above, allowing AE to directly engage the 3rd party local engineering company for the internal hull strengthening is a strategic decision that aligns with our project's success and mitigates potential risks.
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P.O./CONTRACT No
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TOTAL COST:
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REQUESTER NAME AND TITLE:
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Umid Abdurahimov
Junior Subsea Engineer
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DATE: 12-May-2023
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APPROVER NAME AND TITLE:
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Elnur Ismayilov / Drilling, Completion, Workover Manager
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DATE: 12-May-2023
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NOTE:
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