Tender Kick Off Meeting – Example

admin/ September 14, 2014/ Blog Posts/ 0 comments

Here’s an example of a tender kick off meeting recorded to show the general format and points of emphasis you should cover when kicking off a small to medium sized tender.

Tender Kick Off Meeting Format

Typically, a tender kick off meeting like this should cover at least the following main areas:

  1. Tender or Project Overview
  2. Competitor Analysis
  3. Bid & Win Strategy
  4. Bid Schedule
  5. Responsibility Assignment Matrix
  6. Estimating Instructions
  7. Commercial Aspects
  8. Review & Approval Process

Video Transcription

So, this is the bid kick off meeting for the HiVis Atlanta – A jack up drilling rig owned by HiVis International. Now this bid kick off meeting is being recorded for those people that are not on site at the moment and the recording will be viable to everyone on the internet.

So, just an overview of the project.

The HiVis Atlanta which with we fitted before on its facilities a 30+ year old jack up drilling rig. It’s due to its 5 year survey. And the primary focus for the client is 50 ton of steel replacement which arise from a survey in Vista in Nov of 2009.

Now the key schedule here is all of the work must fit inside this window you need to refer to the Statement of Work, there is a number of other projects but they are dependent on them being the big fit inside the steel replacement window.

There’ll be a standard repairing minute package and there is significant living quarter repair and upgrade package as well. And that’s already been quoted by Walkers and they will provide a quotation directly to us.

So, here’s a picture of the rig and work, remember it’s a 30 year old rigs so the likelihood is this is going to be a significant additional work coming on stream once we have the rig in our yard.

The cable be trying to put together as much work into that 50 ton windows we can build at the same time providing the client with a realistic schedule that shows we got some space for variation work and new work coming online.

In addition to the old key work, the steel replacement and the repair of minutes work, there is a number of project type package so this will be tendered on an EPC basis of design procurement construction installation packages. We expect the contract to be awarded in June 2010. And the project should proceed in Q3 of 2010. And that is dependent on HiVis’s contract with their client.

So, I can…bit on this bid of Collins Oilfield Dubai – we know that they always bid with all inclusive prices, they have a great reputation, and they guarantee deliveries. So, that is something we are going to try to emulate for this bid.

Docking World Abu Dhabi – we know they are going for a low cost with many inclusions. We know they make their money on the variations. We must get over the low cost….of Docking World Abu Dhabi. And we got a significant advantage with the dry dock facility. We’ll have to use the barge to dock the vessel, therefore that will add to our schedule significantly.

Vista Bahrain – not a strong competitor but because they are located close to the oil field they have a 5-10 day advantage on us. They also undertook the special survey and they got a relationship with the client because they’re currently doing another project for HiVis.

Now, strategy to win this work will be to bid fully compliant, no exclusions. Whatever the scope of work is well define we’ll quote a fix price. We’re going to try maximize the work inside the 50 ton windows so we need to come up with some innovative approaches to maximizing the work within fit inside that window. We know that we’re all been guilty of thinking of all scenarios and pumping up price up because we know that certain additional work may carry, but we only want to be quoting the work that being ask for. If there is variation that will be coming so be it…quote lean on the base work in anticipation of growth. Given the age of the vessel we know that there is going to be significant growth.

So the schedule for the bid – the responsibility sum of matrix has already been issued on the 17th of Jan. And we have people plan to go for rig inspection between the 19th and 21st of Jan. All external work that is work that we intend to sub contract out needs to be issued to vendors on the 21st of Jan. And we will set up the meetings probably a week after that to clarify any queries they may have. We need all their material pricing, Material take offs and vendor quotes to be back with their estimating depart on the 28th of Jan. for it to make the bid schedule.

We need to see the draft schedule on the 28th of Jan. We need the first draft of estimate by the 1st of Feb. We’ll then have a review and approval process, 2nd, 3rd of Feb. We’ll then review the estimates against the price, make adjustments. And finally submit the bid on the 4th of Feb.

For the Responsibility assignment matrix – all of the jobs has been allocated to the appropriate rig inspector, so one inspector per job has been allocated and he will come back and confirm the scope of work after the rig inspection. We had a meeting with the client on the 13th and 14th of Jan and we’ve included all the comments against stitches and line up in the scope of work inside the RAM.

Don’t wait for the rig inspection, we need to start quoting today for all intents and purposes we just see the rig inspection as a confirmation process if there is anything different we’ll make adjustments. If we wait to start bidding and estimating this work we will not make the schedule.

Again, key points, only quote where it’s been requested. We know that the client has lots of wish list….we are ignoring this for the time being, they spoke about a lot of additional work in the client meeting. WE cannot get side track by that, we’ll just quote the written scope. If we feel there is enough information to provide additional quote outside the base bid we will do that. But for the time being only quote what’s documented. As I said, quoting is going to commence today. The rig inspection is primary a confirmation progress and already HiVis had provided us with significant information. The scope of work they’ve provided us are very detailed with lots of information, we’ve fit this rig before, we know what it looks like. We should be able to put some very solid process on the table.

Now, a key point, all estimates are to include a basis of estimates. I’ve seen a lot of bids coming in recently where we can’t trace back where the numbers came from. I must see a basis of estimates against every Wsolomon in the bid. I will distribute some guidelines exactly how I want to see that broken down.

So, Walkers….modification people has already inspected the vessel and they will quote directly to us. And then, once we got the quote we need to review it and then we’ll have discussion with them, see how we can speed up the schedules, see what the schedule is.

Now, another point of areas for main process is do not include any contingency or reserve or pad or fat with the exception of standard production contingencies because what we’re getting is we’re getting contingency on top of contingency in our bids and we’ve got to wipe that out. We’ll add contingency at the project level base on risk assessment and I’ll be coordinating the risk assessment for the bid.

Now, of course, the schedule is the key differentiator. Getting the 50 ton worth of steel down and getting as much work inside that 50 ton window will be a key differentiator for the winner of this bid. So, we need to look at the sequencing for the steel replacement and look at what tonnage rates on a daily basis then we need to work out some workarounds and some innovative processes to try and speed that up. If there is a payback for spending more money on additional cranage or additional people working shifts, then we’ll consider that work. All options to consider schedule reduction are open. Remember, all other work must fit inside the 50 ton window, so it’s going to be a bit of a moving phases. As we reduce the days it will take us to do the 50 tons worth of steel so then obviously it’s going to be a balance between how much of the other work we can do and then how much contingency we have in there for additional growth work.

So, again, we’ll do an estimate review on the 2nd and 3rd Feb as mentioned. I need to see the basis of estimate and on top of that once I’ve seen the basis of estimate then we’ll do our risk assessment. We need to reduce our overhead profit contingency which will be supported by strong basis of estimate in confidence in the estimate. If we understand we’ve got the estimate right and the risk is low and all estimate being correct then we can go to our senior management and see if we can …as much of the overhead as we can to be as lean as possible for the bid.

The schedule of review with the 2nd and 3rd Feb as well alongside with the estimates and we need to be aggressive about that. We need to develop a histogram for the project and the whole yard. And we need to be able to prove to the client that we have the man power to do this job. We need an execution plan ready by the 3rd of Feb and then we’ll go to Martin on the 3rd of Feb with the final proposal. And then we’ll get that sign off by the Chief Executive on the 4th of Feb.

 

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