Canada-Newfoundland and Labrador Benefits Plan - Hebron Project

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Hebron Project Section 3 Benefits Plan Benefits Approach, Principles, Policies, Guidelines and Procedures In performing their obligations under their contract, contractors and suppliers will be required to establish and maintain appropriate business standards, procedures, and controls. Full contractor compliance will be facilitated by the terms of the contracts. Procedures will be put into place to deliver and effectively monitor compliance with the standards. Failure to satisfactorily meet the benefits commitments or report will constitute an instance of non-conformance with the contract terms and conditions and, as such, could result in sanctions including termination of the contract. This approach not only satisfies the requirements of the regulatory and corporate drivers, but will also benefit the Province in the long term by helping further build capabilities of its existing businesses. 3.3.3.1 Procurement Process EMCP views the procurement process and associated responsibilities as extending from the development of the procurement strategy, through the sourcing process (including bidding and negotiations), contract initiation and implementation and performance management, to contract close-out or renewal. Benefits, including diversity, will be an important consideration at each stage. For example, the reimbursable commercial terms of our main FEED/EPC contracts have been designed with a view to effective and efficient compliance with Project benefits principles and commitments. Similarly, in order to maintain communication with the supply community in the sourcing of work, EMCP will make the following information available regarding Project contracting activity, and the main contractors will be expected to follow the same, or a similar, protocol: ♦ ♦ ♦ ♦ Expressions of Interest: EOIs will be published on the Project website and BIDS, and NOIA and other industry organizations will be notified about them. Bidders Lists: These lists will be published when certain criteria, such as value and competitiveness, are met. Contracts: For the main contracts, the list will show the contractor name and contact details, and provide a summary of the scope of work. Contracting Update: Issue updates on contracting status and forecast the main contracting activities. ♦ Supplier Workshops: Workshops will be held in conjunction with key contracting milestones, e.g. after the award of major FEED/EPC contracts. Procurement personnel will also develop programs to proactively engage smaller suppliers. Structure of Bid Packages: To the extent reasonably practicable, EMCP will structure bids and encourage relationships between local and other suppliers to facilitate local participation. Where contractors and suppliers are selected from outside the Province, EMCP is committed to promoting local suppliers’ ability to ExxonMobil Canada Properties 3-20 April 2011
Hebron Project Section 3 Benefits Plan Benefits Approach, Principles, Policies, Guidelines and Procedures have full and fair opportunity to compete for sub-contracts. The award of all major procurement package sub-contracts will be subject to EMCP’s prior approval. Pre-Qualification: At this stage, potential bidders will be asked to describe their experience with benefits monitoring and reporting regimes in the Province, or elsewhere in Canada or internationally, and indicate their commitment to the monitoring and reporting requirements. EMCP will advise them that it will report regularly to the C-NLOPB on its efforts, and those of its contractors, subcontractors and suppliers, in achieving benefits for Canada in general, and for Newfoundland and Labrador in particular. In this context, EMCP will advise potential bidders that it will require the following reports from its contractors and suppliers on a regular basis: ♦ ♦ ♦ Procurement forecasts; Reports on contracts at the pre-qualification, bidders list and award stages; Reports on expenditures, employment and training, R&D and diversity; and ♦ Other reports determined to be necessary, including those required to demonstrate that Benefits Plan obligations are being met. Potential bidders will be informed that the specific content, format and frequency of benefits reporting requirements shall be determined by EMCP and shall be agreed between EMCP and a successful bidder during the contract award process. Potential bidders are also advised that EMCP and its contractors, subcontractors and suppliers may be subject to periodic industrial benefits audits undertaken by the C-NLOPB or its designated agents. These audits would verify that the benefits-related procedures that have been established are being followed and that appropriate information is being collected and analyzed. Requests for Proposals: Bidders will be required to complete a Benefits Commitments and Questionnaire form at the RFP stage for contracts greater than $250,000. They will be advised that their commitment to benefits, as determined by the information provided, will be one of the considerations used in the overall bid evaluation. Potential bidders will also be advised that the content, degree, frequency and format of benefits reporting requirements shall be determined by EMCP, and agreed between EMCP and a successful bidder as part of any contract award. Bidders must state in their proposals that they will comply with these reporting requirements, and the successful bidder will be required to monitor the actual benefits delivered compared to the estimates provided as part of its bid. At the RFP stage, potential bidders will also be provided with “Canada- Newfoundland and Labrador Benefits Content Questionnaire”. This document outlines the full range of benefits-related obligations and requirements a successful bidder must comply with. ExxonMobil Canada Properties 3-21 April 2011
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APPENDIX A PREFERRED AND ALTERNATIV
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Hebron Project Appendix A Benefits
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Appendices
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APPENDIX D CONSOLIDATED BENEFITS IN
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