siemens - Public Service Commission

,
Chris A. Sward
Project Manager
Phone: (312) 269-7426
FAX: (312) 269-2208
Email chris.a.s\Ywd~;~s'rsarrenlluiidv com
Sarge
Lundy
August 10, 2007
Proposal No. 00273-406
Letter No. SLCR3-2007-015
Progress Energy
Crystal River Unit 3
Engineering Services for Secondary Systems Upgrade
Response to Request for Proposal No. KS12007
Mr. Tony Owen
Progress Energy Service Company, LLC
P.O. BOX 1551 (PEB-2C1)
Raleigh, North Carolina 27602
Dear Mr. Owen:
After careful consideration of the requirements specified in Request for Proposal No. KS12007
and the information provided in the bid specification, Sargent & Lundy LLC (S&L) has decided
not to offer a proposal for the work as described. While we have a good understanding of the
general scope of the secondary system upgrades through review of the bid documents and our
meeting with the project team at Crystal River and have the requisite experience from past
power uprate projects, we can not provide a proposal that meets the requirements of the bid
documents. There are a significant number of unknowns that affect scope and will impact
schedule. This includes detailed development of scope for the specified tasks in Article 1.9 as
well as defining the overall project approach.
While the bid specification provides a considerable amount of information on the system
analyses and functional requirements associated with the required plant modifications, it does
not define the physical scope of the plant changes. In fact for some modifications, there are
significant decisions still to be made before the full nature and scope is determined. Large
equipment replacement projects are very complex and widely varied and require a significant
amount of study and investigation to accurately define the physical scope of work and the
associated engineering activities required for their implementation. This scoping requires
walkdowns, drawing and document reviews, study of alternatives, and meetings with
stakeholders to develop a clear understanding of the exact scope of the plant change, its
potential impact on plant operation and the extent and nature of engineering required. We firmly
believe that this scope definition is critical to the overall success of a project but is beyond what
is reasonable to develop in a proposal. Without such definition, no reliable estimate of
engineering cost can be provided.