Letter of Invitation No. 29879/2016

Letter of Invitation No. 29879/2016

Brasília, 10/08/2016.

Dear Mr./Ms.

Subject: SERVICES FOR THE TECHNOLOGICAL CONVERSION OF THE SYSTEM HOUSEPU MANUFACTURING PLANT OF THE COMPANY PURCOM QUÍMICA LTDA. FOR THE REPLACEMENT OF THE HCFC-141B UNDER THE HCFCs PHASE-OUT MANAGEMENT PLAN – Stage 2

The United Nations Development Programme (UNDP) hereby invites you to submit a technical and financial proposal for the above-referenced subject.

This document includes the following:

Section 1 – This Letter of Invitation

Section 2 – Proposal submission form

Section 3 –Technical proposal form

Section 4 – Financial proposal form

Section 5– RequiredDocuments that must be submitted

Section 6 – Terms of Reference

Section 7 – Template of the contract to be signed

You are kindly requested to submit an acknowledgment letter to UNDP, no later thanCOB 18:00, local time (GMT-3) 31 August 2016 to the following address:

United Nations Development Programme (UNDP)

Setor de Embaixadas Norte (SEN) – Quadra 802 – Conjunto “C” – Lote 17 – Complexo Sérgio Vieira de Mello - Zip Code: 70800-400 - Brasília – D.F. – Brazil.

Should you require any clarification related to this Letter of Invitation, send a message to .

UNDP looks forward to receiving your proposal and thanks you in advance for your interest in UNDP procurement opportunities.

Yours sincerely,

UNDP Brazil Country Office

Section 2

PROPOSAL SUBMISSION FORM

[insert: Location]

[insert: Date]

To:[insert: Name and Address of UNDP focal point]

Dear Sir/Madam:

We, the undersigned, hereby offer to provide professional services for [in accordance with your Request for Proposal dated [insert:Date] and our Proposal. We are hereby submitting our Proposal, which includes the Technical Proposal and Price Schedule Form with our financial proposal.

We confirm that we have read, understood and hereby accept the Terms of Reference describing the duties and responsibilities required from usand the General Terms and Conditions of UNDP’s Contract for Professional Services.

We agree to abide by this Proposal for [insert: period of validity of the proposal].

We fully understand and recognize that UNDP is not bound to accept this proposal, that we shall bear all costs associated with its preparation and submission, and that UNDP will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the evaluation.

We acknowledge that the funds available for the reconversion activities at the beneficiary are not enough to cover all costs related to the activities intended and we commit to co-finance any exceeding costs not foreseen in the approved budget for the project, presently estimated at US$ ______(insert the amount of total costs to be assumed by the company as co-finance).

We remain,

Yours sincerely,

Authorized Signature [In full]:

Name and Title of Signatory:

Name of Firm:

SEAL OF THE FIRM

Section 3

TECHNICAL PROPOSAL FORM

The technical proposal must include the items described in the table below.

Deliverable / Activities
1 / Plant reconversion plan and end user information / Develop a work plan for the plant reconversion
Define the activities’ timeline
Validated list of end users with disaggregated data on consumption and baseline equipment
2 / Plant reconversion and confirmation of end users to be reconverted / Carry out the plant reconversion
Notarised Term of Acceptance duly signed by beneficiary end users participating in the group subproject
3 / Safety and HCFC-141b phase-out Certificates / Evidence that HCFC-141b has been phased out in fully formulated PU systems at rigid foams
Term of Commitment signed by the company’s legal representative
Safety certificate stating that the company is able to work safely with the new blowing agent

Section 4

FINANCIAL PROPOSAL FORM

The Price Schedule must provide a detailed cost breakdown for each item.
Technical descriptions for each proposed item must provide sufficient detail to allow the Purchaser to determine compliance of quotation and with specifications as per Schedule of Requirements and Technical Specifications of this Proposal.
The format shown on the following pages should be used in preparing the Price Schedule. The format uses a specific structure which may or may not be applicable but are indicated to serve as examples.
In addition to the hard copy, if possible please provide also the digital copy.

Item / Description / Unit Price (USD) / Qty / Total Price (USD)
1 / Plant reconversion plan and end user information
Develop a work plan for the plant reconversion
Define the activities’ timeline
Validated list of end users with disaggregated data on consumption and baseline equipment
2 / Plant reconversion and confirmation of end users to be reconverted
Carry out the plant reconversion
Notarised Term of Acceptance duly signed by beneficiary end users participating in the group subproject
3 / Safety and HCFC-141b phase-out Certificates
Evidence that HCFC-141b has been phased out in fully formulated PU systems at rigid foams
Term of Commitment signed by the company’s legal representative
Safety certificate stating that the company is able to work safely with the new blowing agent
TOTAL GERAL
GRAND TOTAL / Project BRA/16/G76 financing / Company co-financing
US$
Freight Cost DAP, Point of Export
Freight Cost CPT, …………. Port via sea/air/ground freight
Freight Cost CIP, end user in Santos/SP via sea/air/ground freight

*If transport costs are included in the items specification, please indicate as “included” in the Freight rows.

Section 5

REQUIRED DOCUMENTS THAT MUST BE SUBMITTED

Local Government permits to locate and operate in the current location of office or facilities (Operation and Environmental Licenses).

 Certified copy of company's registration relevant to perform required works (Commercial Registry).

 Company Profile, which should not exceed fifteen (15) pages, including printed brochures and product catalogues relevant to the goods/services being procured.

Quality Certificate (e.g., ISO, etc.) and/or other similar certificates, accreditations, awards and citations received by the Bidder, if any.

Section 6

Terms of Reference

HIRING SERVICES FOR THE TECHNOLOGICAL CONVERSION OF THE SYSTEM HOUSE PU MANUFACTURING PLANT OF THE COMPANY PURCOM QUÍMICA LTDA.FOR THE REPLACEMENT OF THE HCFC-141B UNDER THE HCFCs PHASE-OUT MANAGEMENT PLAN-STAGE 2

BACKGROUND

The Parties to the Montreal Protocol, in their Decision XIX/6 dated 2007, established an accelerated timeline to phase-out the consumption and production of Hydrochlorofluorcarbons (HCFCs), starting in 2013 with a consumption freeze level equivalent to the 2009/2010 averaged consumption, followed by a 10% reduction in 2015, and subsequent staggered reductions up to the total phase-out by 2040. In order to meet those goals, Article 5 (A-5) countries, among which Brazil, elaborated their National HCFC Phase out Management Plans (HPMP) addressing the scope of development and implementation of actions required to phase out HCFC consumption.

The Brazilian actions aimed at the HCFC phase-out, under the HPMP, are divided in three stages. Stage 1 of the HPMP set out a detailed strategy as to how the country will phase out 220.3 Ozone Depleting Potential (ODP) by 2015, of which 168.8 ODP tonnes via technological conversion projects in the integral skin and flexible molded foams, as well as in rigid PU foams at continuous panels, water heaters, pipe in pipe, thermoware and packaging applications. Likewise, Stage 2 of the HPMP devises actions targeted to phase out 464.06 ODP tonnes of HCFC, of which 300.9 ODP tonnes of HCFC-141b in the remaining rigid PU applications, by 2020. With respect to the foam sector, particularly, Stage 2 of the HPMP establishes the complete phase-out of all HCFC consumption by January 1st, 2020. Lastly, Stage 3 of the HPMP, to be implemented from 2022, will then address actions and the overarching strategy required to phase out the remaining HCFC consumtion by 2040.

In order to smooth economic impacts in the phasing-out process, the HPMP, in particular Stages 1 and 2, provides financial support aimed at the reconversion of eligible companies operating HCFCs towards Ozone Depleting Substance(ODS)-free and low Global Warming Potential (GWP) technologies. The technological conversion-related costs comprise eventual adjustments at the industrial facilities and/or equipment, acquisition of equipment, application of new operation processes, technical support and incremental operating costs. As counterpart contribution, involved companies shall commit to co-finance exceeding costs and to irrevocably phase-out the use of HCFC-141b in the polyurethane foams manufacturing process, among other specific commitments described in the Term of Commitment.

SCOPE

The purpose of this TOR is to describe the activities to be carried out for the technological conversion to HCFC-free technology of the industrial facilitiesowned by PURCOM QUÍMICA LTDA., located at RuaAeroporto, nº 83/115, Barureri, São Paulo, Brazil, as per the HPMP strategy and finance project BRA/16/G76 approved by the MLF of the ExCom[1].

The company will phase out the total of136.6 metric tons or 15.03 ODP t. of HCFCs used in fully formulated PU systems at rigid foams.

DURATION OF THE CONTRACT

The contract will enter into force upon signature of both parties and is expected to be fully concluded in 8(eight) months.

EVALUATION OF PROPOSALS

The contractor will examine the Proposal to determine whether it is complete, whether any computational errors have been made, whether the documents have been properly signed, and whether the Proposal is generally in order with the Terms of Reference

Arithmetical errors will be rectified on the following basis: If there is a discrepancy between the unit price and the total price that is obtained by multiplying the unit price and quantity, the unit price shall prevail and the total price shall be corrected. If the bidder does not accept the correction of errors, its Proposal will be rejected. If there is a discrepancy between words and figures the amount in words will prevail.

TECHNICAL SPECIFICATIONS OF SERVICES REQUIRED.

5.1 DELIVERABLES, ACTIVITIES TO BE PERFORMED AND OUTPUTS

Deliverable / Activities to be performed / Specifications (Pass/Fail) / Outputs
1 / Plant reconversion Plan and End User information / Develop a work plan for the plant reconversion / Narrative report with the Plant Reconversion Plan which includes: activities to be developed, timeline and focal point.
Define the activities’ timeline
Validated list of end users with disaggregated data on consumption and baseline equipment / Present consolidated and validated list of End Users that will participate in the System House subproject (PU Rigid Foams).
2 / Plant reconversion and confirmation of end users to be reconverted / Carry out the plant reconversion / Photographic and narrative report on the services performed for the plant reconversion.
Notarised Term of Acceptance duly signed by beneficiary end users participating in the group subproject / Present Terms of Acceptance with authenticated signature of the company’s representative.
3 / Safety and HCFC-141b phase-out Certificates / Evidence that HCFC-141b has been phased out in fully formulated PU systems at rigid foams / I) Present narrative report demonstrating that HCFC-141b has been phased-out at rigid PU foams formulations;
II) Present at least 2 invoices related to the purchase of the new blowing agent.
Term of Commitment signed by the company’s legal representative / Present Terms of Commitment signed by the company’s legal representative (both in English and Portuguese).
Safety certificate stating that the company is able to work safely with the new blowing agent / Present copy of the safety certificate confirming that the plant is able to work safely with the new blowing agent, pursuant to ATEX or equivalent national/international standards.

5.2 DELIVERABLES AND FUNDS TO BE TRANSFERRED

Deliverable / Activities to be performed / % of payment
1 / Plant reconversion Plan and End User information / Develop a work plan for the plant reconversion / 32.90
Define the activities’ timeline
Validated list of end users with disaggregated data on consumption and baseline equipment
2 / Plant reconversion and confirmation of end users to be reconverted / Carry out the plant reconversion / 41.45
Notarised Term of Acceptance duly signed by beneficiary end users participating in the group subproject
3 / Safety and HCFC-141b phase-out Certificates / Evidence that HCFC-141b has been phased out in fully formulated PU systems at rigid foams / 25.64
Term of Commitment signed by the company’s legal representative
Safety certificate stating that the company is able to work safely with the new blowing agent
Total / 100%

5.3EXECUTION SCHEDULE

This work is expected to be developed in 8 (eight) months. The supplier shall comply with the deadlines provided for in the following execution schedule.

Deliverables / Execution time
(eight months after signature of Contract)
1 / Plant reconversion Plan and End User information / 2 MONTHS and 2 WEEKS
2 / Plant reconversion and confirmation of end users to be reconverted / 7 MONTHS
3 / Safety and HCFC-141b phase-out Certificates / 8 MONTHS
TOTAL / 3 OUTPUTS / 8 MONTHS

5.4GENERAL REQUIREMENTS

a. Equipment Delivery: Specific location addresses to delivery of the equipment will be advised when delivery dates are confirmed.

b. Scope of Proposal: must include for the supply, packing, and delivery of ALL of the equipment items, including any recommended consumable and wear parts for the first 1 year of operation of all the equipment items, detailed instruction manuals in Portuguese for commissioning, operation, and basic maintenance of ALL of the equipment items, as defined in the Equipment Specifications.

c. Electrical Power Supply: All electrical equipment to be purchase must be compatible with the principal electrical power supply available in Brazil, 220 VAC/1-phase/60 Hz. Confirmation of this must be clearly stated in the proposal.

d. Electrical Power Surge Protection: All electrical equipment to be purchase must continue operating normally under voltage fluctuations of  10% and must be protected against voltage fluctuations that exceed these normal fluctuations by 25%. Confirmation of this must be clearly stated in the Bid.

e.Operational Requirements: It is expected that all the equipment to be purchase will normally be capable of operating continuously for 8 hours per day, in temperatures ranging from +10C to +40C, and high relative humidity. Confirmation of this must be clearly stated in the Bid.

5.5SAFETYREQUIREMENTS

Due to its flammable nature of the pure substance, once Methyl Formateor Methylalcould be added to the Polyol blend in house, the electrical classifications of the areas will change. Flammable gas monitoring system will be utilized to detect and monitor all areas where there is potential risk of explosion. The system would have two levels of alarm. The design should include a process safety system with a dedicated PLC. Engineering design will determine final requirements and siting. All works and equipment must be compliant with national and international standards for use of flammable substances. All environmental and safety licenses must be in order so the beneficiary company can operate as per local regulations:

a.Scaled Plan drawings for grounding and instruments shall include all conduit or cable runs. These drawings will also address the relocation of some existing power feeds, Cable and conduit schedule for the new work; grounding, power and instrument details. Schematics for safety interlocking of the existing pumps; connection diagrams for all instruments that require electrical integration shall be compliant with ISA (international society of automation) including Loop Sheets for any items connected to the safety or other central control system.

b.Reclassify all identified hazard areas following IEC 79-10, second edition, 1986. Reclassify or restrict as many areas as possible by the application of engineered solutions such as ventilation, ionized air blowers, other static dissipaters, separation walls, etc.;

c.Provide additional safeguard through the use of a combustible gas monitoring system with sensors at designated potential emission points and a portable gas detector to be used as part of a formal monitoring plan for areas that do not have continuous monitoring;

d.Train personnel in safe operating procedures, preventive maintenance, and emergency response. Use formalized procedures through the preparation of a safety manual and an emergency response plan.

5.6GENERAL TERMS FOR COMPLETION OF SERVICES

It is understood that the delivery of above listed products can be advanced upon common agreement between UNDP and the supplier.
Delays resulting from third parties’ or subcontractors to deliver the product(s) shall be informed within 15 consecutive days in advance to the deadline fixed in the Execution Schedule above
Delays resulted from Force Majeure[2]affecting the execution of product(s) should be promptly notified.
The approval of the last Product is conditional to the process of elaboration and signing of the COC.
Each installment should be paid upon submission and approval of the respective product. Within 15 (fifteen) working days, as of the date of receipt, the UNDP shall forward the analysis and/or evaluation of product.
The UNDP reserves the right to request additional clarifications and information, in the format of report or not, prior to the final approval of each product.
The approval of each product, and therefore its subsequent payment, is conditional to the endorsement by the International Expert assigned by UNDP.

CONFIDENTIALITY DISCLOSURE

There will be an intensive set of activities related to the adaptation, optimization and testing of baseline processes developed by the beneficiary company during its years in business (proprietary formulations). All information, drawings and concepts provided in this regard are confidential and remain the property of the beneficiary.

This information is to be provided to the named supplier responsible for the implementation of the conversion activities and shall not be used for any other reason, nor disclosed or distributed to any third party in any form, or by no means, at any time whatsoever.

The confidentiality of the work will remain in force following the conclusion of the project. If the project is unsuccessful in its implementation, any copies and/or predecessors of the documents must be destroyed or returned to the beneficiary.

TECHNICAL CONDITIONS AND CO-FINANCE

All work shall be performed in a thorough and conscientious manner according to the highest standards of care within the industry and shall be subject to inspection and acceptance by UNDP. It is expressly understood and agreed that such observations shall not relieve the supplier from any responsibility for the proper supervision and execution of the work described in this TOR, including any subcontractors.