Request For Quotation Ref: 04-OLC-NAT-RFQ-1A

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Date: 12/07/2004

Site: ALUVAL
Address: Centr’Alp - BP 7 - 38340 Voreppe - France

Request For Quotation (RFQ) File

Services for sourcing in low cost countries

Reference :

PURCHASING Mr Nicolas ARCHENAULT tel.: 00 33 4 76 57 85 87

CONTACT e-mail: Nicolas.archenault@alcan.com
TECHNICAL Mr Jean-Pierre tel.: +33.4.76.57.11.44
CONTACT DESMOULINS e-mail: Jean-pierre.desmoulins@alcan.com

PLEASE REPLY BY (Imperative date)

To Mr Nicolas ARCHENAULT 01/09/2004
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SECTION I – GENERAL INTRODUCTION

This RFQ File sets out the conditions according to which ALCAN entrusts the support sourcing in low
cost countries to be performed.

A description of the services to be performed by the selected bidder is detailed in the scope of works,
Section II of this RFQ file.

Functional Specifications in tabular form indicating the various functionalities to be ensured by the
Consultant are included in Section III. This includes mention of criteria used to assess, in terms of
Quality, all bids submitted by the candidate Suppliers for each of these functions.

Additional information required is given in the "Technical and Organisational Files " (TOF in Section V )
for some functions.

General RFQ conditions are given in Section IV, with a summary table of all required information to be
forwarded.

Bid context
ALCAN, as many of other international companies, has identified in Low Cost Countries (LCC) the
development of material, equipment and services supplies of acceptable quality and attractive purchasing
conditions. ALCAN Primary Aluminium is interested in investigating further the potential of LCC’s
material, equipment and services suppliers and to assess the possibility to export and use such materials,
equipment or services in ALCAN’s smelting project all over the world.
The current quotation is focused on identifying the services provider (Consultant), which will carry out
support services for sourcing suppliers in low costs countries capable to supply the equipment and
material as listed in TOF A “List of equipment and material to be sourced in low cost Country”. This
invitation to bid also aims at providing assistance and support to define costs estimates for each
equipment and material, as well as related savings.

The services to be performed (described in Section II) are divided into three main Lots:
• Lot 1: Definition of the sourcing plan / Assessment
• Lot 2: Pre-selection of potential suppliers
• Lot 3: Technical qualification audits
• Lot 4: Final sourcing report
The Contract for the present quotation will include these four Lots, however they may be ordered
separately at Client’s discretion depending on the conclusions of the previous Lot (validation by the
client). Therefore, only the “Lot 1: Definition of the sourcing plan” will be ordered as of the date of
Contract coming into force.

The quotation should give the best possible level of information regarding envisioned solutions and take
into account the specific context in low cost / emergent countries.
A non-exhaustive list of issues that should be dealt with follows in section II. All options recommended to
Alcan should be justified and mentioned. Any external document used (benchmarks, reports), should
be added to the answers.

Should a part of services to be carried out locally by an alliance with a sourcing company; all sub-
suppliers must have been validated by Alcan.
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Planning for RFQ

The process proposed for answering this Request is the following:

The answer expected must be an exhaustive, documented and detailed answer for each of the
criteria specified in Section III.

We require imperatively the complete Offer for the 1st of September 2004.

Therefore the figures and details given by potentials suppliers at this step have to be a firm commitment.
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SECTION II – SCOPE OF WORKS

The Consultant shall perform and provide all studies, services and supplies according to the provisions of
the contract in relation to:
• Sourcing of equipment and materials (as listed in TOF A) in low cost countries
• Budgeting of equipment and material in total cost of ownership
The Consultant is responsible for providing all human resources, premises, tooling, equipment,
consumables and utilities required for carrying out such services.

The Client expects the Consultant to find the most competitive price regarding traveling expenses.

1- Definition of the sourcing plan / Assessment (Lot 1)

In a first step, the Consultant with its team will be in charge of reviewing equipment and material to be
sourced in low cost country in order to define in coordination with the Client the sourcing plan,
(including the schedule and the most relevant locations to be investigated).
This sourcing plan report shall at least specify:
• Low cost country market analysis for selected equipment and material
• Actual level of Suppliers market knowledge for selected equipment and material (risks/benefits)
• Potential savings for each equipment and material in total cost analysis
• Design of LCC sourcing program to be performed during Step 2 and 3

2- Implementation of sourcing services (Lot 2 & 3)

The Consultant shall provide the structure necessary to organize, follow, supervise and manage resources
necessary for the sourcing of the equipment and material, and this for all the contract duration from the
signature until the delivery of the last sourcing report.
As a minimum, the duties of the consultant include:
• The day-to-day direction
• The administration and supervision
• All communications to suppliers and Alcan team member (phone fax…)
• The providing of the Consultant quality organization all along the project

Lot 2: Pre-selection of suppliers

As specified in the sourcing plan, the Consultant will produce a “preliminary sourcing report” for each
equipment and material with all the information pertaining to the package:
• A summary of the sourcing study for each equipment and material
• Identification of potential suppliers /markets by using the consultant’s database, requests for
information, supplier financial status assessment
• Pre-selection of suppliers according to criterias to be defined
• An recommendation of the necessary audits to organize during Step 3 for technical qualification of
pre-selected suppliers (with or without the client)

Lot 3: Technical qualification audits

Audits might be performed by the Consultant (Alcan team representative may join) at the potential
suppliers’ offices to ensure their proper technical capability to supply the concerned equipment and/or
material and the compliance with the Client’ requirements. During this phase, the Consultant will be in
charge of the organization of such audits, the methodology and all necessary support tools to put at
client’s disposal.
3- Final sourcing report (Lot 4)
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At the end of the audits, the Consultant shall provide the final sourcing report for each equipment and
material. This report shall at least include:
• A list of capable suppliers after final evaluation of visited suppliers
• A comparative risks/benefits regarding suppliers’ reliability, country of supply, transport, legal
aspects…
• A budget price taking into account indirect costs such as transport costs, custom tax, and so on…
which could affect the total cost of ownership…
• All relevant conclusions

4- Quality system
For all services and supplies to be provided, the Quality System set up by the Consultant shall ensure:
• The Client needs consideration,
• The expected performance compliance,
• The requirements fulfillment,
• The sourcing plan progress follow up,
The ISO 9001 recommendations shall be guidelines to meet these requests, which also apply to possible
Consultant subcontractors.

5. Schedule and work progress follow up

Schedule
The schedule for execution of services is expected as follows:

Period Action Deliverables

15/09/04  15/10/04 Lot 1: Assessment with the Client Sourcing plan
15/10/04  01/12/04 Lot 2: Pre-selection of suppliers Preliminary sourcing report
01/12/04  15/03/05 Lot 3: Technical qualification audits Audit reports
15/03/05  15/04/05 Lot 4: Conclusions Final sourcing report

Monthly Reports
The Client shall be monthly aware of the work progress and delays, through relevant Consultant’s
reports. On a basis, the Consultant will maintain a report listing all equipment and material involved in the
scope of work and showing the following information for the progress of each package:
• Countries investigated
• Identified suppliers
• Audits performed
• Risks / benefits identified
 Request For Quotation
APMG / Purchasing Services for sourcing in low cost countries
SECTION III – FUNCTIONAL SPECIFICATIONS
Functions
F1 – Review with the client the list of equipment and 1.
material and assess LCCs’ opportunities for each category
of equipment and material: 2.
Expected outcomes:
Response to each of the criteria
If necessary, the gap analysis between Alcan’s need and the
standard services
F2 – Ensure the pre-selection of suppliers in LCC for each 7.
category of equipment and material and plan necessary
qualification missions: 8.
Expected outcomes:
Response to each of the criteria
If necessary, the gap analysis between Alcan’s need and the
standard services
F3 – Organize technical qualification audits to ensure the
proper capability of the pre-selected suppliers and obtain
pre-budget offer from them:
Expected outcomes:
Response to each of the criteria
If necessary, the gap analysis between Alcan’s need and the
standard services
F4 - Provide a price schedule in accordance with the
breakdown of works in Lots and commitment on results:
Expected outcomes:
Response to each of the criteria
If necessary, the gap analysis between Alcan’s need and the
standard services
Ref: 04-OLC-NAT-RFQ-1A
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Criteria
References of the company and its possible
subcontractors in similar project
Methodology: expected organization, structure of
proposed deliverables, support tools…
3. Knowledge of category of equipment and material,
especially regarding aluminium industry.
4. Knowledge of LCCs’ markets
5. Involved Consultant profiles: CV, references, usual
locations…
6. Proposal for criteria of evaluation of your performance
related to the Function.
References of the company and its possible
subcontractors in similar project
Consultant’s suppliers database, network in LCCs,
knowledge of aluminium industry suppliers …
9. Knowledge of category of equipment and material,
especially regarding aluminium industry.
10. Involved Consultant profiles: CV, …
11. Proposal for criteria of evaluation of your performance
related to the Function.
12. Methodology: expected organization, support tools…
13. Assessment of the relevance of pre-budget offers,
including indirect costs such as transport, tax, customs…
14. Involved Consultant profiles: CV, references, usual
locations…
15. Proposal for criteria of evaluation of your performance
related to the Function.
16. Structure of proposed price schedule
17. Commitment on results
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SECTION IV – RFQ CONDITIONS

1/ BID FORM

Prior to submitting the bid, the bidder shall :

• Sign, seal and return to the Client a confidentiality agreement and/or acknowledgement
• ensure that all instructions, forms, terms and specifications given in this RFQ File are sufficient to
enable it to draw up its bid.
• mention in the bid form that he has examined the Bidding Documents including the enclosed
conditions of contract.
A systematic and suitable reply to each criterion mentioned in the functional specifications in Section III
hereto shall mandatory be included. The Client reserves the right to disregard bids that are incomplete or
non responsive.
THE  QUOTED  PRICE  WILL  BE  DRAWN  UP  BASED  ON  A  FIXED,  CONTRACTUAL  TOTAL  PRICE. HOWEVER  THE  CONTRACTUAL 
QUOTE SHALL BE OBLIGATORILY SUBMITTED ACCORDING TO THE BREAKDOWN OF WORKS IN LOTS.

2/ UNDERTAKING

The selected Bidder undertakes to commit the entirety of its know-how to accomplish the mission
entrusted to it. To these ends, it notably undertakes the instigation of communication with the Client to
obtain any information required for the fulfilment of its mission.
In addition, it undertakes to timely advise the Client of all constraints associated with its mission.
The selected Bidder shall be committed to results. Therefore, it is responsible for deciding on the
provisions to put in place to achieve expected results; said provisions shall solely be incumbent upon
the supplier.

3/ DOCUMENT OWNERSHIP

All the documents provided by the Client are confidential and remain the exclusive property of the Client.
They will be returned to the Client in any of the following situations:
• the Bidder decides not to submit a bid
• the Bidder is not selected to provide the Services
• the Contract is terminated for any reason whatsoever.
Documents supplied, filled in or completed by the Bidder become the property of the Client who reserves
the right to use them at his discretion, except for that part of the bid identified as confidential.

4/ COSTS OF BIDS

The Bidder shall bear all costs associated with the preparation and submission of his bid, and the Client
will in no case be responsible for those costs, regardless of the conduct or outcome of the bidding
process.

5/ BID IN ASSOCIATION

Should the Bidder wish to submit a bid in association with one or several companies, either in a
consortium or with subcontractors, he should, subject to his bid being rejected, notify the Client and
obtain his written agreement as to the choice of such companies or subcontractors before communicating
any information related to the Contract or the bid to such other companies, in accordance with the
Confidentiality Agreement.
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Provided that the condition precedent mentioned above has been previously fulfilled, the Bidder will
propose the composition and type of grouping that he intends to constitute in his bid and, if successful, to
execute the Contract, it being understood that the companies members of a consortium will be jointly and
severally liable for the execution of the Contract.
Moreover, the Bidder will provide, in support of the bid, the list of companies to which he intends to sub-
contract part of the Contract.
This list should include the type of services entrusted to subcontractors under the Bidder’s liability, the
premises on which the services are to be carried out, and the fraction that these services represent with
respect to the amount of the bid.

6/ ASSESSMENT OF BIDS

During evaluation of the bids, the Client may, at his discretion, ask the Bidder for a clarification of his bid
by means of a Question / Reply system. No change in the prices or substance of the bid shall be sought,
offered, or permitted.
The Client reserves the right to ignore any errors, which may be contained in the documents constituting
the bid. However, incomplete, conditional, unclear bids or bids, which do not strictly comply with the
directives stated in the bidding documents, may be considered as non responsive and be rejected.
Bids containing alterations to the Bidding Documents will also be treated as non responsive.

7/ BID VALIDITY

Bids must be received by the Client no later than the date specified in the current RFQ file.
Bids shall remain valid for a period of six months (6) after the deadline for receipt of Bids,
notwithstanding the possible selection of a successful bidder during this period.

8/ ALTERNATIVE BID

The Bidder may suggest variations to the technical specifications.

However, the Bidder shall reply to the basic solution in accordance with the Bidding Documents. Failure
to submit a bid in accordance with the Bidding Documents and specifications may result in the bid being
rejected as non-responsive.
If a bid variation is proposed, it shall include the complete technical specifications, drawings,
corresponding quantitative quotes, and shall specify the implications that these variations may have on
other current (studies, supplies) or future (maintenance, upkeep) Equipment, Materials or Services.

9/ AWARD OF CONTRACT

The Client may decide to award the Contract to the successful Bidder whose bid has been determined to
be substantially responsive and has been determined to be the lowest evaluated bid, provided further that
the Bidder is determined to be qualified to perform the Contract satisfactorily.
The Client reserves the right to accept or reject any bid, and to annul the bidding process and reject all
bids at any time prior to Contract award, without thereby incurring any liability to the Bidders.
The Client will notify the successful Bidder in writing that his bid has been accepted.

10/ CONTRACT EXECUTION

At the same time as the Client notifies the successful Bidder that his bid has been selected, the Client will
send the Bidder the Form of Contract provided in the Bidding Documents, incorporating all agreements
between the parties. Upon receipt, the successful Bidder shall sign, date and return the Form of Contract
to the Client.
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SECTION V – TECHNICAL AND ORGANISATIONNAL FILES (TOF)

TOF A: LIST OF EQUIPMENT TO BE SOURCED IN LOW COST COUNTRIES

Main Group Name of group product

product
 Steel assembly, machining and welding
 Aluminum assembly, machining and welding
 Pumps and piping supplies
 Refractories
 Handling and lifting and transportation
 Compressors, pollution control, air & water treatment equipment
 Mechanical equipment
 Silos and tanks
 Energy distribution high tension
 Equipment with refractories and furnace

Equipment to be sourced Concerned group product and main units/device

1 Substation (>1400V ; > 35 kA)  ( high voltage switchgear; current transformer; reg
and rectifier transformer; auxiliaries ; transformer ;
rectifier cubicle with monitoring / control / regulation;
Filter bank; high Voltage cable)
2 Potshells 
3 Assembled steel superstructure +
4 Gaz treatment Center fans  (fans)
5 Pot lining materials and bricks  (densed bricks, barrier bricks, insulating bricks,
refractory castable…)
6 Aluminium busbars machining (flexes, 
plates, clads…)
7 Anodic system (stems, brackets, clads) +
8 Anode rodding shop equipments 
+  (hooking, belt conveyor, overhead conveyor ;
roller conveyor, pallet tilting, turning device)
+  (dedusting machine)
+  (breaker and crusher, shot blasting machine,
stripping machine)
9 Refractory and insulating bricks 
1 Casthouse furnaces 
0 +  (in case of tilting furnace)
11 Gaz ducting, fume collector & cross-over  + Expansion joint (below) and explosion vent
(stainless steel sheet with detection)
1 Bath recycling shop equipment +
2 +  (belt conveyor, buckets elevator)
+  (dedusting machine)
+  (breaker and crusher, vibrating screen)
1 Aluminum ingots casting line + Ingot molds
3 +  (handling device, chain conveyor, strapping
device)
+  (cooling device)
Equipment to be sourced Concerned group product and main units/device
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1 Carbon recycling shop equipment +
4 +  (belt conveyor, buckets elevator)
+  (dedusting machine)
+  (breaker and crusher, vibrating screen)
1 Ladle and anode transport vehicles  (trucks)
5 +  (specific trailer)
1 Standard vehicles services  (forklifts from 3T to 12T)
6
1 Liquid pitch and HTM equipment, piping,  (pumps, exchanger heating system, piping)
7 storages +  (tanks thermal insulated)
1 Ladle cleaning equipment  (tilting device)
8 +  (dedusting unit)
+  (pneumatic hammer)
1 Cast iron furnace  (induction furnace)
9
2 Anode pallets 
0
2 Cathode sealing equipments 
1 +  (roller conveyor)
+  (dedusting unit)
+  (shot blasting machine)
+  (preheating furnace only)
2 Pot hoods  (+ stamping)
2
2 Compressed air station  (compressors, cooling towers, dryers)
3 +
2 Metal and bath ladles 
4 +
2 Cranes, overhead cranes & beams  (<25T)
5