Attached files
 |
|
|
April 15, 2009 |
Dr.
Surajiet Khanna
Chairman
BARD,
LLC
1167
Bridge Street
Philadelphia,
PA 19124
SUBJECT: BOP
EPC Services - KIPC Biodiesel Site
Dear Dr.
Khanna:
As per
our meeting on April 9th, 2009 at your office in Philadelphia, PA, Tetra Tech
EC, Inc. (Tetra Tech) is pleased to present to Biofuels Advanced Research
Development, LCC (BARD), our intent to provide Balance of Plant (BOP) Engineer,
Procure and Construct (EPC) services for the Keystone Industrial Port Complex
(KIPC) - Biodiesel Plant. These services can be provided upon issuance of a
contract with a mutually agreeable defined scope of services, price, schedule
and terms and conditions. Please be aware that this letter is not a guarantee of
our services and not binding on either party
As you
are aware, Tetra Tech is one of the premier turnkey providers of services to
renewable energy projects (wind, biofuels, etc.) for energy companies and
developers nationwide. Tetra Tech has multidisciplinary staff in-house to
provide the full suite of engineering and consulting services, and the resources
to serve as the general contractor for the construction effort or as
construction manager to BARD.
We have
the proven ability to execute projects anywhere in the US and have the breath
and depth of resources to work on multiple concurrent projects such as will be
encountered on your project due to the accelerated schedule. This will dictate
that the design effort will have to occur simultaneously with
construction.
Please
contact me at any time for clarification on any element of this submittal. I can
be reached by phone at 215-702-4001, or via email at Jeff.otto@tteci.com.
Thank you for giving us this opportunity and we look forward to your favorable
response.
Attached
to this Letter of Intent is Tetra Tech's understanding of the services to be
provided in the role of BOP EPC Contractor.
Sincerely,
Jeffrey Otto, P.E.
Operations Manager
| cc: | Craig Mackay |
| Dave DiCesare, P.E. | |
| Carl Tippmann, P.E. | |
| Shekar Shanmugam |
 |
820Town Center
Drive, Suite 100
Bucks Town Corporate
Campus, Langhorne, PA 19047
Tel
215.702.4000 Fax 215.702.4045
www.tteci.com
|
Dr.
Surajiet Khanna
Page
2
It is
Tetra Tech's understanding that BARD is building the first full composite
biodiesel plant in the northeast region of the United States. The facility will
combine a 60M gallon biodiesel production plant and a 66M gallon soy solvent
extraction plant. Soybeans will be used first and later in time algae will be
added as part of the multi feedstock technology.
Based on
conversations and materials provided by BARD representatives as well as Tetra
Tech's experience on biofuels projects we anticipate the following services
would need to be provided by Tetra Tech should a contract be agreed to between
Tetra Tech and BARD.
SCOPE
OF WORK
• Front
End Engineering - Engineering Management Services
Tetra
Tech will provide Consultancy Services for the entire project. These activities
include coordinating all front-end engineering and regulatory related activities
including:
| o | Land and Regulatory Services |
| o | Utility Coordination |
| o | Permitting Finalization |
| o | Project Reviews Through Implementation |
| o |
Reviewing
basic engineering packages as received from technology suppliers covering
plant data, utility requirements, available resources and other such
tasks.
|
• Discrete
Detailed Engineering Design Tasks
Tetra
Tech will provide detailed engineering design services for all necessary aspects
of the project. This includes but is not limited to the following:
| o | Architectural / Civil / Structural |
| o | Process / Mechanical |
| o | Electrical |
| o | Instrumentation and Controls |
| o | Fire Protection |
• Construction
Services
Tetra
Tech will provide General Contracting Services for BARD, not just Construction
Management Services, to bring the project from design phase through completion.
This means that we will procure, select, negotiate with and award contracts and
purchase orders, and administer, including paying the subcontractors and
suppliers. The subcontractors and suppliers will be contracting directly with
Tetra Tech, which will reduce the administrative burden on BARD.
Tetra
Tech will provide a full time person on site to coordinate the work activities
minimizing the need for BARD's involvement. Tetra Tech will manage procurements
to ensure the project is kept on schedule and perform QA inspections of vendor
facilities to make sure the products are suitable for their intended use. In
addition to managing the project's schedule and budget, the Tetra Tech
Construction Project Manager will perform frequent site visits and client
meetings.
Dr.
Surajiet Khanna
Page
3
If
desired, Tetra Tech would also act as Construction Manager to BARD if that is
BARD's preference.
This
effort also includes preparation and issuance of bid packages for equipment and
materials, and specialty subcontractors, scheduling, construction reviews and
various tasks centered on the following topics:
| o | Civil and Site Development o Building for 60M Expandable Layout o Rail Car Loading and Unloading o Tankage |
| o | Pumps, Piping, and Transfer Systems o Miscellaneous Equipment o Silos and Material Storage o Instrumentation and |
| o | Control Electrical |
Our
recommended approach would be procure and manage all equipment and contracts
directly. TtEC would direct procure the major equipment, thereby eliminating
subcontractor markup.
Whenever
possible TtEC will procure off-the shelf equipment for schedule and cost
considerations. In selecting vendors/equipment we will adhere to the criteria of
Reparability, Operability and Maintainability ('ROM') of vendors chosen and
equipment procured.
• Commissioning
and Warranty Services
Tetra
Tech will provide Commissioning and Warranty Services for the biodiesel plant.
This includes assistance in Pre-commissioning and Commissioning of the
Plant.
SCHEDULE
Tetra
Tech will also provide detailed Project Scheduling services to identify
milestone events. Tetra Tech is aware that BARD intends to have this biodiesel
facility on-line by January 2010 as indicated in previous meetings with Tetra
Tech and BARD. Tetra Tech has the capabilities to support BARD in all aspects of
this project to help achieve this goal.
COST/CONTRACT
Tetra
Tech can enter in a variety of contract types with BARD, based on what both
parties feel is best. Lump Sum, Time and Materials and Cost Plus are a few
options. For Construction Management/General Contracting Services, we have the
following options: lump sum, cost + fixed fee, guaranteed maximum and guaranteed
maximum + shared savings
CONCLUSION
Tetra
Tech is eager to begin working for BARD to help them reach their Project goals
and objectives.