Pipe Material Procurement Process for an Oil and Gas Project

Many equipments and items need to be purchased in the piping project from different vendors/suppliers. Before finalization of the vendor/ supplier to get the pipe material, there are many phases/step which has to be followed.

The first step is to float an enquiry specification for the equipment/item to the different vendors to get a techno commercial quotation. The enquiry is generally sent to the vendors/ supplier s which are already approved by the company

1.    The first step is to float an enquiry specification for the equipment/item to the different vendors to get a techno commercial quotation. The enquiry is generally sent to the vendors/ supplier s which are already approved by the company.

2.    After receiving offers from the different vendors/suppliers, each offer is checked and evaluated. If there are any deviations or if there are points which vendor has not confirmed it has to be clarified through technical queries (TQ).

3.   After receiving the replies to all the technical queries (TQ) and the deviation request from the vendors/suppliers the specification engineer has to decide if the vendor is technically suitable for that particular enquiry.

4.   Specification engineer than populates the replies of all the vendors/suppliers in a common document which is called the technical bid analysis (TBA)/ evaluation (TBE). This document will show the highlighting points of the particular enquiry along with the replies from all the vendors/suppliers. If there are any deviations they are mentioned against applicable points in the TBA/TBE.  In the TBA/TBE Specification engineer has to give a technical acceptance or rejection of each vendor/supplier in the enquiry. This TBA/TBE is then forwarded to projects/procurement department.

5.    After receiving the TBA/TBE, the projects/procurement departments then evaluate the technically accepted vendor for commercial and delivery schedule. The vendor/supplier which is acceptable in technical, commercial and delivery schedule terms are given the purchase order (PO).

6.   After the purchase order (PO) has been placed the vendor than send the final drawing and documentation for review and approval as mentioned in the SDRL. Specification engineer has to review the drawing and documentation along with the datasheet and the enquiry specifications send to and agreed by the vendor/supplier. If are any comments or any points needs to be added on the vendor drawing than the specification engineer can mark it up in the drawing or document and send it back to vendor/supplier for incorporation. Once all the comments are been taken care, then the drawing and the document can be accepted.

7.   Once the drawing is accepted the materials goes in to fabrication and are ready for inspection. Inspection is carried out as mentioned in the datasheet/enquiry specification.


8.   After the inspection the material is then ready for dispatch to the site location.