Negotiation and Purchasing Strategies for Gas-Fired Power Generation Equipment
September 26, 2017
Atlanta, GA

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Overview

At the upcoming Negotiation and Purchasing Strategies for Gas-fired Power Generation Equipment conference taking place this coming September in Atlanta, we will cover the key issues every purchaser faces when negotiating to procure gas-fired power generation equipment and related long-term parts, supply, and maintenance services for a project. Assessing between vendors, technologies and offerings is never just an examination of up-front prices, and the complexity of the underlying contractual arrangements only adds to the complications of these high-value transactions. Here you will be able to learn from professional experts who have deep experience on all sides of these transactions as they examine and outline various key considerations and best practices involved in major procurement deals. Such considerations and guidance will be presented from multiple perspectives, including technical, commercial, legal and insurance/risk allocation. In addition, by including a session featuring a major OEM’s representative, attendees will have the opportunity to gain a full-circle view as to the balance that must be struck between the buyer’s and the purchaser’s interests. With an understanding of these issues and the buyer/seller balance, a project developer will be best positioned to plan for, structure and negotiate procurement contracts that will protect their interest while sowing the seeds for a positive long-term buyer/seller relationship.  

Learning Outcomes

  • Evaluate best technical and commercial practices and strategies for seeking and assessing bids for gas turbines and parts equipment
  • Identify key issues every purchaser faces in negotiations for combined-cycle power generation equipment and long-term parts and maintenance services agreements, and the best solutions
  • Outline key interface issues between power equipment contracts and long-term service agreements
  • Assess the critical role that insurance plays throughout the procurement, financing, construction and operational phases, and explore how insurance pricing is determined
  • Examine the OEM’s perspective on key issues that drive decisions in these complex transactions
  • Analyze win-win approaches to establishing successful long-term relationships between the OEM and the project developer

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 0.7 CEUs for this event.

 

Requirements for Successful Completion of the Program

Participants must sign in/out each day and be in attendance for the entirety of the program to be eligible for continuing education credits.

Instructional Methods

PowerPoint presentations and classroom discussion will be used in this program.

Agenda

Tuesday, September 26, 2017

8:00 – 8:30 a.m. :: Registration and Continental Breakfast


8:30 – 8:45 a.m. :: Chairperson Welcome and Opening Remarks

Chip Thompson, Managing Principal, Mercer Thompson LLC


8:45 – 9:30 a.m. :: Major Trends in the Large Power Generation Equipment Market

The U.S. electric generating fleet has been undergoing major transformations driven by regulatory policy, generation costs, renewables, technology developments, and customer expectations. Because of this transition, traditional planning and operating processes have all been shaken up, and require generation companies to think and act differently. Here we will survey the current landscape of electric generation, and examine how these key transformations are forcing changes.

Todd Williams, Partner, ScottMadden


9:30 – 10:30 a.m. :: Strategies and Best Practices for the RFP and Bid Evaluation Process

  • Bid tabulation, and best practices for RFP evaluation process
  • Net Present Value (NPV) Evaluations
  • Long term service programs and their impact on lifetime pricing
  • Price variations in power island contracts vs. individual contracts for major equipment
  • Schedule and timeline for planning an RFP process

Chad Swope, Development Engineer, Energy, Burns & McDonnell

10:30 – 10:45 a.m. :: Morning Break


10:45 – 11:45 a.m. :: Key Considerations in Power Island Procurement Agreements

  • Pitfalls and issues in defining the scope of supply
  • Equipment delivery: logistics, timing, delays, and force majeure
  • Transfer of title, risk of loss and the insurance inter-play
  • Performance guarantees – norms and nuances
  • Risk of project delays due to equipment defects
  • Payment structures and security concerns
  • Warranties – the thick and the thin

Chip Thompson, Managing Principal, Mercer Thompson LLC


11:45 a.m. – 12:45 p.m. :: Key Issues in Long Term Service Agreements

  • Overview of the current LTSA market: from covered maintenance/term warranty to parts only agreements
  • Clearly defining the LTSA scope: differentiating between planned maintenance, unplanned maintenance, and extra work  
  • Addressing primary points of interface between the turbine purchase agreement and the LTSA
  • Key considerations to best protect the owner’s interests
  • Other legal and contractual risks and risk mitigation strategies

Jason Yost, Principal, Mercer Thompson LLC

12:45 – 1:45 p.m. :: Group Luncheon


1:45 – 2:45 p.m. :: Common Approachers to Unit Start-Up, Commissioning,  and Performance Testing

  • Overview of how start-up, commissioning, and performance testing are traditionally addressed in contracts
  • Synopsis of ASME PTC 22 and 46 requirements and their role in performance test protocols
  • Important considerations while planning for start-up, commissioning, and performance testing
  • Proven practices for implementing performance testing protocols

Teresa Williams, Principal Engineer — Gas Turbine and Combined Cycle Performance, Southern Company


2:45 – 3:45 p.m. :: Insuring Power Island Equipment: Shipment, Commercial Operation, and Beyond

  • New and existing turbine technology impacting insurance risk
  • The interface between contract structure and insurance program design
  • Risk allocation and the role of insurance in project agreements
  • Project finance agreements and credit risk
  • External factors impacting a fluctuating insurance market for major equipment

Paul Brown, CEO, Insurance Risk Partners

3:45 – 4:00 p.m. :: Afternoon Break


4:00 – 5:00 p.m. :: Ask the OEM: Challenges and Opportunities for Win-Win Transactions from the OEM’s Perspective

During this session, we will interview a representative of this leading OEM bringing experience from both Siemens and Mitsubishi, exploring such issues as:

  • Challenging points of interface between the OEM and EPC contractor
  • “Behind the scenes” supply chain and logistics issues
  • Planning for challenges in advance and mitigating risk
  • Particularly contentious areas on long-term service agreements
  • Q&A with the audience

Kendall Howington, Commercial Operations Manager, Mitsubishi Hitachi Power Systems Americas, Inc.

Marco Sanchez, Director, LSTA & Services, Mitsubishi Hitachi Power Systems Americas, Inc.

Interviewed By: Chip Thompson, Managing Principal, Mercer Thompson

5:00 – 6:00 p.m. :: Networking Reception

Sponsored by Mercer Thompson LLC

Speakers

Paul Brown, CEO, Insurance Risk Partners

Kendall Howington, Commercial Operations Manager, Mitsubishi Hitachi Power Systems Americas, Inc.

Marco Sanchez, Director, LSTA & Services, Mitsubishi Hitachi Power Systems Americas, Inc.

Chad Swope, Development Engineer, Energy, Burns & McDonnell

Chip Thompson, Managing Principal, Mercer Thompson LLC

Teresa Williams, Principal Engineer —Gas Turbine and Combined Cycle Performance, Southern Company

Todd Williams, Partner, ScottMadden

Jason Yost, Principal, Mercer Thompson LLC

Location

The Mercer Thompson Offices-Commerce Club
191 Peachtree St NE., 49th Floor
Atlanta, GA 30303

Nearby Hotels

Courtyard Atlanta Downtown
133 Carnegie Way Nw, Atlanta, GA, 30303
(404) 222-2416
Located .1 mile from the conference location

Hampton Inn & Suites Atlanta Downtown
161 Ted Turner Dr NW, Atlanta, GA, 30303 
(404) 589-1111
Located .2 mile from the conference location

Atlanta Marriott Marquis
265 Peachtree Center Ave Ne, Atlanta, GA, 30303 United States
(404) 521-0000 
Located .2 mile from the conference location

Inn at the Peachtrees an Ascend hotel Collection Member
330 W Peachtree St NW, Atlanta, GA, 30308 United States
(404) 577-6970
 Located .2 mile from the conference location 

Hyatt Place Atlanta Downtown
330 Peachtree St NE, Atlanta, GA, 30308 United States
(404) 577-1980
Located .3 mile from the conference location

Hilton Garden Inn Atlanta Downtown
275 Baker Street NW, Atlanta, GA, 30313 United States
(404) 577-2001
Located .5 mile from the conference location

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

Event Standard RateAttendees
Negotiation and Purchasing Strategies for Gas-Fired Power Generation EquipmentUS $ 995.00

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before August 25, 2017 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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