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HomeMy WebLinkAboutItem 20 - Contract for Sewage Grinder UnitsPublic Works Agency www.santa-ana.org/pw Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 21, 2021 TOPIC: Contract for Sewage Grinder Units to Include Preventative Maintenance, Rebuild, Repair, and Replacement of Units on an As -Needed Basis AGENDA TITLE Award a Blanket Order Contract to Powers Brothers Machine, Inc. for Preventative Maintenance Services and As -Needed Rebuilds or Repairs for the City's Existing Sewage Grinder Units in An Amount Not to Exceed $575,000 Over a Three -Year Period (Specification No. 21-080) (Non -General Fund) RECOMMENDED ACTION Award a blanket order contract to Powers Brothers Machine, Inc., for preventative maintenance services and as -needed rebuilds or repairs for the City's existing sewage grinder units, including replacement units and parts, in an amount not to exceed $575,000 for a three-year period expiring November 1, 2024, with provisions for one, two-year renewal period exercisable by the City Manager, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency's Water Resources Division maintains approximately 400 miles of sewer main in the City's sanitary sewer system. Maintaining a consistent flow in the mains is important for the health of the sanitary sewer system; large objects that enter the system can slow down and clog the system, causing backups, spills, and damage equipment at the sewer pumping stations. To combat this, the City uses sewage grinders at sewer lift stations to break down large objects that could otherwise impact the system's ability to properly convey sewage to the Orange County Sanitation District for treatment. The Notice Inviting Bids was advertised on August 2, 2021, on the City's online bid management and publication system. A summary of the bid invitation and bids received is as follows: 432 Vendors were notified 21 Santa Ana vendors were notified 20 Vendors downloaded the bid packet 1 Bids received 0 Bids received from Santa Ana vendors Blanket Order Contract for Sewage Grinder Units December 21, 2021 Page 2 One bid was received and opened on August 26, 2021. The bid submitted from Powers Brothers Machine, Inc., located in Montebello, California, is responsive to the specifications, and meets the City's requirements. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT Funds in the amount of $142,000 are available for expenditure in the current Fiscal Year 2021-22, and will be budgeted in future fiscal years as follows: Fiscal Accounting Unit Fund Accounting Unit, Year - Account # Description Account Description Amount Sanitary Sanitary Sewer 2021-22 05617640-62300 Sewer Service, Contract $67,000 Service Services -Professional Sanitary Sanitary Sewer 2021-22 05617640-66400 Sewer Service, Machinery & $75,000 Service Equipment Sanitary Sanitary Sewer 2022-23 05617640-62300 Sewer Service, Contract $67,000 Service Services -Professional Sanitary Sanitary Sewer 2022-23 05617640-66400 Sewer Service, Machinery & $75,000 Service Equipment Sanitary Sanitary Sewer 2023-24 05617640-62300 Sewer Service, Contract $67,000 Service Services -Professional Sanitary Sanitary Sewer 2023-24 05617640-66400 Sewer Service, Machinery & $75,000 Service Equipment Option Years Sanitary Sanitary Sewer 2024-25 05617640-62300 Sewer Service, Contract $100,000 Service Services -Professional Sanitary Sanitary Sewer 2025-26 05617640-62300 Sewer Service, Machinery & $49,000 Service Equipment Total: $575,000 Blanket Order Contract for Sewage Grinder Units December 21, 2021 Page 3 EXHIBIT(S) 1. Quote Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Kristine Ridge, City Manager " =� -•AF TOTAL QUALITY SERVICE :.� The City of Santa Ana is committed to the principles of Total Quality Service (TQS) in serving its customers. All aspects of the City's service are affected including our commitment to making on -time payment for material and services received. Since vendors, who provide services and/or material to the City are indirectly serving the same customers, it is important for the City to expect vendors to share the same commitment to quality including price, delivery and product quality, as well as timely response and service quality. Therefore, prepare a statement of your "quality commitment" to accompany your bid. The statement should address the following five items in regard to services and/or material provided to the City for your quoted price: 1. ON -TIME DELIVERY: a commitment to delivering material & services on or before the promised time. 2. TIMELY RESPONSE: a commitment to consistent timely response to all service requests. 3, QUALITY AS SPECIFIED: a commitment to provide products and/or service meeting or exceeding the specification at your quoted price. 4. QUALITY CONTROL: a commitment to use methods or procedures to assure quality control of service, material and invoicing. 5. CUSTOMER SATISFACTION: a commitment to resolve customer concerns regarding the quality of service or material supplied. The quality statement should be included with your bid. It is required as a prerequisite to making your bid responsive and therefore must be submitted before your bid is evaluated. To the extent that your statement enhance the quality of service or material provided to the City, your statement will be incorporated in the terms and conditions of the contract. Please Complete This Self -Rating of Delivery (complete) Performance: Circle One: on time late Previous Orders: 0 4 3 2 1 Service Response Performance: 0 4 3 2 1 Order for items on this bid: 5 4 3 2 1 Write your statement below or on an enclosed separate sheet. Powerg brols. Mqwne inc. S-a-3-aa-A-� Legal Name of Company Date aseu Pow Authorized Signature me (Print) THIS FORM MUST BE COMPLETED AND SUBMITTED WITH E-BID. IFB 21-080 CHANNEL MONSTER SEWAGE GRINDER UNITS PAGE 7 OF 28 Powers Bros. Machine Inc. Quality Commitment Powers Bro's Machine Inc. is committed to providing quality products on time that meet or exceed customer's expectations for product quality and performance by: • On -Time Delivery: a commitment to delivering material and services on or before promised time • Timely Response: a commitment to consistent timely response to all service requests. • Quality As Specified: a commitment to provide products and/or service meeting or exceeding the specification at your quoted price. • Quality Control- a commitment to use methods to procedures to assure quality control of service, material, and invoicing. • Customer Satisfaction: a commitment to resolve customer concerns regarding the quality service or material supplied. Powers Bro's Machine Inc. will ensure success through the. adherence to an effective quality management system (attached with E-bid) based on continual improvement and customer satisfaction. Casey Powers Secretary/Treasurer Powers Bro's Machine, Inc. (323)728-2010 8100 SIauson Ave. Montebello, CA 90640 Case c,PowersBros.com www.powersbros.com CERTIFICATION OF NONDISCRIMINATION BY CONTRACTORS As suppliers of goods or services to the City Of Santa -Ana, the Firm listed below certifies that it will not discriminate in its employment practices against any employee or applicant for employment because of such person's race, color, religion, sex or national origin, ancestry, sex, sexual orientation, age, physical handicap, mental disability, marital status, domestic partner status or medical condition; that it is in compliance with all federal, state and local directives and executive orders regarding nondiscrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. WE AGREE SPECIFICALLY: 1. To take affirmative steps to hire minority employees within the company. 2. To establish or observe employment policies which affirmatively promote opportunities for minority persons at all job levels. 3. To communicate this policy to all persons concerned, including all company employees, outside recruiting service, especially those servicing minority communities, and to the minority communities at large, Nvars �ros.MAChin�Thc. Legal Name of Company Authorized Sig 8-;Z3-foal Date )OWM S Q crPIM Name (Print) & Title U Treasurer Please include any additional information available regarding equal opportunity employment programs now in effect within your company. THIS FORM MUST BE COMPLETED AND SUBMITTED WITH E-BID, IFB 21-080 SEWAGE GRINDER UNITS PAGE 8 OF 28 BID PROPOSAL FORM SEWAGE GRINDER UNITS The undersigned declares that they have carefully examined the scope of work, have read the accompanying instructions to bidders, and hereby propose to furnish and deliver traffic signal controller cabinets, in accordance with City needs and/or fund availability and the specifications provided herein. Indicate unit price for each line item. Total quotation is to be firm offer for no less than ninety (90) days and will be regarded by the City as bidder's best and final offer. Quantities listed are forbid comparison only and are subject to change, The City reserves the right to increase or decrease quantities based on current needs. Please refer to Appendix A for product specifications. LINE TOTAL ITEM • ITEM DESCRIPTION' " ` Furnish full Channel Monster Sewage Grinder unit, Model 1 02 50.00 s`12 6102.00 1 CMD2410-XDS2.0, with MCC and 5 HP Motor EA Renew/Rebuild Channel Monster Sewage Grinder, Model 3 O 00 $0fQ�.W $tiQ23�5.OQ 2 CMD2410-XDS2.0 EA ,� Furnish full In -Line Muffin Monster Grinder unit, Model 5 04 41.Q0 $222qWX 3 30004T-2412, with MCC and 5 HP Motor EA Renew/Rebuild In -Line Muffin Monster Grinder, Model 5 J $ ���,�.�� $ m, 125,00 `� 1 4 30004T-2412 EA Sales Tax Amount (Please note sales tax rate in comments 1 $l�J i section LOT ,qo BASE BID TOTAL LOT MISCELLANEOUS For items not specified herein, vendor must enter minimum percentage (%) discount offered to the City at the unit price (10% would be entered as .10). Discount from vendor's price MISC list shall remain firm throughout the term of the contract. EA V % DELIVERY DEL Stock Items - Number of days after receipt of order DAY Q S DEL Non -Stock Items - Number of days after receipt of order DAY Q Location - Type address of store or satellite warehouse in u Mohfi�'�b��� 4r} �nIC_� N MCA comments section and a zero -dollar amount in unit price DEL area. EA PRICING SHALL BE ENTERED IN PLANETBIDS. ALL REQUIRED FORMS MUST BE COMPLETED AND UPLOADED WITH E-BIDS. 1FB 21-080 SEWAGE GRINDER UNITS PAGE 27 OF 28 BID PROPOSAL FORM SEWAGE GRINDER UNITS NOTE: THIS PROJECT IS A PUBLIC WORK AND IS SUBJECT TO PREVAILING WAGES. BID ITEM QUANTITIES ARE ESTIMATED AND PROVIDED FOR THE PURPOSE OF CALCULATING COMPETITIVE BIDS. BID ITEM QUANTITIES MAY VARY FROM THE FINAL FIELD QUANTITITES AND ARE NOT GUARANTEED. BIDDERS STATEMENT: I have read, understand, and agree to the terms and conditions on all pages of this Invitation for Bid. Upon request, I will transfer and deliver all goods to the City in accordance with said terms and conditions. wgrS Bros. MacNhe Inc. COMPLETE LEGAL NAME OF COMPANY Wo SlQuson 'Rve. BUSINESS ADDRESS SIRE x { SIGNATURE OF AGENT cQugpowmb EMAIL ADDRESS 0 q5- 310-19A TAXPAYER I.D. NO. MantebelloiCp °Ioe40 CITY/STATE ZIP CODE Cgsey powers NAME (PRINT) 323 72` -2010 PHONE NUMBER THIS FORM MUST BE COMPLETED AND SUBMITTED WITH E-BID. IFB 21-080 SEWAGE GRINDER UNITS PAGE 28 OF 28 MAYOR Vicente 5armiento MAYOR PRO TEM Davin Penaloza COUNCILMEMBER5 Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez Nelida Mendoza Thai Viet Phan August 24, 2021 CITY OF SANTA ANA FINANCE AND MANAGEMENT SERVICES 20 Civic Center Plaza a P.O, Box 1988 Santa Ana, California 92702 www.santa-ana.ara ADDENDUM 1: QUESTIONS & ANSWERS INVITATION FOR BIDS (IFB) NO. 21-080 SEWAGE GRINDER UNITS CITY MANAGER Kristine Ridge CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Daisy Gomez Notice is hereby given to Bidders that, where applicable, the City of Santa Ana Purchasing Division has made certain clarifications, modifications, additions, and/or deletions, for specifications of IFB No. 21-080 Sewage Grinder Units. ALL OTHER TERMS, CONDITIONS, AND SPECIFICATIONS REMAIN UNCHANGED. ANSWERS TO QUESTIONS SUBMITTED BY THE DEADLINE ARE AS FOLLOWS: 1. Q: For line items 2 and 4 are you asking for an hourly rate or an overall cost to renew/rebuild the units? A. The City is requesting an overall cost estimate to renew/rebuild the units based on the specifications m the Description of Bid Items on page 21-22 of the Bid Document. Thank you for your participation and interest in doing business with the City of Santa Ana. Please contact me if you have any questions at (714) 647-6584 or via email at EPierce santa-ana.orq Sincerely, Eva Pierce Buyer Finance and Management Services Agency SANTA ANA CITY COUNCIL '-r. d'' �,lrnumNn David Pannlora Thai Viet Phan Jessie Lopez Phil eaanrra Johnathan Ryan Hernandez NOMA klBtovz, 61hyi�r Mayor Pro Tom. Ward 2 Ward 1 Warn 3 Ward d Ward 5 Ward 6 _,_irn_$n1p;C5a1]I"M&2W doe11010"053n1a-a'Morq IOISdnI[�I Santa dnd.gra 1e55relOflaLRGSdnja-ana.Ulr1 rrg Saniadn .O lfYOnhernaflQg2[g nt n�.'.,rt[Fj nlMMdOrSr�Sdnla�na.orn ti L Proposal By: Casey Powers Powers Bros. Machine Inc. 8100 Slauson Ave. ► Montebello, Ca 90640 (323)728-20I0 1 City of Santa Ana, Finance and Management Services Agency Purchasing Division We are submitting to you the proposal, due August 26, 2021, that you requested. The contents within this proposal have been put together as required by the request for proposals (RFP), titled, Sewage Grinder Units (IFB) No. 21-080, 1 have read the RFP and understand the scope of services required, and I believe Powers Bros. Machine Inc. is best suited for this project. We thank you for your consideration. I am confident that Powers Bros. Machine Inc., meets and will exceed the expectations of the City of Santa Ana. Sincerely_ Casey Powers Secretary/Treasurer Powers Bros. Machine, Inc. (323) 728-2010 8100 Slauson Ave. Montebello, CA 90640 Casey a,PowersBros.com ww",.PowersBros.com Qualifications Powers Bros. Machine, Inc, founded and incorporated in 1976 has a long history of being a superior industrial repair facility in Southern California. We offer a wide variety of knowledge when it comes to repairing and overhauling different rotating and reciprocating industrial pumps, flow control equipment, blowers, and compressors. Our 53,000 sq./ft facility in Montebello has evolved over the years to handle a variety of different pumps, compressors, motors, and blowers. Our facility is filly equipped with overhead cranes. Our services we offer in-house include; • Machining • Boring • OD, ID, and Surface Grinding • Thermal Coatings, including plasma and HVOF • Large Presses • Shaft Straightening • Mill Work • Crankshaft Grinding • Welding • Balancing • Vibration Analysis • Mechanical Bay Powers Bros. Machine Inc, has worked on many different and diverse projects over the last few decades. Predominantly our work load consists of submersible pumps, vertical pumps — booster booster pumps, motors, gear boxes, and blowers. More specifically we have repaired vertical and centrifugal pumps for Huntington Beach City, Los Angeles County Sanitation District, Los Angeles County Department of Public Works, Orange County Sanitation District, and many other companies and municipalities. We have a very extensive Equipment List (available upon request) of both machinery in house and field service tools for removing equipment off site and in place machining. Our staff at Powers Bros. consist of highly qualified mechanics, machinist, lead supervisors and managers. Our Operating Manager, Mitchell Powers has been in the industrial repair industry for 45 years and has the knowledge, experience and skills of managing projects, people, and workflow. Along with Mitchell Powers" managing ability he also is a highly skilled mechanic and machinist and can dedicate his time and abilities to your project. Mitchell Powers Jr. our Shop Manager has the knowledge, skills, abilities to carry out the physical work on these pumps. He will personally be the mechanic cleaning, inspecting, repairing, machining, and welding to refurbish the all the pump and motor components. He has the experience and knowledge on how to work on pumps and electric motors with size and horsepower as described in the Request for Proposal. Our owner Mitchell Powers is a working owner committing himself to 40+ hours a week. He has 37+ years of experience in rehabilitating pumps among many other industrial refurbishments. He personally has been working with the Los Angeles County Sanitation District since the late 1980's. Mitchell Powers has the knowledge, skills, and abilities to carry out the physical work on these pumps and motors. Powers Bros. shop hours are Monday -Friday 7:00 am - 5:00 pm. Powers Bros. is an S corporation, and we have a total of 12 full-time employees. Powers Bros. accommodates the needs of our customers and offers extended working hours. We offer emergency repairs 2417/365. We can work around the clock until the project is done. In our world of industrial repair and pump repair, it's very common for equipment to require emergency refurbishment and we are no stranger to doing whatever it takes to complete the task at hand. References Client: City of Pasadena Contact: James Colvard Contact Title: HVAC/Plumbing Superintendent Address: 100 N Garfield Avenue Room N023 Pasadena, CA 91101-1726 Phone Number: 626-744-3864 Email: jcolvard,cityofpasadena.net Services Provided: To provide annual and quarterly maintenance services for two sewer lift stations, one muffin monster trash grinder pump, and one booster station. Dates: 2020-Present Total Fees: $50,000 Client: Los Angeles County Public Works Department Contact: Marissa Morelos Contact Title: Associate Civil Engineer Address: 900 S. Fremont Ave, Alhambra, CA 91803 Email: mmorelos a,dwpJacounty.go_v Phone: 626-300-3370 Services Provided: As -Needed Sewer Pump and Motor Repair Services Bid Related Project: Provide Man Power and Tooling to Install New 30005-0012-DI Muffin Monster and Control Panel 3HP Grinder Motor Dates: March 2017-Present Total Cost: $2,200,000 Client: City of Huntingtin Beach Contact: Harry Bessa Contact Title: Maintenance Team Leader Address: 19001 Huntington St. Huntington Beach, CA 92648 Phone Number: 714-614-5016 Email: hbessa0surf6ty-hb.org Services Provided: Pump Refurbishment Services: furnish all labor, materials, tools, equipment, services, incidental, and customary work necessary to fully and adequately supply the services. Dates: 2018-Present Total Fees: $43,000 Client: Port of Long Beach Contact: Shannon Everson Contact Title: Plumbing Supervisor Maintenance Division Address: 725 Harbor Plaza, Long Beach, CA 90802 Phone Number: 562-283-7324 Email: sliannon.everson ra polb.com Services Provided: On -Call Pump Services, including all material, labor services, electrical, controls, for Wemco, Essco, Peerless, and other brands. Dates: March 2017-Present Total Cost: $500,000 Client: Downstream Services Contact: Clark Roberts Contact Title: VP of Operations Preventative Maintenance Address: 2855 Progress Place Escondido, CA 92029 Phone Number: 760-297-0381 Email: clarkr(ctreamservices.com Services Provided: Pump Refurbishment Services: furnish all labor, materials, tools, equipment, services, incidental, and customary work necessary to fully and adequately supply the services. Dates: 2019-Present Total Fees: $300,000 Client: City of Orange -Sheriff Coroner Department Contact: Jorge Moraza Contact Title: Shop Planner Address: 320 N Flower St. Second Floor Phone Number: 714-920-1249 Email: 'moraza00csd.org Services Provided: Maintenance and repair services of pumps including but not limited to pumps for potable water, non -potable water, heating and tolling, and sewage pumps. Services shall include replacement of pumps and components, including motors and controllers to all pump manufacturer types of various sizes. Dates: 2019-Present Total Fees: $60,000 Appendices Powers Bros. Machine holds many Licenses, Certifications and Permits to operate a business in Los Angeles, CA. Appendix 1 Business License Certification No. 10700585, issued by City of Montebello, CA Appendix 2 Permit to Resell No. 14-657487, issued by State of California, Board of Equalization Appendix 3 Small and Local Business Enterprise 511468, issued by the State of California Department of Consumer and Business Affairs Appendix 4 Contractors State License 1021366, issued by Department of Consumer Affairs Appendix 5 State of California Department of Industrial Relations, License 1000058131 Appendix 6 Powers Bros. Management System Manual Conforms to ISO 9001:2015 Appendix. I CITY OF MONTEBELLO BUSINESS LICENSE "For Services Provided in the City of Montebello, California O.rrly Business Name POWERS BROS. MACHINE INC'=. t �§ Business Location 8100 E SLAUSON AVE License MONTEBELLO, CA 9(i340 Description Business Owner(s� MITCHELL POWEITS.-, CHARLES R. POWERS Llcanse Number POWERS BROS. MACHINE, INC. 8100 E SLAUSON AVE Effective Date 2020 - 2021 TO BE POSTED IN A CONSPICUOUS PLACE ANC NOT TRANSFERABLE OR ASSIGNABLE. REPAIR COMM'LIINO MACHINE PART 107CO585 December 06, 2020 MONTEBELLO, CA 90540 Expiration Date December 05, 2021 The person, firm w corporation above named is hereby granted license"to e g j on the cITY OF MONTEBELLO, CALIFORNIA, the business lrading calling, proriss _' f!�itf,',gb .s+r ° " =c" For all inquiries regarding this license, contact HdL occupation described above, for the period indicated- This license is permission only, no an endorsement of license. Business Tax Support Center at (323) 248 8614, POWERS BROS. MACHINE, INC. : Thank you for your payment on your City of Montebello Business License, ALL LICENSES MUST BE AVAILABLE FOR INSPECTION UPON REQUEST. If you have questions Concerning your business license, contact the Business Support Center via email at: montebello@hdlgov.com or by telephone at (323) 248-8014. Keep this portion for your license separate in case you need a replacement for any lost, stolen, or destroyed license. A fee may be charged for a replacement or duplicate license This certificate does not entille the holder to conduct business before complying with all requirements of the Montebello Municipal code and other applicable laws, nor to conduct business in a zone where conducting such business violates law. If you have a fixed place of business within the City of Montebello please display the Business License above in a conspicuous place at the premises. Otherwise, every Business License holder not having a fixed place of business in the City shall keep the Business License upon his or her person, or affixed in plain view any cart, vehicle, van or other movable structure or device at all times if required by the Collector. Starting January 1, 2021, Assembiy Bill 1607 requires the prevention of gender -based discrimination of business establishments. A full notice is available in English or other languages by going to: https:llvuww.dca,ca.gov/publications/ '2 BUSINESS LICENSING ■ U ■ 8839 N CEDAR AVE #212 ' v FRESNO, CA 93720-1B32 POWERS BROS. MACHINE, INC. 8100 E SLAUSON AVE MONTEBELLO, CA 90640 City of Montebello BUSINESS LICENSE License Number: 10700585 Date of issue: 12f06=20 Appendix 2 OF VkF4 � CALIFORNIA, STATE BOARD OF EQUALIZATION SELLERS PERMIT r/79 SR AD 14-657487 Powers .giros. Machine, Znc. 80GO Salt Lake Ave. Hu-Ltington Park, CA 90255 L. .J 1S HEREBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE PERSONAL PROPERTY AT THE ABOVE LOCATION STATE BOARD OF EQUALIZATION THIS PERMIT IS VALID UNTIL REVOKED OR CANCELLED BUT 1S NOT TRANSFERABLE r BT-442.R REv• 7 t4.701 i s DISPLAY CONSPICUOUSLY AT THE PLAd OF BUSINESS FOR WHICH ISSUED Appendix 3 �Ati Of :OS qh C41iF4RN�� { BOARD OF SUPERVISORS Hilda L. Solis Mark Ridley -Thomas Sheila Kuehl Janice Hahn Kathryn Barger February 18, 2020 COUNTY OF LOS ANGELES DEPARTMENT OF CONSUMER It AND BUSINESS AFFAIRS Joseph M. Nicchitta Director "To Enrich Lives Through Effective and Caring Service" Joel Ayala Chief deputy Rafael Carbajal Chief deputy CASEY D POWERS POWERS BROS MACHINE INC 8100 SLAUSON AVE. MONTEBELLO, CA 90640 Vendor #: 511468 Certification Record #:088260 CERTIFICATION FOR NON -FEDERALLY FUNDED COUNTY SOLICITATIONS Dear CASEY D POWERS, Congratulations! Your business is now certified as a Local Small Business Enterprise (LSBE) with the County of Los Angeles effective as of the date of this letter. Your LSBE certification expiration date is based on your State of California Department of General Services' (OGS) small business certification. Your certification expires on February 28, 2022. Your business is eligible for LSBE preference consideration in those County of Los Angeles solicitations which include the "Request for Preference Consideration" form. You must complete the form and provide your Vendor Number in your bid/proposal along with a copy of this approval letter for each response to receive the preference. Additionally, the Board of Supervisors established a "Countywide Small Business Payment Liaison and Prompt Pay Program". As a certified LSBE, your company is now eligible for a 15-day prompt payment. Please call the Small Business Services office at 855-230-6430 or send an email to osb(@dcba.lacounty.gov to request your free Prompt Payment Stamp and instructions. The County of Los Angeles Department of Consumer and Business Affairs reserves the right to request additional information and/or conduct an on -site visit to verify your company's eligibility for the program. Please contact our office immediately if your business experiences any changes that could affect eligibility during the certification period. Again, congratulations on your certification. If you have any questions about our LSBE Program, please call us at 323- 881-3964, visit our website at.http://dcba.lacountv..qo or email us atosb .dcba.laCOLinty.gov. Sincerely, Joseph M. Nicchitta Director Christian Olmos Program Chief, Office of Small Business JMN:CO 500 W. Temple Street, Room B-96, Los Angeles, CA 90012-2706 Telephone (213) 974-1452 * (800) 593-13222 * Fax (213) 687-1137 " Website: dcba.lacountygov Appendix 4 a N n 0 2_} m z C M cn T lu 0 m CA 0 U) 2 Z rn_ E n 0 z I m r 0 ID P-1 C Q CD fl) Cpp7 � "J I37 m in w j P CA �• O 0 a DI N `s OCD- m -I m CD z V# -n m 0 i j I Appendix 5 Appendix 6 ......................................................................................................................................................................... POWERS BROS. MACHINE Management System Manual Revision 0 Issued 1-.Tune-2020 Conforms to ISO 9001:2015 ,02020 Powers Bros. Machine Inc; all rights reserved. This document may contain proprietary information and may only be released to third parties with approval of management. Document is uncontrolled unless otherwise marked; uncontrolled documents are not subject to update notification. THE QUALITY MANUAL Table of Contents 1. Powers Bros Introduction 2. Powers Bros approach in adoption of ISO 9001 3. Terms and Definitions 4. Context of the Organization 4.1. Understanding the organization and its context 4.2. Understanding the needs and expectations of interested parties 4.3. Determining the scope of the quality management 4.4. Powers Bros. Quality management system and its processes 5. Leadership 5.1. Leadership and commitment 5.2. Policy 5.3. Organizational roles, responsibilities, and authorities 6. Planning 6.1. Actions to address risks and opportunities 6.2. Quality objectives and planning to achieve them 6.3. Planning of changes 7. Support 7.1. Resources 7.2. Competence 7.3. Awareness 7.4. Communication 7.5. Documented information 8. Operation 8.1. Operational planning and control 8.2. Requirements for products and services 8.3. Design and development of products and services (Does Not Apply) 8.4. Control of Vendor processes, products, and services 8.5. Production and service provision 8.6. Release of products and services 8.7. ISO 9001 Measurement, analysis, and evaluation 8.8. Internal audit 8.9. Management review 9. Improvement 9.1. Nonconformity and corrective action 9.2. Continual improvement Appendix I QMS General Process Map (QMSD-202) Appendix 2 QMS Processes and Documents. (QMSD-210) Appendix 3 QMS Process Diagram (QMSD-205) Appendix 4 Monitoring and Measurement Criteria (QMSD-206) Appendix 5 QMS Company Organization Chart (QMSD-201) THE QUALITY MANUAL 1. Powers Bros Introduction Powers Bros. Machine is an Industrial Machine Shop specializing in Metal coatings. We have been in business since 1976 servicing Southern California. We rebuild rotating mechanical equipment, pumps, blowers, compressors, and gear boxes for water processing plants, refineries, and industrial facilities. We discovered from the beginning that to continue to build and retain our clients, customer service was essential. We have the most responsive customer service department possible. our customer service representatives are empowered to help you with your need. Powers Bros. provides full machining services to a broad spectrum of clientele. Powers Bros. is committed to servicing our clients at a reasonable price. We will fulfill our customer's needs, exceed their expectations, and provide them with the highest quality products and services in a timely manner. Powers Bros, is dedicated to be a leader in the industrial Repair Industry in Southern California. The true measure of quality at Powers Bros.is customer satisfaction. Because customer Satisfaction and the quality of our products and services are and will continue to be the keys to our competitiveness for years to come. It is increasingly vital for us to understand and use our quality management system to do the best job, the first time, every time. To ensure that our quality management system will continue to provide a solid foundation for success, it is essential that we continually improve our quality management system and related processes. 2. Powers Bros approach in adoption of ISO 9001:2015 Quality Management System (ISO 9001) 1. Meet customer requirements the most important perused goal of being ISO 9001 certified is being able to meet the increasing demands of customers. Powers Bros. by adopting the ISO 9001 is determined to assure the customers of existence of quality through documented procedures and by continually improving management system. 2. Achieve competitive advantage Powers Bros. believes an efficient and effective management system is the foundation of a successful market strategy. A management system that is well-defined and documented, and benefits from merely of a shared understanding of how things are done. The effective ISO 9001 certification expands the market accessibility and provides the upper hand position in customer evaluations. 3. Improve company and service quality by adopting the ISO 9001, Powers Bros. increases the quality of products. and improves the processes across the entire organization. 4. Describe, understand, and communicate the company's processes by attaining ISO 9001 certification Powers Bros. identifies, manages, and monitors and continually improves the business processes 5. Create a professional business culture Powers Bros, has adopted the ISO 9001 to motivate and empower employee. This goal realizes by providing employees with everything they need to perform well, i.e. clear expectations and the tools they need to perform the tasks expected of them, and quick, and timely feedback on their performance. 3. Terms and Definitions Document Control Ensuring that the most current version is in use by issuing a document with a reference and issue number so that the correct version of the document is always used. Record Control A record is a completed document. Record control is the method by which a company makes finding individual records efficient. It can also refer to how it files, removes, and dispositions individual records. Procedure A procedure is a set way of doing something and is driven by the completion of a task with a focus on satisfying the rules. Requirement Need or expectation that is stated. generally implied or obligatory Capability Ability of company, system, or process to realize a product that will fulfill the requirements for that product Supplier The company that provides material or service to Powers Bros, Active Supplier A supplier, who has been evaluated and approved to provide quality service or product Inactive supplier Suppliers that show an unsatisfactory quality and poor performance. Conformity To conform means to meet or comply to requirements. Correction A correction is any action that is taken to eliminate a nonconformity Corrective Action are steps that are taken to eliminate the causes of existing nonconformities to prevent recurrence. Preventive Action are steps that are taken to remove the causes of potential nonconformities or potential situations that are undesirable. The preventive action process is designed to prevent the occurrence of nonconformities or situations that do not yet exist. It tries to prevent occurrence by eliminating causes. Difference between Corrective Action and Preventive Action Corrective action is a reaction to a problem that has already occurred but. preventive action is initiated to stop a potential problem from occurring Inspection use observation, measurement, testing and judgment to evaluate conformity of product characteristics regarding to product requirements. Nonconforming product When one or more characteristics of a product fail to meet specified requirements, it is referred to as a nonconforming product. Nonconforming products must be identified and controlled to prevent unintended use or delivery. Outside processing an outside processing is any process that is part of Powers Bros, production, but is performed by a party that is external to Powers Bros. Customer Property- Property owned by the customer and provided for use in meeting the requirements of the contract, Customer property can include intellectual property. Calibration A set of operations that establish, under specified conditions, the relationship between the values of quantities indicated by measuring instrument or measuring system and the corresponding values realized by standards. Accuracy The closeness of agreement between a test result and the accepted reference value Precision is a measure of the repeatability of a measuring system Calibration Interval or Frequency The period of time or series of measurements during which calibration can be expected to remain stable within specified and documented limits. Calibration Service Provider An external organization demonstrating appropriate technical scope and competency of calibration by accreditation to ISO 1 IEC 17025 through authorized signatories of an international accreditation body. Measuring and Test Equipment All devices used to gauge, measure, test, inspect, or otherwise determine compliance with prescribed technical requirements. Management review the overall purpose of a management review is to evaluate the suitability, adequacy, and effectiveness of an organization's quality management system, and to look for improvement opportunities. Management reviews are also used to identify and assess opportunities to change an organization's quality policy and quality objectives, to address resource needs, and to look for opportunities to improve its products. KPI A key performance indicator (KPI) is a metric or measure. KPIs are used to quantify and evaluate organizational success. Special Process The process, which the resulting output cannot be verified by subsequent monitoring or measurement and, therefore, deficiencies become apparent only after the product is in use. Product identification Knowing the identity of (yours or customer supplied) product from - incoming receipt of materials; raw material storage; use in production; work in progress; finished product storage; and delivery of product to the customer. Product identification can be controlled using physical and electronic methods. Product status Knowing the quality status (good or bad) of materials and product through each of the above stages. Product status can be controlled using physical and electronic methods. Unique Product Identification Production Order Number assigned to every job, a.k.a. Job Number Asset Register A list of all the Assets in a workplace, together with information about those assets, such as manufacturer, vendor, make, model, specifications etc. CMS>As,sets Machine Breakdown A specific type of failure, where an item of plant or equipment is completely unable to function. Corrective Maintenance or Repair Any maintenance activity which is required to correct a failure that has occurred or is in the process of occurring. This activity may consist of repair, restoration, or replacement of components. Preventive Maintenance or PM an equipment maintenance strategy based on replacing, overhauling or remanufacturing an item at a fixed interval, regardless of its condition at the time. Scheduled Restoration tasks and Scheduled Discard tasks are both examples of Preventive Maintenance tasks. Inspection Conformity evaluation by observation and judgment accompanied as appropriate by measurement, testing or gaging. Test Determination of one or more characteristics according to a procedure. Defect Non -fulfilment of a requirement, related to an intended or specified use Audit An audit is a systematic, independent, and documented process for: 1- Obtaining evidence and 2- Evaluating it objectively to determine the extent to which audit criteria are fulfilled. Auditor Person with the competence to conduct an audit Audit criteria Set of policies, procedures or requirements used as a reference Audit Evidence Records, statements of fact or other information which are relevant to the audit criteria and verifiable Audit Findings Audit Findings are the results of the evaluation of the collected audit Evidence against audit Criteria which are: • Conformity: Fulfillment of requirement • Nonconformity: None -fulfillment of a requirement Qualified Employee Who can demonstrate ability to apply knowledge and skills. Training Need The difference between what the employee can do now and what they are required to do to carry out their job effectively and efficiently Training Survey A process of gathering information to determine whether there is a training need. Training Needs Analysis A training needs analysis is the rnethod of determining if a training need exists and if it does, what training is required - Employee Training Matrix (QMSF-309). Training Effectiveness Evaluation To confirm that both organizational and training objectives have been met, i.e, training has been effective. Job Shop Production System A job shop is a type of manufacturing process in which small batches of a variety of custom products are made. In the job shop process flow, most of the products require a unique setup and sequencing of process steps. Job Routing When an order arrives in the job shop, the part being worked on travels throughout the various areas according to a sequence of operations. Not all jobs will use every machine in the plant. Jobs often travel in a jumbled routing and may return to the same machine for processing several times 4. Context of the Organization 4.1. Understanding the organization and its context Powers Bros. has determined internal and external issues that are relevant to the mission and purpose of the organization, whereby the mission and purpose has defined as follows: "The sale and repair of industrial equipment to Customer Specification" In compliance with ISO 9001:2015, clause 4.1, Powers Bros. has established The Company's Strategic Plan (QMSD-207) and reviews as important input of management review process at least once a year. The company's Strategic Plan shall include the internal and external positive and negative factors (strength, weakness, threads, and opportunities according to SWOT methodology) effecting the business environment. Internal issues may include subjects that can affect the customer satisfaction and delivery of quality product such as contractual relationships with customers, and its interested parties, culture, beliefs, values, or principles inside the organization, complexity of processes and organizational structure. External issues may include, subjects arising from its social, technological, environmental, ethical, political, legal, and economic environment_ 4.2. Understanding the needs and expectations of interested parties Powers Bros. identifies the interested parties with respect to their effect or potential effect on the Powers Bros. ability to consistently provide products and services that meet customer and applicable statutory and regulatory requirements according to the Company's Strategic Plan (QMSD-207), where interested parties and their relevant requirements are monitored and reviewed at least once a year as an important input of management review process. Interested parties may include direct customers, end users, venders, suppliers and partners, regulators, people in the organization, owners. Shareholders 4.3. Determining the scope of the quality management Powers Bros. has determined and documented the boundaries and applicability of the quality management system according to: 1. The external and internal issues (See 4.1) 2. The requirements of relevant interested parties (See 4.2) 3.Products and services that Powers Bros. has determined as: a -New equipment we sell b-repair services we provide c-installation of equipment we sale 4. Powers Bros. believes the clause 8.3 (Design and development of products and services) of ISO 9001:2015 does not apply to the scope of company's quality management system due to 1. Powers Bros. does not supply engineering and design service to its customers. 2. This inapplicability does not affect the company's ability or responsibility to ensure the conformity of its products and the enhancement of customer satisfaction. 4.4. Powers Bros. Quality management system and its processes 4.4.1. Powers Bros. established, implemented, maintain, and continually improve a quality management system, including the processes needed and their interactions, in accordance with the requirements of the ISO 9001:2015. 4.4.2.Powers Bros, top level processes are: 4.4.2.1. Business Development Process QMS-PS-001 4.4.2.2. Production and Services Process QMS-PS-002 4.4.2.3. Procurement Process QMS-PS-003 4.4.2.4. Post Production Process QMS-OS-004 4.4.2.5. Management Oversight Process QMS-PS-005 Marketing Branding • Cust. Aquistion Purchasing • Supplier Relations Receiving Packaging Shippings • Invoicing • Cust. Suvey • Changes • Financial Ana • Accoutnign • Tech & LT. 4.4.3. Powers Bros. has determined the processes needed for the quality management system and their application throughout the organization including: I . Inputs required, and the outputs expected from these processes according to QMS Process Map (QMSD-202) and QMS Process Diagram (QMSD-205). 2.Sequence and interaction of these processes according to QMS Process Map (QMSD-202) and QMS Process Diagram (QMSD-205). 3. Criteria needed to ensure the effectiveness of operation and control of these processes according to Monitoring and Measurement Criteria (QMSD-206) 4. Resources needed for these processes and ensure their availability. 5. Responsibilities and authorities for QMS processes according to Organization Chart (QMSD-201) 6. Risks and opportunities According to Company's Strategic Plan (QMSD-207) 7. Evaluate the processes and implement any changes needed to ensure that these processes achieve their intended results according to Management Review Procedure (QMSP-106). 8. Improve the processes and the quality management system. 4.4.2, Powers Bros. maintain documented information and retain the records to support its operation and have confidence that the processes are being carried out as planned, according to Control of Documents Procedure (QMSP-101) and Control of Records Procedure (QMSP-102). 5. Leadership 5.1. Leadership and commitment 5.1.1.General Top management is fully accountable for effectiveness of the quality management system and ensures that the QMS quality policy and objectives are established for the quality management system and are compatible with the context and strategic direction of the Powers Bros. according to Company's Strategic Plan (QMSD-207) 5.1.2. Customer Focus Top management at Powers Bros. ensures through Management Reviews and communication with employees that customer needs and expectations are determined, converted to requirements, and met with the aim of enhancing customer satisfaction, according to the following policies: Determination, understating, and compliance with customer requirement and applicable statutory and regulatory requirements according to Quoting and Order Acceptance (QMSP-103) • Determination and addressing the risks and opportunities that can affect conformity of products according to Company's Strategic Plan (QMSD-207). • Maintain the focus on customer satisfaction by measurement and monitoring according to Management Review Procedure (QMSP-106). 5.2. Policy Powers Bros. Quality Policy (QMSD-203) and Quality Objectives (QMSD-204)" are displayed openly as a sign of our pride and commitment and as a clear reminder of our focus and direction. Because the success of our Quality Management System is essential for our competitiveness, it is vital that the employees of Powers Bros. understand and adhere to our Quality Policy, The Quality Policy is released as a standalone document as well and is communicated and implemented throughout the organization. The Quality Policy of Powers Bros. is as follows: The Company is committed to provide quality products on time that meet or exceed customer expectations and comp43, with all requirements. The Company will ensure success through the adherence to an effective quality management system based on continual improvement and customer satisfaction. 5.3. Organizational roles, responsibilities, and authorities The organizational structure shown in "Organization Chart (QMSD-201)". Organization chart illustrates the responsibilities and authorities of personnel who manage, perform, and verify work affecting the quality of products and services at Powers Bros. • The President is the leader of the quality efforts at Powers Bros. and is responsible for the delegation of the various responsibilities for quality, and for the efficient operation of the company. • The Managers/Foremen/Supervisors are responsible for ensuring that Powers Bros. quality policies are being carried out oil a daily basis and ensuring that the processes are delivering their intended outputs. • Managers/Foremen/Supervisors may delegate the authority for implementation of the quality functions within their departments but shall retain the responsibility for its function. • Quality is the responsibility of each Powers Bros. employee. Their responsibilities for activities affecting quality are specified further in Powers Bros. Quality Manual and Procedures. The responsibility and authority for the quality management system is communicated to all employees through "Job Descriptions (QMSF-312)" Also Responsibilities are clarified in the Quality Management System procedures. 6. Planning 6.1. Actions to address risks and opportunities Powers Bros. takes a proactive approach in quality management system planning and implementation to achieve improvement and prevent, or reduce, undesired effects. The Company's Strategic Plan (QMSD-207). presents further information regarding actions to address these risks and opportunities and how to integrate and implement the actions into its quality management system processes and evaluate the effectiveness of these actions. 6.2. Quality objectives and planning to achieve them It is the responsibility of top management to ensure that quality objectives are established, and they are consistent with the quality policy. The measurement of quality objectives provides a consistent basis for the monitoring of continual improvement. Measurable quality objectives are determined through the objective planning Process, and are reviewed at regular intervals at management review, staff, and company -wide meetings. Powers Bros. Quality objectives are: 1. 97% On -time Delivery 2. 97% Customer Satisfaction 3. 97% Production Achievement 4. 97% Supplier Performance The Company's Strategic Plan (QMSD-207). demonstrates the measurement results of quality objective and relevant action plan(s) to achieve them. The following determinations is required for plan(s) driven from quality objectives": a) What will be done. b) What resources will be required. c) Who will be responsible. d) When it will be completed. e) How the results will be evaluated 6.3. Planning of changes For the changes that affect the QMS, Powers Bros. manages the change process in a planned manner according to the Corrective and Preventive Action Request (QMSP-108), where the following considerations are determined: a) The purpose of the changes and their potential consequences. b) The integrity of the quality management system. c) The availability of resources. d) The allocation or reallocation of responsibilities and authorities. 7. Support 7.1. Resources 7.1.1.General-Powers Bros. has determined and provided the Internal and External resources needed for the establishment, implementation, maintenance, and continual improvement of the quality management system. These resources are included but not limited to: 7.1.2. People: Necessary persons are determined and provided for the effective implementation of QMS and for the operation and control of processes. 7.1.3.infrastructure: The necessary infrastructure for the operation of processes and to achieve conformity of products and services has been determined and provided. 7.1.4.Environment for the operation of processes: A suitable environment, a combination of human and physical factors is determined and provided to QMS processes. 7.1.5.Monitoring and measuring resources: Powers Bros. has determined and provide the measurement and test equipment to ensure valid and reliable results when monitoring or measuring to verify the conformity of products according to Calibration Procedure (QMSP105). The Measurement and test equipment are A. Calibrated or verified B. Identified and determined by according to their status C. Safeguarded from adjustment, damage, or deterioration. 7.1.6.Organizational knowledge: A. Internal Knowledge: Powers faros fosters an open opinion atmosphere for every employee to be heard and to contribute their individual experiences and expertise. Knowledge from skilled tradesman, Account Managers and management input is taken into consideration and shared amongst the company through formal and informal communication. B. External Knowledge: Customer knowledge and contributions to process is captured by Account Managers and shared amongst company. Industry standards are utilized when appropriate. C. QMS Knowledge: Powers Bros. has captured the knowledge within the company through work instructions, databases, checklists, and training packages. 7.2. Competence Powers Bros. has determined the necessary competence of person(s) doing work under according to the job descriptions and during the hire process ensures that these persons are competent on the basis of appropriate education, training, or experience by evaluating the competency of each new hire. In result of performed pre -evaluation and extended on the job evaluation internal/external training may conducted to cover the recognized competency gap. Records of competency such as resume, and certificates are acquired during the hire process and retained in employee's file. It is Powers Bros. policy that any employee may request training at anytime if the employee feels that training is essential to receive the knowledge and skills required to maintain the requirements of the Standard and Powers Bros. quality management system. 7.3. Awareness Powers Bros. ensures that persons doing work under the organization's control are aware of the quality policy, relevant quality objectives, and their contribution to the effectiveness of the quality management system, including the benefits of improved performance, and the implications of not conforming with the quality management system requirements. Record of training employees oil the above -mentioned subject matter is recorded on Employee Training Matrix (QMSF-309) 7.4. Communication The downward and upward internal communication follows the layout according to the company's Organization Chart (QMSD-201). Downward communication includes quality policy and objectives, employee handbook, set of procedures for routine tasks, job description, regularly hold management meetings, staff meetings, employee's performance reviews, and posting on Bulletin board. Also, upward communication such as reports to supervisors, one-on-one meetings, Grapevine, Corrective Action Request, and suggestions. Communications with customers and suppliers are determined and managed according to the Quoting and Order Acceptance Procedure (QMSP-103), the Supplier Evaluation Form (QMSF 303) and Supplier Corrective Action Request (SCAR) (QMSF-304) respectively. 7.5. Documented Information Powers Bros. maintains a documented quality management system as a means to ensure that products and services conform to the specified requirements. Quality System documents are available to all employees through the Company Management Systent (CMM)> Documents>Quality Management Folder. Documents are uncontrolled when printed unless stamp indicated. For more information, see Control of Documents Procedure (QMSP-101) and Control of Records Procedure (QMSP-102). Records at Powers Bros. are controlled to ensure they Remain legible, readily identifiable, and retrievable. This procedure defines the controls needed for the proper identification, storage, protection, retrieval, retention time and disposition of records. For more information, please see "Control of Records Procedure and Quality Record Matrix (QMSP-102)". 8. Operation 8.1. Operational Planning and Control Powers Bros. has planned, implemented and controlled the processes needed to meet the requirements for the provision of products according to QMS Process Map (QMSD-202). The requirements for products are dictated by customers through technical drawings. models, and purchase request. The indicators for process measurement and monitoring are indicated by Monitoring and Measurement Criteria (QMSD-206) and, needed resources to achieve conformity to the product are determined and provided by support processes including maintenance, calibration, training and document and record control. 8.2. Requirements for Products and Services Customer communication is planned and maintained according to Quoting and Order Acceptance Procedure (QMSP-103), where frameworks for product information, changes, inquiries, feedback, complaints, customer properties, contract requirement determination and review are provided. 8.3. Design and development of products and services (Does Not Apply) This requirement of ISO 9001:2005 does not apply to Powers Bros. products and processes. The Products are made to customer's requirements Powers Bros. has no role in design and development of products, 8.4. Control of Vendor Processes, Products, and Services 8.4.1.Purchasing Process A documented Control Procedure for Purchasing (QMSP-114) is followed to ensure that purchased product conforms to the specified requirements. The procedure outlines the extent of control required for Vendors and the purchased product or service. Powers Bros. is responsible for the Quality of Products purchased from all Vendors, including customer -designated sources. Vendors are evaluated and selected based on their ability to supply product in accordance with requirements. Criteria for selection, evaluation and re-evaluation are documented. Records of the evaluation and any necessary actions are maintained. Powers Bros. will do the following: • Maintain a register of approved suppliers that includes the approval status (approved, disapproved, conditional) and the scope of the approval (product type or process family) • Require that Vendors apply appropriate controls to their direct and sub -tier external providers to ensure that requirements are met • Periodically review supplier performance (including process, product and service conformity, and on -time delivery performance) and retails documented information from these reviews; records of these reviews are used as a basis for establishing the level of controls implemented. • Ensure where required that both Powers Bros, and all Vendors use Customer -approved special process sources. • Determine and manage the risk when selecting and using suppliers. • Define requirements for controlling documentation created by and/or retained by our Vendors. NOTE: One factor that can be used during supplier selection and evaluation is Quality Data from objective and reliable external sources (information from accredited QMS or certification bodies, for example, ISO-9001 accreditation), 8.4.2.Type and Extent of Control Purchasing (QMSP-114) describes the processes used to verify that purchased product meets specified requirements. Powers Bros. will do the following: • Ensure that externally provided processes remain within our QMS. • Define controls applied to Vendors and to output from those Vendors. • Consider the impact of Vendor products or services on meeting our Customer's requirements. • Consider the effectiveness of Controls applied by our Vendors. • Determine the verification necessary to ensure Vendor supplied products and services meet our requirement. This is based on any risks identified and may include inspection or testing. • Obtain and review objective evidence of the quality of the product from Vendors (accompanying documentation, certificate of conformity, test reports, statistical records, and process control). • Inspect and Evaluate our Vendors, see Supplier Evaluation (QMSF-303) and review the results. Inspect Vendor premises as deemed necessary by the Purchasing Manager. • Inspect products from Vendors upon receipt per Shop Manager request, see Receiving Procedure (QMSP-109) for more detail. • Review any required Product Verifications delegated to our Vendors. When purchased product is released for production before completion of all required verification, it shall be identified and recorded to allow recall and replacement if it is subsequently found that the product did not meet requirements. See Identification and Traceability (QMSP-107) for more detail. Customer verification activities do not absolve Powers Bros. of its responsibility to provide acceptable product and comply with requirements. When Powers Bros. utilizes test reports to verify purchased product, we shall evaluate the data in those reports to make sure it meets our Customer's requirements. Powers Bros. shall periodically validate test reports for raw material if any potential risk has been identified. If Powers Bros. delegates verification activities to a Vendor, the requirements for delegation are defined and a register of delegations shall be maintained. 8.4.3. Information Provided to Vendors Purchasing Documents are to be reviewed to ensure the adequacy of requirements before orders are placed with a Supplier. Purchasing information shall describe the product or service to be purchased, including where appropriate: identification of relevant technical data (specifications, drawings, process requirements, work instructions, etc.) Requirements for approval of product, processes, equipment, and services Requirements for Qualification of Personnel (if relevant) Any special requirements for Vendor interactions with Powers Bros. Any special Vendor controls or monitoring required by Powers Bros. Any verification or validation that Powers Bros. or its Customer may need to perform at the Vendor's premises Any special requirements, critical items, or key characteristics Requirements for design, test, inspection, verification (including production process verification), use of statistical techniques for product acceptance, and related instructions for acceptance by Powers Bros. The need to implement a Quality Management System The need to use approved external providers (if necessary) Requirements to notify Powers Bros. of nonconforming product, obtain Powers Bros. approval for nonconforming product, notify Powers Bros.of changes in product and/or process, changes of suppliers, changes of manufacturing facility location and, where required, obtain Powers Bros. approval and, flow down to the supply chain the applicable requirements, including customer requirements. Requirements for test specimens (production method, number, storage conditions) for design approval, inspection, investigation, or auditing Record retention requirements. Right of access by Powers Bros., its customer, and regulatory authorities to all facilities involved in the order and to all applicable records Reminder to the Vendor of their contribution to product or service conformity, safety, and of the importance of ethical behavior. 8.5. Production and Service Provision 8.5.1.Control of Production and Service Provision General manufacturing and service operations are controlled and tracked in Powers Bros. information system, QuickBooks Premier Contractor edition. Managers/Foremen/Supervisors involved in processes that directly affect quality of intermediate and end products are responsible for ensuring that these processes are identified, planned, and executed under controlled conditions. Controlled Conditions are defined to include the following requirements: • Availability of information describing product characteristics according Correspondent "Job Traveler" and drawing. • Availability of the necessary procedures and forms according to "Top Level Process: Production and Services Process (QMS-PS-002) • Use and maintenance of suitable equipment for production and service operations (See Sections 7.1.5). Availability and use of monitoring and measuring devices. (See Sections 7.1.5) • Implementation of monitoring and measurement activities. (See 9. l.2) • The implementation of product release, delivery and post -delivery activities according to "Shipping Procedure (QMSP-110) 8.5.2.Identification and Traceability Powers Bros. maintains a database for identifying, where appropriate, raw materials and supplies, component parts, subassemblies, and finished products by means of applicable drawings, specifications, and other documents from receipt and throughout the stages of production, delivery, and installation. Each product that is identified will include unique identification, the status of required monitoring and measurement activities. Where Traceability is a requirement, traceability data is controlled and recorded. Product identification and traceability are maintained and controlled through Powers Bros. QuickBooks Premier Contractor System software. For more information, see "Product Identification and Traceability Procedure (QMSP-107)" 8.5.3.Property Belonging to Customers or External Providers Powers Bros. exercises care with customer/External Providers property and ensures that the property is identified, verified against specified requirements, protected, and safeguarded until required for use or incorporated into our products. Customer property will at all times be tagged with a minimum of company name, job number and arrival date. S. 5.4. Preservation Employees and the Foremeit/Supervisors are responsible for identification, handling, packaging, storage, protection, and delivery of materials and products. They are also responsible for establishing, documenting, and maintaining methods appropriate to preserve conformity of product and constituent parts during internal processing and delivery. Powers Bros. ensures the preservation of product in the following ways: - Identification: Specific details on the identification of product at Powers Bros, are described in Procedure "Product Identification and Traceability Procedure (QMSP-107)" - Handling: Powers Bros. policy is to use methods and means appropriate for the handling and transporting of product in a manner that prevents loss of product value and ensures employee safety. - Packaging: Products are appropriately packed and identified on the packaging in a manner that allows for ready identification through the stages of processing and prevents the loss of product value. - Storage: Powers Bros. maintains facilities, equipment, and designated areas to store material in a manner that prevents loss of product value - Methods and means appropriate for ensuring proper receipt of material, and proper dispatch to and from the pertinent areas are required and used. Foreman/Supervisor's having jurisdiction over departments where product is stored are responsible for assessing the condition of those materials at intervals sufficient to guarantee the prevention of their damage or deterioration. • Protection: Products are protected during internal processing and delivery to maintain product quality and value when the product is under the company's control. • Delivery: The quality of the final product is protected after final inspection. Where contractually specified, Powers Bros.is responsible for packaging and preservation during transit, including delivery to destination. 8.5.5.Post-Delivery Activities Powers Bros. has determined the post -delivery activities associated with the products and services according to the Control of Nonconforming Product (QMSP-104) where, the potential undesired consequences associated with its products and services are anticipated and determined. 8.5.6.Control of Changes Production and service provision changes are under control to ensure continuing conformity with requirements according to Quoting and Order Acceptance (QMSP 103), where results of the review of changes, the person(s) authorizing the change, and any necessary actions arising from the review are described. 8.6. Release of Products and Services The product release process including arrangements and appropriate stages to verify that the product and service requirements have been met, are planned, and implemented according to the Part Checklist (QMSF-306) and Job Traveler. The release of products to the customer will not proceed until the planned steps are satisfactory performed and completed, unless otherwise approved by a relevant authority and, as applicable, by the customer. 8.7. Control of Nonconforming Outputs The Production Manager/Shop Foreman are responsible for implementing and maintaining "Control of Nonconforming Product (QMSP-104)" to ensure that: • Product not conforming to specified requirements is clearly identified and controlled to prevent unintended use or delivery until the product is reviewed and disposition is determined. • Responsibilities and authorities for the identification, control and disposition of nonconforming product are defined, communicated, and understood. Nonconforming product is dealt with in one of the following ways. • By taking action to eliminate the detected nonconformity (rework or repair). - By authorizing its use, release, or acceptance under concession by a relevant authority and, where applicable, by the customer (use as -is). - By taking action to preclude its use or application (reject or scrap). Reworked and repaired product is re -inspected or re -verified to demonstrate conformity to the requirements. 9. Performance Evaluation 9.1. Monitoring, Measurement, Analysis, and Evaluation 9.1.1.Monitoring and Measurement of Processes and Products Monitoring, and where applicable, measurement activities are performed on the quality management system processes necessary to meet customer requirements, track quality objectives, and on additional processes where the potential benefit is identified. The responsibility to identify and apply suitable methods for monitoring and measurement of processes is assumed by General Manager and is performed according to the Company's Strategic Plan (QMSD-207) and Monitoring and Measurement Criteria (QMSD-206). Monitoring and measurement of processes demonstrate the ability of the processes to achieve planned results. When planned results are not achieved, action is taken to correct the immediate problem. The Shop Foreman/Machinist are responsible for ensuring that in -process product is held and not used or processed further until it has been inspected, tested or otherwise verified as conforming to specified requirements. If in -process product is found to be nonconforming, the Shop Manager is responsible for ensuring that the nonconforming product is identified, Segregated, and properly disposed according to Control of Nonconforming Product (QMSP-104). Before it is used or processed further, orthat the nonconforming product is removed from the production process. Inspection and testing of in -process materials are performed according to the "Correspondent Job Traveler and Parts Checklist (QMSF-306), which addresses Inspection and testing of receiving raw material/Outside-Processed, In -process parts and finished products. 9.1.2.Customer Satisfaction Director of Sales is responsible for ensuring that customer communication is maintained and that customer satisfaction data is collected, analyzed and used at the management review meeting based on the results of the customer surveys, (Web Base Customer Satisfaction Survey). The following methodologies are used for monitoring and measuring customer satisfaction: 9 Customer Requirements • Customer Feedback and Complaints • Surveys • Customer Returns • Lost Customers • Direct Communication with Customers Director of Sales is responsible for ensuring that the collected customer satisfaction data is appropriately tracked and maintained. Customer satisfaction data serves to assess the overall performance and continual improvement of the quality management system. Customer feedback (including customer satisfaction measurement data and customer complaints) is utilized in the Management Review Process 9.2. Internal Audit Powers Bros. plans and conducts internal audits at planned intervals according to Internal Audit Procedure (QMSP-111) for the following purposes: • To verify whether quality activities and related results comply with planned arrangements, to the requirements of this International Standard, and quality management system requirements established by Powers Bros. • To determine the overall effectiveness of the duality management system as implemented and maintained. Management Representative plans the annual audit program according to Audit Procedure (QMSP-111) and Internal Audit Log (QMSF-311), which identifies when each element or process of the quality management system will be audited. Every element or process of the quality management system is audited at a enininlum of once per year. An individual element or process may be audited additionally, based upon the importance and status of the element or process and the results of previous audits. The Management Representative is responsible for organizing and coordinating the internal audit to ensure that the audit criteria, scope, frequency, and methods are defined, and that the following requirements are met: • Definition of audit responsibilities • Definition of requirements for planning and conducting the audit. • Assurance of auditor independence. • Recording of audit results • Communication of audit results to management Management Representative is responsible for ensuring the selection of auditors and that their conduct during audits ensures objectivity and impartiality of the audit process. Auditors do not Audit their own work. Only qualified personnel may perform internal auditing activities. These qualified personnel are classified as Internal Auditors and have been trained. This training may be performed by a certified lead auditor or by previously trained internal auditors. In the case of a nonconformance (in either the quality management system and procedures, or the performance and adherence to those systems and procedures), Management Representative, or designee, will initiate a nonconformance and corrective or preventative action report in the Corrective Action Request Log (QMSF-308). Department Managers/Foreman/Supervisors responsible for the area audited ensures that the nonconformance are resolved in a timely manner to eliminate detected problems and their causes through corrective or preventive actions. Follow- up audits are used to verify the implementation and effectiveness of the corrective and preventive actions. The verification results are recorded and reported to the appropriate personnel 9.3. Management Review Top Management conducts a review of the quality management system through "Management Review Meetings" a minimum of once a year according to Management Review Procedure (QMSP-106). The following will be reviewed and documented: Assess the suitability, adequacy, and effectiveness of the quality management system in achieving the quality policy and quality objectives, in meeting customer needs, and in satisfying the requirements of ISO 9001. 9 Evaluate opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives, to improve effectiveness and to better meet the needs and expectations of our customers. • The results of the Management Review will be recorded on Management Review Meeting Minutes Form (QMSF-302) along with any other supporting documents. 10. Improvement 10.1. Nonconformity and corrective action Powers Bros. has established, implemented, and maintained the Corrective & Preventive Action Procedure (QMSP-108) to clarify the company's policy toward nonconformities and corrective actions. Corrective and Preventive Actions are recorded on Corrective Action Request Log (QMSF-308) This document explains when a nonconformity occurs, including any arising from complaints, Powers Bros. reactions includes but not limited to; 1. react to the nonconformity and, as applicable: 2. take action to control and correct it; 3. deal with the consequences. 4. evaluate the need for action to eliminate the cause(s) of the nonconformity, in order that it does not recur or occur elsewhere, by: 5. reviewing and analyzing the nonconformity, b, determining the causes of the nonconformity. 7. determining if similar nonconformities exist or could potentially occur. 8. Implement any action needed. 9. review the effectiveness of any corrective action taken. 10. update risks and opportunities determined during planning, if necessary. 11. make changes to the quality management system, if necessary. It is required that corrective actions to be appropriate to the effects of the non confonn i ties encountered. The Nonconformity and corrective action record are maintained on the company server on form Corrective Action Request Log (QMSF-308) including the nature of the nonconformities and any subsequent actions taken and the results of any corrective action 10.2. Continual improvement Continual improvement of the quality management system at Powers Bros.is facilitated through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review, wherein suitability, adequacy and effectiveness of the quality management system is reviewed through management review process and risk and opportunities that need to be addressed are determined as part of continual improvement. It is the overall responsibility of top management to continually improve the effectiveness of the quality management system, as described throughout this manual. Each Manager/Foreman/Supervisor is responsible for the continual improvement of the quality management system in his or her respective areas. Effectiveness of continual improvement activity is assessed during the Management Review Process.