Doing Business with Us

To realize the targets that we have set ourselves, we procure the majority of services and materials through contracts and purchase orders with external companies. This section of our web site is targeted at companies that would like to undertake business with us. It outlines how we undertake our contracting and procurement activities and also offers guidance to our current suppliers.

For the procurement of services and materials, we mainly use the process of competitive tendering. In summary, after the internal steps of specifying the required services or materials, this process consists of:

Long list building

This is the process by which we find a large number of suppliers that can do the work or deliver the materials required. The first point of call for this is our vendor database where information on all registered / qualified vendors is stored. For more information on how we gather this information or for information on how a supplier can become registered in this database, please view vendor registration.

Pre-qualification

This is the process by which we pre-qualify the long list of vendors to confirm they are able to do the work and deliver the goods according to the standards that we require. Companies that have already qualified for a certain type of work or material with us might be pre-qualified straight away. Sometimes also for these companies, due to the specific nature of the requirement at hand, additional questions may have to be answered. The result of this process is a short list of suppliers that will be invited to participate in the tendering process.

Issue Invitation To Tender (ITT)

Our contracting department will send the ITT to the short-listed suppliers (now called tenderers or bidders). This package has details of our requirements, as well as instructions on how to complete the bid for the work.

Clarify ITT

Any queries that bidders might have about the ITT can be sent to us for consideration. The question and the answer will then be sent back to all suppliers that are bidding for the work in the form of a tender bulletin. This ensures that all bidders have the same information on which to base their tender. No direct communication between our organisation and suppliers is allowed during this period on the tender subject.

Submit ITT

When the tenderers have completed the ITT, they return their bid to us before the deadline that is set in the ITT. By submitting a compliant ITT, the bidder accepts the terms and conditions as sent out with the ITT, unless qualifications are made in the submission by the tenderer.

Evaluate Tender

We then evaluate the bids and make a decision on which offer is considered to be the best. Price plays an important role, but we do not always award to the lowest bidder. Factors such as quality, HSE competence and timing are also key considerations.

Award contract or purchase order

After this the contract will be awarded on the terms as sent out by us in the ITT.

In order to register your interest in the tenders and confirm your willingness to perform the works, please submit a free-format letter in Russian or English by e-mail to vendor-registration@sakhalinenergy.ru