Common use of Purchasing Services Clause in Contracts

Purchasing Services. Operator shall provide purchasing services covering the purchase of Terminal equipment and supplies for these services. Competitive bids will be solicited as each situation dictates in the reasonable judgment of Operator. It is recognized that emergency or critical equipment purchases may be necessary. This section shall be expressly subject to Section 8.2 of the O&M Agreement. The purchasing procedures are as follows: 1. Purchases of items costing less than $10,000 may be made without competitive bidding. Operator’s decision on the purchase of such items shall be final; provided, however, Owner at its option shall have the right to preselect vendors of such items. 2. Purchasing orders will be limited to purchase of materials only. Purchase orders will not be issued for contractors, services, rental, etc. 3. Prices, solicitations and purchasing decisions are to be confidential between Operator and Owner and will not be revealed by either party to vendors, contractors or others except as necessary to satisfy auditing requirements. 4. Vendors will be instructed to mail invoices directly to Operator for review and forwarding to Operators Accounts Payable. - Obtain or cause to be obtained all Regulatory Approvals. - Administer monitoring of all Regulatory Approvals and periodic updating thereof. - API 653 in service tank inspections - API 653 out of service tank inspections, including the costs associated with cleaning and gas freeing the tank. - Tank repairs as a result of the API 653 tank inspections - Tank roof seal repairs or replacements - Tank mixer repairs or replacements - Tank roof drain hoses repairs or replacements - Cathodic protection system repairs or replacements - Costs of repairs or environmental cleanup from the loss of product due to a leak in a tank or tank line - Tank external painting - Tank internal coating - Pipeline integrity inspections, maintenance and repair - Pipeline right of way inspection, maintenance and repair - Maintenance, repair and necessary requirements of custody measurement systems at the other connecting Midland markets Description of Engineering and Inspection Services: Charge to: ·Labor- Time and manpower required to perform services ·Operator’s Actual Cost (i.e., wages and salary) ·Labor Burden - Expenses of administration associated with Labor in addition to wages and salary ·100% of Operator’s Actual Cost of Labor* ·Materials, Equipment, and Contract Services used in connection with performing services ·Operator’s Actual Out-of- Pocket Cost incurred in good faith * Labor Burden generally includes the cost of employee benefits, time credited but not worked, supervision, supplies and miscellaneous expenses, corporate staff services, and if furnished by Operator, an automobile and travel. The Labor Burden rate shall not exceed Operator’s then current Labor Burden rate as carried on Operator’s books and records.