Exhibit 10.3
GENERAL ELECTRIC COMPANY
GAS TURBINE SYSTEMS SOURCING OPERATION
REFERENCE: AGREEMENT NUMBER: GE - Mid-State - 0002
BETWEEN: General Electric Company (Purchaser)
Gas Turbine Sourcing Operation
000 Xxxxxxxxxx Xxxx
X.X. Xxx 000
Xxxxxxxxxx, XX 00000-0000
And: Mid-State Machine Products, Inc. (Seller)
0000 Xxxxx Xxxxx
Xxxxxxx, Xxxxx 00000
Whereas the parties wish to enter into a contractual relationship to establish
terms, delivery periods, and pricing for the purchase and sale of certain
machined products listed in Attachments "A" thru "D" and in consideration of
mutual promises, Purchaser and Seller agree as follows:
CONTRACT VISION
A commitment to fully satisfy the ultimate customer by entering into a
long term, mutually beneficial business relationship for a competitive
advantage through continuous improvement processes.
MUTUAL UNDERSTANDING:
* build a creative partnership with multi-functional partnering teams
to manage design integration, resource planning and quality
* manage the relationship not transactions
* commit totally to continuous improvement
* manage total cost for mutual profitability
* recognize co-destiny in business decisions through long term,
productivity-based Agreement
* share forecasts, plan long-range
* reduce cycles through stocking programs, smooth loading and
production control.
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1. TERM:
The initial term of this agreement starts Nov. 1, 1998 and continues
through those dates listed on Attachments "A" thru "D" with an option
to extend for subsequent years.
2. TERMINATION:
Purchaser or Seller may terminate this agreement at any time upon 180
days prior written notice to the other party. If the agreement is
terminated by the purchaser other than for Seller's default, the
purchaser is responsible to purchase from the Seller:
* Reserve quantities of materials that have been stocked
specifically for the Purchaser, provided, however, that in no
case shall Purchaser's obligation in this regard exceed 1
year's worth of requirements (prior to any reschedule) or items
normally stocked by Seller upon termination taking effect.
Purchaser will buy back in accordance with his production
schedule and will utilize this inventory prior to other
established inventories.
* Should potential cost reduction programs require equipment or
tooling which is agreed to by both parties and solely
beneficial to the Purchaser's process, the Purchaser will
reimburse the Seller for all moneys expended but not amortized
at the time of termination. Should this occur, Seller agrees to
transfer or convey titles to Purchaser any and all such tooling
and equipment as requested.
3. SCOPE:
Seller shall supply the Purchaser machined products to support the
Industrial & Power Systems Business in accordance with the items listed
in Attachments "A" thru "D", updated periodically to incorporate the
latest revisions.
4. GOAL:
The Goal is defined as the ability of the Seller to support the
Purchaser with quality parts, having on-time deliveries at competitive
pricing. Both parties working together have the responsibility to
achieve the Goal.
5. PRICING:
A) Base pricing is fixed and shall not increase for the term of this
Agreement
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except for when the Purchaser makes changes in design, materials,
or requirements (new prices shall be set on development, drawing
amendments or additional parts subsequently amending Attachments
"A" thru "D").
6. PRODUCTIVITY:
Seller will continue to implement continuous productivity gains through
6 Sigma project activities.
The productivity projects are jointly agreed on by both parties and
involve the following types of activities:
* Seller manufacturing process improvements, i.e.
(cellularization, dedicated equipment, new equipment,
upgraded tooling, etc.)
* Seller involvement in design to assure manufacturability.
* Joint effort at product standardization.
* Seller will maximize productivity on fixed processes.
* Seller will increase worker productivity.
* Inventory control to level load shop activities and to
maximize repeatability of similar units.
* Purchaser will evaluate suggestions on a timely basis and
rapidly implement those that are acceptable.
* Purchaser to review their product in depth with the Seller
to evaluate the feasibility of the following:
A) Reducing testing requirements
B) Relaxing tolerances when possible
C) Developing similar shapes and features
D) Material substitutions
E) Redesigning to optimize manufacturability.
* Scrap reduction for both mature and development parts.
* Review of processes and equipment to ensure quality.
* Added volume of similar components.
All projects requiring Purchaser's approval will be documented and
responded to utilizing the supplier CRS input form.
An immediate reduction in the Seller's price will occur upon
implementation of a productivity project funded by the Purchaser
pursuant to Articles 4 and 5. For a productivity project funded by the
Seller, the Seller's price will be reduced only after the Seller's is
reimbursed for the tooling, fixturing, and/or equipment
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purchased for the project by the savings generated from the project
pursuant to Articles 4 and 5. In both cases, tooling, fixturing, and/or
equipment as identified in the productivity project will become the
property of Purchaser upon completion.
7. GENERAL COST SAVINGS:
Purchaser agrees to identify those savings and reductions gained
through 6 Sigma project activities which are directly related to
conducting business with the Seller and to share any savings that can
be calculated and audited as directly attributable in terms of credit
towards our cost reduction goals. Such examples are as listed:
* Reduced transportation costs as compared to existing
supplier use.
* Reduced applied overhead.
* Reduction of total effort extended by Purchaser to maintain
program integrity.
* Methods Changes
8. ORDERING:
Purchase orders shall be issued by the individual Purchaser locations
and subject to the Standard GE Conditions of Purchase. If a conflict
exists between the terms of this contract and the Conditions of
Purchase, the terms of this contract will take precedence FOR
COMMERCIAL ORDERS ONLY. On Government orders the Conditions of Purchase
shall take precedence. The purchase order shall contain the following
specific data:
A.) Purchase order number and date
B.) Location
C.) The FOB point and mode of shipment
D.) Name and address of the person representing the Seller
and Purchaser
Purchase orders may include supplemental agreement clauses applicable
to orders relating to the United States Government agreement and
sub-contract. It is the intent of this agreement, that each Purchaser,
when available, will order and invoice via Electronic Data Interchange
(EDI), on a daily basis or as required. Each EDI order will reference
the 1ocation's purchase order number, date ordered, and the name of the
person entering the order. This method is solely a vehicle for
transporting data between the parties.
Purchaser commits to place a full 100% of its annual requirements of
material and/or equipment covered under this Agreement with the
exception of customer directed procurements and any notes appearing on
attachments. Purchaser reserves the right on any purchase order issued
hereunder for the work covered by this Agreement, to award up to 100%
of its requirements to other suppliers in the event that one or more of
the following occurs:
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A.) Seller ceases to remain a qualified supplier pursuant to
Purchaser's qualification requirements.
B.) Seller is unable to meet Purchaser's delivery, quality,
or Goal requirements (Articles 8, 16, and 4,
respectively)
C.) Seller is in default of any of its obligations under this
Agreement or under purchase order issued pursuant to this
Agreement.
In the event, however, that Purchaser does not achieve this purchase
commitment, Seller may continue the relationship, on terms stated, or
terminate this Agreement as if Seller had given notice of termination
pursuant to Article 2. The preceding sentence states the sole recourse
of the Seller for any inability or failure by the Purchaser to meet the
stated purchase commitment.
9. CYCLE TIME:
Seller is committed to the Goal of continuous improvement on all
current cycle for commodities covered under this agreement.
10. AGREEMENT ADMINISTRATION:
Contractual agreement review meetings will be held on an as-needed
basis, but no fewer than one (1) per calendar year, to mutually
evaluate the performance of each of the parties. The GEPS Supplier
Scorecard will be the basis for the review with the areas to be
addressed will include, but not be limited, to the following:
- Information communication quality and accuracy
- Purchase volume/payment history
- Delivery/order lead time performance
- Emergency order handling
- Productivity teams status (i.e. Design Integration, Quality
and Resource Planning)
- Cost reductions implemented/documented
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At each review, the performance of each participant will be quantified
where applicable. Goals to be achieved before the next review will be
mutually established.
11. FORECASTING:
Purchaser will provide as much forecasting information as possible to
assist Seller in establishing and maintaining adequate stocking levels
and/or to apply effective production control techniques (i.e. level
load shop, perform line of balance, etc.)
12. TERMS OF PAYMENT:
Payment by Purchaser shall be Net 45 days following the later date of
Seller's invoices or receipt of product and services by Purchaser.
Seller will re-xxxx any unearned discounts beyond 17 calendar days. GE
Capital will negotiate payment discounts separately.
13. INVOICING:
Invoices will be submitted by Seller to the Purchaser location
indicated on the purchase order. Invoices will reference Purchaser's
purchase order number and will contain such other information as
Purchaser may reasonably request. As referenced in Article 8 "ORDERING"
in the future the Seller will invoice the Purchaser via Electronic Data
Interchange (EDI). Each EDI invoice must reference the 1ocation's
purchase order number, item number, schedule number, and other required
data as determined by Purchaser's Accounts Payable Organization.
14. SHIPPING TERMS:
All shipments will be FOB Shipping Point, title to said goods to pass
to Purchaser upon delivery to Purchaser's dock. Transportation charges
to be billed directly to Purchaser by carrier and will be borne by
Purchaser. Seller must use Purchaser's designated corporate- agreement
careers which are indicated on the purchase order. Risk of loss remains
with Seller until delivered to Purchaser.
15. SPECIFICATIONS:
Product supplied under this agreement to be either commercial grade or
specialty grade as defined by Purchaser's specifications or
manufacturer stock number. No substitutions will be allowed without
Purchaser's written approval.
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16. QUALITY:
Seller agrees to meet purchaser's quality requirements and to work
towards the established Purchaser's goal of a 6 Sigma Quality Level.
Purchaser requirements include:
* Process control of critical processes.
* Responding to corrective action requests.
* Established quality measurements.
* Established quality improvement measurements.
* A continuous improvement program to increase quality.
* A documented quality system.
* A documented quality program.
* Maintain ISO 9000 Certification.
The Seller also agrees to meet all quality requirements defined in
Purchaser's supplier product quality plans as set forth in the purchase
order. Failure of Seller to meet Purchaser's quality and qualification
requirements will result in disqualification.
17. SECRECY AGREEMENT:
The technical data and information which has been or may hereafter be
furnished to Seller by Purchaser in connection with the Seller's supply
of turbine related items, or purchasing services therefore, is the
property of Purchaser, and has been furnished solely to enable Seller
to render service to Purchaser, and has been furnished solely to enable
Seller to render service to Purchaser and with the understanding (1)
that Seller will not use or reproduce such technical data and
information for any other purpose, (2) that Seller will take all
reasonable care to ensure that such technical data and information is
not disclosed to other parties, except to enable such parties to render
service to Purchaser for products covered under this Agreement provided
that in all such cases Seller shall require acceptance of this
provision by the other party, (3) that Seller will not furnish,
disclose, ship, export or re-export, directly or indirectly, any
Purchaser furnished technical data or information (including computer
software) and direct products thereof without first receiving the prior
written consent of Purchaser and (4) that upon request Seller will
promptly return all such technical data and information at any time
during or after completion of such supply or purchasing services. The
foregoing restrictions on disclosure and use of Purchaser's technical
information and data shall not apply to any technical information and
data which:
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a.) is already in Seller's possession at the time of first
receipt from Purchaser; or
b.) is independently developed by Seller's employees who had
not had access to the technical information and data; or
c.) is or becomes part of the public domain without breach of
this agreement by Seller; or
d.) is rightfully obtained by Seller from third persons
without restriction or breach by this agreement by Seller.
Execution of this agreement by both Purchaser and Seller
indicates acceptance of the above provision.
18. INDEMNIFICATION:
The Seller agrees to hold harmless and indemnify the Purchaser (its
Customer) and other third parties from any rightful claims for personal
and property damage and any associated costs, including but not limited
to legal expenses, when such claims arise out of the performance of
this agreement and are determined to be the result of the willful
misconduct, or negligent acts or omissions of the Seller or Seller's
agents, employees, or subcontractors. Furthermore, Seller agrees to
maintain and provide insurance covering these liabilities in the amount
and form as required under the Insurance Clause of this agreement.
19. INSURANCE:
The Seller shall comply with the Social Security and Unemployment
Insurance Laws, as now or hereafter enforced, and holds the Purchaser
harmless against any demands for contribution of taxes with respect to
the work payable under any such laws. Without limiting any of the other
obligations or liabilities of the Seller, the Seller shall, before
commencing work on the Purchaser's or its Customer's premises provide
and maintain, until the work is completed and accepted by the
Purchaser, minimum insurance coverage as follows:
TYPE OF COVERAGE LIMITS
---------------- ------
Workmen's Compensation, including Statutory
coverage under Longshoremen's and Harbor
Worker's act, where applicable
Employer's Liability $1,000,000 Each Occurrence
Comprehensive General Liability $2,000,000
Bodily Injury... Combined Single Limit Property
Damage (including coverage for damaged Each Occurrence
caused by blasting, collapse or structural
injury and/or damage to property in the
Seller's care, custody, or control)
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TYPE OF COVERAGE LIMITS
---------------- ------
Contractor's Protective Liability, operations of $1,000,000 covering
subcontractors, where applicable Combined Single Limit
Bodily Injury... Each Occurrence
Property Damage...
Contractor's Liability in accordance $1,000,000
with agreement(s) between Purchaser and Seller Combined Single Limit
Bodily Injury... Each Occurrence
Property Damage...
Comprehensive Automobile Liability covering $1,000,000
all owned, hired and non-owned automotive Combined Single Limit
equipment used by or with the permission of Each Occurrence
the Seller (including the loading and unloading
thereof) with the Purchaser included as an
additional insured
Bodily Injury...
Property Damage...
All such insurance policies shall be delivered to the Purchaser, if and when
directed by the Purchaser, and in any event, the Seller shall arrange with
the insurance carriers to furnish the Purchaser with a completed Certificate
of Insurance Form, indicating that the required coverage are in force and
will not be canceled or changed until ten (10) days after written notice is
given to the Purchaser.
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20. PROPRIETARY RIGHTS AND PATENT INDEMNIFICATIONS:
(a) If Seller provides Purchaser with one of Seller's "off-the-shelf"
items which has been designed and developed by Seller, Purchaser
acknowledges that Seller has all proprietary rights to such items, and
Seller provides Purchaser with a license to use such items by selling
said items to Purchaser. Such items are subject to the patent
indemnification provisions of Article 18 of the "Conditions of
Purchase".
b) If Purchaser and Seller work together to design and develop a
product or a process, all proprietary rights in such product or process
will belong to Purchaser. Seller agrees to assign all rights in such
products or processes to Purchaser. Purchaser reserves the right to
assign or license all or part of such proprietary rights to Seller on a
case-by-case basis, depending on several factors such as the amount of
any development funds provided by Seller, the amount of time spent by
Seller's engineers in developing a product or process at Seller's
expense, and the amount of risk incurred by Seller with respect to the
final commercial acceptability of the product or process. Any such
assignment or license will be subject to GE Corporate Policy No. 30-10.
The patent indemnification provisions of Article 18 of the "Conditions
of Purchase" will not apply when Purchaser owns all proprietary rights;
however, when Purchaser assigns or licenses all or part of the
proprietary rights to Seller, the patent indemnification provisions of
Article 18 of the "Conditions of Purchase" will be reviewed for
applicability on a case-by-case basis.
(c) If Purchaser provides Seller with specifications for a product or
process, and Purchaser has designed and developed the specifications at
its own cost through its own employees, consultants, subcontractors,
etc., then all proprietary rights to the product or process belong to
Purchaser. In this case, the patent indemnification provisions of
Article 18 of the "Conditions of Purchase" will not apply to Seller.
21. FORCE MAJEURE:
Neither party shall be liable to the other for default or delay in the
performance of any of its obligations hereunder due to act of God,
accident, fire, flood, storm, riot, war, sabotage, explosion, strike,
government law, labor disturbance, national defense requirement,
ordinance, rule or regulation, inability to obtain electricity or other
type of energy, raw material, labor, equipment, or transportation, or
any other cause beyond its reasonable control and without its fault or
negligence, or as
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otherwise provided herein. Seller shall notify Purchaser in writing of
any impending delay due to the occurrence of any of the preceding
events. In the event of a partial interruption or failure of Seller's
sources of product or distribution capability, Purchaser shall have the
right to determine the distribution of its allocation among it's
locations serviced from Seller's producing points.
22. COMPLETE AGREEMENT:
This Agreement, including all matters expressly incorporated herein by
reference, and the partnering agreement dated May 8th 1992, constitutes
the entire and any agreement between the parties respecting the subject
matter hereof, and there are merged herein all prior and pre-existing
representations and agreements made by and between Purchaser and
Seller.
23. NOTICES:
Notices, reports, and other communications made with respect to this
agreement shall be given in writing, addressed to the parties at the
following addresses or such other addresses as may be designated in
writing by either party to the other. All notices required to be given
hereunder shall be effective when delivered by hand or when deposited
in the United States Mail, with proper postage for First Class Mail -
Prepaid.
To Purchasers:
Xxxxx Xxxxxx Others on distribution:
Xxx Xxxxxxxxxx Xxxxxx Xxxxxx
Strategic Sourcing
General Electric Company
GE Power Systems
X.X. Xxx 000
Xxxxxxxxxx, XX 00000
To Seller: Others on distribution:
Xxxxxxx X. Xxxxxx Xxxxxxx Xxxxxxxxx
Outside Sales Contracts Manager Xxx Xxxxxx
Xxxxx Xxxxxxx
Manager of Sales
Mid-State Machine Products, Inc.
0000 Xxxxx Xxxxx
Xxxxxxx, XX 00000
(000) 000-0000
24. AMENDMENTS AND WAIVERS:
No terms or provisions of this agreement may be changed, waived,
discharged or terminated orally but only by an instrument in writing
signed by the party against
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whom the enforcement of such change, waiver, discharge or termination
is sought.
25. GOVERNING LAW:
The validity, interpretation and performance of this agreement shall be
determined in accordance with the Laws of the State of New York.
IN WITNESS WHEREOF THE PARTIES HAVE CAUSED THIS
AGREEMENT TO BE EXECUTED:
PURCHASER SELLER
General Electric Company Mid-State Machine Products, Inc.
Power Systems Sourcing Operation 0000 Xxxxx Xxxxx
X.X. Xxx 000, 300 Xxxxxxxxxx Road Winslow, ME 04901
Xxxxxxxxxx, XX 00000
Signed /s/ Xxxxx Xxxxxx Signed /s/ Xxxxxxx X. Xxxxxx
---------------------------- --------------------------
By: Xxxxx Xxxxxx By: Xxxxxxx X. Xxxxxx
Title: Strategic Sourcing Title: Outside Sales Contracts
Manager
Date 12/01/98 Date 12/01/98
------------------------------ ----------------------------
Signed: /s/ Xxx X. Xxxxxxxxxx Signed: /s/ Xxxxx Xxxxxxx
--------------------------- -------------------------
By: Xxx Xxxxxxxxxx By: Xxxxx Xxxxxxx
Title: Strategic Sourcing Title: Manager of Sales
Date: 12/01/98 Date: 12/01/98
--------------------------- --------------------------
rbgeagre
November 9, 1998
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STANDARD SCRAP AGREEMENT
Seller agrees to the following in performing value added work to General
Electric owned and consigned materials:
- Parts will be machined by Seller to the drawings and specifications as
identified in the purchase order. Should subsequent revisions be
identified, the Seller will be notified prior to incorporation, and the
purchase order will be amended to show the proper revision.
- It is understood that repair procedures that have been approved by
Purchaser will remain acceptable for the duration of this agreement.
- Seller has no liability for latent defects uncovered during its operations
and dispositioned as scrap by Purchaser to the extent, the cause of scrap
is outside the scope of the purchase order.
- If the scrap rates exceed the allowable percentages as set forth below, the
Seller will forfeit their contributed added value (at the pricing defined
in the purchase order) as well as the full value of the part consigned by
Purchaser. The total amount forfeited will be credited against Sellers
current and/or future invoices.
- Seller will notify Purchaser of scrapped parts per an agreed upon procedure
initiated at the beginning of this Agreement. The format and frequency of
the written report will be established between Purchaser and Seller.
Allowable Setup Rates
COMMODITY SCRAP RATE
--------- ----------
Nozzles 2.5%
Sand Castings 3.0%
Forgings (IN706, M152) 2.5%
Forgings (steel) 2.5%
Shroud Rings 2.5%
Purchaser Seller
--------- ------
General Electric Company
Power Systems Sourcing Operation Mid-State Machine Products, Inc.
Rm 159 Gas Turbine Plant 0000 Xxxxx Xxxxx
Xxxxxxxxxx, XX 00000 Xxxxxxx, XX 00000
Signed: /s/ X. X. Xxxxxxxxxx Signed: /s/ Xxxxx Xxxxxxx
------------------------- -------------------------
By: X. X. Xxxxxxxxxx By: Xxxxx Xxxxxxx
---------------------------- ----------------------------
Title: Sourcing Leader Title: Manager of Sales
------------------------- -------------------------
Date: 12/1/98 Date: 12/1/98
-------------------------- --------------------------
[LOGO]
ATTACHMENT A
706/718 INCONEL MACHINING AND UT TESTING CONTRACT
Initial term of this contract starts November 1, 1998 and continues through
December 31, 2003. This contract includes 100% of the ultrasonic testing and
machining of all requirements for Inconel rotor components.
revised 11/6/98
1999/2000 INCONEL PRICES
(INCLUDES (INCLUDES
UT & FPL) UT & FPL)
1996 1998 1996 1998 1996 1999/2000
PART DESCRIPTION PART NO. PRICES GRINDING FPI UT PRICES MACHINING
---------------- -------- --------- -------- ---- ---- --------- ---------
6FA 1ST STG T/W 109E9194P001 $28,630 $3,810 $25,590 $ 21,780
6FA 0XX XXX T/W 109E9196P001 $28,210 $3,910 $25,233 $ 21,323
6FA 0XX XXX T/W 109E9196P001 $28,121 $3,910 $25,155 $ 21,245
6FA 1-2 SPACER 109E9195P001 $34,325 $500.0 $2,550 $30,494 $ 27,444
6FA 2-3 SPACER 109E9197P001 $32,380 $500.0 $2,850 $28,824 $ 25,474
6FA AFT SHAFT 109E9199G001 $43,153 $ 5,152.80 $34,200 $ 29,047
7FA 0XX XXX T/W 109E5589P001 $36,072 $3,660 $32,102 $ 25,847
7FA 0XX XXX T/W 109E5591P001 $36,200 $3,960 $32,251 $ 25,562
7FA 0XX XXX T/W 109E5593P001 $34,678 $4,060 $30,927 $ 24,358
7FA 1-2 SPACER 109E5590P001 $40,502 $500.0 $2,800 $35,945 $ 31,527
7FA 2-3 SPACER 109E5606P001 $39,676 $500.0 $3,100 $35,257 $ 28,874
7FA AFT SHAFT 109E5594P001 $50,148 $ 6,147.75 $39,600 $ 32,783
0XX 0XX XXX T/W 109E8741P001 $45,676 $4,060 $40,578 $ 36,518
0XX 0XX XXX T/W 109E8743P001 $45,976 $4,360 $40,878 $ 36,518
0XX 0XX XXX T/W 109E8745P001 $43,978 $4,460 $39,137 $ 34,677
9EC 1-2 SPACER 109E8742P001 $50,481 $500.0 $3,200 $44,760 $ 41,050
9EC 2-3 SPACER 109E8744P001 $49,671 $500.0 $3,600 $44,089 $ 39,989
9EC CONICAL AFT 109E8746P001 $46,804 $41,071 $ 41,071
9FA 1ST STG T/W 109E5254P001 $60,295 $4,060 $44,631 $ 40,571
9FA 0XX XXX T/W 109E5256P001 $48,992 $4,360 $43,525 $ 39,165
9FA 0XX XXX T/W 109E5258P001 $47,804 $4,460 $42,494 $ 38,034
9FA 1-2 SPACER 109E5255P001 $59,641 $600.0 $3,200 $52,800 $ 49,427
9FA 2-3 SPACER 109E5257P001 $48,700 $600.0 $3,600 $43,149 $ 35,646
9FA AFT SHAFT 109E5259P001 $64,613 $10,613.03 $48,600 $ 37,987
(INCLUDES
UT & FPL)
1999/2000 1999/2000 1999/2000 1999/2000 1999/2000
PART DESCRIPTION UT FPI AWS-SLEEVE GRINDING PRICES
---------------- --------- --------- ---------- --------- ---------
6FA 1ST STG T/W $3,239 $ 25,019
6FA 0XX XXX T/W $3,324 $ 24,647
6FA 0XX XXX T/W $3,324 $ 24,569
6FA 1-2 SPACER $2,168 $450 $ 30,062
6FA 2-3 SPACER $2,423 $450 $ 28,347
6FA AFT SHAFT $ - $1,250 $4,800 $ 35,097
7FA 0XX XXX T/W $3,111 $ 28,958
7FA 0XX XXX T/W $3,366 $ 28,928
7FA 0XX XXX T/W $3,451 $ 27,809
7FA 1-2 SPACER $2,380 $450 $ 34,357
7FA 2-3 SPACER $2,635 $450 $ 31,959
7FA AFT SHAFT $ - $2,355 $5,500 $ 40,638
0XX 0XX XXX T/W $3,451 $ 39,969
0XX 0XX XXX T/W $3,706 $ 40,224
0XX 0XX XXX T/W $3,791 $ 38,468
9EC 1-2 SPACER $2,720 $450 $ 44,220
9EC 2-3 SPACER $3,060 $450 $ 43,499
9EC CONICAL AFT $ - $ 41,071
9FA 0XX XXX T/W $3,451 $ 44,117
9FA 0XX XXX T/W $3,706 $ 41,756
9FA 0XX XXX T/W $3,791 $ 41,825
9FA 1-2 SPACER $2,720 $540 $ 52,687
9FA 2-3 SPACER $3,080 $540 $ 39,246
9FA AFT SHAFT $ - $3,650 $9,021 $ 50,658
Inconel Page 1
[LOGO]
ATTACHMENT A
706/718 INCONEL MACHINING AND UT TESTING CONTRACT
Initial term of this contract starts November 1, 1998 and continues through
December 31, 2003. This contract includes 100% of the ultrasonic testing and
machining of all requirements for Inconel rotor components.
revised 11/6/98
1999/2000 INCONEL PRICES
(INCLUDES (INCLUDES
UT & FPL) UT & FPL)
1596 1998 1996 1998 1596 1999/2000
PART DESCRIPTION PART NO. PRICES GRINDING FPI UT PRICES MACHINING
---------------- -------- --------- -------- ---- ---- --------- ---------
9H 1ST STAGE T/W 108E4820P901 $4,060 $ 86,574 $ 82,514
9H 2ND STAGE T/W 112E5898P901 $4,360 $ 88,679 $ 84,319
9H 3RD STG T/W 108E4822P901 $4,460 $ 90,007 $ 85,547
9H 0XX XXX T/W 108E4823P901 $4,460 $ 85,353 $ 80,893
9H 1-2 SPACER 110E1486P901 $3,200 $154,350 $150,550
9H 2-3 SPACER 110E1487P901 $3,600 $164,587 $160,387
9H 3-4 SPACER 110E1488P901 $3,600 $ 80,737 $ 76,537
9H AFT SHAFT 110E1489P901 $94,272 $ 94,272
(INCLUDES
UT & FPL)
1999/2000 1999/2000 1999/2000 1999/2000 1596
PART DESCRIPTION UT FPI AYS-SLEEVE GRINDING PRICES
---------------- --------- --------- ---------- --------- ---------
9H 1ST STAGE T/W $3,451 $ 85,965
9H 2ND STAGE T/W $3,706 $ 88,025
9H 0XX XXX T/W $3,791 $ 89,338
9H 0XX XXX T/W $3,791 $ 84,684
9H 1-2 SPACER $2,720 $540 $153,810
9H 2-3 SPACER $3,060 $540 $163,987
9H 3-4 SPACER $3,060 $540 $ 80,187
9H AFT SHAFT $ - $ 94,272
PURCHASER SELLER
General Electric Company Mid-State Machine Products, Inc.
Power Systems Sourcing Operation 0000 Xxxxx Xxxxx
Xxxxxxxxxx, XX 00000 Xxxxxxx, Me. 04901
Signed /s/ Xxx Xxxxxxxxxx Signed /s/ Xxxxx Xxxxxxx
------------------------- -------------------------
By: Xxx Xxxxxxxxxx By: Xxxxx Xxxxxxx
Title: Strategic Sourcing Title: Manager of Sales
Inconel Page 2
ATTACHMENT B
RETAINING RING FABRICATION AND MACHINING/ NOZZLE MACHINING CONTRACT
INITIAL TERM OF THIS AGREEMENT STARTS NOVEMBER 1, 1998 AND CONTINUES THROUGH
DECEMBER 31, 2001.
1999/2000 RETAINING RING/ NOZZLE PRICES
revised 11/23/98
----------------
1998 1999/2000
QTY PART DESCRIPTION PART NO. PRICES PRICES COMMENTS
--- ---------------- -------- ------ ---------- --------
62 100 7FA+ retaining ring 109E9916G1/116E1942G1 $56,039.00 $49,122.00 material change and qty disc.
9 8 6FA retaining ring 109E9126G1 $36,751.70 $38,751.70 no opportunities at present
76 73 7E retaining ring 932E3157G3 $15,803.34 $15,295.34 redesign lifting lugs
11 9 9E retaining rings 932E0176G4 $20,159.66 $19,651.66 redesign lifting lugs
Note: The above pricing includes all materials and machining to make complete
1998 1999/2000
PART DESCRIPTION PART NO. PRICES PRICES COMMENTS
---------------- -------- ------ ---------- --------
62 95 7FA+ 3rd stage nozzle 103E3291G1 $23,580.00 $15,327.00 volume driven discount
8 8 9E 3rd stage nozzle 103E5506 $16,594.00 $14,936.00 volume driven discount
15 15 9FA+ 3rd stage nozzle 116E1334 $22,200.00 no history
11 11 9FA+ 3rd stage nozzle 101E2243 $32,000.00 $28,800.00 volume driven discount
Note: Nozzle pricing includes all machining except EDM of Seal Slots and cord length.
62 95 7FA+ 3rd stage nozzle 103E3291G1 N/A $18,847.00 volume driven discount
8 8 9E 3rd stage nozzle 103E5506 N/A $18,280.00 volume driven discount
15 15 9FA+ 2nd stage nozzle 116E1334 N/A $27,912.00 volume driven discount
11 11 9FA+ 3rd stage nozzle 101E2243 N/A $32,760.00 volume driven discount
Notes: Nozzle pricing includes all machining except EDM of seal slots (no materials)
Prices are based on stated volumes or 85% of GE's requirements for each part number
Mid State Machine will commit to 5 days cycle time with a minimum of 2 sets in wip per p/n.
Purchaser Seller
General Electric Company Mid State Machine Products, Inc.
Power Systems Sourcing Operation 0000 Xxxxx Xxxxx
Xxxxxxxxxx, XX 00000 Xxxxxxx, XX 00000
Signed /s/ Xxxxx Xxxxxx Signed /s/ Xxxxx Xxxxxxx
---------------- -----------------
By: Xxxxx Xxxxxx By: Xxxxx Xxxxxxx
Title: Strategic Sourcing Title: Manager of Sales
Page 3
retrings
[LOGO]
DIAPHRAGM MACHINING CONTRACT ATTACHMENT C
Initial term of this agreement starts November 1, 1998 and continues through
April 1, 2000.
1999/2000 DIAPHRAGM MACHINING PRICES
revised 1123/98
CASTING &
MILL ONLY
TOTAL TOTAL
QTY DESCRIPTION PART NUMBER CASTING MATERIAL PRICE
--- ----------- ----------- ---------- ---------- ----------
64 102 7F 2ND STG 329A3269G16 $10,732.20 $10,732.20 $17,692.93
00 00 0X 0XX XXX 000X0000X00 $12,963.00 $12,963.00 $19,164.27
8 6 0X 0XX XXX 000X0000X0 $ 6,347.60 $ 6,347.60 $11,465.00
58 00 0X 0XX XXX 000X0000X00 $ 6,347.60 $ 6,347.60 $11,465.00
Notes: Workscope includes milling only.
Mid-State will distribute the purchase of castings among Western
Foundry and Quaker City Castings on a 50/50 dollar volume basis
through the end of June 1999. Any casting purchase agreement or
direction thereafter, with these (2) suppliers or any new supplier,
shall be addressed with GE beforehand.
PURCHASER SELLER
General Electric Company Mid-State Machine Products, Inc.
Power Systems Sourcing Operation 0000 Xxxxx Xxxxx
Xxxxxxxxxx, XX 00000 Xxxxxxx, Xx 00000
Signed Xxxxx Xxxxxx Signed Xxxxx Xxxxxxx
------------------------- -------------------------
By: Xxxxx Xxxxxx By: Xxxxx Xxxxxxx
Title: Strategic Sourcing Title: Manager of Sales
Page 4
diaphrams
[LOGO]
SHROUD MACHINING CONTRACT ATTACHMENT D
Initial term of this agreement starts November 1, 1998 and continues through
December 31, 2001.
1999/2000 SHROUD PRICES
revised 1/23/98
1998 1999/2000
QTY PART DESCRIPTION PART NO. prices prices COMMENTS
--- ---------------- -------- ------ ---------- --------
Potential for savings through
4 6 9FA+1st stage shroud 332B6987G1 $ 77,437.00 $ 77,437.00 material substitute
4 6 9FA+2nd stage shroud 332B6968G1 $208,451.00 $297,011.00 Material savings
Redesign, material change HR120 bar
11 9 9E uprate inner shroud 213C1430/236C1121G001 $ 53,156.56 $ 43,000.00 stock
PURCHASER SELLER
General Electric Company Mid-State Machine Products, Inc.
Power Systems Sourcing Operation 0000 Xxxxx Xxxxx
Xxxxxxxxxx, XX 00000 Xxxxxxx, Xx 00000
Signed Xxxxx Xxxxxx Signed Xxxxx Xxxxxxx
------------------------- -------------------------
By: Xxxxx Xxxxxx By: Xxxxx Xxxxxxx
Title: Strategic Sourcing Title: Manager of Sales
Page 5
shrouds
