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Delivery and Availability Explain lead times for equipment being proposed by CSP. At present, CSP is producing approximately 110 steel tanks/week, 50 fiberglass tanks, and 50 heater/separators per month, depending upon configuration. It takes approximately one week to manufacture a standard tank, two weeks for special configurations and approximately 4 weeks to manufacture and test our separators. Where tanks are coated, typically you can add a week. The better you can anticipate needs by location, the easier it would be for us to purchase steel, schedule manufacturing and building inventories at our three stocking locations. Does CSP have the capacity to meet lead times being proposed? As I stated earlier, we presently manufacture 110 steel tanks and 50 fiberglass tanks per week. We have increase manufacturing capacity 40% over the past two years and are intending to invest approximately $3M to further improve our manufacturing capabilities. The further out a customer can see demands by location, the better we will be able to schedule your product. How long does it take CSP to deliver equipment to site location(s)? This, of course, is location dependent. In Texas, I would anticipate being able to pull items from inventory and transporting them to site within 72 hours. Deliveries to Colorado and beyond, depending upon weather conditions, would likely be onsite within a week. What is CSP's ordering lead time expectations? Obviously, a schedule that gave us a clear picture of requirements in 30 day increments would be great if manufacturing time was taken into consideration. We have a history of being able to accommodate customers that bring us ASAP P.O.s but these are exceptions. Better yet, firm orders a Quarter out would allow us to purchase raw materials, schedule fabrication and testing, and stage products for on time delivery. Does CSP have a stocking point/yard beyond the main San Angelo, Texas Plant? CSP has their main manufacturing site and finished product holding yard in San Angelo, Texas. Also, we have a stocking facility in Canadian, Texas that will be able to support customer needs. Is CSP's delivery equipment able to handle adverse conditions? CSP maintains a fleet of trucks/trailers configured to accommodate our full range of tank sizes. We have mobile crane truck that can be directed to any job site to handle setting of our tanks if our customer does not have the ability to set the tank. Service Does CSP have a service center in the field in support of customer? CSP has staff at both of our locations in Texas with skill sets to handle any product issues in the field. As well, our present sales personnel were drawn from operations and, consequently, each of these professionals is able to work with customers on the job site, depending on the issues. Ultimately, we are well staffed at our primary manufacturing/fabrication site in San Angelo to mobilize any kind of service support needed in the field regardless location. How does CSP charge out for Service Calls and at what cost? CSP does not charge customer for any service support that relates to issues arising from performance of our products. We warrant our products for one year and expect them to provide reliable service to our clients. If there should be a problem with performance attributable to fabrication/material flaws, we will resolve said problem to the customer's satisfaction at no charge. Does CSP offer a Planned Maintenance Program? CSP does not have a Preventive Maintenance Program as the nature of our products does not warrant such a program. Explain CSP's replacement parts program (stores/spares) and what kind of timing could a customer expect for such replacement parts in the field? CSP maintains no formal replacement parts program per say due to the nature of our products. Outside of the tanks and separators, the only components that might be called into questions would be stairs/walkways/landings/etc that we fabricate and/or connectors/flanges/piping that might be associated with either separators or tanks. We would typically have all of the purchased components (connectors/flanges) in stock for production usage. Does CSP provide installation services? It is our standard practice to deliver and set our tanks and separators at the direction of our customers. Hook up is typically taken care of by the customer crew on site. Does CSP provide start-up services and if so, are they included in price or are they an add-on? CSP does not provide any type of a start up service as such efforts are outside our area of expertise. As stated above, our expertise extends to the fabrication of a sound storage tank or separator, the delivery of said products to the job site and our setting the tank for proper use by the customer who then takes care of hookup and commissioning. Does CSP provide training Programs available for customer personnel? We do not provide any training on our products as it is not in the nature of our products that training would be warranted. Quality Describe Quality Control activities at CSP and an overview of QA/QC Program. I have attached to this SOQ some general references to our Quality Manual developed in compliance with ISO 9001:2000 and API Q1, 7th Edition. For the purposes of this document, I have included only the General Requirement and Management Responsibilities sections for your review. A complete QM document can be provided upon request. How does CSP handle product defects and what are standard warranty terms? CSP offers a one year warranty on all products manufactured to your specifications. The products are warranted against any fabrication or materials defect subsequent to our setting the product in on you site for one year assuming that the product is not moved from its original site. Describe CSP's ability to do field repairs and/or remedy product problems on location. Given our product mix, the only field repairs we might encounter would be a leak from a defective weld. We have skilled staff able to resolve such problems in the field. Whatever might arise at a customer location, we are prepared to visit the site and make a determination if the problem is CSP's to solve. If so, we will take care of it on site, or worst case, replace the unit. If the problem is operational, we will assist as best we can to get our customer back on line. Are CSP's products ASME, API certified? CSP earned the API 12F Steel Tank Monogram on February 11th, 2005 and is currently in discussion with TIEC (API) to submit our request for qualification to API 12P (Fiberglass Tanks). We are well aware of the 12P requirements and are guided by same in our operation. I will advise TIEC's comments subsequent to their meeting in June. CSP was also issued the ASME U Certification of Authorization by The National Board of Boiler and Pressure Vessel Inspectors on February 1st, 2007 which will allow us to better serve APC across all areas of operation. Does CSP have its own internal Engineering Department? CSP does not have a distinct Engineering Department per say but we have staffed up our manufacturing and QAQC team with both graduate engineers and well experienced manufacturing professional that contribute daily to the evolution of our manufacturing methods and product mix. Pricing Discuss pricing philosophy to insure market-competitive rates going forward and describe pricing of new items in product mix as well as current (std) products. CSP has as a central goal to in our pricing strategy to offer our customers best value overall in terms of what they pay for our products, what they can expect from us in terms of on time delivery, and a zero tolerance for product defects. We are continually evaluating manufacturing practices to identify areas of cost savings in raw material purchasing, production scrap reduction, handling, and the like. We take the same approach to new line items as we do to existing products; i.e., identify market needs and evaluate our manufacturing capabilities relative to meeting that need. Our goal is to introduce new products into our line that complement our current production capabilities and are appropriate for our markets served. What efforts/programs does CSP have in place to manage/control product costs? It is one of the principle responsibilities of our Operations Manager to continually evaluate all elements of the operation that go into development of costs; namely, purchase patterns in raw materials, inventories of raw materials and finished goods, use of supplies in manufacturing, scrap levels from various stages of operations, defects/rework that might creep into any area of fabrication, and management of labor. What third-party pass though charges does CSP have in their proposal, if any? There would be no third party pass through charges of consequence. Connectors, flanges, tubing are purchased outside but are not a major factor in the overall cost buildup of our tanks or separators. Describe any early payment and/or volume discounts opportunities that CSP might have available. Our standard terms would apply as noted on the pricing spreadsheet; namely, 2% 10days, net 30 days. Safety & Environmental How is your safety department organized to address worker safety issues? CSP's Safety Department operates a Safety Committee consisting of three teams from operations; namely, Directors/Advisors, Coordinators, and Representatives; each group draws from Senior Ops Mgmt, Plant Managers/Foremen, and Line Employees respectively. Additionally, this critical group manages: •1. Oversee Employee Violation Program (write-ups) •2. Oversee Safety Inspection Program •3. Create work orders for inspection violations and Emergencies •4. Update Confined Space Program •5. Update Respiratory Program •6. Conduct New Employee Orientation •7. Ensure fit testing is conducted •8. Develop JHA's and SOP's •9. Update all Inventory diagram's weekly •10. Develop/maintain OSHA required written plans Explain CSP's reward/recognition programs, if any? We have just begun a zero tolerance program for accidents in all of our facilities that recognizes both employees and supervisors with case awards for time worked without incident. This program is still in a formative state but is being developed with input from both management and the work force as a whole to minimize and, ultimately, eliminate accidents of any nature in our plants. Describe CSP's standing in the marketplace. I believe that CSP has demonstrated to the marketplace that we are a customer driven manufacturers who understands our customers' needs for competitively priced products manufactured to the highest quality standards. We consider ourselves the "No Hassle" supplier in the marketplace in that we approach any product / service problem with the goal in mind to leave the customer fully satisfied with the outcome. We understand that our success through the years will come from being able to support companies such as yours relative to current and future product needs. What is CSP's position on customers doing regular performance reviews? What time frame would CSP recommend? Also, what Performance Metrics would CSP use to demonstrate compliance with client expectations? CSP is open to development of semi-annual performance reviews by our customers with sufficient lead time and a prepared schedule of activities you would propose. As far as the development of Performance Metrics, we believe that the customer is well equipped to provide an initial recommendation of areas to be reviewed and CSP would develop a program with our operation, QC, and Safety Management to arrive at an agenda that meets everyone's needs.
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