IMS7.4.1 Selection Supply of Sub-Contractors Procedure

1.0   PURPOSE

The purpose of this procedure is to ensure that suppliers of materials or sub-contracted goods or services:

• Are selected as a subsequent of a formal analysis of their suitability.

• Are not used for items, goods or services supplied to our clients until the above assessment has been conducted.

• Are regularly reviewed to determine whether continued use is appropriate.

• Are barred from use where circumstances so dictate.

This procedure also ensures that:

• Ongoing assessments are conducted on a regular basis.

• Records of all the above are made and retained.

2.0   SCOPE

This procedure is applicable prior to the purchasing of capital equipment and materials, goods and services that form part of the equipment or services supplied by us to our client.

3.0   REFERENCES

Nil.

4.0   DEFINITIONS

Supplier - A company or person who provides goods, materials, supplies, equipment, components, items, etc.

Sub-contractor - A company or person who either provides a service or product to us or to our client on our behalf or who performs tasks on our behalf.

This should not be confused with the technical terminology that is reflective of our position in the supply chain where SeaLink may be the Contractor, Sub-contractor or be sub-contracted by a Sub-contractor or other Organisation.

5.0   REQUIREMENTS

5.1   Initial Assessment

When an organisation presents themselves or for other reasons, there is a potential need to purchase materials, goods, items, services, etc., the following activities are enacted.

The person identifying the potential need to conduct business firstly obtains the details identifying the Company, Person, Division, Branch, etc.

They obtain a Supplier Assessment form (refer to form IMS7.4.1.F1) and request the Company complete the appropriate details or with the assistance of the Company in question, and record:

• The full contact details of the particular Division, Branch, etc. of the Company.

• Name(s) and position of contact person(s),

• The type, range, etc. of products or services for which business the supplier is offering.

• Details of the Company’s licenses, approvals, certificates, etc.

• Details of referees.

• Details of recent history the Company’s business.

If the above steps have not been conducted by the HSEQ Manager, the form and supporting documentation should be forwarded to the HSEQ Manager

Copies of supporting documentation are obtained and where appropriate, include:

• Licenses and certificates.

• Brochures.

• Hierarchical chart.

• References.

• Product catalogues and price lists.

Where deemed appropriate, the HSEQ Manager arranges for a formal credit check to be performed and reported on.

Where the supplier has previously performed unsuccessfully, evidence of steps taken by the Organisation to correct the causes of those circumstances are sought.

Where deemed appropriate, the HSEQ Manager also requests the Organisation provide examples, samples and / or test results, etc.

The HSEQ Manager then assesses the Organisation’s suitability with respect, but not limited to:

• Commercial stability and performance.

• Formality of systems.

• Stock holding capabilities.

• Prices.

• Referees comments.

• Suitability of samples, test results, etc.

Where there is any question as to the suitability or performance of an Organisation, they may be requested to furnish further details or resolve the problems.

The HSEQ Manager then rates the organisation for the range of products or services listed in the Supplier Assessment form, as either:

• Acceptable, approval within financial or other constraints only.

• Acceptable with conditions, where use is to be closely controlled, monitored and reported.

• Unacceptable, where our reputation, service performance, product quality or financial viability would be subject to undue risk and where use is prohibited.

Upon completion of the assessment and rating, HSEQ Manager may advise the person or Organisation accordingly.

Where the rating of the Company changes, the HSEQ Manager arranges for the appropriate Approved Supplier list to be updated.

The assessment form and relevant supporting documentation is placed in the Supplier / Sub-Contractor Assessment file.

5.2   Routine Reassessment

During Management review meetings, the HSEQ Manager arranges for a review of the Approved Suppliers List to be conducted.

The HSEQ Manager obtains the most recent copy of the Supplier Assessment Form.

The HSEQ Manager reviews the Company details and the range of goods or services detailed on the form and where these have changed, the Quality officer may elect to complete a new form.

Also, where there is no room to record details of the new assessment, the HSEQ Manager may elect to compile a new form.

The review, clarification, assessment and recording activities described in clauses 5.1 above are conducted with the following modifications:

• The HSEQ Manager obtains the Non-Conformance Report file and determines the numbers and severity of previous problems emanating from the Company, and.

• This is also included during the assessment of the Organisation.

6.0   EXHIBITS

Documentation produced as a result of conducting the above-mentioned activities include:

• Form IMS7.4.2.F1, Quality Assurance Questionnaire
• Approved Supplier List