JANA MARINE SERVICES LLC

PROCUREMENT DEPARTMENT

CONTROL PROCEDURE
Procedure No.: PD-3-002

SELECTION AND EVALUATION OF VENDORS

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This Procedure is the property of Jana Marine Services LLC. (JMS), and the content is confidential. This
Procedure shall not be copied, reproduced or distributed in any form without the prior written approval of
JMS.

Nothing in this Procedure shall be construed as granting, to any other party or legal entity, any rights or
privileges to which they are not entitled under a signed contract between JMS and such party or legal entity.

Issue 0

Signature

Allan Angeles Abdul Aziz D. Tapadar Mohammed

0 06-Aug-2024 Print Name
Zareb AlSubaie

Revision Date Prepared Checked QA Reviewed Approved

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REVISION RECORD

PAGE REV DATE REASON FOR ISSUE

All 0 06-Aug-2024 Issued for Implementation

Total Pages in This Procedure: 10 + Attachments

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Table of Contents
TABLE OF CONTENTS................................................................3

1. PURPOSE................................................................................................................................. 4
2. SCOPE...................................................................................................................................... 4
3. DEFINITIONS / ABBREVIATIONS...........................................................................................4
4. REFERENCE............................................................................................................................ 4
5. RESPONSIBILITIES................................................................................................................. 5
5.1 PROCUREMENT MANAGER (PM).......................................................................................... 5
5.2 PROCUREMENT SUPERVISOR (PS)......................................................................................5
5.3 BUYER...................................................................................................................................... 5
5.4 BUYER ADMIN......................................................................................................................... 5
6. PROCEDURE........................................................................................................................... 6
6.1 SELECTION OF VENDORS / SUPPLIERS..............................................................................6
6.2 VENDOR REGISTRATION REQUEST.....................................................................................6
6.3 VENDOR EVALUATION QUESTIONNAIRE (VEQ)..................................................................7
6.4 CRITERIA AND METHOD OF VEQ EVALUATION AND VENDOR LISTING...........................7
6.5 PERFORMANCE REVIEW, RE-EVALUATION & MEASUREMENT........................................9
6.6 APPROVED VENDOR LIST...................................................................................................... 9
7. DOCUMENTS........................................................................................................................ 10
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1. PURPOSE
The purpose of this procedure is to provide a standard guideline for the registration of new vendors, evaluation
and measurement of “Existing” vendors’ performance and maintain / establish departmental measurable
objective.

2. SCOPE
This procedure shall apply to vendor to whom JMS request for supply of materials and / or services.

3. DEFINITIONS / ABBREVIATIONS

a) VENDOR: Any legal entity that is capable of supplying quality products or services conforming to the
materials specifications and standards per JMS or its Clients’ requirements.

b) APPROVED: Means that the VEQ submitted by vendor has been reviewed and approved as per specified
departmental procedural requirements by JMS. Names of such vendors will be added on to Approved
Vendor List. Procurement personnel shall address future inquiries to these vendors for the range of
products dealt with by them.

c) APPROVED CONDITIONAL: Means that the VEQ submitted by vendor has been reviewed and approved
as per specified departmental procedural requirements by JMS. Names of such vendors will be added on
to Approved Vendor List. Procurement personnel shall address future inquiries to these vendors for the
range of products dealt with by them.

d) AUDIT REQ’D: Means that JMS QAD, upon review of VEQ submitted by vendor, decided to audit vendor’s
quality management system at vendor’s premises prior to having them approved and included in Approved
Vendor List.

e) EXTRA SURVEILLANCE: Applies in cases of conditional approvals.

f) DISQUALIFIED: Means that the information provided by a vendor is incomplete or inadequate and they
failed to provide required details / documents within a reasonable time frame; hence are not qualified to be
considered as JMS Approved Vendor.

g) JMS: Jana Marine Services LLC.

h) PD: PROCUREMENT Department

i) VEQ: Vendor Evaluation Questionnaire.

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4. REFERENCE
Customers Quality Requirements
JMS-QSM-001 : Corporate Quality Manual
PD Level 2 Procedure
ISO-9001-2015 : Quality Management System Requirements

5. RESPONSIBILITIES
5.1 PROCUREMENT MANAGER (PM)

Reporting to CEO
a) PM shall be responsible for the following:
b) Vendor development
c) Approval of Vendor Evaluation Questionnaire (PD-4-003) completed and submitted by vendors
d) Re-evaluation and performance review

5.2 PROCUREMENT SUPERVISOR (PS)

Reporting to PM
a) Vendor development and measure their performances as specified.
b) Evaluate Vendors Evaluation Questionnaire (VEQ) for new Vendors(s) to be included in JMS Approved
Vendor List.
c) Review JMS Approved Vendor List regularly & follow up on regular basis.
d) Conduct Periodical Market survey.
e) Review ‘Vendor Registration request’ and identify vendor type / VEQ requirement.
f) Maintain ‘Vendor Registration log’ and follow up with requester or assigned procurement department
personnel for completion of VEQ.

5.3 BUYER

Reporting to PS / PM
a) Buyer shall be responsible for the following:
b) Identify potential suppliers, interact with them and guide them to have registered as JMS Approved
Vendor
c) Follow up and ensure that Vendor returns the VEQ on time
d) Complete re-evaluation form and conduct performance review on time as specified in this procedure.

5.4 BUYER ADMIN

Reporting to PS
Administrator is responsible for the following:
a) Send Vendor Evaluation Questionnaire to new vendors
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b) Evaluate VEQ submitted by vendor & transmit to QA/QC department for QA review so that QA review
can be completed on time.
c) Review Vendor Performance
d) Update VEQ Log and Approved Vendor List.
e) Register new vendor in JDE/NS as per Vendor Registration Request (PD-4-003A). Report to
Procurement Manager if any requester insist registration without approved Vendor Registration
Request. Ensure approved Vendor Registration Request is available before registration.
6. PROCEDURE
6.1 SELECTION OF VENDORS / SUPPLIERS

6.1.1 Suppliers are selected based on their ability to supply materials that conform to specifications and meet with
the required delivery schedule. The selection process may involve the following:
a) Review of the history of supply from that vendor / supplier;
b) Vendor / supplier who is already accredited to and registered by an independent certification agency
per any recognized quality standard such as ISO 9001 (Quality management System).
c) Assessment/ or Audit of the supplier’s quality system by JMS Quality Auditor.
d) Vendors / Suppliers who are Client nominated or preferred.
e) Vendors / Suppliers who approach JMS for business and / or introduce themselves for registration as
JMS Approved Vendor.
f) Based on their Nature of business – e.g. Manufacturers of popular brands of products, Authorized
agents of such manufacturers, etc.
g) Based on supplier’s standing in the market per directory / list published by Qatar Chamber of
Commerce.
h) Input from other JMS Departments / Divisions or affiliates and other manufacturers who are currently
using the supplier’s product.
i) Through Contacts / Experience of Procurement Personnel.
j) Per references given by the Management.
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6.2 VENDOR REGISTRATION REQUEST

6.2.1 Procurement Supervisor shall review/verify PD-4-003A (Vendor Registration Request) to identify vendor
type and vendor is proposed for which services. If VEQ not required for Client approved
vendor/manufacturer, one-time foreign vendor, Miscellaneous/stationary item supplier then it shall be
verified and justification to be provided upon request stating why VEQ is not required (However, periodic
performance evaluation as specified in the departmental procedure shall be applicable for all vendors to
evaluate their performance periodically). Upon request or if deemed necessary by procurement department
& QA/QC department VEQ of such vendor shall be completed.

6.2.2 Registration of vendor for Purchase Order issuance can proceed without VEQ for very urgent material
procurement as confirmed/justified by end user and approved by procurement manager but VEQ shall be
processed by the procurement department / Buyer within 02 working days for such vendor.

6.2.3 Buyer Admin or procurement department personnel assigned for vendor registration in JDE/NS shall not
proceed registration until receipt of approved Vendor Registration Request (FORM # PD-4-003A).

6.2.4 Buyer Admin or procurement department personnel assigned for vendor registration shall maintain ‘vendor
registration request / PD-4-003A’ one hard copy and one soft copy for procurement supervisor frequent
review and follow up with requester to complete pending VEQ and update the VEQ Log / PD-4-003B for
easy tracking of vendor VEQ registration.

6.2.5 Procurement supervisor shall maintain vendor registration log using form PD-4-003B and follow up shall be
in place with requester or assigned procurement department personnel to completed required VEQs.

6.3 VENDOR EVALUATION QUESTIONNAIRE (VEQ)

6.3.1 VEQ is issued to suppliers who approach JMS for registering their name in JMS Approved Vendor List.
VEQ may be sent by fax or e-mail attachment or issued to suppliers. VEQ is not required for Client
Nominated vendor as well as foreign vendor and one-time suppliers.

6.3.2 Supplier’s name and issue date shall be recorded in VEQ Log.

6.3.3 Monitor and expedite return of VEQ.

6.3.4 Supplier shall complete the VEQ and return it to PD.

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6.4 CRITERIA AND METHOD OF VEQ EVALUATION AND VENDOR LISTING

Description Process

6.4.1 If the supplier is already accredited to and registered PD Administrator screens VEQ. If he is
by any independent certification agency like ISO satisfied that the details given by the vendor
Certificate is to be provided by the supplier. As the on VEQ is complete and adequate, VEQ
certificate expires if the organization is re-certified, shall be transmitted to JMS QAD for review.
then revised certificate shall be provided. JMS QAD approves and returns the VEQ to
PD.
PD Manager signs and approves the VEQ.
Vendors name will be added on to JMS
Approved Vendor List. Vendor Code will be
issued. Vendor will be notified of the
approval status. VEQ will be filed.

6.4.2 Products / Suppliers approved by Client Same as 6.4.1

6.4.3 If the Supplier is official agent/distributor or authorized Same as 6.4.1

dealer of a popular brand.

6.4.4 Manufacturers / producers of popular brands / Same as 6.4.1

products.

6.4.5 Reputed wholesalers / stockists Same as 6.4.1

6.4.6 Local Manufacturing and Fabrication Units. Same as 6.4.1, except that QAD decide
whether or not to audit vendor’s quality
management system. QAD will provide Audit
Schedule which PD shall pass to the vendor.
Status on the VEQ will be AUDIT REQ’D.
Approval and vendor listing will be subject to
the outcome of QAD review / audit.
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6.4.7 General Traders / Buying Houses Same as 6.4.1 except that the status
on the VEQ will be “APPROVED (Conditional)”
and “EXTRA SURVEILLANCE REQ’D”. Name
of such vendors shall be included in the JMS
Vendor List, but extra surveillance is required
which means that buyer shall closely monitor
and ensure that (i) orders given to these
vendors are delivered on time; (ii) goods
delivered conform to specifications; and (iii)
pricing given is competitive. If the vendor is
able to demonstrate their competitiveness by
winning orders regularly which are fulfilled
without default and/or is able to help JMS
source out hard- to-get-items, then during the
next performance review they can be
recommended to be considered for approval as
JMS Approved Vendor and accordingly status
on the VEQ altered to APPROVED. Above the
PROCUREMENT of SAR 1,000 / & above shall
only be included in JMS approved list.
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6.4.8 Vendors / Suppliers if approved and included in the JMS Vendor List are given Vendor Codes. Vendor files
are maintained. Concerned vendors / suppliers are duly notified of the status of VEQ submitted by them.

6.4.9 Where applicable, PD will forward Audit Schedule to the vendor and fix appointment for QA Audit. Audit
report will be sent to the vendor for reference and necessary Corrective Actions. Vendors failing to carry out
Corrective Actions within a reasonable time will be “Disqualified”.

6.4.10 VEQ with incomplete and inadequate information will be kept aside and not considered for approval /
inclusion in JMS Vendor List until desired information is provided. Should Vendor / Supplier fail to provide
JMS with the required information / documents within a reasonable time, such vendors will be “Disqualified”.

6.4.11 VEQ shall be reviewed by QA/QC Manager / & HSE Manager or their designated representative to ensure
Quality & HSE requirements are comply with the latest ISO 9001 / 45001 / 14001 as well as ISM standard
requirements.

6.5 PERFORMANCE REVIEW, RE-EVALUATION & MEASUREMENT

6.5.1 PD reviews vendor performance yearly. Form number PD-4-017 / (Vendors Performance Review) is used
for the purpose of re-evaluation. Appropriate grades (Very Good for score 55 to 36, good for score 35 to
21, Average for score 20 to 5 and Below Average for score 5 to 0) are given to supplier and re-evaluation
records kept in vendor file for reference. Reviewing Authority will be at liberty to recommend action to
disqualify the vendors who receive grade “below average”. However, vendors shall be notified as required
and given sufficient time to improve their performances. Such notifications shall be circulated in the
department for information of all Procurement personnel, so as to HOLD further dealing with these
suppliers.

6.6 APPROVED VENDOR LIST

6.6.1 Currently PD maintains two (2) separate Approved Vendor Lists as below:

a) Approved Vendor List (Local Purchases) –PD-4-012

b) Approved Vendor List (Foreign Purchases) –PD-4-012B

6.6.2 JMS Vendor List is updated half-yearly. Name(s) of vendors disqualified as per 6.5.1 above will be removed
from and newly approved vendors are added on to the JMS Vendor List. Soft copy will be updated
immediately, but the hard copy will be printed out only when it is due for update.

6.6.3 Copy of PD-4-012 (Approved Vendor List) when updated shall be transmitted to JMS Buyers assigned at
sites for their references.
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6.6.4 Latest updated copy only shall be used for reference. As soon as Vendor List is updated and reprinted, the
previous original list available at PD HQ shall be marked “Superseded” in red ink and transferred to
“Superseded File”. All other holders of Vendor List such as Site Buyers shall destroy old copies of Vendor
List and make sure that only the latest revision is in use.

6.6.5 All inquiries are processed only at PD HQ and hence copy of PD-4-012A not distributed.

7. DOCUMENTS

VEQ Process (Process mapping) : Issue 2, Rev. 3

Vendor Evaluation Form : PD-4-003, Rev.01

Approved Vendor List (Local Purchases) : PD-4-012, Rev.01

Approved Vendor List (Foreign Purchases) : PD-4-012B, Rev.01

Vendor’s Performance Review : PD-4—017, Rev.01

Vendor Registration Request : PD-4-003A, Rev.0

Vendor Registration Log : PD-4-003B, Rev.0