NRSIR 78-891

NATL INST OF STAND & TECH

Ainob wgj^

f0R spEC!Fj CAT|0N AND PROCUREMENT

OF MEASUREMENT INSTRUMENTATION

Jeannette King

Denver Research Institute

University of Denver, University Park

Denver, Colorado 80210

H. Steffen Peiser

Raymond C. Sangster

Office of International Relations

National Bureau of Standards

Washington, D.C. 20234

June 1978

Prepared for:

Agency for International Development

Department of State

Washington, D.C. 20523

N8SIR 78-891

GUIDELINES FOR SPECIFICATION AND PROCUREMENT

OF MEASUREMENT INSTRUMENTATION

Jeannette King

Denver Research Institute

University of Denver, University Park

Denver, Colorado 80210

H. Steffen Peiser

Raymond C. Sangster

Office of International Relations

National Bureau of Standards

Washington, D.C. 20234

June 1978

Prepared for:

Agency for International Development

Department of State

Washington, D.C. 20523

U.S. DEPARTMENT OF COMMERCE, Juanita M. Kreps, Secretary

Sidney Harman, Under Secretary

Jordan J. Baruch, Assistant Secretary for Science and Technology

NATIONAL BUREAU OF STANDARDS, Ernest Ambler, Director
FOREWORD

This report presents guidelines for the procurement of measurement

instrumentation by organizations in the developing countries. It is

based on a two-week experimental educational course presented in the

fall of 1976 by the Denver Research Institute, under contract from the

U.S. National Bureau of Standards with funding from the U.S. Agency for

International Development. A number of reviewers have contributed

valuable suggestions, especially Dr. L. Yardley Beers of NBS.

ii
CONTENTS

Page

FOREWORD ii

I. INTRODUCTION 1

II. PROCUREMENT RESPONSIBILITIES 2

A. Technical Staff 2

B. Purchasing Staff 4

C. Higher Management and Budgetary Authorities 4

III. THE PROCUREMENT PROCESS . . . 6

A. Motivations and Purposes of Procurement 6

B. Preliminary Survey of Available Equipment 6

C. Functional Specifications 9

D. Procurement Justification Proposal Document 9

E. Basic Budgetary Approval 9

F. Search for Potential Suppliers and Candidate Instruments . . 10

G. Evaluation of Potential Suppliers 10

H. Development of Detailed Specifications 12

J. Conditions of Sale 16

K. Requests for Quotation 16

L. Bid Evaluation 18

N. Purchase Order 20

P. In-House Fabrication 20

Q. Follow-up on Purchase Order 22

S. Formal Acceptance of Equipment 22

T. Post-Sale Relations 22

LIST OF CHECKLISTS

Page

CHECKLIST I. THE PROCUREMENT PROCESS (AND RESPONSIBILITIES) .... 3

CHECKLIST II. MOTIVATIONS FOR PROCUREMENT 7 CHECKLIST III. EVALUATION OF POTENTIAL SUPPLIERS AND INSTRUMENTS . . 11

CHECKLIST IV. SPECIFICATION OF A MEASURING INSTRUMENT 15

CHECKLIST V. CONDITIONS OF SALE 17

CHECKLIST VI. CHECKLIST FOR THE BIDDER 19

CHECKLIST VII. BID EVALUATION 21

iii

I . INTRODUCTION

Instrumentation is necessary in almost every measurement process.

Measurement is essential in modern science, technology, industry, and

commerce. For instance, it is often stated that about 25 percent of the

equipment cost of typical modern industrial plants is spent on measurement instrumentation. Measurements are needed in industry for process

and quality control, for environmental control and protection, and for

protection of workers from dangers in their work-places.

The accelerating pace of the advancement of science and technology

during the past several decades is well known. Measurement instrumentation has experienced a similar advancement. One result has been an increasing abundance of measuring instruments specialized for particular

tasks. Another result is that specification and selection of an optimum

instrument are becoming increasingly complex tasks.

Recent trends in measurement instrumentation include the incorporation of new materials, the use of an increasing variety of physical

phenomena, and exploitation of advances in solid-state electronics, and

computer science and technology. Automation by built-in mini- and

micro-computers can be particularly valuable for the developing nations.

Such automation allows measurements to be made more rapidly, more reliably, without auxiliary computations or corrections, by relatively

unskilled personnel, than with non-automated equipment. As a result,

the developing nations can obtain highly precise and reliable measurements by use of relatively untrained people. Highly skilled technicians

and professionals can be released for other urgent assignments.

This report provides guidelines to ease the problems of the specification and procurement of measurement instrumentation by establishments in the developing nations. With suitable changes in the technical

terms these guidelines can be used for specification and procurement of

other scientific or technical equipment.

The report is built around a series of checklists. The checklists

are intended to list everything that is needed in a major procurement

action, in a logical or chronological sequence. They can be of value

even to individuals highly experienced in the procurement process.

The narrative discussions accompanying the checklists are intended

to provide explanatory material and advice useful to individuals not

highly experienced in procurement actions. While experienced individuals will find much in these narrative sections that is obvious to them,

they may also find them useful as means of insuring that they have not

overlooked steps or considerations that would be useful in a particular

procurement situation. No attempt has been made to discuss in detail

every item in each checklist. Those items that appear to be completely

obvious and self-explanatory are only listed.
Checklist I outlines the entire procurement process. The subsequent sections discuss first the respective responsibilities of the

technical and purchasing staffs and then, secondly, the details of the

substantive steps in the procurement action.

II. PROCUREMENT RESPONSIBILITIES

The procurement of measurement instrumentation usually involves two

different groups in any establishment, the technical staff and the

purchasing staff. Both report to a common top management and administrative budget authority.

A. Technical Staff

The technical staff of the buying organization is responsible for

the use of the equipment to be bought. These technical people have the

ultimate responsibility for the adequacy of procurement decisions. For

this reason we strongly recommend against a frequent practice in developing countries of seeking external advice on and pursuing the procurement of technical facilities , with the intention of subsequently hiring

the technical staff to operate them. This practice necessarily entails

risks of expensive mistakes. It is strongly recommended that the technical staff in the buying organization be available throughout the

purchasing cycle. It must have the final responsibility and authority

for several aspects of the buying process.

The technical staff must prepare the formal procurement proposals

that are presented to higher managerial or governmental authorities for

approval. These proposals must be technically sound. They must also be

presented in language and with justifications that are convincing to

such people as governmental administrators who may be politicians or financial experts with little technical background. To be convincing to

such people, a proposal must clearly establish the benefits that will

occur as the result of the proposed procurement and must clearly define

the adverse consequences (loss of benefits or real negative effects) if

the procurement is not approved. Technical matters must be discussed in

language a non-technical person can understand.

The technical staff must have the final responsibility for the

technical acceptability of the equipment to be bought. The purchasing

staff may request and obtain many compromises during the procurement

process, but the technical staff must have the ultimate say about whether any proposed compromise is technically acceptable.

2
CHECKLIST I. THE PROCUREMENT PROCESS (AND RESPONSIBILITIES-)

A. Identify motivations and specific purposes of proposed procurement (T)

.

B. Conduct preliminary survey of available equipment (T,p).

C. Write basic functional specifications for desired equipment (T)

.

D. Prepare proposal document justifying proposed procurement (T)

.

E. Obtain basic budgetary approval (T)

.

F. Conduct search for potential suppliers and candidate instruments,

including in-house fabrication possibilities (T,P).

G. Evaluate potential suppliers and set up bid list (T,P).

H. Develop detailed specifications (see Checklist IV) (T,p).

J. Identify conditions of sale (see Checklist V) (t,P).

K. Issue Requests for Quotation (RFQ ' s ) (see Checklist VI) (P)

.

L. Evaluate bids (quotations) (T,P).

M. Negotiate with suppliers or recycle through steps G-L, as needed,

until satisfactory bids are obtained (t,P).

N. Obtain formal approval for procurement (T,P).

P. Issue purchase and/or in-house fabrication orders (P)

.

Q. Follow-up on purchase or in-house fabrication orders (T,P).

R. Monitor delivery and installation of equipment and training of

operators (T,P).

S. Issue notice of acceptance of equipment and authorization for

payment (t,P).

T. Maintain continuing good relationships with suppliers (T)

.

*T = major responsibility for technical staff

t = advisory or supportive responsibility for technical staff

P = major responsibility for purchasing staff

p = advisory or supportive responsibility for purchasing staff

3
B. Purchasing Staff

The purchasing staff is responsible for all non-technical aspects

of the procurement process and for all non-technical communications with

the suppliers, actual or potential. It is also responsible for assuring

that all technical aspects handled by the technical staff are procedurally complete and sound. An experienced purchasing staff will be able

to judge when unsound decisions are being made by the technical staff,

and has a duty to advise the appropriate technical managers or top

management when it sees a danger that technically unsound procurements

are about to be made.

In summary, the purchasing staff is responsible to the establishment for the total soundness, technical and non- technical, of the proposed procurement. While purchasing officers cannot override the

technical judgment of the technical staff, they can and must, when the

occasion warrants, bring concerns about technical judgments to the

attention of higher management for resolution.

C. Higher Management and Budgetary Authorities

Higher management and budgetary authorities must establish the

framework within which the procurement actions take place. They must

establish the requirements for content or format of procurement proposals. They must establish the procedural safeguards surrounding the

actual purchasing process. Above all, they must be able and willing to

receive and evaluate procurement proposals. These proposals must be

placed into a larger context of organizational or national priorities,

and decisions made among the various competing proposals. The reasons

for adverse decisions should be communicated to the originators of the

proposal. Favorable decisions must not be capriciously reversed.

Later, during the actual procurement actions, these higher authorities

must seek to resolve any conflicts that may arise between the technical

and purchasing staffs in a manner that is supportive of both.

It is particularly important that the higher management and budgetary authorities in a developing nation be aware of the difficulties

under which their technical and purchasing staffs may be laboring in

obtaining adequate information for making sound buying decisions. It

may well be advisable to defer some proposed procurements in order to

release funds that will insure the soundness of other major procurements. Travel abroad to see equipment in actual use and to visit the

plants of instrumentation manufacturers may be an exceedingly wise

investment.

4
Situations sometimes arise in which higher management or budgetary

authorities demand of the technical staff commitment of substantial

funds within very short periods of time. When such possibilities exist,

it is imperative that higher authorities give significant advance warning to the technical staff and that the technical staff respond rapidly

to the warning. Unless the technical staff is prepared for rapid decisions once the funding becomes available, it will certainly be fiscally

wisest to lose the available money rather than make hasty decisions that

can have long term negative effects.

The following statements by William A. Wildhack, Associate Director

of the U.S. National Bureau of Standards, retired, are included here to

support the present authors' appeal to higher management and budgetary

authorities for understanding and support of their technical staff

members as they struggle with the problems of procurement from foreign

countries. The comments are part of Mr. Wildhack' s contribution to the

report of the 1977 NBS/AID Workshop on Standardization and Measurement

Services

.

"Shortly after World War II, I was serving as Chairman of a Committee

on Instrumentation in the National Research Council (International

Relations Division). Our concern was to help educational and

scientific laboratories abroad to replace, refurbish, or modernize

the research facilities...

"The program was of great value in both education and research, but

there were many problems for the person in the laboratory abroad

struggling with long distance procurement. First, he had only

catalog descriptions —sometimes out of date—and the manufacturers'

data and claims on which to base his choice. As all of you are well aware, there are reviewing officials, procurement officials,

custom officials, budget officials, etc., etc. between the laboratory technologist and the delivery of the instrument ordered.

Without his knowledge, they may 'edit' his specifications, add the

infamous 'or equivalent' [note: the present authors regard this as 'infamous' only when added without the technologist's knowledge] to

his specifications of manufacturer or model, chop off the last ten

items of his list of requests —or pigeon-hole all of them for a few

months. Any of these disasters may jolt the technologist as much

as the vagaries of overseas shipment may jolt the sensitive instruments . . .

"To keep NBS screening from becoming another hurdle for the foreign

laboratories, I soon proposed that we should serve as consultant to

them, rather than as a critic of their requests... But the problems of getting instruments of adequate performance, with compatible accessories, is not simple, even in the high-technology countries, and the problems increase exponentially with geographic

distance and with language specification uncertainties."

5
III. THE PROCUREMENT PROCESS

A total or ideal procurement action is described here. For simple,

routine, and inexpensive items, some of the steps of this ideal process

will usually be handled so easily that there will be little or no consciousness of them as distinct steps. For major procurements, any

step may require much time and effort. The authors acknowledge that

purchasing procedures may often be much simpler than those discussed or implied in this report, and sincerely hope that this will be so for most

of the users of this document.

A. Motivations and Purposes of Procurement

Possible motivating factors for procurement of new measurement

instrumentation are given in Checklist II. The needs and opportunities

to which the proposed procurement relates and the method by which the

equipment will be utilized need to be clearly defined. It is important

to know how the proposed new capabilities will fit into the establishment's long range plans. Specific functions, purposes, or goals that

will be served, need to be defined for the new equipment. A definite

connection must be established between the goals that can be achieved

and the specific needs that justify the proposed purchase.

B. Preliminary Survey of Available Equipment

Any procurement of measurement instrumentation will be substantially limited to selections among commercially available instruments.

Equipment built to meet custom specifications usually cannot depart too

far from that routinely available, if it is not to be extremely expensive. Similarly, equipment custom-built in-house will usually be similar to commercially available designs and will employ many commercially

available components or subassemblies. Therefore, it is important at an early stage of the procurement action to make a preliminary survey of

the commercially available measurement instrumentation.

In the more developed countries, surveying the available measurement instrumentation means consulting the literature and current users

of relevant equipment. Advertisements in the scientific and trade

literature can be quite useful sources of information. Catalog files

may be available in the establishment's purchasing department, or in

those of other establishments in the area. Individual scientists and

engineers often maintain very useful personal catalog files, and inquiry

among colleagues may lead to location of such files. Local instrumentation vendors and sales representatives are sources of descriptive

sales literature. Current instrumentation users can be identified by

telephone calls to the local vendors or representatives, or to colleagues likely to be working in the field. Useful information can be

obtained from these users by telephone calls, or by simple visits.

6
CHECKLIST II. MOTIVATIONS FOR PROCUREMENT

A. Implementation of an authorized new program.

B. Exploitation of new measurement capabilities made possible by newly

available instrumentation.

C. Response to new legal requirements, for instance in pollution

control

D. Response to competitive pressures, especially in industry, for

instance in quality control.

E. Replacement of obsolete or worn-out equipment.

F. Current availability of funds.

7
If the country has national standards or metrology or instrumentation

laboratories, any of those can be a very useful source of information.

Attendance at trade shows and scientific conferences can also provide

opportunities to gather information from instrumentation vendors and

users

.

In the less-developed countries, or for very unusual or expensive

equipment anywhere, it is far less easy to obtain the needed information. Local sales representatives or vendors may be lacking. There may

be no known users in the local area. Relevant trade literature may not

be available. Telephone or cable inquiries may be expensive and unrewarding. Mail inquiries may be very slow and unreliable. It may not be

at all obvious where to begin, or how to press forward on a reasonable

time scale commensurate with the need for the new equipment.

Three places to begin within a less-developed country are these:

(1) Inquiries to any instrumentation vendors or sales representatives

that do exist within the country or region. (2) Inquiries to colleagues who may have already had similar problems, and can at least

provide advice on specific ways to proceed. (3) Inquiries to the

embassies or consulates of the major instrumentation-supplying industrial countries, e.g., the United States, Japan, the United Kingdom,

Germany, France, and Switzerland. U.S. embassies, for instance, will

channel inquiries to U.S. manufacturers and have available the Thomas

Register of American Manufacturers , an extremely comprehensive guide to

the products of U.S. industry. While this is not a complete guide to

the manufacturers of instrumentation for measurement, testing, and

quality control purposes, it is an excellent beginning.

In the field of scientific instrumentation, the American Association for the Advancement of Science publishes an annual Guide to

Scientific Instruments , as a special issue of its journal Science. The

Guide issue can be purchased by writing to the American Association for

the Advancement of Science, Guide to Scientific Instruments, 1515

Massachusetts Avenue NW, Washington, D.C. 20005 USA.

If a measurement involves an electrical output or electrical or electronic equipment, relevant instrumentation is likely to be listed in

the Electronic Engineers Master Catalog . This is published by United

Technical Publications, Inc., 645 Stewart Ave., Garden City, NY 11530

USA.

Other relevant buyer's guides have been published by two trade

magazines: Instruments and Control Systems , Chilton Company, Chilton

Way, Radnor, PA 19089 USA; and Quality, the Magazine of Product Assur- ance , which can be ordered within the USA, Canada and Mexico from

Hitchcock Publishing Co, Hitchcock Building, Wheaton, IL 60187 and from

outside the USA through Reliable Information Publishing Co., PO Box

7570, 5242 Birr, Switzerland.

8
The buyer's guides listed above are in our judgment the most useful

ones for present purposes produced in the United States. Many others

exist. Inquiries to local embassies, consulates, or trade missions

should serve to identify such guides published in other countries.

For major purchases of complex equipment, simply studying the

available literature is not adequate. It is necessary to see the

different available instruments in use and to talk with their users. The investment of the time and travel cost to send a senior technical

staff member to a location where this can be done is often imperative.

It is often very valuable to include attendance at scientific conferences and trade shows in this travel. The authors of this report cannot

stress too strongly to those that must approve such travel its importance, either at this stage of the procurement process or in stage F

below.

C. Functional Specifications

After the specific purposes or goals of the proposed equipment

purchase have been defined and a preliminary survey of the available

instrumentation has been conducted, basic functional performance specifications can be established for the equipment to be procured. These

specifications should be "ideal" in nature. They should outline in

general terms exactly what the organization wants if it can find of

build it, and can afford it. They also should outline the alternatives

or compromises that will be acceptable if it does not prove possible to

get exactly the equipment wanted. Details to be considered while developing the functional specifications are presented in Checklist IV,

Specification of a measuring instrument (see p. 15).

D. Procurement Justification Proposal Document

At times, this document may be a mere formality. At other times,

it is crucially important. It must be both technically sound and com- prehensible to the non-technical administrator.

E. Basic Budgetary Approval

There is no point in proceeding further with the proposed procurement unless at least tentative budgetary approval is achieved at this

step of the process.

9
F. Search for Potential Suppliers and Candidate Instruments

Once a set of ideal functional performance specifications exists

and basic budgetary approval has been granted, it is necessary to identify potential suppliers and candidate instruments that might acceptably

match the specifications. A search should be made of the trade literature: catalogs, trade journals, and buyer's guides. Users of relevant

instrumentation should be asked their suggestions and opinions. Attendance at trade shows or scientific meetings may provide useful contacts.

Visits by sales representative may be solicited. The purchasing agents

in the buying establishment may be very valuable sources of advice and

assistance. They should be asked to contact the potential suppliers

identified during this step, to obtain additional catalogs, brochures,

instruction manuals, instrument schematics, and other relevant literature .

In-house fabrication of all or part of the needed instrumentation

should be considered. In the U.S. in-house fabrication is often thought

to cost more (as a rule) than buying from an external supplier. Many

specialized measurement instruments, such as electron microscopes, can scarcely ever be built in-house. At times, however, part or all of the

desired instrumentation can advantageously be built within the organization. Sometimes internal fabrication is the only way to get the equipment desired. Advantages of in-house fabrication may include an ability

to control the design and construction of the equipment to get exactly

the results wanted, a greater ease of maintenance of equipment built inhouse, and by-product factors such as the value of the experience gained

while designing and fabricating the apparatus. In-house fabrication in an establishment in a developing country may also support the establishment or expansion of a domestic instrumentation industry.

G. Evaluation of Potential Suppliers

Both the technical and business qualifications and reputations of

the potential suppliers need to be assessed. Potential in-house suppliers should be included. The technical and procurement experts in the

buying establishment must work closely with each other. The final list

of suppliers who will be asked to bid on the procurement action must be

a joint recommendation of the two groups of experts. Checklist III

tabulates actions to be taken and factors to be considered during this

process

.

At the conclusion of this phase of the procurement process, preliminary price/performance analyses can be made, and the list of potential suppliers narrowed down to a select few that will be asked to bid

on the procurement. A report and purchase request should be submitted

to the establishment's managerial and fiscal authorities for at least

tentative budgetary approval of a reasonably firm estimated cost. This

approval should be obtained before any significant amount of additional

effort is expended on this procurement action.

10
CHECKLIST III. EVALUATION OF POTENTIAL SUPPLIERS AND INSTRUMENTS

A. Study of suppliers' product literature.

B. Reputation with existing instrument users, (e.g., as determined

during conversations at scientific conferences).

C. Demonstrations or inspection of instruments in actual use.

D. Technical and business capabilities of local sales and service

agents, and adequacy of facilities, with respect to such factors

as

1. Installation support

2. Operator training

3. Repair and maintenance support

4. Spare parts and operating supplies service

E. Visits to suppliers' facilities, by both technical and purchasing

experts

.

1. Local

2. Home office and factory, when feasible.

F. Assessment of strengths and weaknesses of candidate equipment by

discussions with suppliers' technical service and maintenance and

repair staffs.

G. Specific factors in instrument assessment:

1. Ability to generate the measurement data desired

2. Cost

3. Degree of operator skill required

4. Instrument reliability and probable downtime

5. Ease of calibration, repair and maintenance

6. Ready availability of routine operating supplies and spare

parts

7. Overall instrument durability and expected lifetime

8. Adaptability to local conditions, such as 50 cycle power

supplies or high humidities

9. Need for auxiliary equipment or supporting facilities

10. Space and utility services required

11. Ease of installation

12. Probable delivery time

11
H. Development of Detailed Specifications

The ideal functional specifications often must be modified to be

consistent with the actual capabilities of potential suppliers or with

realistic budget figures. Also, the functional generalities must be

reduced to specific numbers before it will be possible to obtain firm

price and delivery quotations. The resulting detailed description of

the product to be purchased can range from simple verbal statements over

a telephone to elaborately processed documents contained in several

bound volumes. Generally, the detailed product specifications are adequately provided by a rather modest document.

The importance of providing complete and comprehensive specifications cannot be overemphasized. This is especially true for procurements by establishments in developing countries. These establishments may have requirements that are not normally specified in the

standard product descriptions published by foreign instrumentation

manufacturers. The presence of unavoidable communication barriers, such

as distance, language, and differences in customs, makes it especially

desirable to avoid all possible sources of misunderstanding between

buyer and seller. Inadequate specifications can lead to extensive lost

time, while the supplier checks to determine the missing data. Changes

in specification while an instrument is being manufactured will almost

always involve both lost time and money. An inadequately specified

instrument may require extensive modifications after delivery and may

never perform satisfactorily.

For most instrumentation purchases cost and service considerations

require buying essentially standard equipment. In these cases, the

detailed specifications will be based directly on the manufacturers'

published specification sheets. Such specification sheets may be

inserted directly into the buyer's specification document, or they may

be referenced, or they may be used as sources of data contained in the

document. Additional specifications may be noted as modifications of, or additions to, those published by the manufacturers. Standard clauses

can be inserted or referenced. When several substantially equivalent

pieces of apparatus from different suppliers are being considered, the

specification document may use such language as "equal to or exceeding"

or "providing performance substantially equivalent to or exceeding that

characteristic of," followed by a clear statement of a numerical parameter which represents the minimum performance of any of these instruments or by identification of the least acceptable instrument in the

group.

12
However, a buying organization should never assume that a manufacturer's specifications cover every factor of importance, or that these

factors are adequately specified even when covered. This is especially

true when dealing with foreign suppliers not accustomed to the conditions in the buying country; and it is especially true with respect to

claims for such factors as instrument precision and accuracy. The

technical and procurement experts of the buying establishment must re- view very carefully all published specifications and request those

clarifications, changes, or additions which are pertinent to the goals

of the buying organization. The manufacturers should be consulted about

any such modifications of their specifications, to determine their

ability and willingness to deviate from the standard specifications, and

to determine the probable cost and delivery time effects of the changes

Some desirable changes will be easy and inexpensive, others may be

difficult and prohibitively costly.

Checklist IV outlines the details that must be defined when specifying an instrument for measurement, testing, or automatic control purposes. Because the items on the list are largely self-explanatory,

comments will be restricted to the exceptions.

Specification of the auxiliary and interfering conditions (items A4 and A-6) are closely related topics. The buyer must be careful to

specify enough of the total circumstances under which an instrument will

be used that the supplier delivers an appropriate piece of equipment.

Emphasis should be on specification of performance requirements , not the

actual details of construction, to provide flexibility to the vendors in

how they choose to respond.

Specification of desired accuracy and precision capabilities (A-5)

is a major source of confusion. Scientists themselves are often not

very clear about what they mean by these terms. Instrument manufacturers are typically even less clear. Statements about instrument

accuracy, precision and stability must be very carefully examined.

Sometimes uncertainties about actual instrument capabilities can be

resolved by asking a manufacturer to analyze a sample submitted by (and

known to) the buyer. If they can be obtained, copies of statistical

control charts for the instruments in actual use can provide very valuable information.

The controls and adjustments provided on the instrument deserve

special attention (B-7) . Some modifications may be very easy to make

and quite useful. Attention should be directed to making the controls

used during normal operation as simple and as accessible as possible.

13
Controls used for routine calibrations or adjustments by the operator

(but not normal operation) should be accessible but protected so that

they are not accidentally mis-set. Consideration should be given to

specifying "locked-in" calibration adjustments. Experience in the

United States indicates that greater uncertainties can be introduced by

allowing an operator freedom to recalibrate certain instruments at will

than exist due to the day-to-day and month-to-month variations caused by

changes in instrument performance, with a fixed calibration adjustment.

Controls and adjustments useful only for maintenance and repair purposes

should be located so as to prevent access by the normal instrument

operator. Non-standard test points and adjustments may be desirable, to

ease maintenance and repair problems in the absence of a complete local

service facility maintained by the manufacturer.

The subject of "built-in test" (F-2) involves a continuation of the

thoughts of the previous paragraph. A recent trend in the U.S. is to

build into an instrument a self-diagnosis capability. Then, when it

misfunctions , it can be used to provide data for use in locating and

repairing the fault. Establishments in developing nations should stress

built-in test capabilities in the instruments they buy.

Spare parts (F-5) are a particular problem in the developing countries. This problem can be eased by specification of parts and com- ponents which are relatively easily available to the buying establishment. The use of metric threads and fasteners could be an example.

Emphasis on purchase of equipment already in wide use locally is another

approach. This may lead to requiring a manufacturer to supply auxiliary

equipment made by another firm or to buying component units from several

different suppliers. It may be possible to specify equipment in such a fashion that some key spare parts or operating supplies can readily be

made within the establishment's own workshops. A prudent supply of

spare parts and operating supplies (e.g., at least enough for two years)

should be ordered along with the instrument. Manufacturers should be

questioned about their ability and willingness to provide spare parts

rapidly, on an emergency basis. The whole issue of spare parts and

operating supplies should be a major consideration in the final choice

of a supplier.

It is impossible to overstate the necessity of obtaining adequate

instruction manuals and instrument drawings and schematics (F-6). Final

payment should absolutely be refused until the manuals and schematics

have been delivered. It is often very useful to obtain delivery of the

manuals and schematics well in advance of the instrument itself, to aid

in preparing for the arrival, installation and initial use of the instrument. It is important to keep instrument manuals and schematics

physically with the instrument (F-7). Built-in compartments for doing

so should be provided whenever possible.

14
CHECKLIST IV. SPECIFICATION OF A MEASURING INSTRUMENT

A. Purpose

D.

1. Generic name (e.g., spectrophotometer)

2. Phenomena, materials, or objects to be measured

3. Range of values or magnitudes to be measured

4. Ranges of relevant auxiliary quantities (e.g., frequency)

5. Accuracy and precision desired, with terms and conditions

clearly defined

6. Desired insensitivity to potential interfering phenomena

7. Production rate or operating speed (e.g., sample processing time)

Implementation

1. Physical principle

2. Measuring or sensing technique

3. Design approach

4. Detailed design alternatives

5. Construction materials

6. Physical size and layout, for accessibility, etc.

7. Controls and adjustments

8. Built-in automation and data processing

9. Mode of presentation of output data (e.g., strip chart)

10. Processing required of output data to get useful information

11. Color, finish, general appearance

Supporting facility requirements

1. Electrical power and special power supplies

2. Cooling water, purified water

3. Compressed air, natural gas, other gases

4. Space and weight factors

5. Auxiliary equipment or facilities (e.g., dark rooms)

Environmental factors

1. General characteristics (e.g., laboratory, factory, field use)

2. Temperature, normal and extreme

3. Humidity, normal and extreme

4. Dust, dirt, grease, etc.

5. Vibration, noise

6. Lighting

7. Electromagnetic interference

Operator requirements

1. Technical understanding of measurement process

2. Mathematical ability

3. Mental attention and alertness during operation

4. Manual dexterity

5. Specific knowledge of construction of instrument

Continuing Service Support

1. Built-in reliability

2. Built-in-test capabilities

3. Calibration and calibration standards support

4. Maintenance and repair

5. Spare parts

6. Instruction manuals and instrument drawings and schematics

7. Built-in space to store manuals and schematics

8. Training or self-education of operators and maintenance

technicians
J. Conditions of Sale

Many things, aside from equipment specifications and price, must be

described in the final purchase order, as outlined in Checklist V.

Packaging requirements and modes of transportation obviously affect

each other. Air transportation is fast and improves the chances of the

equipment arriving undamaged. Ocean freight requires very complete and

secure packaging.

Unless the supplier is well established in the buying country,

local transportation arrangements are best made by the buying establishment.

The conditions of sale should provide clarity about the spare

parts, operating supplies, accessories, and auxiliary equipment that are

to be included as part of the order for the basic instrument.

The conditions of sale should make it clear that the payment for

the instrument will not be authorized until all specified manuals, diagrams, and schematics have been delivered. Appropriate installation and

operator training agreements must be specified.

The terms of payment should provide for withholding a significant

percentage of the total payment until all of the contracted goods and

services have been delivered, conditions of sale met, and satisfactory

performance of the instrument achieved. The conditions of sale should

be explicit about the definition of "satisfactory performance."

For some conditions of sale, a range of options may be acceptable

to the buying organization. Such situations should be made clear to the

suppliers , and the suppliers should be asked to specify the options they

prefer. In other cases, large organizations, such as the U.S. Agency

for International Development, may have required conditions of sale,

which suppliers must be told are mandatory.

K. Requests for Quotation

"Requests for Quotation" (RFQ's) are prepared by the purchasing

staff of the organization and sent to eligible suppliers. In simple

situations, issuance of an RFQ may be done by a telephone call to a well-established supplier. In complex situations completion of this

step of the procurement process may take many months.

Normally, RFQ's are sent to all eligible suppliers defined in step

G above. However, if there are many such suppliers, RFQ's should be

sent only to those most likely to get an order.

16
CHECKLIST V. CONDITIONS OF SALE

1. Delivery time

2. Penalties for late or incomplete delivery

3. Mode of packaging

4. Mode of transportation

5. Payment of transportation costs

6. Responsibility for local delivery to buyer's site

7. Insurance provisions

8. Mode of handling export and import customs clearances and costs

9. Provision of spare parts, operating supplies, accessories, and

auxiliary equipment

10. Installation arrangements

11. Operator training

12. Warranties

13. Acceptance criteria

14. Terms and method of payment

17
The RFQ incorporates the detailed specifications and acceptable

conditions of sale developed in steps H and J above. It clearly specifies the items to be purchased and the numbers of each. It includes a statement which clearly outlines the manner in which the responses

(quotations or bids) are to be submitted, the time period over which

bids will be accepted, how they will be handled, and other appropriate

conditions. The nature of the reasonable expectations that a buying

organization may have of a supplier receiving an RFQ is suggested by

Checklist VI, which is a form that has been used by a major U.S. Governmental Agency. (Note that some of the provisions of this checklist may

be inappropriate for other organizations and other countries. This

checklist must be modified to be consistent with the relevant laws and

with the policies and practices of the organizations involved.) The

quotation documents provided by the responding suppliers are usually

regarded as substantially binding legal commitments by those suppliers,

until any stated expiration dates occur.

L. Bid Evaluation

As bids are received, they should be listed and tabulated to

facilitate comparison. All bids should remain confidential. After the

close of the specified bidding period, the bids must be evaluated.

Questions to be considered include those in Checklist VII. Technical

staff members, although typically not involved in the actual purchasing

negotiations, should be included in the bid evaluation process.

Some organizations may be compelled by policy to issue the purchase

order to the supplier submitting the lowest cost bid that is fully

responsive to the RFQ. We recommend that such policies be avoided

whenever possible. It is important before issuing the purchase order to

balance all relevant factors that exist at that time. Not all of these

can necessarily be reflected in the RFQ or in the considerations involved in determining the eligible suppliers. For instance, if negotiations during the bidding process have led to undue strains with a particular supplier, caution is strongly advised. When the purchaser has a tightly controlled budget or currency, a quotation that does not permit

any reserve for eventualities may have to be ruled out.

Generally, the result of the bid evaluation process is a decision

to issue a purchase order to a winning bidder. Sometimes, a decision

may be made to split the order among two or more suppliers. Sometimes

no bid is acceptable and another round of RFQ's is necessary. Usually

in this situation, changes must be made in the specifications or conditions of sale. Sometimes negotiations must be held with one or more

suppliers to clarify the bids or to obtain agreement on mandatory

conditions of sale, before a decision can be made. In such circumstances, the intending seller will be amenable to compromise on his

conditions, but such negotiations may have to be conducted without favor or prejudice to any potential seller.

18
CHECKLIST VI. CHECKLIST FOR THE BIDDER

THE BID YOU SIGN MAY BECOME A BINDING CONTRACT!

Please check the following important points before signing your

bid*

DELIVERIES

Can you fulfill the promised schedules?

Have you considered lead time for all raw materials and purchased

parts?

Have you read the Default Clause of the General Provisions?

PRICES

Have you checked your computations?

Do you realize that you cannot withdraw or change prices after bids

are opened?

SPECIFICATIONS

Do the items offered meet ALL specifications and specification

requirements?

Have you listed any differences?

Do you have the current required drawings and specifications?

INSPECTION REQUIREMENTS

Have you provided for necessary test equipment?

Have you planned for a good inspection system?

Have you furnished the required inspection information in your bid?

PACKAGING

Have you read the preservation, packaging, packing and marking

specifications?

Have you adequate facilities to comply with packaging specifications?

Have you made commitments to obtain adequate facilities?

POSTAGE

Have you placed sufficient postage on the bid envelope?

Do you realize that it cannot be accepted if there is "POSTAGE

DUE"?

Do you realized that bids received late because of return postage

cannot be considered?

BID REPLY

Have you signed the original and duplicate copies of your bid?

Are you aware that the envelope enclosed is to be used for re- turning your bid?

Have you addressed the "Unsuccessful Bidder" postal card and

enclosed it with your bid?

NO BID

If you do not intend to bid, have you followed the pertinent instructions contained in the Terms and Conditions of the Invitation

for Bid?

*This form is forwarded for your use in ascertaining compliance with

good business procedures in submitting a bid on a Government contract.

It should not be returned with your bid but is to be used for your own

convenience.

19
All bidders must be notified at the earliest possible date about

whether or not their bid is being accepted. Quotations often will

include expiration dates, and it is important for the buying organization to be aware of these and act accordingly.

When a choice is made to select a supplier that is not the lowest

responsive bidder, the purchasing agent must be able to justify his

selection on the basis of objective qualifications and his governing

regulations. Particular attention must be paid to following regulations

designed to prevent collusion between purchasing agents and vendors.

N. Purchase Order

The winning bidder is notified of his success and informed that a purchase order is being prepared. The purchase order is normally a legal contract that, when accepted by both parties, defines the mutual

obligations of buyer and seller. Any details that could become technical, financial, or legal points of dispute must be clearly specified in

the purchasing documents.

Orders placed to companies in foreign countries are more complicated than domestic ones, and involve extra considerations such as:

1. A check must be made with local customs officials to clarify

any necessary regulations or restrictions that must be included in the

order under delivery terms.

2. An approved pro forma invoice should be included to verify the

value of the shipment, expedite customs clearance later, and generally

avoid future misunderstandings. This pro forma invoice is originated by

the selected supplier for approval by the buying organization.

3. Accompanying the order must be a letter of credit, which is

from a local bank and includes the exact monetary value of the goods and

a confirmation by a bank in the country in which the order is placed.

P . In-House Fabrication

When equipment is to be fabricated in-house, the steps defined

above may be somewhat modified. At step C (functional specifications),

it is appropriate to diagram the entire proposed apparatus for discussion with the supervisors, designers, and craftsmen in the establishment's workshops. These discussions take place during steps F and G

(identification and evaluation of potential suppliers).

The actual decision in favor of internal fabrication may be made

without ever requesting quotations from external suppliers. Sometimes

it may be appropriate to obtain formal quotations from both internal and

external suppliers. In other cases, the decision may be made only after

evaluation of the quotations received from the external suppliers.

20
CHECKLIST VII. BID EVALUATION

1. Are the specifications identical on all bids submitted?

2. Do all suppliers comprehend the performance requirements?

3. Are the specifications cited accurate and complete?

4. How eager are the bidders for the business?

5. Have former dealings with the vendors been satisfactory?

6. How long have the suppliers been in business?

7. What presence do the suppliers maintain in the importing country?

8. Is the distance from the suppliers important?

9. Do all suppliers have technically qualified personnel?

10. Are the delivery times adequate?

11. Are the conditions of sale satisfactory and equivalent?

12. Are the suppliers' arrangements for follow-up service and support

adequate?

21
When the decision has been made to build the equipment in-house,

and the design approach has been agreed upon, detailed specifications

and working drawings must be prepared. If there is a possibility that

a similar apparatus will be constructed in the future or by some other

organization, these specifications and drawings must be very complete.

Otherwise, they need be adequate only to ensure that the in-house workshop people know exactly what they are expected to build. Cost and

delivery time estimates should be obtained. After the proposed con- struction has been formally approved by higher management and fiscal

authorities, the construction order can be placed. Construction should

be monitored frequently while in process. Uncertainties in specifications should be clarified and errors corrected. Additional corrections

or adjustments should be made during a final check-out process, before

accepting delivery of the apparatus.

A combination of in-house fabrication and external procurement may

be used in some cases. Care must be taken to ensure the compatibility

of the components from the different sources. It may be necessary to

delay some of the in-house fabrication activities until purchased units

have been delivered.

Q. Follow-up on Purchase Order

No matter how thoroughly the previous steps have been implemented

or how well the purchase order written, it still must be assumed that

some significant problems will arise before the equipment is delivered

and operating. It is essential to maintain communications between buyer

and seller throughout the period after issuance of order and before

delivery, so that any problems that may arise can be identified and

expeditiously resolved.

S. Formal Acceptance of Equipment

The procurement action cannot be considered complete until the

equipment has been delivered and installed at the buyer's site, operators have been trained, and initial satisfactory operation has been

achieved. All aspects of the total procurement transaction and the

performance of the instrument must be carefully reviewed before formal

acceptance of the instrumentation occurs and authorization is given for

final payment to the seller.

T. Post-Sale Relations

Completion of the procurement action does not end the relationship

between buyer and seller. The seller will be regarded by the buyer as

a source of operating supplies and spare parts, of training new operators, and of new accessories or retrofitting equipments as they become

available. The buyer will be a continuing source of business for the

seller, and hopefully a source of recommendations to new potential

buyers. Good post-sale relationships benefit both buyer and seller.

22
NBS-114A (REV. 7-73)

U.S. DEPT. OF COMM.

BIBLIOGRAPHIC DATA

SHEET

1. PUBLICATION OR REPORT NO.

NBSIR 78-891

2. Gov't Accession

No.

3. Recipient's Accession No.

4. TITLE AND SUBTITLE

aUJ.Uc.LliN CO rllK 0 r LLI r 1 LM 1 1 U'N HWU rKULUKtnt.li 1 OF MEASUREMENT INSTRUMENTATION

5. Publication Date June 1978

6. Performing Organization Code

156.00

7. AUTHOR(S)

Jeannette Kinq, H. Steffen Peiser, Raymond C. Sangster

8. Performing Organ. Report No.

9. PERFORMING ORGANIZATION NAME AND ADDRESS

NATIONAL BUREAU OF STANDARDS

DEPARTMENT OF COMMERCE

WASHINGTON, D.C. 20234

10. Project/Task/Work Unit No. 1560370

11. Contract /Grant No. TA(CE)5-71

12. Sponsoring Organization Name and Complete Address (Street, City, State, ZIP)

Agency for International Development

Department of State

Washington, D.C. 20523

13. Type of Report & Period

Covered

NBSIR

14. Sponsoring Agency Code

15. SUPPLEMENTARY NOTES

16. ABSTRACT (A 200-word or less factual summary ot most significant information. If document includes a significant

bibliography or literature survey, mention it here.)

Guidelines are presented for specification and procurement of measurement instrumentation, for use by establishments in developing countries. They were developed in con- junction with a short course on this subject, presented in 1976 to a group of measurement experts from developing countries, by the Denver Research Institute of the University of Denver, Denver, Colorado, USA, under contract from the National Bureau of

Standards, with funding from the Agency for International Development. Topics covered

include trends in instrumentation, responsibilities of technical and purchasing staff

members, motivation for purchase and specific purposes or goals, development of functional specifications, search for and evaluation of suppliers and candidate instruments,

development of detailed specifications, identification of conditions of sale, issuance

of requests for quotation and evaluation of bids, purchase order issuance and follow-up,

formal acceptance of purchased equipment, and post-sale relations with seller.

17. KEY WORDS (six to twelve entries; alphabetical order; capitalize only the first letter of the first key word unless a proper name; separated by semicolons)

Developing countries; instrumentation; measurement; procurement; purchasing;

technical specifications.

18. AVAILABILITY (j£ Unlimited

1 For Official Distribution. Do Not Release to NTIS

19. SECURITY CLASS

(THIS REPORT)

UNCL ASSIFIED

21. NO. OF PAGES

27

1

1 Order From Sup. of Doc, U.S. Government Printing Office

Washington. D.C. 20402. SD Cat. No. CI)

[~Xl Order From National Technical Information Service (NTIS)

Springfield, Virginia 22151

20. SECURITY CLASS

(THIS PAGE)

UNCLASSIFIED

22. Price

$4.50

USCOMM.DC 29042-P74