Standard Procurement Procedure
Outline of Procedures (materials & equipment)
New VE Formulas
Outline of Procedures (construction works)
New VE Formulas
Post-Advance Notice VE Formula
- After TEPCO makes an advance notice on the project or program in view, this procedure invites VE proposals from a selected prospective supplier, has the accepted proposal reflected in our purchasing specifications and offers a reward according to the amount of cost that can be reduced by the proposal.
- TEPCO does not pay the cost involved in the preparation of documents for VE proposals.
- The post-advance notice VE proposal procedure is performed by the following flow:
Model Flow
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| Receipt of request for VE proposal |
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| Information on details of proposal requested |
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| Submission of written proposal |
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| Notification of VE proposal acceptance/rejection |
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The rest by the regular purchasing procedure |
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If VE proposal is accepted |
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| Reward according to amount of cost reduced |
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Explanation of Flow
Request for VE Proposal
TEPCO distributes documents concerning an advance notice and requests for VE proposals.
Information on Details of Proposal Requested
We provide a selected prospective supplier with information on the purposes of the request for proposals, summary specifications of the planned purchase and other items necessary for the requested proposal.
Submission of Written Proposal
Please fill in relevant items in the prescribed VE proposal form and submit it together with backing technical data, test results and other necessary materials for document inspection to the group of TEPCO that has requested the proposal.
Inspection of Proposal
TEPCO comprehensively inspects the proposals submitted in respect of technology, safety, cost, etc. to find whether the contents of the proposals meet our quality, function and performance requirements.
Notification of Proposal Acceptance/Rejection
After deciding on whether or not to accept your proposal, we will inform you of the decision.
Reward According to Amount of Cost Reduced
TEPCO issues a designated or otherwise preferential order to the successful supplier according to the degree of contribution by the proposal, particularly the amount of cost that can be reduced by it.
