Safety, Quality & Environment Management Manual SQEMM 15-00 External Providers	Doc No.: SQEM-15-00 Revision: 01 Date: 15 Oct 2024 Issued by: DPA Approved by: MD

15. EXTERNAL PROVIDER PROCEDURES

15.1. PURPOSE

The Company shall ensure that externally provided processes, products, and services conform to specified External Providers Procedures.

15.2. SCOPE

This provision shall apply to all stores, supplies, equipment provided to fleet vessels and procured in Company office. It shall also cover sub-contracting for technical work and support for new Projects and associated processes.

15.3. RESPONSIBILITY AND AUTHORITY

The GM of Technical Group has responsibilities for the internal and external communication with suppliers and contractors regarding the purchase and supply of processes, products, and services.

15.4. EVALUATION OF SUPPLIERS AND SERVICE PROVIDERS

1. ) To ensure that optimum services are secured while making purchases, the Company shall:
   1. ) Establish criteria for selection, evaluation, and re-evaluation;
   2. ) Evaluate and select suppliers based on their ability to meet the Company’s requirements;
   3. ) Maintain records of the results of evaluations and actions arising thereof.
2. ) The tech Directors shall maintain such evaluation forms.
3. ) The Company shall also define the type and extent of control to be exercised over suppliers. These controls shall be appropriate for the type of materials or service purchased and its actual or potential impact on the Company’s delivered service.

15.5. PURCHASING INFORMATION

Purchasing information shall clearly describe the materials or service to be purchased, including where appropriate:

1. ) the name, type, class, style, grade, model, or other precise identification;
2. ) pertinent issues of specifications, drawings, processes, and inspection requirements, and other technical data;
3. ) requirements for approval or qualification of equipment, materials, procedures, or services;
4. ) the qualifications and certifications of persons providing a service;
5. ) requirements for conformance with applicable safety, environmental, or quality system standards including title, number, and issue.

The Company shall review and approve purchasing documents for adequacy of specifications of materials or service prior to release to the supplier.

15.6. VERIFICATION OF EXTERNALLY PROVIDED PRODUCT OR SERVICE

The Company shall establish and implement the inspection or other activities necessary for ensuring that externally provided materials/services will meet specified requirements.

15.7. EXTERNAL PROVIDER POLICY

It is Company Policy to externally provide goods and services required by the Shipboard Management in accordance with defined practices. These practices shall ensure that:

1. ) Goods and services are supplied promptly and in accordance with clear requisition orders (both routine and emergency);
2. ) The names of approved suppliers are entered in the Company's purchasing program.
3. ) Such information is periodically updated. External providers are appointed after having been scrutinized with respect to reliability of delivery, the quality of goods, competitiveness, and other commercial criteria.
4. ) Preferably the suppliers are ISO-approved and demonstrate an environmentally friendly approach;
5. ) Goods are delivered on time and per maker’s specification as acknowledged by shipboard personnel;
6. ) Any sub-standard supplies shall be returned, and a non-conformity report shall be sent to the Company;
7. ) Invoices are paid per pre-purchase terms of payment.
8. ) To conserve resources and reduce wastage, purchase of disposable items should be avoided / reduced as much as practically possible.
9. ) To negotiate external provider contracts for miscellaneous stores, lubricating oil, services, etc., to secure competitive price commensurate with the quality of goods or services provided.
10. ) External provider process and activities shall meet the following requirements:
    • safe operation
    • pollution prevention
    • operational health & safety risks
    • quality

15.8. CONTINGENCY PLAN FOR APPROVING SUB-CONTRACTORS

1. ) In case the original manufacturer is unable to provide required service, then the company / manufacturer shall appoint a sub-contractor for carrying out the above job.
2. ) In case the sub-contractor appointed is not approved by the original manufacturer, then the said sub-contractor / company must take approval from the Administration before carrying out the required job on board.

15.9. EXTERNAL PROVIDER’S PROPERTY

The Company shall exercise care with external provider’s property while it is under the Company’s control or being used by it. The Company is responsible for identifying, verifying, protecting, and safeguarding customer’s property. External provider’s property shall include intellectual property and personal data also where applicable. Any such property that is lost, damaged, or otherwise unsuitable for use shall be recorded and reported to the external provider, and records maintained.