mecㆍviewer v1.5 :: 3. RFP of the Rotating Shaft Balances procurement.pdf

Introduction

Korea  Aerospace  Research  Institute  (KARI)  is  a  government  funded  research  institute,
engaged  not  only  in  developing  aerospace-related  technologies,  but  also  in  supporting  a
national aerospace development policy.

KARI Low Speed Wind Tunnel (LSWT) is constructed in 1998. The wind tunnel is powered by
4.1MW  electric  motor,  and  it  has two  test  sections:  closed  wall  test  section  and  open-jet
test section. The size of the closed-wall test section is 4m in width and 3m in height, and
the maximum wind speed of the closed-wall test section is 120m/s. The size of the open-jet
test section is 5m in width and 3.75m in height, and the maximum wind speed of the open-
jet test section is 65m/s.

KARI is performing a project to develop a co-axial rotor system for high-speed helicopters.
One of the objectives of this project is to build a scaled rotor test stand and to test it in the
wind tunnel. The purpose of this procurement is to obtain  Rotating Shaft Balances (RSBs)
for the rotor test stand.

This Request for Proposal (RFP) explains the procedures to be taken by the Bidders who are
willing to respond to the RFP. Bidders are requested to submit the Proposal in accordance
with  the  guidelines  and  instructions  as  contained  in  the  RFP.  This  RFP  also  specifies  the
technical  requirements,  terms  and  conditions  for  the  procurement  of  the  Rotating  Shaft
Balances (RSBs). This RFP consists of the following documents;

(1)  General Instruction to Bidders
(2)  Appendix A. General Terms and Conditions
(3)  Appendix B. Technical Specification and Statement of Work

Bidder’s Proposals shall include all data and/or information as requested by this RFP and all
attachments  hereto.  All information  contained  in  this  RFP  shall  be  treated  as  proprietary
and confidential.

1. Qualification of Bidder

Bidder’s qualification for this bidding is as follows;

(1) Bidder shall have direct experience of design, fabrication, and calibration of Rotating

Shaft Balances (RSBs). Bidder shall have at least two (2) international project records in
successful RSB fabrication and calibration as of Bid Closing Date.

Page 4

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

(2) The qualifying statement for the above requirements and supporting materials shall be

included in the Proposal. Additional qualifying evidence may be requested to
substantiate Bidder’s claim during the evaluation period.

(3) Bidder shall be in possession of all the necessary licenses, in effect as of Bid Closing

Date, required for the procurement of the Rotating Shaft Balances (RSBs) as described
in this RFP.

(4) The qualification of the Bidder is at the KARI evaluation committee’s discretion so that

any Bidder shall not raise any objection regarding the KARI evaluation committee’s
decision thereupon.

2. Bid Closing Date

Proposal is due May 13th, 2024 at 15:00(KST). If any part of the Proposal or bid bond as
required under this RFP is submitted after the stipulated closing time as above, the entire
Proposal will be rejected.

3. Submission of Proposal

Bidders are requested to submit their Proposals in the following four (4) Volumes;

(1)  Volume 1. Capability and Experience (Heritage)
(2)  Volume 2. Technical Specifications Proposal
(3)  Volume 3. Statement of Work Proposal
(4)  Volume 4. Price Proposal (to be sealed in a separate envelope)

In the Volume 1, Contractor's introduction and technical capability shall be described. The
facilities  and  tools  of  the  Bidder  related  to  the  development  experience  for  the  design,
fabrication, gauging, and calibration of  Rotating Shaft Balances (RSBs) should be included.
Bidder shall describe current or past work similar to this RFP, which is being implemented
or has been done by Bidder.

In  the  Volume  2,  Bidder  shall  describe  technical  specifications  of  the  Rotating  Shaft
Balances (RSBs) to comply with RFP requirements. Technical specification shall include:

- Expected overall size of RSBs

- Expected load envelope and standard deviation

- Fabrication material and heat treatment

- Temperature range for the temperature compensation

- Number of full-bridges and temperature sensors

Page 5

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

- Expected zero and sensitivity drifts

- Mechanical and electrical interfaces

In the Volume 3, Bidder shall describe work scope of the Bidder in detail. Statement of
work proposal shall include:

- RSBs design process

- Fabrication and gauging process

- Plans for static and dynamic calibrations

- Respective schedule

- Deliverables

In the Volume 4, Bidder shall provide total bid value with the itemized price list in detail.
The Price Proposal is subject to be sealed and submitted in a separate envelope.

Bidders shall submit one (1) original hardcopy marked as “ORIGINAL COPY” on the cover
and seven (7) duplicate hardcopies, without Volume 4 Price Proposal. For Volume 4 Price
Proposal, only one (1) hardcopy shall be submitted in a separate envelope. In addition, the
electronic files of the Proposal in Microsoft Office Word for Windows and Portable
Document Format (PDF) shall be submitted (except for Volume 4 Price Proposal). In order
to substantiate a Proposal, all relevant data shall be submitted as attachments. In case of
any discrepancy between the original copy and electronic file or the other hardcopies, the
original copy, which is marked as “ORIGINAL COPY” on the cover, shall prevail.

4. Method of Submission

The Proposal shall be hand-carried or delivered using a registered mail service to the
following KARI personnel or his designee:

Mr. Won-Suk LEE
Head of Overseas Contracts Office

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel: +82-42-860-2406
Fax: +82-42-879-4370
e-mail: wsl@kari.re.kr

Page 6

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

The communication between KARI and prospective Bidder for contractual matters (Terms
and Conditions) shall be controlled through the following designee:

Ms. Eun-Jung LEE
Principal Administrator, Overseas Contracts Office

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel: +82-42-860-2148
Fax: +82-42-879-4370
e-mail: monicalee@kari.re.kr

In addition, the point of contact for all communications for technical matters shall be

Dr. Seunghoon LEE
Senior Researcher, Aeronautics Technology Research Division

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel : +82-42-870-3565

Fax : +82-42-860-2604

e-mail : lee@kari.re.kr

with C.C to

Dr. Tae-Hwan CHO

Principal Researcher, Aeronautics Technology Research Division

Korea Aerospace Research Institute (KARI)
169-84 Gwahak-Ro, Yuseong-Gu
Daejeon, 34133, Korea

Tel: +82-42-860-2628
Fax : +82-42-860-2604
e-mail : thcho@kari.re.kr

Page 7

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Bidder shall specify in its Proposal, its single point of contact for KARI to communicate in
connection with the RFP, Proposal and the subsequent evaluation, etc. Bidder’s information
on the point of contact shall include the name, title/position, telephone no., and e-mail
address.

5. Bid Schedule

The  following  schedule  is  a  tentative  milestone  for  the  eventual  Contract  and  may  be
changed at KARI’s sole discretion;

(1)  RFP Release: T0
(2)  Bid Closing Date: T1 = T0 + 30 calendar days
(3)  Review of Proposal, Q&A, Evaluation of Proposal: T2 = T1 + 1 Week
(4)  Expected Contract: T3 = T2 + 1 Week

6. Validity of Proposal

Proposal shall be valid for three (3) months from the Bid Closing Date. It can be extended
up to six (6) months with KARI’s written notice.

7. Price Requirements

The price or rate proposed by Bidder shall be Firm and Fixed Price that is not subject to any
price escalation, price change or increase of actual costs during the Contract period.

Any kinds of taxes and duties arising in connection with Bidder’s work under the eventual
Contract  shall  be  Bidder’s  responsibility,  except  for  the  customs  duties  and  VAT  on  the
Deliverable Items levied in Korea and the price proposed by Bidder shall be in accordance
with Table 1 as below.

Considering  the  participation  of  domestic  bidder  in  this  bidding,  the  price  proposal  of  a
domestic  bidder  shall  include  all  costs  including  price  of  Deliverable  items,  Service  cost,
Shipment  cost,  customs  duties  and  value  added  tax.  The  price  proposal  of  an  overseas
bidder  shall  be  proposed  in  accordance  with  Table  1.  “Bid  Quotation  Form  for  Overseas
Supplied Goods”. In the event that the price proposal of an overseas bidder has not been
quoted in accordance with Table 1 as below, the bidder shall be liable for any losses arising
from its submission of price proposal that do not satisfy any of the requirements set forth
in this Section.

Page 8

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Table 1. Bid Quotation Form for Overseas Supplied Goods

Item

no.

Description

Price

Deliverable

Items

Rotating Shaft Balances (w/carrying cases)

Dummy Balances and Spline

Shaft(w/carrying cases), including Balance

free end adapter

Documentation and Data package

Shipment Cost outside Korea

Sub-sum (A) : The CIP Price for the Deliverable Items

Shipment Cost inside Korea

Sub-sum (B)

Total Price (Sub-sum (A) + Sub-sum (B))

[Note1] Considering the delivery rule of DPU in the Contract, Shipment Costs (Item no. 4

and 5) shall be proposed.

[Note2] Shipment Cost outside Korea means all costs incurred by the bidder in relation to

the delivery of Deliverable Items prior to customs clearance in Korea under the
DPU, Incoterms 2020. (i.e. packing, inland transportation in export country, storage
fee, overseas freight, insurance, etc.)

[Note3] Shipment Cost inside Korea means all costs incurred by the bidder in relation to the

delivery of Deliverable Items after customs clearance in Korea under the DPU,
Incoterms 2020. (i.e. inland transportation in Korea, storage fee, unloading fee,
etc.)

[Note4] For comparison and evaluation with the price proposed by domestic bidder and

overseas bidder, KARI will add the sum of the customs duties and value added tax
in Korea to the price proposed by overseas bidder and evaluate the whole price
(the sum of proposed price, the customs duties and value added tax in Korea). For
the calculation and evaluation of customs duties and value added tax, bidder shall
provide the CIP price for Deliverable Items (Please refer to the Sub-sum (A)). Please
refer to the Section 13. “Evaluation of Proposal” for the more detailed information
on the price evaluation.

The currency quoted in the Price Proposal shall be expressed in USD/EURO however, other
currency  may  be  allowed  instead.  If  Bidder’s  proposed  price  is  in  a  currency  other  than
USD/EURO, for the conversion of the Bidder’s proposed price, the 1st basic exchange rate
announced  by  KEB  Hana  Bank  on  the  price  evaluation  date  shall  be  used  in  the  price
evaluation.  Likewise,  the  currency  of  the  Contract  may  be  the  national  currency  of
Contractor within the estimated budget of this Bidding, if necessary. In such a case, the 1st
basic exchange rate noticed by KEB Hana Bank of Korea on the price evaluation date shall
be applied for the exchange rate for currency change.

Page 9

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

8. Bid Bond

Bidder  shall  establish  a  bid  bond  in  favor  of  KARI  no  later  than  the  Bid  Closing  Date  and
submit a certificate to KARI along with its Proposal. The total amount of the bid bond shall
be at least five percent (5%) of the total bid price. The bond shall remain valid for three (3)
months after the Bid Closing Date and if the Bid validity is extended as per Section 6, the
bid bond shall also be extended accordingly. The bid bond shall be in the form of a surety
bond  issued  by  the  Seoul  Guarantee  Insurance  Company,  in  the  form  of  an  irrevocable
standby letter of credit or bank guarantee by first class international bank, cash or other
means  of  guarantee  acceptable  to  KARI.  In  case  of  a  surety  bond,  it  shall  be  advised
through  “Seoul  Guarantee  Insurance  Company”.  In  case  of  cash,  bank  guarantee,  or  the
irrevocable  standby  letter  of  credit,  it  shall  be  advised  through  “Woori  Bank”  (Daejeon
Branch  at  29  Munye-ro,  Seo-gu,  Daejeon,  35241  Korea,  Tel:+82-42-488-9704  (Ext.312),
Fax:+82-505-003-0759).  The  bond  shall  be  available  by  KARI’s  request  on  the  Seoul
Guarantee Insurance Company or by KARI’s draft at sight drawn on the bank, accompanied
by the statement of KARI stating that;

(a) Bidder has refused to enter into a Contract with the terms and conditions in the

Request for Proposal, if any,

(b) Bidder has hindered the fair bidding by fraud or misrepresentation, or
(c) Bidder has withdrawn its Proposal after the Bid Closing Date.

The bid bond shall contain the substantial part of the terms and conditions of the bond,
date of establishment, account, amount, payment terms, and date of expiry, etc. When the
Contract is executed with Successful Bidder, the bid bond of Successful Bidder shall be
amended to the performance bond of ten percent (10%) of the total Contract Price under
the Contract as part thereof in accordance with the terms and conditions of the Contract.

The  bid  bonds  except  for  that  of  the  Successful  Bidder  will  be  released,  upon  the
instructions of KARI, to unsuccessful Bidders, without interest, promptly after execution of
the  Contract  between  KARI  and  Successful  Bidder.  The  bid bond  of the Successful  Bidder
shall  be  likewise  released  only  when  KARI  decides  not  to  enter  into  a  Contract  after  the
selection of the Successful Bidder.

The bid bond is a critical requirement by Korean government regulation. Therefore, if any
Bidder does not submit the bid bond then, such Bidder will be disqualified.

9. Questions and Modifications

Any questions as to the intent and clarity of this RFP may be submitted in writing to KARI’s
designees as specified in Section 5 “Method of Submission” by e-mail, fax or letter no later

Page 10

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

than five (5) days before the Bid Closing Date.

After the Bid Closing Date, Bidder shall not amend, modify, or supplement the Proposal, or
submit any other documents to KARI, except on KARI's written request.

KARI  may  ask  each  Bidder  in  writing  for  clarifications,  amendments,  revisions,  or
supplementation  of  the  Proposal  and  any  other  documents  submitted  by  Bidder  at  any
time before  the  execution of  the  Contract.  KARI  may  also  ask  each  Bidder  to  submit  and
file  additional  information  or  documents  necessary  for  evaluation  of  the  Proposal,  if
necessary.

10. Acceptance and Rejection of Bids

KARI reserves the right to accept or reject this Bidding, and to amend the Bidding process
at any time prior to the award of the Contract without thereby incurring any liability to the
affected Bidder(s), and KARI is not under any obligation to inform the affected Bidder(s) of
the ground for its action.

11. No Contractual Obligation

This  RFP  shall  not  be  interpreted  as  an  offer  for  a  Contract  or  any  type  of  guarantee  by
KARI. It is KARI's sole discretion whether or not to allow the Contract award to any Bidder.
KARI owes no responsibility or obligation to select the Contractor among Bidders.

This  RFP  shall  neither  be  construed  to  create  an  obligation  on  KARI  to  enter  into  a
contractual  instrument,  nor  shall  it  serve  as  a  basis  for  any  claim  for  reimbursement  of
costs  for  the  effort  to  prepare,  submit,  amend,  revise  or  supplement  the  Proposal,  and
other related documents expended by the Bidder regardless of whether or not the Bidder
is successful in receiving an award as a result of the solicitation.

12. Withdrawal of Proposal

Bidder may withdraw its Proposal at any time before the Bid Closing Date. Withdrawal
shall be made in writing, and shall be received by KARI before the Bid Closing Date.

13. Evaluation of Proposal

Page 11

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

The  evaluation  of  the  Proposals  will  be  made  by  the  KARI  evaluation  committee  and
the  following  evaluation  process  is  for  information  only.  The  evaluation  committee
reserves  the  right  to  modify  the  evaluation  process  and  criteria  without  any  prior
notification to Bidders.

During the Bid evaluation, KARI may send to Bidders a set of questions for clarification and
request  any  supplement  to  the  Proposals  and  the  evaluation  will  be  made  based  on  the
Proposal, the answers and the supplement received from Bidders.

The  evaluation  consists of  two  (2)  steps  of the technical  part  and bidding  price part  and,
after  the  evaluation  of  technical  part,  the  evaluation  committee  will  select  the  Qualified
Bidders  and  perform  the  bidding  price  evaluation  for  the  selected  Qualified  Bidders.  The
total  technical  evaluation  score  is  one  hundred  (100)  points  and  Bidders,  who  get  score
exceeding  eighty  (80)  points  in  technical  part,  will  be  selected  as  Qualified  Bidders.  And
then,  the  Qualified  Bidder,  who  proposes  the  lowest  price  among  the  Qualified  Bidders,
will be selected as the Successful Bidder.

Table 2 represents the evaluation factors and score for the technical part.

Table 2. Itemized list for technical evaluation

Major Classification

Detail Classification

Points Remark

Expertise and

Capability

(20)

Expertise and experiences in the production of RSBs

Availability of the calibration rigs for RSBs

Design

Requirements

(20)

Suitability of the dimension and material of RSBs

Expected load envelope and accuracy of RSBs

Design plan for mechanical and electrical interfaces

Fabrication

and gauging

requirements

(20)

Number of strain-gauges and temperature sensors

Expected zero and sensitivity drifts of full-bridges

Temperature range for temperature compensation

Calibration

requirements

(20)

Plan for static load and deformation calibration

Plan for dynamic loading test

Contract

(20)

Conformity of General Terms & Conditions

Feasibility of detailed task schedule

Conformity of submitted deliverables

Total

100

The bid prices submitted by the Bidders shall be compared and evaluated by converting

Page 12

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

the  bid  prices,  being  the  sum  of  the  prices  for  all  items,  to  prices  under  an  identical
delivery rules.  The  optional price proposed by bidder,  if  any,  shall not be  included  in  the
bid price.
The  price  proposal  of  a  domestic  bidder  including  the  Value  Added  Tax  (VAT)  shall  be
evaluated  as  it  is.  On  the  other  hand,  the  price  proposal  of  an  overseas  bidder  will  be
evaluated in accordance with the following calculation. The sum of P1, P2, P3, P4 and P5
shall be evaluated for the price proposal of an overseas bidder.

P1 + P2 + P3 + P4 + P5 = evaluation price

(1) P1: Sub-sum (A) in the Table 1.
(2) P2: Customs duties for the P1. This tax rate (8%) is decided in accordance with HSK

number  (9031.80-9099)  of  Deliverable  Items  and  if  the  P2  can  be  exempted  or
reduced  in  accordance  with  any  relative  regulations,  the  exempted  or  reduced
amount will be applied for the evaluation.
※An  overseas  bidder  shal   submit  any  documents  to  prove  that  the  customs  duties
exemption is applicable.

(3) P3: Value added tax (VAT) for the sum of P1 and P2. This tax rate is 10% and if the

P3 can be exempted or reduced in accordance with relative regulation, the
exempted or reduced amount will be applied for the evaluation.

(4) P4: Sub-sum (B) in the Table 1.
(5) P5: Value added tax (VAT) for the P4. It is calculated as “P4 x 10%”.

In  case  of  no  domestic  bidder  participating  in  the  bidding,  the  price  evaluation  shall  be
conducted according to Total Price in Table 1 of Section 8 “Price Requirements”.
Notwithstanding this Section 14, the Contract price will be Total Price in Table 1 of Section
8 “Price Requirements”.

14. Contract

The  Contract  will  be effective  subject to  the KARI's  approval thereof  and  the  Appendix  A
“General Terms and Conditions” of this RFP is the Contract with the Successful Bidder. All
Bidders  shall  note  that  there  is  no  Contract  negotiation  under  this  bidding.  Thus,  Bidder
shall  comply  with  the  Appendix  A  “General  Terms  and  Conditions”  without  any  non-
compliance.

15. Language and Measurement Unit

Page 13

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

The Proposal, any documents submitted to KARI under the RFP, communication and the
Contract language shall be in English and measurements and quantities shall be in
International System of Units.

16. Certificate and Government Approvals

Bidder  shall  receive  any  government  approval  and  certificates  (e.g.  export  licenses)  in
relevant countries necessary for Bidder's work for this RFP. Bidder’s ability and plan to get
such  approval  and  certificates  shall  be  submitted  to  KARI,  together  with  any appropriate
assurance letters from the relevant governments, in the Proposal. All necessary approvals
and certificates for the delivery of RSBs shall be acquired by Contractor from the relevant
governments  before  the  first  payment  in  accordance  with  the  payment  schedule  of  the
Contract.

17. Confidentiality

There  shall  be  no  news  releases,  public  announcements,  denials  or  confirmation  in
connection  with this  RFP  or  contract  award  without  prior  written  approval  of  KARI.  Also,
Bidder shall not disclose any part of this RFP to third parties without prior written approval
of KARI.

All documentation submitted in response to this RFP shall be marked "COMMERCIALS-IN-
CONFIDENCE"  on  the  first  page  of  each  document.  All  elements  of  the  Proposal  shall  be
kept confidential, and shall not be intentionally disclosed by KARI to any third parties other
than any case to meet the purpose of this RFP such as evaluation.

18. Property of Proposal

All documents submitted in response to the RFP shall become the property of KARI and will
be retained by KARI.

19. Expenses

Expenses incurred by Bidder in connection with the preparation, submittal, and any
subsequent clarification of Proposal are for their own account and will not be reimbursed
by KARI.

Page 14

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

20. Governing Law

This RFP and the Contract shall be construed in accordance with and governed by the laws
of the Republic of Korea.

21. Arbitration

Any  disputes  in  relation  to,  and  under  the  RFP  and  Contract  shall  be  resolved  through
arbitration  in  Seoul,  Korea,  under  the  Rules  of  the  Korean  Commercial  Arbitration  Board
(KCAB).

Page 15

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Appendix A. General Terms and Conditions

Page 16

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

“This Page is intentionally left as blank.”

Page 17

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Preamble

This  Contract  made  and  entered  into  this  on  __                  ,  2024  by  and  between  Korea  Aerospace
Research  Institute  (“KARI”),  a  Korean  Government-funded  research  institution,  established  and
operating  under  the  laws  of  the  Republic  of  Korea,  with  its  principal  office  at  169-84  Gwahak-ro,
Yuseong-gu, Daejeon, 34133 Korea, and [Name of Contractor] (“Contractor”) established under the
law of [Nationality] with its principal office at [Address].

Witnesseth

WHEREAS,  KARI  has  been  undertaking  the  development  of  co-axial  rotor  system  for  high-speed
helicopters with the main goal of building a scaled rotor test stand.

WHEREAS,  KARI  would  like  to  procure  the

Rotating Shaft Balances (hereinafter, RSBs) for the

rotor test stand and desires Contractor to provide the RSBs including technical data and technical
support as needed; and

WHEREAS,  Contractor  is  willing  to  provide  KARI  with  the  RSBs  for  the  rotor  test  stand  on  the
terms and conditions as set forth in this Contract;

NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  and  premises,  both  Parties  hereto
have agreed to the following:

Page 18

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 1.

Definitions

The terms defined in this Article shall have the meaning described to them herein whenever they
are used in this Contract, unless otherwise clearly indicated by the context.

1.1

“Associates”  mean  all  individual  or  legal  entities  organized  under  public  or  private  law,
who shall act, directly or indirectly, on behalf of KARI or Contractor, or at the direction of
either  Party  to  this  Contract  to  fulfill  the  obligations  undertaken  by  such  Party  in  this
Contract,  including,  without  limitation,  the  employees  of  each  Party,  their  suppliers  and
Subcontractors.

1.2

“Contract” means this Contract for the procurement the RSBs for the rotor test stand,
including Appendices as attached hereto, and all amendments that may be agreed to by
the Parties in accordance with the terms and conditions of this Contract.

1.3

“Contractor” means [Name of Contractor] as a Party to the Contract.

1.4

“Deliverable Data” means all information and documents related to the RSBs required to
be delivered by Contractor, at its expense, to KARI as listed in PART 2 “Technical
Specifications and Statement of Work” hereof.

1.5

“Deliverable Items” means the RSBs and Deliverable Data that Contractor shall deliver to
KARI under this Contract and any materials that Contractor may deliver to KARI on KARI’s
request, including any additional data and information, in the course of the provision of
the RSBs.

1.6

“EDC” or “Effective Date of the Contract” means the date identified in Article 17
“Effectiveness of Contract”.

1.7

“Factory Acceptance Test” means pre-shipment inspection held at Contractor’s site before
the shipment of Deliverable Items.

1.8

“Final Acceptance Test” means incoming inspection held at KARI site after delivery of
Deliverable Items to KARI.

1.9

“Force Majeure” means any act of God, war, act or failure to act of any government in its
sovereign capacity except for the export license, fire, flood, earthquake, strike, epidemic,
quarantine, embargo, nuclear incident, or any other event, unforeseeable and beyond the
reasonable control without any fault by the Party or its Subcontractors relying upon the
Force Majeure.

1.10

“

Rotating Shaft Balance (RSB)” means a device to measure forces and moments

imposed on a test model, which is attached to a rotating shaft.

Page 19

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

1.11

“KARI” means Korea Aerospace Research Institute as a Party to the Contract.

1.12

“Party” or “Parties” means KARI or Contractor, or both, in accordance with the context.

1.13

“Service(s)” means all professional services and labor required to be provided including,
without limitation, design, development, manufacture, research, analysis, integration,
training, transportation, installation, test, and warranty.

1.14

“Subcontract” means any subcontract, including purchase orders and all similar forms of
agreements at any tier under this Contract.

1.15

“Subcontractor” means a contractor under any Subcontract, including suppliers and
vendors.

1.16

“Third Party” means any individual or legal entity other than the Parties and the
Associates.

Article 2.

Contract Documents

2.1

This Contract shall comprise the following documents, as amended from time to time by
written agreement by and between both Parties:

(a) PART 1: General Terms and Conditions
(b) PART 2: Technical Specifications and Statement of Work

2.2

In  the  event  of  any  inconsistency  or  discrepancy  between  or  among  the  Contract
documents  as listed in Article 2.1 above,  the  Contract  documents shall be  applied in the
decreasing order of precedence.

Article 3.

Scope of Works

3.1

In  accordance  with  the  requirements  and  scopes  of  work  as  set  forth  in  this  Contract
including  PART  2  “Technical  Specifications  and  Statement  of  Work”,  Contractor  shall
provide the Deliverable Items.

3.2

After the delivery of Deliverable Items, Contractor shall, without any additional charge to
KARI, provide KARI with such technical data, documentation and information as may be
reasonably required by KARI to understand the output of the Contractor’s work hereunder.

Page 20

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

3.3

Contractor shall keep KARI informed with respect to the progress of the RSBs, and shall
comply with instructions given by KARI, but this instruction should be mutually agreed in
advance.

3.4

After the completion of Factory Acceptance Test, the Contractor shall provide the Report
of Factory Acceptance Test and the Documentations of fabrication, calibration, and
structural analysis process to KARI.

Article 4.

Contract Price

4.1

For the full, satisfactory and timely performance of all obligations by Contractor in
accordance with the provisions of this Contract, KARI shall pay to Contractor the Contract
Price of _______________ (USD/EURO TBD) in accordance with the terms of payment as
specified in Article 5 “Terms of Payment”.

4.2

The Contract Price as specified in Article 4.1 above shall be firm and fixed price that is not
subject to any escalation or to any adjustment or revision by reason of the increase of
actual costs incurred by Contractor in the performance of the work under this Contract.

4.3

The Contract Price as specified in Article 4.1 above shall be comprised of the following
items;

Description

Price (EURO/USD)

Deliverable

Items

- Rotating Shaft Balance (2EA)

- Dummy Balance (2EA)

- Spline Shaft (1EA)
- Balance free end adapter (1EA)

- Carrying case for the RSB (2EA)
- Carrying case for the Dummy Balance (2EA)

- Carrying case for the Splice Shaft (1EA)
- Documentation and Data package

Total Sum

4.4

Contract Price shall include any federal, state or local taxes, funds, stamp duties, fees,
transfer taxes, duties or charges of any kind whatsoever levied or imposed pursuant to
related laws on the payment of the Contract Price under this Contract by the government
or any political divisions of any country except for the customs duties and the value added
taxes levied on all Deliverable Items and any charges for the customs clearance in Korea.

4.5

All banking charges incurred in Korea shall be borne by KARI, and those charges incurred
outside Korea shall be borne by Contractor.

Page 21

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 5.

Terms of Payment

5.1

Payment Schedule

5.1.1

Payment shall be executed subject to the establishment of performance bond under this
Article 7 “Performance Bond”.

5.1.1

The Contract Price as specified in Article 4 “Contract Price” shall be paid in accordance
with the following schedule:

No.

Performance Milestone

Payment Due Date Percentage (%)

Amount

(USD/EURO)

EDC and the establishment of
P-bond (EDC + 1M)

EDC + 2M

Completion of RSB Design
(EDC + 4M)

EDC + 5 M

Completion of Delivery and Final
Acceptance at KARI site (EDC +
12M)

EDC + 13 M

Total

100

* EDC means the Effective Date of Contract as per Article 17 “Effective Date of Contract”.
* M means calendar month.

5.2

Billing Procedure

5.2.1

All invoices the Contractor submits for payment shall be in duplicate and received by KARI
at least thirty (30) days before the payment due dates as specified in Article 6.1.2.

5.2.2

All payments shall be made in U.S Dollar/EURO by telegraphic transfer to the bank account
as designated by Contractor in the table below. And KARI shall remit the payment by due
date as stipulated in Article 6.1 or not later than thirty (30) days after KARI’s receipt of
Contractor’s invoice whichever becomes later. If Contractor’s bank account information is
amended, Contractor shall provide the amended information to KARI in writing on issue of
its invoice.

Contractor

Contractor’s Bank

Account No. /
IBAN

Bank Address

SWIFT code
/ Bank code

Page 22

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

5.2.3

Whenever the payment due date falls on Saturday, Sunday, KARI’s non-business day or a
Korean legal holiday, the payment date shall be the following business day.

5.3

Suspension of Payment

5.3.1

Notwithstanding any provisions of this Contract, if any milestone has not been
accomplished for any reasons attributable to Contractor, KARI may, with an advance notice,
suspend the payment which is due for such milestone until KARI and Contractor agree that
such delayed milestone has been accomplished.

5.3.2

In the event of KARI’s suspension of payment under Article 5.3, Contractor shall
nevertheless continue to perform its obligations under this Contract regardless of whether
KARI is entitled to suspend the payment.

5.4

Deduction of Payment

5.4.1

All losses, costs, charges and expenses which KARI incurs or sustains by reason of any act or
omission of the Contractor in the performance of the Contract and any other amounts (e.g.
liquidated damages) which KARI is entitled to receive from Contractor under the terms of
this Contract, may be deducted from any payment that may be or become due to
Contractor from KARI provided KARI notifies Contractor of such losses, costs, charges and
expenses in accordance with Article 5.4.1 and Contractor has not otherwise cured such
losses.

5.4.2

A prior written notice given by KARI accompanied with documents stating the amount of
the losses, costs, charges, expenses and other amounts referred to in Article 5.4.1 shall be
prima facie evidence of the matters stated herein.

Article 6.

Taxes

6.1

In the event taxes are charged in Korea, KARI shall be fully responsible for payment of such
taxes. Contractor shall be fully responsible for the payment of all applicable taxes imposed
outside Korea including any customs duties and charges.

6.2

Neither Party shall be responsible for paying the customs duties, and related taxes, fee, or
charges for the personnel and the personal effects of the other Party.

6.3

The Contractor shall further comply with instructions KARI may issue from time to time in
order to facilitate any exemption or reductions from customs duties and other taxes that
might be levied on KARI and shall impose the same obligations on the Subcontractor.

Page 23

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 7.

Performance Bond

7.1

Contractor shall establish a performance bond within two (2) week after EDC in favor of
KARI in the value of ten percent (10 %) of the Contract Price, in the form of an irrevocable
and unconditional standby letter of credit available by KARI’s draft at sight.

7.2

The entire amount covered by the performance bond shall be payable to KARI on demand
together with KARI’s written statement to the effect:

(a) that there was a default of the Contractor in the performance of the Contract

(including Subcontractor’s default under the Subcontract), or

(b) that any amount KARI is entitled to receive from Contractor has not been paid by

Contractor to KARI through any other means, or

Whenever any amount has been withdrawn by KARI due to the case of (a) or (b) above,
the performance bond shall be replenished.

7.3

The performance bond under this Article shall be issued by a first class international bank
acceptable to KARI. The performance bond shall be drawn in favor of KARI and advised
through the Woori Bank (Daejeon Branch at 29, Munye-ro, Seo-gu, Daejeon, 35241 Korea,
Tel: +82-42-488-9704, Ext. 312 / Fax : +82-505- 003-0759) and available with such bank by
presentation and shall remain valid until the end of the warranty period in accordance with
Article 11 “Representations and Warranties”.

7.4

It is hereby agreed between the Parties that payment from the performance bond under
this Article shall not affect any other of KARI's rights, privileges, interests or remedies
under this Contract or the applicable law.

Article 8.

Delivery

8.1

General

8.1.1

Contractor agrees that delivery or provision of time and place under this Contract, whether
specifically provided for or not, or in subsequent amendments thereto, are of the essence
of this Contract.

8.1.2

Contractor shall deliver Deliverable Items in accordance with the defined schedule and
method as set forth in PART 2 “Technical Specifications and Statement of Work”, and the
delivery shall be deemed to have occurred only when the Deliverable Items has been
delivered to KARI site irrespective of whether or not the Final Acceptance is conducted.

Page 24

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

8.1.3

Contractor shall bear any charges or costs of whatsoever nature that are incurred in
relation to delivery or provision hereunder until such delivery or provision is duly made
under this Contract to KARI.

8.2

Delivery to KARI

8.2.1

Contractor shall deliver any Deliverable Items under the terms of DPU KARI (Delivered at
Place Unloaded in accordance with the Incoterms 2020) in accordance with the delivery
schedule of this Contract and Partial shipment shall be allowed.

8.2.2

To  obtain  import  certificate,  Contractor  shall  notify  KARI  by  e-mail  (address:
“lee@kari.re.kr” for Dr. Seunghoon Lee and “monicalee@kari.re.kr” for Ms. Eun-Jung Lee)
fourteen  (14)  calendar  days  prior  to each  shipment  with  one  (1)  set of  proforma  invoice
and  packing  list  specifying  the  number of  boxes,  name  of  Items,  unit  price,  and  size  and
volume of each container or box to be shipped. As soon as each shipment as provided for
in  this  Article  is made,  Contractor  shall send one  (1)  copy  each  of  the  following  shipping
documents to KARI by e-mail;

(a) Clean on board vessel bill of lading/or airway bill,
(b) Commercial invoice (including the custom authorization no.)
(c) Packing list with harmonized system codes,
(d) Weight and measurement list,
(e) Contractor's Inspection Report,
(f) Export License, if any, and
(g) Certificate of Origin, if possible.

Article 9.

Delays in Performance

9.1

Excusable Delay

9.1.1

Neither Party shall be responsible to the other Party for any delay in performing its
obligations under this Contract due to any events of Force Majeure.

9.1.2

The Party whose performance of obligations hereunder has been affected by any events of
Force  Majeure  shall  notify  the  other  Party  within  ten  (10)  working  days  thereafter  by
sending a detailed statement and sufficient evidence with respect thereto, and promptly of
any  subsequent  change  in  the  circumstances,  if  any.  The  affected  Party  shall  exercise  its
best  efforts  under  the  circumstances  to  remove  or  remedy  the  events  of  Force  Majeure
and the effects thereof and resume full performance hereof as soon as possible.

9.1.3

Notwithstanding Article 9.1.1 above, any such delay that has not been notified to the other
Party pursuant to Article 9.1.2 above shall not be excused for any reason whatsoever.

Page 25

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Notwithstanding Article 9.1.1 above, any delay of performance of the affected Party falling
due after any delay, failure or incompleteness in exercising the pertinent best efforts to
remove or remedy the pertinent events of Force Majeure or the effects thereof pursuant
to Article 9.1.2 shall not be excused for any reason whatsoever.

9.2

The Party who has received or was entitled to duly receive the notice of events of Force
Majeure under Article 9.1.2 above may suspend performance of its obligations, which shall
be due subsequent to such events of Force Majeure, until the other Party has effected such
delayed performance to the full extent after and in view of such events of Force Majeure.

9.3

Non-Excusable Delay

9.3.1

In the event that, unless otherwise excused by virtue of this Contract or the governing or
applicable law, Contactor delays the Delivery of the Deliverable Items as stipulated under
this Contract or Final Acceptance is failed as the result of not meeting the requirements of
this Contract at KARI site, Contractor shall pay for liquidated damages to KARI as a result of
such delay in accordance with Article 9.3.2.

9.3.2

Contractor acknowledges and agrees that the timely completion of  the Delivery and Final
Acceptance Test as stipulated under this Contract is essential to KARI, and that such delay
as  provided  for  in  Article  9.3.1  hereof  may  cause  substantial  financial  loss  or  damage  to
KARI’s  right,  interests  and  benefit,  which  may  not  be  assessable  or  recoverable.  Both
Parties  therefore  specifically  agree  that  in  the  event  of  such  loss  or  damage  caused  by
delay attributable to Contractor, its Subcontractor or any of its agents, Contractor shall pay
KARI as liquidated damages zero point zero seven five percent (0.075%) of Contract Price
per delayed day of Final Acceptance. In no case, however, shall the aggregated liquidated
damages  for  the  delayed  Final  Acceptance  exceed  thirty  percent  (30%)  of  the  Contract
Price;  provided,  however,  that  if  the  liquidated  damages  calculated  by  the  aggregated
number of days of delay under this Article, excluding those days of delay excused by KARI
in  writing,  exceed  ten  percent  (10%)  of  the  Contract  Price,  KARI  may  terminate  this
Contract  for  Contractor’s  breach  pursuant  to  Article  18.2.  Notwithstanding  the  foregoing
sentence,  if  KARI  makes  decision  to  maintain  this  Contract  instead  of  termination,  the
liquidated damages shall continually be imposed up to thirty percent (30%) of the Contract
Price and, on KARI’s written request, Contractor shall establish the additional performance
bond  with  the  amount  corresponding  to  the  liquidated  damages,  accordingly.  This
additional  performance  bond  shall  be valid  until  the due  date  of  Final  Acceptance  as  set
forth in Article 10 “Inspection and Acceptance”

9.4

This Article shall not affect other remedies, rights, privileges, interests, benefits of KARI
under this Contract or the governing or applicable law. Contractor agrees that any right of
KARI under this Article is not an alternative or substitute to other remedies, rights,
privileges, or interests of KARI.

9.5

For the purpose of this Article, any action or omission of Contractor's Subcontractor, agent,
or servant, de facto or de jure, shall be deemed to be Contractor's own.

Page 26

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 10.

Inspection and Acceptance

10.1

Factory Acceptance Test shall be occurred by the Contractor at the Contractor’s site before
the  shipment  of  Deliverable  Items.  After  the  Factory  Acceptance  Test,  Contractor  shall
deliver  the  test  report  to  KARI,  via  e-mail,  KARI  shall  decide  whether  to  accept  Factory
Acceptance Test according to it. If KARI determines that the test results are not acceptable,
it shall notify the Contractor, in writing, the reasons therefore. If no written notification is
given  within  seven  (7)  calendar  days  from  the  receipt  of  the  test  report,  the  Factory
Acceptance Test should be regarded as acceptable and Contractor shall proceed delivery.

10.2

If Factory Acceptance Test is determined to be unacceptable, Contractor shall promptly
correct or improve the problem and provide a test report which is acceptable by KARI.

10.3

After  the  delivery  is  completed,  the  incoming  inspection  of  Deliverable  Items  shall  be
occurred  at  KARI  site  within  fourteen  (14)  calendar  days,  and  KARI’s  authorized
representative  shall  notify  the  inspection  result  to  the  Contractor,  in  writing.  If  KARI
determines  that  any  Deliverable  Item  is  unacceptable,  it  shall  notify  the  Contractor,  in
writing, the  reasons therefore. If no written notification is given  fourteen (14)  days from
the  receipt  of  Deliverable  Items,  the  Deliverable  Items  should  be  regarded  as  finally
acceptable.

10.4.

If  any  Deliverable  Item  is  determined  to  be  unacceptable,  it  shall  be  considered  as  non-
delivery and the Contractor shall, at its own cost including airfreight, insurance, duties and
taxes  for  customs  clearance  in  Korea,  promptly  make  all  necessary  supply  and/or
workmanship  required  to  remedy  such  faults  or  defects  in  order  to  assure  that  the
Deliverable  Items  are  conformable  to  the  requirements  set  forth  in  this  Contract
specification.  If  there  is  any  type  of  rework  or  extra  work  not  attributable  to  the
Contractor’s failure, then the cost occurred will be quoted and be borne by KARI.

Article 11.

Representations and Warranties

11.1

Contractor represents and warrants to KARI that:

(a) Contractor shall provide the Deliverable Item in a timely and efficient manner and in

accordance with the-state-of-art engineering and design industry standards and
practices;

(b) All Deliverable Items that Contractor shall provide under this Contract shall be free

from all defects in workmanship and materials and shall comply with the
specifications and requirements of this Contract;

documents, and all material, and the Rotating Shaft Balances (RSBs) provided to
KARI, including, but not limited to, any other Deliverable Items and Deliverable Data,
free from any and all claims, demands, liens and encumbrances on title;

Page 27

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

(d) Neither part of the design, engineering or technical data or documents, and all

material, and the Rotating Shaft Balances (RSBs) provided to KARI, including, but not
limited to, any other Deliverable Items and Deliverable Data, when given and in the
future, shall be the subject of any Third Party infringement claim or action; and

(e) The warranty will not cover the damage or failure due to improper operation, lack of

maintenance, unauthorized alteration, normal wear and tear, and abnormal use.

11.2

The warranty period hereof shall be twelve (12) months from the Final Acceptance date of
RSBs at KARI site.

11.3

KARI shall notify Contractor and allow Contractor to access to the RSBs to assure proper
handling and use under the warranty. Any action performed by Contractor under the terms
of this warranty clause will not extend the warranty period.

11.4

Upon the receipt of written notification from KARI that Deliverable Item delivered by
Contractor is defective of non-conforming, Contractor shall, for the period agreed by both
Parties, immediately repair or replace, at Contractor’s expense, such Deliverable Item so as
to comply with the above warranties. The Contractor shall not be entitled to any additional
costs incurred or to recover any damages suffered due to defect in the Deliverable Item or
rejection of the Deliverable Item by KARI.

Article 12.

Legal Compliance and Governmental Authorizations

12.1

Contractor and its employees shall comply with all applicable legal requirements of any
place in which any part of the work under this Contract is to be done and with the legal
requirements of public, municipal and other authorities in any way affecting or applicable
to any work performed by Contractor and its employees.

12.2

Unless  otherwise  provided  for  herein,  Contractor  shall,  at  its  own  expense,  obtain  any
permits, licenses, approvals or certificates including any other requirements necessary for
the export  of Deliverable  Item  and  for the  performance  of  the  work  under the  Contract.
Contractor  shall  perform  the  work  in  accordance  with  the  conditions  of  any  applicable
permits or licenses, approvals or certificates.

12.3

No Party shall be responsible in any way for direct or indirect consequences of any
violation of law by the other Party, its Subcontractors or their officers, employees, agents
or servants.

12.4

Contractor shall be  responsible for obtaining all non-Korean governmental authorizations
necessary  for  the  performance  of  the  Contractor’s  obligations  hereunder  in  a  timely
manner.

Page 28

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 13.

Non-Transfer and Use Assurances

13.1

In case that any part of the Deliverable Items to be provided to KARI by Contractor under
this Contract are subject to export control regimes of the Contractor’s country for the
purpose of non-proliferation of dual use articles and technology, KARI hereby assures and
certifies that KARI will use the Deliverable Items and Deliverable Data only for peaceful
purposes and, as an end user, except as specifically authorized by prior written approval of
the relevant authorities of the Contractor’s country, will not re-export, re-sell or otherwise
dispose of the Deliverable Items and Deliverable Data outside the Republic of Korea or to
any Third Party. If requested by Contractor, KARI shall execute and issue to Contractor a
non-transfer and end use certificate containing the said KARI’s assurances.

Article 14.

License and Ownership of Data and Information

14.1

If any license or consent from Contractor or any Third Party is required to ensure KARI’s
right in this Article, Contractor shall grant and shall have such Third Party grant such license
and consent to KARI and KARI’s Associates.

14.2

Subject to Article 14.1 above, Contractor shall retain ownership rights in its prior existing
standards, reference materials, drawings, and engineering tools, used in connection with
the RSBs under this Contract.

Article 15.

Suits for Infringement

15.1

In the event that any suit, claim, action or proceeding against KARI and its Associates arises
from  allegations  that  any  proprietary  rights  to  be  provided  by  Contractor  hereunder
constitute  infringement  of  any  patent,  copyright,  trade  secret,  know-how,  or  any  other
proprietary  right  of  any  Third  Party,  Contractor  shall  defend  KARI’s  and  KARI  Associates’
right,  title  and  interest  to  the  same  against  such  suit,  claim,  action,  or  proceeding  at
Contractor’s expense and shall hold KARI and KARI Associates’ harmless from any damages
or losses of any kind including without limitation legal fees. If as a result of such suit, claim,
action  or  proceeding,  the  proprietary  rights  or  any  part  thereof  is  held  to  constitute  an
infringement  and  the  use  of  said  proprietary  rights,  or  any  part  thereof,  is  enjoined,
Contractor shall  promptly,  at  its  option and  expense,  either  procure  for KARI  and  KARI’s
Associates  the  right  to  continue  using  said  proprietary  rights,  or  the  part  thereof,  or
replace  the  same  with  non-infringing  proprietary  rights  acceptable  to  KARI  and  KARI’s
Associates.

15.2

The Contractor owns the intellectual property right of the

Rotating Shaft Balances (RSB)

and KARI and KARI’s Associates shall not copy the design or allow any Third Party to copy
the design for any purpose without prior written approval from the Contractor.

Page 29

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 16.

Confidentiality

16.1

Each Party agrees to keep secret and confidential all information obtained pursuant to this
Contract  from  the  disclosing  Party,  which  is  designated  as  confidential  by  the  disclosing
Party.  The  Parties  agree  to  take  all  necessary  precautions  in  a  manner  acceptable  to  the
Party furnishing the confidential information in order to keep secret and confidential such
information and to restrict its use outside and beyond the scope of this Contract; provided,
however,  that  the  above  shall  not  apply  to  information  which  is  or  becomes  part  of  the
public domain or obtained from an independent source through no fault of the disclosing
Party,  nor  shall  the  above  restrict  or  prohibit  the  disclosure  of  such  information  to
competent government authorities as is required to bring about the purposes intended by
this Contract.

16.2

Any information derived from KARI’s property in connection with this Contract, shall be
kept secret and confidential and shall not, without the consent in writing of an authorized
representatives of KARI, be published or disclosed to any Third Party, or used by Contractor,
except for the purpose of implementing this Contract.

16.3

The obligations undertaken by the Parties pursuant to this Article 16, shall survive
termination of this Contract and shall remain in effect and be binding on the Parties for a
period of five (5) years after the termination or expiration of this Contract except for such
information as shall become part of the public domain or is received from an independent
source through no fault of the Party wishing to disclose.

16.4

Contractor shall obtain the prior written approval of KARI concerning the content and
timing of news releases, articles, brochures, advertisements, prepared speeches, and other
information releases, proposed to be made by such party concerning this Contract or the
work performed or to be performed hereunder. KARI shall be given a reasonable time to
review the proposed text prior to the date scheduled for its release.

Article 17.

Effectiveness of Contract

17.1

The effective date of this Contract ("EDC") is the date the duly authorized representatives
of the Parties have signed this Contract.

17.2

Any amendment to this Contract shall be effective upon signature by the duly authorized
representatives of both Parties.

Article 18.

Termination

18.1

Termination for Events of Force Majeure

Page 30

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

18.1.1 In the event that the excusable delay under Article 9 “Delay in Performance” exceeds

three (3) months for any single Event of Force Majeure or six (6) months in the aggregate
for all Events of Force Majeure, KARI, at its sole discretion, may declare frustration of this
Contract, and terminate the whole or any part of this Contract by sending a seven (7) days
prior notice to the Contractor.

18.1.2 In the event that the Contract is terminated for Events of Force Majeure, Contractor shall

be entitled to the payments received and payments due as of the date of termination, in
which case Contractor shall return fifty percent (50%) of the amount paid by KARI under
this Contract. Also KARI shall return the Deliverable Item to Contractor, if any.

18.2

Termination for Breach

18.2.1 KARI may, by written notice to the Contractor, terminate the whole or any part of the

Contract, if any of the following circumstances occurs;

(a) The Contractor fails to deliver any Deliverable Item under the Contract in accordance

with the delivery schedule, or

(b) The Contractor fails to obtain the export license in accordance with Article 12 “Legal

Compliance and Governmental Authorization”, or

progress with the work within the time specified and in accordance with the terms of
the Contract, or

(d) The Contractor fails to remedy any or all defects and non-conformity on the

Deliverable Item in accordance with Article 11 “Representations and Warranties”.

18.2.2 In the event of the circumstances in Article 18.2.1, KARI may notify the Contractor and

may suspend any further performance of its obligation under this Contract. If the
Contractor fails, within ten (10) days from the dispatch of the notice, to produce and notify
KARI of reasonable evidence of its intent and ability to effect due performance of the
obligation in breach within sixty (60) days from due dispatch of written notice, then KARI
may terminate this Contract with seven (7) days’ prior notice of termination.

18.2.3 In the event this Contract is terminated for Contractor’s breach, the Contractor shall

return  all  the  amounts  paid  by  KARI  under  the  Contract  and  also  pay  same  amount
covered by performance  bond as a termination charge  to KARI. If Contractor fails to pay
such  termination  charge  within  a  period  of  one  (1)  month  after  termination  date,  KARI
shall  call  up  the  performance  bond  in  accordance  with  Article  7  “Performance  Bond”.  In
addition, KARI shall return the Deliverable Item to Contractor, if any.

18.3

Termination for Special Circumstances

18.3.1 KARI may terminate this Contract anytime upon or after due dispatch of notice of such

effect, without any other conditions, in the event that the Contractor falls within any of
the following categories:

Page 31

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

(a) the Contractor has fallen bankrupt or insolvent, or
(b) the Contractor passed a resolution for its reorganization (bankruptcy related),

dissolution, liquidation or winding-up, or

related), dissolution or winding-up of the Contractor has been applied for by any
person and such application has not been dismissed within sixty (60) days.

18.3.2 If the Contractor is in default pursuant to Article 18.3.1, the Contractor shall immediately

inform KARI thereof. KARI may then terminate the Contract with reasonable prior written
notice.

18.3.3 In the event this Contract is terminated by Article 18.3.1 above, Contractor shall return all

amount paid by KARI under the Contract. The Contractor shall be entitled to keep all of the
items procured and manufactured by Contractor under this Contract as of the date of
termination.

18.4

Termination for Convenience

18.4.1 KARI may terminate this Contract, in whole or in part, at any time for its convenience,

upon  reasonable  prior  written  notice  to  Contractor.  In  case  of  such  termination  for
convenience, Contractor shall be entitled to the payments received and payments due as
of  the  date  of  termination,  out  of  the  aggregate  payments  as  set  forth  in  the  Article  5
“Terms of Payment” hereof.    In  addition,  KARI  shall  be  entitled  to  any  products paid  and
products due as of the date of such termination.

Article 19.

Resolution of Disputes and Governing Law

19.1

In cases any controversy or claim arises out of or in relation to this Contract or with respect
to  a  breach  hereof,  the  Parties  shall  seek  to  resolve  the  matter  amicably  through
discussions  between  themselves.  In  the  event  of  any  disagreement  between  KARI  and
Contractor about the interpretation of the provisions or definitions used in this Contract,
the  interpretation of  KARI shall  govern  until  and  unless  otherwise  decided  by  arbitration
conducted pursuant to the following provisions.

19.2

If the Parties cannot resolve such controversy or claim in accordance with Article 19.1
above, it shall be finally settled by arbitration under the rules of arbitration of the Korean
Commercial Arbitration Board (KCAB) and the place of arbitration shall be Seoul in Korea.
The proceedings shall be conducted in English. The award rendered by the board shall be
final and binding on the Parties and may be entered in any court of competent jurisdiction
for execution.

19.3

The validity, performance, construction, and effect of this Contract shall be governed by
the laws of Korea.

Page 32

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 20.

Notice

20.1

All notices, requests, demands, approvals, reports, invoices, and other correspondence to
be provided pursuant to this Contract shall be in writing and shall be deemed to have been
duly given to the Party to be notified;

(a)  on the date of delivery if delivered in person;
(b)  on the date of dispatch if by email or facsimile;
(c)  on the date of receipt if by registered airmail or overnight courier.

All notices shall be addressed to the appropriate Party at its address as follows:

a) If to KARI : Korea Aerospace Research Institute

169-84 Gwahak-ro, Yuseong-Gu
Daejeon, 34133 Korea

Technical Matter

Contract Matter

Attn.: Dr. Seunghoon Lee
Dep’t: Aeronautics Technology

Research Division

Tel.:Tel:

Tel.: +82-42-870-3565
Fax: +82-42-860-2604
e-mail : lee@kari.re.kr

Attn.: Ms. Eun-Jung Lee
Dep’t: Overseas Contract Office

Tel: +82-42-860-2148
Fax: +82-42-879-4370
e-mail : monicalee@kari.re.kr

b) If to Contractor : Name of Contractor

Address

Technical Matter

Contract Matter

Attn.: TBD
Dep’t: TBD

Tel.:Tel:

Tel.: TBD
Fax: TBD
e-mail : TBD

Attn.: TBD
Dep’t: TBD

Tel: TBD
Fax: TBD
e-mail : TBD

20.2

Each Party may change its address for notice by notice given to the other Party in the
manner set forth above. Any notices given as provided herein shall be considered effective
on the date delivered in accordance with Article 20.1.

Page 33

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Article 21.

Miscellaneous

21.1

Assignment

This  Contract  and  each  and  every  covenant,  term  and  condition  hereof  shall  be  binding
upon and inure to the benefit of the Parties and their respective successors, and neither
this  Contract  nor  any  rights  and  obligations  hereunder  shall  be  assignable  or  delegable
directly  or  indirectly  by  any  Party  without  the  prior  written  consent  of  the  other  Party,
which consent shall not be unreasonably withheld.

21.2

Language and Units

This  Contract  is  executed  in  English  and  all  documents,  drawings,  plans  and  any  other
writings  as  well  as  communication  between  the  Parties  shall  be  in  English.  Weight  and
measurement for deliverable documentation including Deliverable Data shall be recorded
in units of metric system.

21.3

Entire Agreement

This Contract embodies the entire agreements between both Parties with respect to the
subject matter hereof and supersedes and cancels any and all prior understandings or
agreements, oral or written, in relation hereto, which may exist between the Parties.
Neither oral explanation nor oral information by any of the Parties shall alter the meaning
or interpretation of this Contract.

21.4

Amendment

No amendment or change hereof or addition hereto shall be effective or binding on any of
the Parties unless reduced to writing and executed by the respective duly authorized
representatives of each of the Parties.

21.5

Subcontract

Each Party shall be fully responsible for the work of its Subcontractors under this Contract,
and such subcontracting shall not relieve that Party of its obligation under this Contract.

21.6

Headings

The headings and titles in this Contract have been inserted for convenience of reference
only and shall not be deemed a part hereof or affect the construction or interpretation of
any provision hereof.

21.7

Unenforceable Terms

Page 34

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

If any term or provision of this Contract shall for any reason be invalid, illegal or
unenforceable in any respect, this Contract shall be interpreted and construed as if such
term or provision had never been included herein. Any remaining part of this Contract
shall not be influenced by such ineffectiveness.

21.8

Non-Waiver

The failure or delay of any Party to require any performance by the other Party of any
provision of, or of any right or obligation under this Contract, shall not constitute a waiver
thereof, nor shall such affect that Party's right to thereafter require performance of such
or any other provision, right or obligation.

21.9

Disclaimer of Agency

This Contract or performance under this Contract shall not be interpreted or deemed to
constitute any Party the agent of the other Party. Neither Party shall have the authority to
commit the other Party or its Subcontractor in any manner or to incur any obligation on
behalf of or in the name of the other Party or its Subcontractor.

21.10

Limitation of Liability

The  aggregate  liability  of  Contractor  under  this  Contract  for  any  and  all  claims,  losses,
liabilities, costs, including Contractor’s liability for default under the Contract or damages
arising  out  of  or  resulting  from  the  Contract  shall  be  limited  to  one  hundred  and  thirty
percent (130%) of the Contract Price. Contractor shall not, under any circumstances, have
any liability to KARI for any indirect, special, consequential and/or incidental or punitive
damages  resulting  from  the  performance,  non-performance  or  bad  performance  of  this
Contract,  including  but  not  limited  to  the  loss  of  profits,  the  loss  of  revenues,  loss  of
capital and any other similar loss. However, in case of Contactor’s act of intentional, gross
negligence or willful misconduct, the foregoing sentence shall not apply for.

21.11

Time Limits

Unless otherwise indicated, any time limits to which this Contract binds Contractor or
KARI shall be counted in calendar days from the day following that of the event marking
the start of the time limit, and shall end on the last day of the period specified. When the
last day of a time limit is a Saturday or Sunday, or a legal holiday in the country in which
the particular contractual performance is required, such time limit shall be extended to
the first working day following.

21.12

Change

Page 35

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

In the event that any changes during the performance of this Contract, within the general
scope  of  this  Contract,  which  add  or  delete  Deliverable  Items,  change  the  method  of
Deliverable  Items,  adjust  the  Contract  period  or  affect  any  other  requirement  of  the
Contract  are  requested  by  either  Party,  those  change  requests  shall  be  submitted  in
writing to the other Party. If such change causes an increase or decrease in the Contract
Price, that information shall be included in the change request or shall be identified by the
other Party within thirty (30) days of receipt of the request for change. The Party receiving
the change request shall ask the other Party to discuss the change request within ten (10)
days after receipt of it. Both Parties shall discuss such a matter and reach an agreement
within thirty (30) days from the date of commencement of the discussion. In the event the
both Parties reach an agreement on any changes requested by either Party in due  time,
then  this  Contract  shall  be  amended,  otherwise  this  Contract  shall  be  performed  as
unchanged.

Page 36

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

IN WITNESS WHEREOF this Contract has been issued in two (2) signed English originals of
equivalent validity, executed on behalf of KARI and the Contractor by their respective persons
authorized on that behalf.

Korea Aerospace Research Institute

Name of Contractor

By : ______________________

Name : Dr. Sang-Ryool LEE

Title : President

By : ______________________

Name :

Title :

Page 37

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Appendix B. Technical Specification & Statement of Work

Page 38

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

“This Page is intentionally left as blank.”

Page 39

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Technical Specification

I. General

The Rotating Shaft Balances (RGBs) are intended for the

rotor test stand which is to be built for

co-axial rotor system development. For the rotor test stand, two RSBs, dummy balances
and a spline need to be provided as a set.

II. Rotating Shaft Balances

2.1

Quantity

Two RSBs with identical dimension shall be manufactured.

2.2

Dimension

The RSBs shall be an axisymmetric, hollow cylindrical shape. The allowable maximum outer
diameter is 200mm, and the diameter of the inner space shall be greater than 70mm.
Height shall be shorter than 80mm.

2.3

Load Range

2.3.1

The RSBs shall be designed and manufactured to meet the load envelope shown
in Table 2.1. The load envelope in Table 2.1 specifies single axis load limits.
Figure 2.1 shows the coordinate notation of the forces and moments.

Fig 2.1. Coordinate notation of the RSB (C. Zimmermann et al., AIAA 2010-4541)

Page 40

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Table 2.1. Load envelope of the RSB

X (N)

Y (N)

Z (N)

L (Nm)

M (Nm)

N (Nm)

4000

400

800

2.3.2

The RSBs shall be designed, manufactured, and calibrated to meet the accuracy
shown in Table 2.2.

Table 2.2. Standard Deviation of Static Calibration

X (%FS)

Y (%FS)

Z (%FS)

L (%FS)

M (%FS)

N (%FS)

0.05

0.4

0.05

0.4

2.3.3

The RSBs shall be designed for a safety factor of at least three of its own worst-
case load conditions. If the Contractor has a typical safety factor for RSB design,
the number can be suggested. KARI will review the proposed safety factor and
confirm after internal review.

2.3.4

The RSBs shall be designed with fail-safe mechanism, which can prevent the
rotating parts from falling off even though the RSB has damaged.

2.4

Operating Condition

2.4.1

The RSB will be operated at rotational speeds from 500 to 2000RPM. The natural
frequency of the RSB must avoid the rotational speed range. Dynamic loading
test shall be also required in this condition.

2.4.2

The RSBs will be operated in a temperature range of 0 to +70℃. To meet the
accuracy, zero drift, and sensitivity drift criteria in this temperature range, the
RSB shall be designed to be temperature compensated. Zero and sensitivity drift
tests shall be required in this condition.

2.4.3

The RSBs shall not be damaged under a temperature of 100℃.

2.5

Electrical Specification

2.5.1

At least 12 full-bridge strain gauges shall be installed to resolve the 6-component
force and moment with an accuracy described in Table 2.2.

2.5.2

KARI recommend using 1,000 Ω foil-type strain gauge. However, the Contractor
can propose suitable strain gauge that can be satisfy this specification.

2.5.3

The recommend excitation voltage is 5V.

Page 41

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

2.5.4

Zero and sensitivity drifts of each full-bridge shall not be greater than
±0.01mV/V in the operating condition.

2.5.5

At least two temperature sensors shall be installed to measure the temperature
of the RSB.

2.5.6

The insulation resistance between the components shall be greater than 100MΩ.

2.6

Material

2.6.1

The RSB shall be made of material that have sufficient mechanical properties to
meet the technical specification. KARI recommends using maraging type steel.
However, the Contractor can suggest appropriate materials to manufacture the
RSB. KARI will review the proposed material properties and confirm after
internal review.

2.6.2

Heat treatment shall be done in order to improve mechanical properties of the
RSB.

2.7

Mechanical Interface

2.7.1

Metric part of the RSB shall have a structure that can be attached with a model.
The  metric  part  shall  have  at  least  six  threaded  bolt  holes  and  two  dowel  pin
holes.  The  size  of  the  bolt  and  the  pin  holes  will  be  determined  during  design
process.  The  number  of  the  bolt  holes  will  be  also  determined  during  design
process.

2.7.2

Non-metric part of the RSB shall have a structure that can be attached with a
shaft. The RSB shall be designed to be tightly attached to a spline shaft, which is
manufactured according to international standards such as ISO 4156—straight
cylindrical involute splines.

2.7.3

Non-metric part shall also have at least six threaded bolt holes and two dowel
pin holes, in case the RSB cannot be fixed with a spline shaft. The size of the bolt
and the pin holes will be determined during design process.

2.8

Electrical Interface

The electric wires shall be color coded by function and each bridge shall have a unique
identified wire. The wires shall be prepared with open leads. Cable length shall be
determined during design process.

Page 42

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

III. Dummy Balance and Spline shaft

3.1

Dummy Balance

Two dummy balances shall be fabricated by the Contractor. The metric and non-metric
mechanical interfaces of the dummy balance shall be identical with those of the RSB.

3.2

Spline shaft

The inner diameter of RSB must be fabricated tightly to eliminate any kind of movement
with rotating part of test rig. When KARI use the RSBs for other test, we will use a reference
spline shaft to fabricate rotating part of test rig. The spline shaft shall also have a thread to
lock the RSB with a nut. The specific size and shape will be discussed during design process.

Page 43

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Statement of Work

I. Overview

(1)

This Statement of Work (SOW) defines the tasks to be performed by the Contractor

to provide Rotating Shaft Balances (RSBs). Along with this SOW, the Contractor shall
perform all tasks necessary to completely successfully operate Rotating Shaft
Balances (RSBs).

(2)

The main undertakings of the project are to perform the Design, Fabrication,

Gauging, Calibration, Factory Acceptance Test, Delivery of Deliverable Items and
Quality Guarantee of Rotating Shaft Balances (RSBs), etc.

(3)

All the descriptions in this SOW are minimum requirements.

II. Procedures of the Work

The Contract for Rotating Shaft Balances (RSBs) shall be progressed as follows:

(1)

Design, Fabrication, Gauging, Calibration;

(2)

Manufacturing and Production;

(3)

Factory Acceptance Test at Contractor’s site and Provision of Test Report;

(4)

Transportation

(5)

Final Acceptance (Incoming Inspection) at KARI site according to inspection procedure.

III. Scope of Work

A. Design

The  Contractor  shall  design  a  RSB  that  meets  the  requirements  of  the  technical
specification. Items not specified in the technical specification shall be proposed by the
Contractor. KARI will review the proposal and confirm after internal review.

The Contractor shall design a dummy balance, a spline shaft, and the mechanical parts
required for calibrations such as a balance free end adapter. The design of these parts
shall  be  proposed  by  the  Contractor.  KARI  will  review  the  proposal  and  confirm  after
internal review.

The  Contractor  shall  make  a  2D  and  3D  mechanical  drawing  for  the  RSB,  the  dummy
balance, the spline shaft, and the balance free end adapter. In the mechanical drawing
of  the  RSB,  not  only  the  exact  location  of  the  balance  center  but  also  the  designed
location of the strain-gauges shall be included.

Page 44

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

After the design of the RSB is completed, KARI will review the mechanical drawing and
confirm after internal review. The fabrication can be started after the review is
completed.

B. Fabrication and Gauging

The Contractor shall manufacture two RSBs that meets the requirements of the technical
specification.  Two  dummy  balances  and  a  spline  shaft  shall  be  also  manufactured.
Fabrication must conform to the drawings.

The spline shaft must be firmly coupled to the RSBs and the dummy balance so that no
movement should occur. The balance free end adapter must be also firmly coupled to the
RSBs and the dummy balance.

The strain gauges shall be bonded and wired to meet the requirements of the technical
specification.  All  gages  and  connections  shall  be  sealed  for  moisture  and  corrosion
protection.

To  meet  the  zero  and  sensitivity  drift  criteria,  the  strain-gauge  bridges  shall  be
temperature compensated.

Fabrication report shall be prepared in order to record the specification of the RSB and to
verify the result of the temperature compensation.

C. Calibration

(1) Static Calibration

Calibration test matrix shall be prepared to obtain the calibration coefficient matrix that
meets the requirements of the technical specification. KARI will review the calibration test
matrix  and  confirm  after  internal  review.  The  static  calibration  can  be  started  after  the
review is completed.

The  mechanical  parts  required  for  the  calibration  shall  be  prepared  by  the  Contractor.
Especially,  the  balance  free  end  adapter  which  will  be  attached  on  the  metric  part  and
used to apply loads shall be delivered to KARI.

Combined  loads  as  well  as  primary  loads  shall  be  applied  to  the  RSB.  The  number  of
loading  point  shall  be  more  than  300  points.  Details  about  the  loading  points  will  be
determined based on the Contractor’s suggestion.

Page 45

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

Deflection  angle  and  translational  displacement  of  the  RSB  during  the  static  calibration
shall be measure and recorded thoroughly.

(2) Dynamic Loading Test

The RSB will measure load signals in the rotational speed range described in the technical
specification, so the impact of centrifugal force on the quality of the measurements must
be  evaluated.  The  rotating  bench  calibration  rig  or  a  similar  means  to  evaluate  the
centrifugal force effects shall be prepared thoroughly in the verification test procedure at
the calibration site. The Contractor recommends the method which simulates the applied
forces and moments on RSB during the operating rotational speed range.

A slip-ring required for the dynamic loading test can be rented free of charge. Alternative
telemetry systems can be used for testing at this stage. KARI will bear the cost of shipping
the slip-ring, and the Contractor shall bear the cost of returning the slip-ring.

D. Factory Acceptance Test

The Contractor shall conduct factory acceptance test at Contractor’s site and provide the
test  report  to  KARI,  via  e-mail,  before  shipment  of  Deliverable  Items.  KARI  shall  decide
whether  to  accept  the  test  results  based  on  the  report  and  notify  the  Contractor  to
proceed the delivery.

E. Delivery

The  Contractor  shall  deliver  the  Deliverable  Items  and  Data  in  accordance  with  the
defined schedule and Incoterms under this Contract.

IV. Work Schedule

The Contract shall submit the detailed work schedule and specially, the work schedule at
KARI site shall be confirmed by KARI for avoiding overlap with KARI’s other schedules.
The schedule proposed by KARI is as follows.

-  Contract (EDC)
-  RSB design review (EDC + 4M)
-  Completion of the fabrication and gauging (EDC + 7M)
-  Delivery of dummy balances and spline shaft (EDC + 8M)
-  Calibration readiness review (EDC + 8M)
-  Calibration result review (EDC + 10M)

Page 46

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

- Factory Acceptance Test
- Delivery and Final Acceptance (Incoming Inspection) (EDC + 12M)

V. On-site Meeting

KARI can request an on-site meeting at the Contractor location prior to calibration. The
schedule will be agreed upon with the Contractor. The meeting will be held to check the
progress of the contract and to visit the static and dynamic calibration rigs in order to
establish the calibration test plan.

VI. Delivery and Deliverables

The transportation is responsibility of the Contractor. Contractor should provide
transportation and unloading under the terms of DPU KARI (Delivered at Place Unloaded
in accordance with the Incoterms 2020).

Contractor shall deliver the following Hardware and Data documents written in English by
the Contract period (EDC + 11.5M).

A. Hardware :

(1) Rotating shaft balance (2EA)
(2) Dummy balances (2EA)
(3) Spline shaft (1EA)
(4) Balance free end adapter (1EA)
(5) Carrying case for the RSB (2EA)
(6) Carrying case for the dummy balances and the spline shaft (3EA)

Item (2), (3) and (6) shall be delivered by EDC + 8M and the rest of Deliverable Items shall
be delivered by EDC + 11.5M.

Each  RSB,  Dummy balance  and  Spline  shaft  will  be  provided  with  its  own  carrying  case.
The cases for RSBs should provide for the safe handling and storage of the balance, and
should  be  identified  per  part  number.  The  calibration  information  will  also  be  provided
with a carrying case. The cases for Dummy balances and Spline shaft  should provide for
the  safe  handling  and  storage  of  the  set,  and  should  be  identified  as  to  what  is  stored
inside

B. Deliverable Data : submitted in a USB memory stick

(1)

Two (2) Microsoft Excel files of Fabrication Report including;
- Strain-gauge specification
- Temperature sensor specification

Page 47

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

- Temperature compensation procedure
- Zero drift(mV/V) with respect to temperature
- Resistance(Ω) with respect to temperature
- Electrical drawing, including wire color code

(2)

Two (2) Microsoft Excel files of Calibration Report including;

- Static calibration result, including all of the applied and calculated load
- Deformation test result
- Dynamic loading test result
- Calibration matrix coefficient and calibration equation
- Figures of

calibration equipment and rotating bench calibration rig

(3)

One (1) Microsoft Excel file of- Structural Analysis Report

(4)

Two (2) Microsoft Excel files containing Calibration results

(5)

2D/3D Mechanical Drawings of the hardware item (1), (2), (3) and (4)
- 2D drawing in DWG format
- 3D drawing in STEP format (ISO 10303-21)

VII. Warranty

The Contractor should carry out followings for the warranty of the Deliverable Items after
delivery of it;

(1)

The Rotating Shaft Balances (RSBs) shall be warranted for the duration of twelve
(12) months from the Final Acceptance date at KARI site without any operational
faults.

(2)

The warranty covers the replacement of faulty parts, the labor required for repair,
traveling cost, staying cost and all associated necessary costs.

(3)

The  Contractor  shall  submit  the  written  plan  for  repair  within  forty-eight  (48)
hours  after  the  reception  of  the  notification  of  fault.  The  Contractor  shall
completely  finish  the  repair  within  thirty  (30)  days  after  the  reception  of  the
notification of fault.

Page 48

KARI proprietary

The data/information contained in this document shall not be disclosed, disseminated or reproduced, in whole

or in part, without the express prior written approval of KARI.

The End of Documents