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Annual Service Contract - page 28 / 43

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OMI failed to complete the SOPs in time for City review and comment. Evidence that they could in fact manage the operation of the facility had not been provided. Allowing the Commencement Period to begin without SOPs, the City violated its own Contract provisions and risks the possibility that OMI cannot operate the facility properly.

The next step in the timeline was the creation and implementation of a Computerized Maintenance Management System (CMMS). Section 8.4 titled Computerized Maintenance System states:

The Company shall install, maintain, upgrade, repair and replace, as appropriate throughout the Term, a computerized maintenance management system capable of providing a record of repair and replacement of the Managed Assets on a detailed, item-by-item basis; scheduling, carrying out, monitoring and controlling  predictive, preventive and corrective maintenance programs; monitoring routine operations within the Managed Assets; issuing work orders and purchase orders; maintaining a spare parts inventory; and issuing exception, equipment status and repair priority reports.  The computerized maintenance management system shall be installed and operational within 90 days following the Commencement Date, shall be developed consistently with the Managed Assets Registry, shall constitute part of the Managed Assets, and shall be modified as and when appropriate during the Term to take account of removals from and additions to the Managed Assets.  The Company shall utilize the computerized maintenance management system to provide the City with documentation which allows it to efficiently monitor compliance by the Company with its maintenance obligations hereunder. The City shall have computer-based real time, read-only access to such system.  The Company shall permit all electronic data to be replicated and provided to the City for review by the City Engineer.

The definitive clauses of this section are “installed and operational within 90 days following the Commencement Date.” The deadline for this operation was on or around October 29, 2003. This new CMMS was to replace the old HTE system the City had been using. The new system would modernize the ongoing maintenance program and in effect, be more efficient.

But in order for the CMMS to be completely functional two activities had to occur. First OMI had to review the existing operation and maintenance manuals provided by the manufacturer and second, complete the SOPs. Together these two activities created the customized methodologies for the management, operation and maintenance of the entire managed assets.

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