How We Do Business

Q: If my company carries products, services or both that are of interest or can be of value to a coal- fired power generation company, how do I start doing business with STEAG?

Your Company may:

  1. apply for Vendor Accreditation; or

  2. while your Vendor Accreditation application is in process, you may also send in advance to  the STEAG Purchasing Administration Office at your company profile with a list of recent year’s projects, product/service list capabilities and the likes, for possible trial transactions; or

  3. while your Vendor Accreditation application is in process and you were informed of any specific STEAG project, you may coordinate with the Purchasing Administration Office at           for any further inquiry or scheduling of a product presentation, if interested.

Q: What is the STEAG Vendor Accreditation?

The STEAG Vendor Accreditation is a 3-Step Plus process for any Vendor to form part of the STEAG-certi ed source of goods, services or both.

The 3-Step PLUS is as follows:

  1. Submission of Vendor Accreditation application documents to the Purchasing Administration Office

    The list of Vendor Accreditation applitcation documents will be given by the Purchasing Administration Office upon request.

  2. SPI Evaluation of Vendor capability based on submitted documents

  3. SPI Con rmation to Vendors of its accreditation or request of any additional requirement or denial of application with grounds.

  4. Accredited Vendor updates SPI of its product and service o erings at least every 2 years counted from the date of its accreditation. 

Q: What are the benefits of being an SPI-Accredited Vendor?

An SPI-Accredited Vendor:

  1. Is a certified source of goods, services or both. STEAG accredited or certified means that a Vendor has been evaluated to be compliant with the regulatory, nancial stability, technical competence standards set by the STEAG Accreditation Committee in accord with the Plant needs. Said Vendor garnered at least a total rating of 75% in all categories, except regulatory compliance criterion which must have a 100% rating.

  2. Is automatically top of mind and is included in any of the Purchasing Office’s request for quotation, information or evaluation (i.e. demo-to-sell o er) for a product or service that the Vendor is accredited for.

  3. Is given an additional point in case quotations of the same or comparable item from Accreditation applicants are secured.

  4. Is eligible for recognition or award as an Outstanding Vendor in any of STEAG’s Vendor Recognition and Awards Ceremony.

    Being an Outstanding Vendor awardee for 3 consecutive periods shall also entitle the Vendor to a Preferred Vendor status. A Preferred Vendor status confers to the Vendor the right to contract with STEAG for more than the usual contract limitations prior to competitive sourcing. Preferred Vendors are likewise considered for development as strategic partners of STEAG.

Q: How can I apply for Vendor Accreditation with STEAG?

  1. Request for the list of accreditation requirements from the Purchasing Administration Office at purchasing@;

  2. Submit 1 set of complete documents (in hard copy) to the Purchasing Administration Office in a long green folder with all documents arranged in accord with the list;

  3. Wait for the Purchasing Administration Office’s con rmation or feedback on your company’s accreditation status.

 Q: What are the criteria for Accreditation?

The VENDOR ACCREDITATION COMMITTEE convenes at least once every month to evaluate the recommendations of the relevant Departments to accredit Vendors using the following criteria:

  1. Company Profile & Registrations (Regulatory Compliance)

  2. Technical Competence & Quality of Services

  3. Financial Stability

  4. Competitive Pricing and Payment Terms

  5. Overall Company Image and Stability


The Committee is composed of the Legal & Purchasing Head of Department, Purchasing Specialist, Plant Finance Manager & Deputy Power Plant Manager along with a Purchasing Administrator as Secretariat. Previous records or reports (blacklisted Vendor list, Vendor claims, industry reputation and the likes) will be considered in evaluating a Vendor’s application for Accreditation.

Q: Can Accreditation-applicants serve STEAG requisitions?

Vendors which are still undergoing Vendor Accreditation application may only be considered if the existing STEAG Accredited vendor pool for a specific product or service is not sufficient or competitive.

Q: Which Department should the Vendor in general contact for any requisitions or commercial exchanges?

The Purchasing Office of the Legal & Purchasing Department only.


Q: Can Vendors visit the Plant anytime of the week?

As a rule, STEAG’s o cial Vendor Visiting Day is every Tuesdays with the Purchasing Office-approved and coordinated appointment at least 1-week prior to the date of visit. Exceptions include visits related to:

  1. Clarification of any outstanding STEAG-issued Purchase Orders; or

  2. STEAG requested visits related to urgent, emergency or Priority 1 requirements that may require site discussion and inspection.

Q: How to coordinate and schedule the Vendor visit?

  1. Email the Purchasing Administration Office at for a Request for an Appointment on any Tuesday of the month at least one (1) calendar week prior to your proposed date of visit.

  2. Wait for feedback from the Purchasing Administration Office.


Failure to secure the approved appointment is su cient reason for denial of entry at the Plant.

Q: In responding to any STEAG request for quotation (RFQ), what are the minimum terms that should the Vendor indicate in its quotation?

For faster evaluation, the following minimum information should be included in the reply-quotation using the Vendor’s company letterhead:

  1. Price in Value added Tax (VAT) -excluded amount

  2. Complete technical specification with drawings, brochures or samples

  3. Complete Delivery term / Incoterm

  4. Delivery Lead-time

  5. Payment term

  6. Warranties, discounts, after-sales support, and other advantage, tangible or not, included

  7. Validity date of the submitted proposal

  8. Type of ordering allowed (complete / partial), if applicable


Replies to STEAG RFQs can be sent either via e-mail or in sealed envelopes in accordance with the Purchasing O ce requirements as stated in the STEAG RFQ. Note that submissions in sealed envelopes apply to transactions under a closed bidding procedure.

Q: What is a closed bidding procedure?

STEAG applies a closed bidding procedure for all goods and service requirements of substantial amount and/or of strategic importance. is procedure includes the conduct of pre bid conferences and evaluation of the bids by the STEAG Bid Committee.

Q: What if the vendor fails to submit the bid on the prescribed date of submission?

Late bids will not be considered after the set deadline.

Q: What is the usual turn-around time for STEAG to evaluate the Vendor quotes?

In a regular bidding procedure and depending on the:

  1. urgency of requirement;

  2. amount involved;

  3. complexity of the product or service requisitioned;

  4. completion of the minimum no. of bids received as per Purchasing policies and procedures; 


The turn-around time ranges between 2-21 working days from the deadline set for bid submission.

Q: Should Vendors deliver goods and/or services without any STEAG Purchase Order?


  1. SERVICES: those with the Legal & Purchasing, Head of Department issued written Notice to Proceed (NTP) covering any urgent, emergency, Priority 1, or outage service requirements duly approved by the Power Plant Manager (PPM)
  2. GOODS: those with an accomplished Request for Urgent Form (RFU) covering urgent, emergency, Priority 1, Outage supply requirements with the approval of the End-user and Legal & Purchasing Department Heads.

Both written NTP and signed RFU have the binding e ect of a STEAG PO. Vendors must ensure that said documents are in place prior to delivery of any of the Plant’s urgent, emergency, Priority 1 or Outage needs.

Q: Why do we need to execute a Contract cover when the STEAG PO provides terms & conditions already?

The Contract cover serves mainly to maintain good relationship between SPI and its Vendor by eliminating, if not reducing, gray areas and confusion with respect to the agreed obligations and responsibilities. It also manages risks and provides immediate remedies to either Party in case clarifications or disagreements arise during, while or even after the goods or service is delivered.

Q: If a good or service requisition will not be awarded to us, will we get any notification?

Non-winning Vendors quoting on requisitions of substantial amount or of strategic importance will receive a Notice of Regret.

How We Value Our Vendors

Q: How can we get an OUTSTANDING Vendor award?

An Outstanding Vendor is an accredited Vendor which garnered at least 90% nal rating with no rating 80% in all Quality and Price Criteria set by STEAG.

The following are CRITERIA used to evaluate the Vendors’ performance on an annual basis:

  1. Price
    Some considerations in evaluating the price competitiveness of a quote are as follows:

    - Competitiveness, considering factors a ecting the transaction;

    - Payment term of at least 30-days;

    - Extends discounts or any premium value service or goods;

    - Submits billing accurately or zero (0) variance between the STEAG PO price and Vendor’s invoice.

  2. Quality

    -  Timely deliveries as stated in the STEAG PO and Vendor quotation;

    -  Deliveries conform to the technical specifications, quantity and other conditions as stated in the STEAG PO or zero (0) discrepancy;

    -  Deliveries are packed in accord with the standards;

    -  Deliveries satis es expectations of the End-user department;

    -  Performs exemplary customer servicing by, to name a few:

    • provides extra effort to meet SPI’s emergency / urgent requirements
    • responds to discrepancies in a timely manner, 
      without need for follow-up
    • updates catalogues, price information and technical 
      information of product presentation
    • provides training, demonstration on the effective 
      use of its products and services and the like value 
      added service
    • provides timely back services (back job) for repair or 
      replacement of an unsatisfactory product
    • handles inquiries, complaints and other requested reports timely and responsively

    -  Responds to STEAG’s RFI and RFE

    -  Maintains zero (0) violation of any SPI policy

In sum, the standard is the Value STEAG gets in any transactions entered. Value being a result of price and quality.


Q: What other AWARDS and RECOGNITION are up for grabs to deserving Vendors?

Life Saver Award – given to a Vendor or Vendors, if any, extending valuable, timely and responsive support in any extreme emergency experienced by the Plant

Extra Mile Award – given to a Vendor or Vendors for any signi cant positive contribution to STEAG during the evaluation period. A signi cant positive contribution is anything which goes beyond the regular duties and responsibilities of a Vendor in order to align with the goals of STEAG.


Q: When does SPI hold its Vendor Recognition and Awards Ceremony?

It started in 2012 and every 3 years thereafter.


Reminders on Payment

Q: Where will invoices be submitted for payment?

For Luzon-based Vendors, invoices should be submitted to the STEAG Finance Head Office (Makati).

For Visayas and Mindanao-based Vendors, invoices should be submitted to STEAG Finance Plant through the Reception.


Q: What is the requirement in order for BDO Cogon to release Check for payment under a Bank release arrangement?

  1. In every payment run, STEAG Finance will email a collection notice to all Bank release Vendors, the collection notice or advice is needed upon collection of the check in the bank. Present the STEAG Finance notice to the BDO teller for the release of the check.

  2. Issue official receipt/collection receipt to the BDO teller.


Q: What are the factors to be considered before an invoice is processed for payment? 

  1. For Goods - already accepted and SAP posted by the STEAG Warehouse.

  2. For Services - STEAG Completion, Acceptance or Take Over Acceptance Certi cate issued (COC, AC, TOAC) and SAP posted by the STEAG warehouse.

  3. For transactions requiring Contract cover

    - Performance bond submitted - if stipulated in the contract

    - Retention bond submitted, if such option is considered - if stipulated in the contract 


Q: How much does SPI withhold to vendors (as withholding tax) upon payment? 

  1. For Goods/materials - 1%

  2. For Services/Labor - 2%



Reminders on Deliveries

Q: What is the delivery schedule of SPI?

As a rule, the STEAG warehouse accepts deliveries from Monday to Saturday, from 8-11 in the morning and from 1-4 in the a ernoon.

Except only (i) during Outages; and (ii) and for any urgent, emergency or Priority 1 requirement duly communicated by the Purchasing O ce, the Warehouse accepts deliveries from Mondays to Sundays until 11 in the evening.


Q: What are the required documents in delivering the good or service?

As a rule, the Vendor must provide delivery receipt and STEAG PO copy. Additional documents may be required depending on the nature of delivery (e.g. MSDS in case of chemical deliveries).