Our job is to maintain your plants at peak effectiveness for their planned useful life
Although EEN will operate your facility under any type of O&M agreement, we suggest a win-win approach. We call this the “FFCP” or “Fixed Fee Cost Plus” O&M agreement.
Why? Well, have a look at this typical alternative: in an “all included” O&M offer such as normally provided by the original equipment manufacturers (OEM) there usually is a hefty fixed fee, a large bonus for the operator structured so they always get this payment and an insignificant penalty in case they mess things up. We call this type of contract the “AFMA” or the “All for Me Agreement”. Good for the provider and not so good for the owner of the facility in most cases.
The statement “we cover all your risks” may not be accurate and the all-inclusive offer, inflated in case an incident should take place, thus increasing your costs. Liability is normally limited to maybe $50,000 per incident so you end up paying for “liabilities” should something happen, or not.
Moreover, these types of agreements set up a scenario that could allow your assets to deteriorate and your production to decrease. Why? Having a fixed cost to operate within, such provider could be motivated to scrimp and save on parts and maintenance to increase his profits. That’s contrary to the goals of the owner who needs a well maintained asset that will last 20 years or more to generate profits.
In EEN’s opinion, our job is not to “operate” your plant. Our job is to maintain your plants at peak effectiveness for their planned useful life.