ILO Meeting #20 Specific Points raised by ILOs. 20 th March Toulon/IBF2013

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1 ILO Meeting #20 Specific Points raised by ILOs 20 th March Toulon/IBF2013 1

2 ILO Meeting #20 - Agenda Agenda 09h00: Welcome, General information and update on F4E and ITER 10h00: Questions previously sent by ILOs 11h15: Coffee break 11h30: Status update on on-going and forthcoming calls for tender 13h00: End of meeting Reminder: specific questions related to a company in a given procedure will not be answered, as required in our Implementing Rules. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

3 Specific points from ILOs (Finland) Model Contract Bank Guarantee and Liability Values The contractual Bank Guarantee and Liability values are so high that the banks, at least in Scandinavia, do not accept them for middle size and relatively big size companies. For big international companies with deep pocket very heavy liabilities are typically not acceptable, especially in non-strategic business areas (as ITER). As a consequence, the readyness of the banks to accept guarantees and liabilities turns out to be the dominating issue in the competition. Following the modification of the policy of the European Commission, F4E is revising his policy on the matter. F4E will waive the submission of the bank guarantee for contracts below 10 M. With regards to liability, F4E has adopted as a standard approach the policy to proportionate the liability to the contract value [up to 2x contract value], but it might also be proportionate to the maximal risk assessed by F4E. There are exceptions where this topic is subject to Negotiation. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

4 Success rate statistics by country ILOs informed of debriefings vs. unsuccessful tenderers 1. Should be possible to have an update? 2. Additional request to be informed when a debriefing is planned with unsuccessful tenderer. 1. Yes 2. BI shall be informed by PPO when a debriefing is organized with unsuccessful tenderer. BI to inform then ILOs Attendance of ILO will be subject to the tenderer agreement. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

5 Transparency and best practices In relation to the procurement process in which companies don t succeed in reaching the minimum threshold and are disqualified from a technical point of view why is F4E opening the economic offer if not going to evaluate it? why is requested to send the economic offer in a different envelope from the technical one if F4E is opening both the economic and the technical one at the same time) F4E opens Economic envelope and this is justified to check the completeness of the offer. F4E keeps the confidentiality and does not give this information to EXCO in case the company is not compliant with technical award. There is a single opening committee, and then the envelopes are dispatched within the evaluation committee members, to be assessed in parallel by different members in consideration of time efficiency. If the technical evaluation is non-conclusive, to avoid any bias, the financial evaluation result is not granted to the other members of the evaluation committee. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

6 SMEs policy There were some comments in the F4E Poland Infoday presentation about F4E Industrial Policy in favor of SMEs in Horizon ; please could you explain us this? SME participation is part of our Industrial Policy and F4E is implementing guidelines in that respect. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

7 IO Information 1. ILOs understand that there is an exchange of Info between IO and F4E in relation to the EU awarded companies in the IO procurement process => to be given to ILOs 2. F4E is the contact point at the first step of the IO CfN, and represents the EU interest on the ITER project; as you know, sometimes there are delays in the foreseen schedule or cancellations and European companies need to have a contact point for these cases. 1. F4E does not have information from IO despite several attempts. We receive some statistical data from Agence ITER France. ILO may help F4E in this action. F4E should request this info from Euratom who is attending the ITER Council, to be checked internally F4E. 2. Contact point for CFN is Ines Ceceres + back-up Michaela Trbolova.. Yet please use the generic address for any inquiry. Remark: When we have transmitted nominees we do not have more news except when we receive a notification of cancellation for example. We can distribute the list of EU companies nominated, on-demand, case-by-case, covering the country of origin of the ILO. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

8 Divertor RH. More information about the Divertor RH Competitive Dialogue process and in particular I d thank to have more details about the scope and schedule of the Business case study and the economic compensation. The Business Case (BC) preparation is in parallel to the Dialogue phase The BC belongs formally to the Tendering phase in order to - reduce overall procedure duration - provide tenderers enough time to perform a reasonably complete exercise. The BC payment (please note it is a prize, not a compensation): - To reward effort of tenderers in preparing a complex and long BC (5 months) - improve Fusion for Energy s capability to judge and select the offers - Min: 45k -Max: 128k, depending on relevance of the offer. - Is proportional to the score achieved in BC (No payment if minimum thresholds are not reached). The Call for tender phase - Invitation to submit Tender: June 2013 (tbc) / Tender submission deadline: July 2013 (tbc) - Evaluation phase (including BC presentation): July to September 2013 (tbc) - Award decision: Oct 2013 (tbc) Contract signature: Nov 2013 (tbc) - Signature of Task Order No. 1 (beginning of implementation): January 2014 (tbc) F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

9 Update on the status of PA and a list of the large contracts for the next years For instance, contracts above 20M See next slide + Please check Work Programme and Project Plan last update December Budget and WP for next years are not yet approved. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

10 Tentative signature dates Procurement Activity (Activity name in Primavera) Primavera end January 2013 Buildings & Power Supplies TB06 Contract for Procurement, Install. and Commissioning PPEN/SSEN Equipments & Cables from July 2013 to August 2013 TB07 - Contract for Design & Built Bigs 67,68,69 from May 2013 to June 2013 Tokamak Seismic Isolation Pit - Additional Activities (Due to IO Design changes) for 2013 from Jan to March 2013 TB11 - Contract for Final Construction Works from Jan to Dec TB03 - Contract for Civil Works and Finishing - Amendment 2013 Magnets Jan-13 TF Winding Pack Manufacture-Stage #02/ 1 TFWP from Oct 2013 to Sept 2013 TF Winding Pack Manufacture-Stage #03/ 9 TFWPs Site and Infrastructure Support contract for on-site management of PF coil facility PF Coils Engineering & Integration Impregnation Tooling for PF2-PF6 Winding Tooling for PF2 and PF5 Winding Tooling for PF6 Winding Tooling for PF3 and PF4 Additional tooling PF Coils Manufacturing and Cold Test (MFR) Oct-13 Jul-14 May-13 Sep-14 Oct-13 Oct-13 Oct-13 Sep-14 Nov-14 Vacuum Vessel Procurement of Main Vessel - Stage 2M - Materials confirmed 2013 Procurement of Main Vessel - Stage 7M - Materials confirmed 2013 Procurement of Main Vessel - Stage 8M - Materials confirmed 2013 Procurement of Main Vessel - Stage 9M - Materials confirmed 2013 In-Vessel Procurement for Fabrication of Divertor Cassette Body From July 2013 to Nov Procurement of Test facility for Heat Flux testing of In- Vessel components Manufacture of full-scale First Wall prototypes Remote Handling Jun-13 Nov-13 Divertor RH Procurement from Jan to Nov Cryoplant & Fuel Cycle Design,mfg, on-site delivery and supervision of install'n & test of LN Plant & Auxiliary Systems NBTF - Manufacturing of the MITICA Cryopump Oct-13 Apr-14 Neutral Beam and EC Power Supplies and Sources Procurement for NB AGPS + GRPS - MITICA from December 2013 to February 2014 High Voltage Deck and Bushing (HVD, Bushing) from May 2013 to July 2013 Contract for BPS & MHVPS Main Option (Main Contract) NBTF - Procurement for MITICA Vessel Project Office Components Transportation Aug-13 Jan-14

11 Should it be possible to have a document as the Buildings Strategy for other areas as IVC, HCDS, NB Test Facility, Diagnostics, TBMs? We do not have such documents. Please check Project Plan last update December F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

12 Prices abnormally low clauses. If any of such figures is deemed to be abnormally low in value, Fusion for Energy reserves the right to reject the Final Tender on these grounds alone Recently this kind of clause appeared in one F4E Model Contract; the problem is that you re not giving references for applying this criteria and this can t be a subjective matter.for instance in the Public contracts Spanish Law, it s established a reference for abnormally low in value prices ( < 50% of the price resultant of making the average of the pricessubmitted by all the bidders). In the same model contract is also stated As regards financial quotations, tenders quoting EUR 0 (zero), nil, included or equivalent will be treated as 1 (one) eurocent for the purpose of the evaluation. In my opinion, there is a contradiction between this statement and the previous clause. It s not a fair practice to apply this kind of clauses at random, only in one model contract; and what is worse. F4E is not establishing this kind of clauses in the new CfT for the Diagnostic Port plug integration that was previously cancelled due to a zero quotation case in one of the tenders. This is a clause of the tender specification normally. This is in application of IR Art 121. Please indicate in which contract it has been noticed. It is not a contradiction. It is for the formula not to crash with a 0 quotation F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

13 Previous questions Clarify the regime for contacts with F4E during the tendering phase. Are direct contacts with the PPOs allowed? Tenderers can contact PPOs via or on the phone to be assisted on how to formulate their question on the Portal. Then F4E answers on the Portal. F4E MPG/Business Intelligence group - ILO Meeting #20 - Toulon 20th March

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