JLS/2007/D1/032 ANNEX 1 Terms of Reference Network of experts on the economic analysis of terrorism and anti-terror policies (NEAT)

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1 JLS/2007/D1/032 ANNEX 1 Terms of Reference Network of experts on the economic analysis of terrorism and anti-terror policies (NEAT) 1. INTRODUCTION AND BACKGROUND Article 2 of the Treaty establishing the European Union stipulates that the Union shall set itself a number of objectives including maintaining and developing the Union as an area of freedom, security and justice and promoting economic and social progress and a high level of employment. In addition to this, in March 2000 the Lisbon European Council set the ambitious goal for the European Union to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion. The need to protect liberal societies against terrorism must therefore be balanced against the need to protect market economies from too much regulation in the name of security. It is obvious that these two aspects are closely inter-linked and security influences prosperity and vice versa. However, the knowledge on the impact of terrorism and of measures against terrorism on prosperity particularly in Europe seems to be rather scattered across Europe. Additionally, the understanding of the costs distribution of both terrorism and anti-terrorism measures should also be improved. The network shall strengthen the understanding of the economic impacts of terrorism and anti-terror policies, and to contribute to enhancing European security, economic development and research. The Network of experts shall contribute to developing the European Union's ability to meet the challenge of reconciling security and growth. A "Network of Experts on the Economic Analysis of Terrorism and Anti-Terror Policies (NEAT)" therefore may be set up and its terms of reference and structures detailed. 2. PURPOSE OF CONTRACT 2.1.Aims and content of the project The main aim of the project is to contribute to the improvement of the understanding of links between security and economy and thus to assist security policy development in Europe. This shall be done through the setting up of a stable, focussed and effective network of leading European centres and experts on the economic analysis of issues related to terrorism and security. The focus of the network shall be as much policy relevant as possible. Members of this network may be requested to give advise to the Commission in the analysis of the economic impact of acts of terrorism and antiterrorism measures at national and European level. The general aim of the project will be to: create a network of experts analysing terrorism and anti-terror policies from an economic perspective and aggregate existing knowledge; identify gaps in the scientific knowledge of the economics of security and antiterrorism measures;

2 propose activities to address these gaps; support the Union's goal of reconciling security and growth in particular through: analysing the factors contributing to terrorism, and organisation and consequences of terrorist acts from an economic perspective; providing support to the development and evaluation of counter-terrorism policies using analytical and empirical economic approaches; support Commission's activities in the fight against terrorism. 2.2.Characteristics of network to be set up The network shall be made up of a "core network" and an "extended network". The core network should consist of at least 7 (but not more than 20) experts each representing a different organisation. The network of experts shall be made up of highly qualified specialists primarily economists with demonstrated competence in the analysis of the economics of terrorism and of security. There is no limit to the amount of experts that may become part of the whole extended network. The contractor must however ensure that members of the core and the extended network respect the requirements set out in these Terms of Reference and Specifications. The network should reflect a good geographic balance of European countries and cover a diversity of schools of thought and areas of specialisation and orientation (e.g., macroeconomics, microeconomics; specific sectors (including the security sector providing security services and products), individual companies, consumers, civil society, governments, fiscal issues, etc.). The composition of the core network can change during the duration of the project provided the proposed new members fulfil the conditions of these Terms of Reference and Specifications and provided the contractor notifies any changes to the Commission. The Commission shall have full discretion to approve or reject any suggested change in the composition of the core network. The Commission will have one month from the date of receipt (by registered mail) to decide whether to approve or reject a proposed change and in the case of rejection the contractor would be obliged to propose a new name, if necessary. The one month time-period would apply with every new suggested change. While additional members can be taken on board during the project, the number should in no case decrease below 7. Other relevant individuals may be invited as observers. The extended network shall be composed of individuals, in their personal capacity or representing the organisation to which they belong, who can demonstrate a professional interest in the subject. The contractor will evaluate whether an individual may become part of the network but it has a general obligation to ensure that members have a relevant interest in the network and have the potential to contribute to the exchange of expertise and knowledge. Professionals from non-eu countries interested in joining the extended network may do so. The contractor must keep the Commission regularly updated about membership in the network. 2

3 The Commission will conclude a single contract with a single contractor, who will be the main contact point for the Commission, responsible for contractual and administrative issues concerning the network, and will perform the function of network coordinator Specific Tasks Task 1: Mapping of expertise, organisations and research results The first task will consist of mapping expertise, organisations and research results in the EU, the EFTA, candidate countries and other relevant non-european countries (such as the USA), in order to draw up a on overview of the centres of excellence and experts in economics of security (with a special focus on terrorism). This mapping should result in: 1. Identification of institutes and research centres on the economics of security with a particular emphasis on the interplay between economy, terrorism and antiterrorism measures. 2. Survey the state of play of research on inter-relation between the economy and security with a particular focus on terrorism. The survey should also identify the level of knowledge on the interaction between the costs distribution of both terrorism and anti-terrorism measures. However, the contractor must build on and should not duplicate the results of "A survey on economics of security with particular focus on the possibility to create a network of centres of excellence and on the interplay between costs of terrorism and anti-terrorist measures the state of play of research" (DG JLS Tender - JLS/D1/2006/10). Full access to the results of the study and/or interim report will be granted on request once available. Identification of possible areas and organisations which were not covered by the above mentioned survey should be delivered within 2 months after the award of the contract. The inventory of organisations/individuals as well as the progress of the research should be updated once a year. The mapping may result in additional experts joining the network with the approval of the Commission. However, the total number of the core network should not exceed 20 and the reasons, why the new experts should join the Network, will need to be clearly justified. Task 2: Organisation of Seminars and Conferences The contractor responsible for the co-ordination of the network shall plan and prepare the organisation of seminars and conferences after agreement of the Commission within the scope of the budget of this contract. The first seminar/conference should take place as soon as possible after the signature of the contract. The aim of these activities should be to build up the area in Europe, to support networking activities between the actors involved, to draw on new ideas and developments in the field and to encourage activities at European level. 3

4 The contractor is expected to achieve the following: - prepare and conduct seminars/conferences, - preparation of a list of speakers and invitees, - contacting speakers and preparing the call for papers, - collecting and disseminating papers, - publishing papers on the web-site of the network, - sending out invitations, - preparing minutes of the meetings. The number of seminars cannot be lower than one every six months (i.e not less than 4 in the first 2 years) and a minimum of 50 people must be invited. The Commission may require the invitation of certain officials from the European institutions, officials from international or regional organisations as well as experts in the field from both within and outside the European Union. It may specifically require the invitation of one representative per Member State over and above the stated minimum of 50 as a condition to its agreement. All travel, accommodation and subsistence costs of the core members of the network must always be covered by the contractor as well as any costs relating to the hosting of meetings. Dates of the seminars must be planned and announced 3 months in advance to ensure substantial participation from people within as well as outside the network. At least one seminar per year must be held in Brussels and the Commission will host it in its premises if a request is made at least 6 months in advance. Incurred costs have to be borne by the contractor and no registration fee for these events can be envisaged. The seminars shall be held in English. Task 3: Development of a proposal for a work programme Within the first 10 months of the project the network will prepare a proposal for a 3-year work programme of the network on the economic analysis of terrorism and anti-terror policies. This programme will start from (but not limit itself to) projects already identified by the Commission. The programme will identify concrete activities, dates and recommended actors. It will need to be discussed with, and agreed by the European Commission. It will be revised annually in view of new needs and new expertise available. Additionally, the focus of the activities should be on bringing research and research results closer to policy making and/or targeting research so that this may happen in the near future. Task 4: Support in preparing studies and surveys The network will assist the Commission in suggesting possible topics for studies, research projects and statistical surveys. The contractor shall be able to identify priorities with respect to such research projects with agreement of the Commission. The network will provide its expertise in order for the Commission to draw up: - proposals for studies and research projects that could help to close important information gaps in the field of the economic analysis of terrorism and anti-terror policies; 4

5 - specifications of terms of reference for studies (approach, scope, methodology) carried out by the Commission in the field of the economic analysis of terrorism and anti-terror policies; - recommendations on statistical data relevant to economics of education: data needed for analysing and modelling economic aspects of terrorism and anti-terror measures/policies (including scope and definition), gaps in existing statistics, additional data should be collected in priority in the future, etc However, the drafting of terms of reference and specifications itself will be fully under the Commission responsibility. Task 5: Setting up and maintaining of a web site on economics of security with particular focus on terrorism The contractor will within the first three months after the signature of the contract set up a web site of the Network of experts on the economic analysis of terrorism and antiterror policies (NEAT). The site will at least include the following elements: a) Introduction, explanation of mandate b) the list of main centres of excellence and other institutions active in the area, based on the mapping exercise (inventory), including hyperlinks to these centres/institutions, where available; c) a list of relevant international statistical sources (e.g.: OECD, Eurostat, etc), including hyperlinks; d) a list of key publications and studies, including hyperlinks; e) a list of key terms and definitions on economics of security and terrorism; f) a calendar of relevant events in this field (conferences, seminars etc); g) information on and proceedings of the events mentioned under task 2; h) information on relevant call for tenders and proposals at European and national level; i) the results of relevant research projects and studies carried out in this field, especially results of Commission research projects and studies; j) information on the general development of economics of security and terrorism in the past and the future k) news of importance in this field l) a discussion forum on economics of security and terrorism While the site is expected to cover at least elements a)-d) after the first 5 months of the contract conclusion, all elements are expected to be covered within first 10 months after signature of the contract. This Internet site should be designed in such a way that it can be used as an exchange platform between specialists, centres of excellence and stakeholders all over Europe. It will be updated at least once a month by the contractor and maintained throughout the duration of the project. It must also be archived in such a way that, if required, it can subsequently be hosted and operated by the Commission or another contractor without payment of royalties or other charges. Task 6: Providing guidance and advice on questions emerging on an ad hoc basis The experts forming the core of the network will be requested to provide advice on concrete questions of the Commission in the field of the economics of security and terrorism that emerge occasionally on an ad hoc basis. The network will thus also have the role of a think tank. Such questions might emerge while preparing policy documents, 5

6 papers for meetings, or while answering to consultations. The Commission will forward related questions to the network via the contractor when it is not clear who can answer them. In some cases experts in the network might be contacted directly if the question falls in the area of a specific expertise. In many cases an answer will be needed within a short period of time. While it is difficult to estimate the frequency of questions emerging, it is expected that questions will, on average, not emerge on a daily basis. Task 7: Preparing short analytical reports If deemed necessary and within the budget of this contract, the experts of the network may be required to prepare short analytical reports (ca. 10 pages, not more than 3 reports per year) in the field of economics of security and terrorism on subjects to be decided by the coordinator of the network with agreement of the Commission. Task 8: Enhancement of the web site If deemed necessary and within the budget of this contract, the quality of the internet website may be further enhanced. This shall be done with the agreement of the Commission. 2.4.Meetings 2 meetings in Brussels between the contractor and the Commission should be foreseen in the course of the contract. The first meeting must be held before the end of the first year from the date of signature of the contract. 2.5.Duration The contract period will cover 2 years from the date of its signature. The contract may be renewed for another two years. 2.6.Relations with the Commission In the course of the contract, the contractor will have to be in a regular contact and will be obliged to consult the Commission on its activities (e.g., topics and participants of the seminars/conferences, structure of the webpage, reports, etc.). 3. REPORTS AND DOCUMENTS TO BE SUBMITTED The contractor will produce an interim report in 12 moths after the contract signature and a final report at the end of the contract. All reports should be drafted in English. The reports will mainly be based on the different tasks carried out and the material collected in this context. Interim report to be provided within 12 months of the signature of the contract. The interim report will include information on: - the work carried out so far (including inventory of experts and publications); - outcome of the seminars/conferences; - work programme of the network for economics of security and terrorism; - updated calendar on how to approach outstanding issues; - structure and content of the web site. 6

7 A final report will be produced within 24 months of the signature of the contract and thus at the end of the contract. The interim and final reports will include a 3-5-page summary in English and annexes in addition to the main text. The report should describe the activities carried out and include all the elements covered by the interim report and by the web site. Both final reports should look into the future by setting out new topics where economics of security and terrorism may contribute to improved decision making and better policies in Europe. It should also provide an insight into new methodologies, main outcomes and important issues in the development of economics of security and terrorism. A draft version of the final report must be submitted to the Commission within 60 days of the end of the contract. The Commission will then inform the contractor of its acceptance of this report, or will pass on its observations. Within 30 days of receiving the Commission s observations, the contractor will submit the final report in definitive form, either taking account of these observations or setting out different arguments. In the absence of observations from the Commission within a month after the date of receipt of the draft report, the contractor will be entitled to request its acceptance of the report in writing. The final report will be considered as being accepted by the Commission if, within a month after the receipt of this request, the Commission has not explicitly made its observations to the contractor. 4. MAXIMUM BUDGET The maximum amount available for creating the network is Euro for two years. The budget is indicated in line with the principle of sound financial management, and the principles of economy and value for money shall prevail. While setting their travel budgets, tenderers are invited to take into account the requirements and the geographical coverage needed. Tenderers are requested to include in their bid the fixed price that they would charge the Commission in order to perform the same tasks for an extra period of two years. For that end, tenderers are invited to complete a distinct Annex 5. The Commission is in no way bound to renew the contract. 7

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