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Cost Model

Cost Model. Cost Model: objectives Predictable costs Transparent costs Costs linked to the level of activity Continued benefits of initial competition 3 phases Proposal and evaluation phase: FFP per project

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Cost Model

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  1. Cost Model • Cost Model: objectives • Predictable costs • Transparent costs • Costs linked to the level of activity • Continued benefits of initial competition • 3 phases • Proposal and evaluation phase: • FFP per project • Negotiation phase: based on the FFP, agreement on the implementation of the cost model including • Units of cost • Charge to ESA for every unit • Cost qualifiers • Resulting formula to calculate project costs • Operations phase: • Application of the formula to all projects Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012

  2. Example cost model: proposal & evaluation phase • Initial basket attached to SoW contains the currently expected activities • The projects fall into all 4 types: • Collection • Consolidation • Processor integration • Processing For Dataset 1 (200 Gb), Dataset 2 (400 Gb), Dataset 3 (100 Gb) • Financial proposal contains FFP quotes for each project/dataset, taking into account timing and volume Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012

  3. Example cost model: negotiation phase For Data Collection projects in the initial basket, based on the negotiated FFP: • Agree on Unit of Cost eg 1 Gb • Agree on method to count the units eg nb of media * capacity * avg occupancy • Apply method to initial basket eg DS1=100 Gb, DS2=200 Gb, DS3=50 Gb • Count total for basket eg 100+200+50= 350 Gb • Determine average cost per unit eg 400 Eur / 350 Gb = 1.15 Eur per Gb • Define qualifiers if needed eg Type of media • Associate coefficients to qualifiers eg LTO -> 0.9, HDD -> 0.8, HDDT -> 1.75 • Finalise cost calculation formula eg Cost in Eur = size in Gb * 1.15 * coeff Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012

  4. Example cost model: contractual phase Upon request for a Data Collection project: • Apply method to count the Gb (UoC) -> nb of media * capacity * avg occupancy • Look up value of coefficient for qualifier -> LTO -> 0.9, HDD -> 0.8, HDDT -> 1.75 • Apply cost formula -> Cost in Eur = size in Gb * 1.15 * coeff For DS1: 100 * 1.15 * 0.9 = 100 Eur For DS2: 200 * 1.15 * 0.9 = 200 Eur For DS3: 50 * 1.15 * 1.75 = 100 Eur …….. For DSn: size in Gb * 1.15 * coeff Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012

  5. Cost Model main features • Procurement Proposal approved by IPC up to 18 Million over 3+2 years (beyond that amount, new IPC approval is needed) • Initial basket is for quoting and sizing purposes • No relationship between 18 Million (*) and initial basket • Projects assigned case by case – 5 million Euro min. guaranteed over 3+2 year duration • Adjustments of unit costs linked to time and volume • Model applies after the end of the Transition phase (phase-in) which is charged as FFP (*) budget availability depending on CMIN Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012

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