Introduction to the Procurement Process

1. MS-4492/EP Introduction to the Procurement Process Charles Carayon27 February 2019

2. Agenda Introduction MS Procurement Process Additional information Doing business with CERN

3. INTRODUCTION

4. CERN in 3 minutes

5. International Organization established on 1 July 1953. Immunity of jurisdiction and execution. As such, CERN is entitled to establish its own internal rules necessary for its proper functioning, including: Procurement Rules, Safety Rules, Staff Regulation of its own personnel. Legal Framework

6. When created : 12 Member States, “Science for Peace” Today : 22 Member States 8 Associated Member States ~ 2500 staff members ~ 2000 contractors’ employees ~ 13000 physicists/users Yearly budget ~ 1100 MCHF Legal Framework

7. YearlyBudget(contributions 2019) 7

8. Procurement Expenditure

9. What do we buy? • Civil engineering: • Construction, renovation of buildings • Metallic structures • Earthworks, roads, etc. • Infrastructure & services: • Cooling & Ventilation • Cables, electrical installations • Mechanical engineering • Transport & handling • Security & access control • Gas, • Etc. • Installation, operation & maintenance • Data acquisition, IT systems • Miscellaneous: Furniture, tooling, stationery, etc.

10. Technology for accelerators / detectors • Silicon sensors, • Industrial controls & field buses; • Timing & “fast” real-time controls; • Power converters, power supplies; • Magnets; • Beams : instrumentation, collimation, injection, ejection & dump; • Other specific equipment : cryogenics, vacuum, radiofrequency. • New projects: • High Luminosity LHC (HL-LHC) • LHC Injectors Upgrade (LIU) • + • Linear Collider studies (CLIC) • Future Circular Collider studies (FCC) • …

11. Our facilities

12. Our facilities: CERN Accelerator Complex 12

13. Our Facilities: LHC detectors • Brilliant performances of LHC, experiments and GRID computing duringdata taking periods ATLAS CMS LHCb Bos μ+μ− ALICE: Pb-Pb

14. Our Facilities: ATLAS experiment

15. Our Facilities: CMS experiment

16. THE PROCUREMENT PROCESS

17. Principles of the Procurement Rules • Transparency and impartiality; • Tender open to CERN/ATLAS/CMS Member States only; • Objectivity and equal treatment: tendering packages are objective and impartial

18. Selective tendering procedures: CERN’s tendering procedures are not open to any interested firms; Confidentiality: Opening and evaluation of bids as well as negotiations are not public. Principles of the Procurement Rules

19. A framework MS for multiple needs • Group of firms are welcome! • Subcontracting allowed except design, development, final assembly and testing.

20. Procurement process of MS-4492/EP Supplies Type x Supplies Type 3 Supplies Type 2 Contract 3 Contract x Contract 1 Contract 2

21. Procurement process of MS-4492/EP “Market Survey” (MS) = get qualified • Step one: “Qualification Questionnaire” to be submitted • Only firms or group of firms meeting the criteria set forth in the questions will be qualified for Step 2 • Step two: 2 – 3 units of power supply units to be delivered for evaluation • The samples shall at least comply with this set of minimal requirements: • AC input power factor better than 0.95 above 40% of the nominal output power; • Total efficiency better than 85% above 40% of the nominal output power; • Functional remote monitoring and control software in the form of an OPC server compliant with OPC-UA (Unified Architecture; OPC foundation). Alternatively, in case the firm or group of firms does not yet offer OPC, an equivalent functional remote control software is acceptable. • Step three: several price enquiries (PE) for the development and supply of prototypes (one PE per equipment type and operational environment) • Submission deadline: 4 weeks • Excessive prices may lead to the rejection of the bid Note: firms or group of firms having already produced power supplies complying with CERN requirements for the present Market Survey may pass step 2/3 without being requested to deliver power supply units.

22. Procurement process of MS-4492/EP “Invitation to Tender” (IT) = make an offer • One per equipment type and operational environment; • Sent to qualified and selected firms only; • Submission deadline: 4 weeks from date of dispatch (with a longer period for more complex requirements); • Invitations to Tender consist of: • Technical specification and annexes; • Tender form (and a technical annex - optional); • General Conditions of CERN (contracts, Invitations to Tender, Safety, etc.); • … • Bids shall be submitted via CERN’s e-tendering application.

23. Award based on: Lowest compliant bid /!\ Alignment rule not applicable

24. Procurement Timeline (estimated) • This Market Survey encompasses many use cases, each with its own development timeline. • Step 3 price enquiries issued from S2 2019 onwards to end-2020; • IT issued from as early as mid-2019 (standard environment) onwards, till end 2020 / beg. 2021 (hostile environment); • Contracts awarded from end-2019 onwards, including a maintenance part (duration:10+ years). • Supplies to be delivered in multiple batches from 2020 (pre-production) to 2023 (end of production). • Additional orders will be placed after 2023, well into the HL-LHC era. HL-LHC timeline:

25. Communication Process All questions shall be addressed in writing to: Charles.carayon@cern.ch Copy to Vincent.Bobillier@cern.ch and Procurement.Service@cern.ch

26. ADDITIONAL INFORMATION

27. Website of the Procurement Service http://procurement.web.cern.ch/

28. CERN Shopping List https://found.cern.ch/java-ext/found/CFTSearch.do 28

29. Register in the Suppliers Portal Mandatoryfor all exchanges with CERN, in particular to: • Be visible for future opportunities (with the procurement codes you have indicated), • Receive and follow-up orders, • Send invoices.

30. To ensure our emails reach your inbox please add our email procurement@cern.ch to your safe senders and check your spam filter settings.

31. DOING BUSINESS WITH CERN

32. Key success factors Profile of successfulfirms • Often small – medium sized and flexible firms; • Ensure full understanding of specifications – exceeded specifications may be too expensive; • Communicate efficiently with CERN and ask questions when in doubt (issues, alternatives, etc.); • Take into account test requirements and documentation; • Follow-up closely on the performance of sub-contractors; • Ensure best efforts are made from the outset through to contract completion.

33. Doing business with CERN: the facts Supplier survey (+600 firms, 1997-2001): Results • 38% developed new products; • 42% increased visibility at international level; • 44% improved technical knowledge in their field; • 52% would not have had the same sales level without CERN; • 17% found or opened a new market to address; • 60% found new clients. All suppliers considered having CERN as a reference to be beneficial

34. Doing business with CERN: the facts Study on cost and benefits of HL-LHC (+650 suppliers, 2018): Results “Each CHF invested in HL-LHC project pays back approximately 1.8 CHF on societal benefits, including scientific, economic and cultural value (development of innovative technologies, industrial spillovers, skills acquired by students, etc.).”

35. THANK YOU