PROCUREMENT AT CERN. STFC Mechanical Engineering - Meet the Buyer event

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1 PROCUREMENT AT CERN STFC Mechanical Engineering - Meet the Buyer event

2 SUMMARY CERN Budget Expenditure on supplies CERN Procurement Policy Procedures for obtaining offers: - Requirements below CHF; - Price Enquiries ( CHF CHF); - Market survey & Calls for tenders (> CHF) Adjudication Rules Additional Information and Contacts

3 BUDGET MEMBER STATES CONTRIBUTIONS Amounts in Swiss francs Germany 20.00% Sweden 2.37% France 16.41% Austria 2.22% United Kingdom 14.42% Greece 1.90% Italy 11.47% Denmark 1.74% Spain 8.76% Finland 1.46% Netherlands 4.48% Portugal 1.16% Switzerland 2.85% Czech Republic 1.07% Belgium 2.78% Hungary 0.67% Norway 2.72% Slovak Republic 0.59% Poland 2.62% Bulgaria 0.31% Total 100% CHF

4 EXPENDITURE IN CERN MEMBER STATES FOR SUPPLIES, CIVIL ENGINEERING AND INSTALLATIONS IN 2009 (Excluding visiting teams and collaborations) PARTICLE DETECTORS 0.2% DESIGN STUDIES CIVIL ENGINEERING AND BUILDINGS MISCELLANEOUS 17.0% 3.6% 14.0% COMPUTER SYSTEMS AND COMMUNICATION 15.2% 30.3% 4.2% 7.2% 8.3% VACUUM & LOW TEMPERATURE ELECTRICAL ENGINEERING AND ENERGY ELECTRONICS ELECTRONICS MECHANICAL STRUCTURES Dante Gregorio TOTAL COMMITMENTS: MCHF 24 November 2010

5 PROCUREMENT POLICY Ensure bids fulfil all the necessary technical, financial and delivery requirements; Keep overall costs for CERN as low as possible; Achieve balanced industrial returns for the Member States.

6 PROCUREMENT POLICY Not less than three competitive tenders to be sought for the purchase of supplies; Invitation to tenders to be limited to manufacturers and contractors located within the territories of Member States.

7 PROCEDURES FOR OBTAINING OFFERS Requirements not exceeding CHF (Fax orders); Users may request offer or refer to price list in catalogue or on web Requirements between CHF and CHF; Users may request offer directly. A written offer is mandatory Requirements between CHF and CHF; Users may issue enquiries directly provided CERN procurement rules are followed; Purchases between CHF and CHF Price Enquiries issued by Procurement Service; Purchases exceeding CHF Market Surveys & Calls for Tenders issued by Procurement Service.

8 REQUIREMENTS BETWEEN AND CHF Price enquiries: Drafted and issued by Procurement Service Documents include: Cover letter - including enclosures; Technical specification - including technical annexes and technical drawings; Tender form; Technical questionnaire (not compulsory).

9 REQUIREMENTS BETWEEN AND CHF Price enquiries: Deadline for bidders to submit bid is at least 4 weeks from mailing date; Number of firms to contact should be at least three and as a general guideline should not exceed five; Market survey is not needed; Price enquiries are not published but all enquiries exceeding CHF are also sent to Industrial Liaison Officers (ILOs) for information.

10 INDUSTRIAL LIAISON OFFICES Representatives of the CERN Member States in charge of: - Identifying suitably qualified suppliers to be contacted for CERN requirements; - Ensuring the proper flow of information between CERN and potential suppliers in the Member States.

11 ADJUDICATION < CHF Price enquiries: Lowest offer (Ex-works price) which complies with the technical, financial and delivery requirements.

12 REQUIREMENTS EXCEEDING CHF Calls for Tenders: Announcement in the document Advance information on Forthcoming Market surveys and Calls for Tenders expected to exceed Swiss francs ; Market survey; Selection of firms to be invited for tender; Calls for tender.

13 MARKET SURVEYS Purpose: Pass information to industry on future requirements; Allow delegates, ILOs to propose potential bidders; Update and improve CERN s supplier database; Encourage firms to seek early exchange of technical information with CERN and vice-versa; Allow CERN to draw up a final list of qualified bidders; Allow CERN to draw up a final Technical specification for the call for tenders.

14 MARKET SURVEYS Drafted and issued by Procurement Service Documents include: cover letter (including a list of all enclosures); brief technical description (1-2 pages); qualification criteria (financial and technical); qualifyinq questionnaire. minimum 4 weeks for suppliers to reply; a market survey is valid up to 12 months from the date of issue (or up to 18 months for prototypes). Current Market Surveys available on Procurement Service home page

15 PRELIMINARY LIST OF FIRMS Firms proposed by ILOs and Delegations; Firms from the Member States which have expressed an interest in a Market Survey or a similar requirement; Other firms proposed by users; Firms selected from CERN s supplier database by the Procurement Service.

16 FINAL SELECTION OF FIRMS Only companies which have fulfilled the qualification criteria of the market survey concerned shall be considered; As a general guideline, the final list of firms to be invited to tender shall not exceed: - 10 firms for contracts between and CHF; - 15 firms for contracts exceeding CHF.

17 FINAL SELECTION OF FIRMS Likelihood that the selected firm will submit a bid; CERN s previous experience with particular firms; The number of firms selected from each Member State takes into account the Member State s contribution and its industrial return coefficient.

18 Contains: CALLS FOR TENDER Cover letter - including enclosures; Technical specification - including technical annexes and technical drawings; Tender form; Technical questionnaire (not compulsory). Deadline for bidders to submit a bid is at least 4 weeks from mailing date (with a longer period for more complex requirements);

19 ADJUDICATION > CHF Supply contracts are awarded on the basis of the lowest compliant bid: To the firm whose bid complies with the technical, financial and delivery requirements and is the lowest, subject to the rules aimed at achieving well balanced industrial return coefficients for the Member States.

20 INDUSTRIAL RETURN COEFFICIENT The return coefficient of a Member State for supply contracts for a given twelve-month period starting on 1 st March is defined as: The ratio between that Member State's percentage share of all purchases of supplies (excluding purchases funded by non- Member States) during the preceding four calendar years and that State's percentage contribution to the Budget over the same period.

21 BALANCED MEMBER STATES For 2010, a CERN Member State is considered to be poorly balanced if its Industrial Return Coefficient is: < 0.90 for supply contracts; Otherwise, it is considered to be well balanced.

22 WELL BALANCED MEMBER STATES For calls for tenders for supply contracts issued between and the following CERN Member States are considered to be well balanced: Czech Republic, Finland, France, Italy, Slovak Republic, Switzerland

23 DEFINITION OF COUNTRY OF ORIGIN - SUPPLIES In accordance with standards defined by EU i.e. the country(ies) where the supplies (including their components and subassemblies) are manufactured or undergo the last major transformation by the contactor or his sub-contractor.

24 THE ALIGNMENT RULE 1. LOWEST BIDDER FROM PB MS: CONTRACT

25 THE ALIGNMENT RULE 2. LOWEST BIDDER FROM WB MS: NEGOTIATIONS (DIFFERENCE < 20%) A. 1st BIDDER FROM PB MS ALIGNS: CONTRACT B. IF NOT - 2ND BIDDER FROM PB ALIGNS: CONTRACT C. IF NOT - CONTRACT TO LOWEST BIDDER

26 BIDS MADE BY A CONSORTIUM When a bidder submits a tender offering supplies originating from several Member States, or when bidders jointly submit a tender, the tender shall be treated as that from a poorly balanced Member State provided that the value of supplies originating in one or more poorly balanced Member State(s) is not less than 51% of the total amount of the contract.

27 UK CERN LIAISON OFFICER Dr Julie Bellingham Innovations Directorate Science and Technology Facilities Council Polaris House North Star Avenue Swindon WILTS SN2 ISZ e.mail:

28 CONTACT AT CERN FOR UK INDUSTRY Mr Dante Gregorio CERN Procurement Service Finance Department CH-1211 Geneva 23 Tel: Fax:

29 PROCUREMENT SERVICE HOME PAGE ADDITIONAL INFORMATION ON WWW:

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