estec European Space Research and Technology Centre Keplerlaan 1 2201 AZ Noordwijk The Netherlands Tel. (31) 71 5656565 Fax (31) 71 5656040 www.esa.int 15 November 2017 Subject: Guidelines for proposals preparation under the ESA satellite for 5G initiative 5G Validation Trials and Vertical Pilots Covers: Technology developments and Validation Trials Application development and Vertical Pilots This document describes guidelines for the preparation of proposals under the ESA satellite for 5G initiative. These guidelines cover technical and implementation aspects of the proposal. They do not cover any contractual aspects such as Special Conditions of Tender, Draft Contract, etc. The specific conditions for proposal submission are included in Annex I. 1. Scope of activities The ESA satellite for 5G initiative supports activities falling within the following two activity types: 1. Activity Type 1: Technology development and Validation Trials. 2. Activity Type 2: Applications development and Vertical Pilots. 1. Technology development and Validation Trials activities are related to the development of a 5G integrated satellite terrestrial system or of its components. Technology development cover (a) 5G transversal system enabling capabilities such as virtualization, SDN routers, NFV/MANO components, etc, for example for QoS/QoE, network and services management, New Radio, etc. (b) specific 5G services enablers for the provision of 5G services towards a vertical or cluster of verticals. These activities cover also testbeds developments for technology validation purposes and validation trials. Page 1 of 8
In a validation trial, activities are conducted (outside a laboratory environment) to verify/validate the functionality of a system or components of it; i.e. when the correct functionality is still the primary interest. Technical 5G performance, Key Performance Indicators (KPIs) and 5G metrics are assessed. No participation of verticals is envisaged. 2. Applications Development and Vertical Pilots are the activities related to the development and demonstration of services based on 5G networks and space systems. This includes the development of the service/application, the establishment of business relationships and user engagement and finally the demonstration/showcase of the developed services. This shall prove to the users in a specific vertical or cluster of verticals the added value of the service with respect to competitors using other technologies. Both technical and market KPIs and metrics are assessed. The ultimate scope of the proposals shall be the validation trial and/or vertical pilots execution for a targeted vertical or cluster of verticals, for activities of type 1 and 2 respectively. A roadmap depicting clearly the technology developments and validation trials, and the vertical pilots needs to be provided even at outline proposal level. Given the current evolution of 5G standards and integration with satellites, different levels of technology developments & validation trials / applications development & vertical pilots may be envisaged, depending on the level of 5G integration and 5G readiness (ranging from demonstrating 5G services with current satellite capabilities to full integration of satellite and 5G terrestrial networks). The sequence and interconnections between the activities of different types shall be evidenced in the Roadmap even at outline proposal level. The following principles for implementing activities apply: - The Tenderer may propose activities of type 1 and/or type 2. - The activities may be executed in parallel whenever this is required to achieve the commercial and/or technical objectives of the activity, i.e. following spiral development principles if applicable (e.g. a technology development may start at the same time of a vertical pilot). - For activities of type 1, the proposal may cover one or more of the following tasks: o Feasibility analysis of 5G Integrated satellite terrestrial system, o Technology development, o Verification/Validation Trials. - For activities of type 2, the proposal may cover one or more of the following tasks: o Feasibility analysis of service provision model, o Applications development, o Demonstrations/vertical pilots. The ultimate objective shall be the demonstrations/vertical pilots. Page 2 of 8
The Tenderer may choose to propose: self-standing activities withing the ESA Satellite for 5G initiative, activities complementing the scope of other projects undertaken under different 5G initiatives, e.g. 5G-PPP or National or private 5G Projects. In the latter case, the Tenderer may choose to perform some and/or part of activities outside the ESA satellite for 5G initiative, i.e. under an H2020 (5G-PPP activity) or a national initiative or a private initiative for example NGMN TTI (Trial and Test Initiative). In this case, ESA funding will typically provide a complementary multiplier effect to the satellite elements considered in those projects - a multiplier effect enhancing other public funding. The ESA Satellite for 5G Initiative will thus incentivize collaborations within 5G-PPP projects and other national and/or private projects, for example proposing the inclusion of a relevant satellite networks component, and providing the opportunity to further enlarge outside the original project, the scope and objectives of validation platforms, trials and pilots with verticals relevant for hybrid terrestrial / satellite usage. Both activity types (1 and 2) may include a feasibility task as follows (i.e. technical feasibility analysis in case of activity type 1 and service provision model analysis for activity type 2): 1. Technical Feasibility Analysis (Activity type 1): The objective of the feasibility analysis is to support the design of the 5G integrated satellite terrestrial system along with any systems engineering that may be required to define it and identify the optimal solutions for the end-to-end system or its components. The scope of activities eligible for support within the feasibility analysis include: i. Establishment of the technical 5G integrated satellite terrestrial system baseline; ii. Consolidation of the user requirements and/or technical specifications and verification/validation plans in alignment with the 3GPP standards where/if applicable; iii. Establishment of the technical baseline of the 5G integrated satellite terrestrial system, or part thereof, of components to be developed, as applicable. Components may include both transversal technology enablers and/or specific services compoments for targeted vertical and/or cluster of verticals; iv. Establishment of the overall performance of a system, or part thereof, in which the system will operate. The end-to-end system performance criteria will be aligned with the 5G KPIs and performance metrics. Page 3 of 8
The output of the feasibility analysis should be the performance requirements specification. 2. Service provision model analysis (Activity type 2): The objective of the feasibility analysis for activity type 2 is to assess the viability of 5G services for the targeted vertical(s). The scope of activities eligible for support within the feasibility analysis includes: i. Consolidation of the service provision model and establishment of users / customers requirements in cooperation with the representatives of the targeted vertical(s); ii. Definition of the high-level service architecture and its system requirements, including a preliminary selection of technologies with principle technical evidence of its feasibility; iii. Economic and non-economic viability analysis, addressing economic aspects such as the market opportunity, market segmentation, business model, service value chain and if / where applicable - non-economic constraints relevant to the commercial exploitation of the proposed services (e.g.: regulations, privacy issues, etc.); iv. Definition of the roadmap for application(s) development and vertical pilot(s). The output of the feasibility analysis should confirm the feasibility and viability of the proposed services and the engagement of the vertical(s) towards the vertical pilot(s). Both activity types (1 and 2) may include development tasks (i.e. technology developments in case of activity type 1 and applications development for activity type 2). 1. Technology developments (Activity type 1): The objective of the technology developments is to design and develop any 5G technology capabillities as required for the integration of 5G satellite terrestrial systems, including testbeds. The ultimate scope is to: (a) validate the integrated satellite terrestrial system performance according to 5G KPIs and metrics and (b) perform terrestrial and satellite interoperability tests. 2. Applications development (Activity type 2): The objective of the application development for activity type 2 is to design, develop and test the targeted services. The scope of activities eligible for support within the applications development includes: i. Define the detailed service architecture, including review of the trade-off processes performed for the main design choices of hardware and software elements; Page 4 of 8
ii. Perform the procurement and development activities; iii. Carry out the application factory validation activities to demonstrate service(s) compliance with the requirements. The Validation Trials (activity type 1) will aim to verify and validate: ii the functional performance of the technology in an 5G integrated satellite terrestrial system context according to the established system requirements, 5G KPIs and 5G performance metrics; iii the integration and interoperability of the satellite and terrestrial system components. The vertical pilots (activity type 2) cover demonstrations in a pre-operational context on a scale sufficient to prove the added value of the 5G service, resulting in validated 5G satellite services with relevant vertical users and/or customers. The scope of activities eligible for support within the vertical pilot includes: i. Consolidation of the pilot utilization plan in agreement with the pilot users/customers and other vertical representatives, addressing elements such as: vertical pilot terms and conditions, committed pilot users utilization baseline (users / customers participation and support to the pilot), definition of Key Performance Indicators (KPIs) to measure the level of success of the vertical pilot and related processes to support their evaluation; ii. Deployment of the service to be demonstrated to the pilot users / customers including on-site validation activities to demonstrate its readiness to start the vertical pilot demonstration; iii. Operate the service throughout the duration of the vertical pilot in concordance with the agreed terms and conditions; iv. Coordinate the technical and market KPIs evaluation process with the support of the involved pilot/users and customers; v. Carry out business development activities to support the commercial roll-out of the proposed services. Page 5 of 8
2. Bidding process The entry point is the submission of an Outline Proposal, which may cover activity type 1 and/or 2. The Outline Proposal will be informally reviewed by the Agency and feedback will be provided to the Tenderer within two business week. Following a successful Outline Proposal, the Agency will invite the Tenderer to submit a Full Proposal. Outline Proposals shall be submitted to via e-mail to 5g@esa.int. 3. Confidentiality All proposals (Outline and Full Proposal) received by ESA will be treated in confidence. 4. Key Financial Aspects Of the acceptable cost ESA will bear up to the maximum percentage indicated in the table below and the remainder has to be financed by the Tenderer through private sector direct or indirect co-financing, excluding co-financing from third party public funds. Universities and research institutes involved as Subcontractors may be funded up to the percentage indicated in the table below by the Agency if their total cost does not exceed 30% of the total cost of the activity and provided such universities/research institutes certify not to have any further commercial interest in the product. Tasks Maximum funding level for industrial entity Maximum funding level for universities or research institutes with no commercial interest in the product & SMEs Technical Feasibility analysis 50% 50% Technology development 50-75% 100% for universities or research institutes (up to 30% of the total cost of the activity) Verification & Validation Trials 50% 100% for universities or research institutes (up to 30% of the total cost of the activity) Service provision model feasibility analysis 50% - 75% 100% and up to 75% funding for SMEs Applications development 50-75% Up to 75% funding for SMEs Vertical Pilots 50% - 75% Up to 75% funding for SMEs Page 6 of 8
5. Special requirements The requirements listed below shall be taken into account: a) In case the Tenderer has chosen to perform some activities or part of activities (e.g. 5G integrated satellite terrestrial system definition, technology development, Verification & Validation Trials and Vertical Pilots) outside the ESA satellite for 5G initiative, for example under an H2020 (5G-PPP activity) or a national initiative or a private initiative, he shall declare it in his propsosal. He shall describe in detail the relationship between these activities and those proposed to be funded by ARTES, i.e. inter-dependencies, time schedule, etc. If appropriate, the activity progress meetings and milestone reviews shall be shown (a) in relationship with the 3GPP standardisation timeline of 5G and (b) the 5G-PPP Roadmap2.0 strategy. In this case, the Tenderer shall make sure there is sufficicient visibility and coordination between all the groups involved (whether it is H2020 (5G-PPP activity) and/or national/private activity and the ARTES one), for example by creating a special coordination group, to which ESA shall be invited to participate. b) The Agency will pay particular attention to the value for money and also to the ratio of direct labour cost versus other costs; in particular the latter should be kept to the necessary minimum. c) In order to reduce the administrative overhead for the technical work items, the Agency will allow that a small amount of ad-hoc technical work items are stated as so-called External Services in the financial proposal towards the Agency. The exact technical content of these specific External Services will be agreed with the Agency during the course of the activity. External Services should be procured in an efficient manner (with low administrative and management overhead). Budget allocated to individual External Services shall not be used for contractual and other administrative issues. External Services shall have a size between 5.000 to 50.000, d) Contributions to standardization bodies, vertical associations fora, resulting from the development/validation trials and vertical pilots, as applicable, are encouraged. However travel expenses for participation to standardisation meetings are not eligible for funding. The Contractor shall cover travel expenses as in kind contribution from own companies. Page 7 of 8
Annex I: Specific conditions for proposal submission a. Country: The Agency will admit for evaluation only proposals from an entity (company or organisation) - be it as Prime or Subcontractor - residing in any of those states that subscribe to the ARTES. To date, Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Norway, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom and Mayada have subscribed. b. Activity Scope: The activity must be within the scope defined in Section 1 above. c. An Outline Proposal must be accepted by ESA prior to the submission of a Full Proposal as described in Section 3 below, unless decided otherwise by the Agency. A feedback to the proponent upon reception of its proposal will be provided within 10 working days. d. A letter of support from the relevant National Delegations is a prerequisite for processing the Full Proposal in ESA. At the time of the submission of the Full Proposal, a letter of support from the relevant National Delegations shall be submitted i.e. covering prime and all partners. Page 8 of 8