For approval finance committee

CONFIDENTIAL CERN/FC/.../RA

Original: English

date

organisation européenne pour la RECHERCHE NUCLÉAIRE

CERN EUropean organization for nuclear research

Action to be taken Voting Procedure

FOR APPROVAL

FINANCE COMMITTEE ...^th Meeting date

Simple Majority of the Member States represented and voting

Colours:

Yellow marked: to be completed

Blue: options to consider on a case by case basis

Green: examples

Proposal for the award of a contract for the supply of xxxxxxx

This document concerns the award of a contract for the supply of xxxxxxxx.

The Finance Committee is invited to agree to the negotiation of a contract with xxxxx, the lowest bidder/ the lowest bidder complying with the specification¹/the lowest bidder after realignment, for a period of N years², for the supply of xxxxxx for a total amount of xxxx Euros³ (xxxxx Swiss francs), not subject to revision, with options for xxxxxx/⁴for xxxxxx further one year periods⁵, for an additional amount of xxx Euros (xxxx Swiss francs), subject to revision for inflation from month year, bringing the total amount to xxxx Euros (xxxx Swiss francs), subject to revision for inflation from month year.

The amounts in Swiss francs have been calculated using the rate of exchange at the closing date of the invitation to tender⁶.

PROPOSAL FOR THE AWARD OF A CONTRACT FOR THE SUPPLY OF XXXXXX

1INTRODUCTION

1.1This document concerns the award of a contract for the supply of xxxx.

1.2Background information & specific technical requirements:

• 
  description of equipment, usage etc.
  
• 
  needs, basic requirements, purchase options etc.
  

1.3 The technical auditing of the market-survey and invitation to tender documents for the contract to be awarded in accordance with the present proposal was carried out in compliance with the procedure approved by the Finance Committee (CERN/FC/5305 – CERN/2822).

2MARKET SURVEY

A market survey bearing the reference MS-xxxx/dep for the supply of xxxx was sent out on day month year. This market survey was sent to xxx firms in xxx Member States. Table I shows the outcome of the survey.

3INVITATION TO TENDER

3.1The invitation to tender IT-xxx/dep for the supply of xxxx was sent out on day month year to xxx firms and xxx consortia in xxx Member States.

3.2Bidders were requested to quote for xxxx/bidders were requested to quote prices, based on an estimated quantity of xxx units over a N-year period⁷, with options for xxxxx.

3.3At the opening of the bids, it was established that xxx firms had submitted bids, xxx firms had declined and xxx did not reply. Table II gives the list of firms to which the invitation to tender was sent and their replies.

4ANALYSIS OF THE BIDS

4.1The bids were checked for completeness and compliance with the conditions specified in the invitation to tender documents. Table III shows the order into which the bids fell at the opening.

4.2xxxx (a paragraph here with the reasons to why the lowest bidder is not conforming, if this is the case)

4.3The bid from xxxx, the lowest bidder/the lowest bidder complying with the specification⁸ at the opening of the tenders, offered supplies originating from (a) well balanced Member State(s) (xx) /mainly originating from well balanced Member States⁹ (xx) and the second lowest bidder/the second lowest bidder complying with the specification¹⁰, xxxx, offered supplies originating from (a) well balanced Member State(s) (xx)/mainly originating from well balanced Member States (xx). As the bid falls within 20% of the lowest bid, CERN contacted xxxx with a view to requesting it to align its price to that of xxxx. It agreed to do so, reducing its tender by xx % to xxxx Swiss francs and, at the same time, reconfirming that it would comply fully with the specification at this new tender price. Table IV shows the tender prices after alignment.

4.4The bid from xxxx, the lowest bidder/the second lowest bidder¹¹, has been thoroughly analysed and found to comply with the specification in all respects.

4.3 Table V shows, for information, the bids including the price for the options.

5funding

The total amount will be funded by xx Department’s budget¹².

6 RECOMMENDATION

The Finance Committee is invited to agree to the negotiation of a contract with xxxx (Same as front page but amounts not underlined)., the lowest bidder/ the lowest bidder complying with the specification¹³/the lowest bidder after realignment, for the supply of (description), for a total of xxx not subject to revision, with an option of……for a maximum additional amount of xxxx, subject to revision from x.x.20xx bringing the total amount to xxxx with the option subject to revision for inflation from x.x.20xx

The amounts in Swiss francs have been calculated using the rate of exchange at the closing date of the invitation to tender.

The firm has indicated the following distribution by country of the contract value covered by this adjudication proposal: XXX – xx%; YYY– yy%.

TABLE I

NUMBER OF FIRMS CONTACTED FOR THE MARKET SURVEY

	NUMBER OF FIRMS
COUNTRY	CONSULTED	INTERESTED		DECLINED	NO REPLY
		SELECTED	NOT SELECTED
AUSTRIA	-	-	-	-	-
BELGIUM	-	-	-	-	-
BULGARIA	-	-	-	-	-
CZECH REPUBLIC	-	-	-	-	-
DENMARK	-	-	-	-	-
FINLAND	-	-	-	-	-
FRANCE	-	-	-	-	-
GERMANY	-	-	-	-	-
GREECE	-	-	-	-	-
HUNGARY	-	-	-	-	-
ITALY	-	-	-	-	-
NETHERLANDS	-	-	-	-	-
NORWAY	-	-	-	-	-
POLAND	-	-	-	-	-
PORTUGAL	-	-	-	-	-
SLOVAK REPUBLIC	-	-	-	-	-
SPAIN	-	-	-	-	-
SWEDEN	-	-	-	-	-
SWITZERLAND	-	-	-	-	-
UNITED KINGDOM	-	-	-	-	-
TOTAL	-	-	-	-	-

TABLE II

LIST OF FIRMS TO WHICH
THE INVITATION TO TENDER WAS SENT

Example hereunder

COUNTRY	FIRM	REPLY
FRANCE	BRUKER BIOSPIN	Bid
	THALES ELECTRON DEVICES	Declined
ITALY	ELECTROSYS	Bid
SWITZERLAND	THOMSON BROADCAST	Bid
BELGIUM Switzerland	ION BEAM APPLICATIONS (1) CPI international	Declined

(1) Lead firm

TABLE III

PRICES AT THE OPENING OF THE BIDS

(in Swiss francs)

Example hereunder

FIRM	DISTRIBUTION OF CONTRACT VALUE	TOTAL PRICE EX-WORKS	PRICE RATIO EX-WORKS	TOTAL PRICE DAP^ CERN	PRICE RATIO DAP^ CERN
ELECTROSYS	IT - 100%	3 180 476	1.00	3 194 073	1.00
THOMSON BROADCAST	CH – 56.5% FR – 23% IT – 18% DE – 2.5%	3 468 727	1.09	3 475 666	1.09
BRUKER BIOSPIN	FR – 69% USA – 31%	6 940 597	2.18	6 958 090	2.18

TABLE IV

PRICES OF THE BIDS AFTER ALIGNMENT

(in Swiss francs)

Example hereunder

FIRM	DISTRIBUTION OF CONTRACT VALUE	TOTAL PRICE EX-WORKS	PRICE RATIO EX-WORKS
CEGELEC FRANCE CEGELEC SPAIN	ES – 55% FR – 45%	10 659 076	1.00
SEMER	DE – 40.3% FR – 39.9% IT – 14.1% CH – 2.8% NL – 1.2% other – 1.6%	10 659 076	1.00

TABLE V

PRICES AT THE OPENING OF THE BIDS, INCLUDING OPTIONs for XXXX

(in Swiss francs)

FIRM	TOTAL PRICE EX-WORKS	PRICE RATIO EX-WORKS	TOTAL PRICE DAP^ CERN	PRICE RATIO DAP^ CERN

1^ In case the lowest bidder is not conforming to specifications.

2^ No need to specify a period if it is a one-time purchase

3^ Amount must be stipulated in bidder’s chosen currency (if not in CHF). The equivalent amount in CHF shall also be expressed using the exchange rate at the closing date of the invitation to tender

4^ Option in terms of quantities

5^ Option in terms of additional years

6^ In case the contract amounts are in currencies other than CHF.

7^ If a blanket purchase contract is foreseen for commodity items

8^ In case the lowest bidder is not conforming to specifications.

9^ In case the bidder proposes supplies originating from several well balanced and poorly balanced Member States

10^ In case the second lowest bidder is not conforming to specifications

11^ In case the lowest bidder is not retained

12^ If the contract is for equipment for a specific project, then state this as “funded by the xxx project budget”. If it is for commodity items to be purchased within a blanket purchase contract by requesting departments, then state this as “funded by the requesting departments’ operation budgets”.

13^ In case the lowest bidder is not conforming to specifications.

^ Delivered At Place



^ Delivered At Place

