esa information systems department directorate of operations esa’s information systems...
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ESA Information Systems DepartmentDirectorate of Operations
ESA’sInformation Systems Infrastructure and
User Support Services Tender-
Information Session for IT Outsourcing Industry
30th June 2005 ESA ESRIN
Conference Room Magellan
ESA Information Systems DepartmentDirectorate of Operations
Tendering Rules and Tendering Rules and Principles
Tender Process:Tender Process: ScheduleSchedule Milestones Milestones Interaction PointsInteraction Points
Communications with ESACommunications with ESA
How to do business with ESAHow to do business with ESA
Sergio Benetti - Contracts Officer
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
ESA tendering principlesESA tendering principles
Two of the principal provisions of the ESA's Council Contracts Regulations Two of the principal provisions of the ESA's Council Contracts Regulations establishing the basic rules read as follows:establishing the basic rules read as follows:
ARTICLE 4ARTICLE 4 establishes that establishes that ‘Provisions in these Regulations and in any other ‘Provisions in these Regulations and in any other instructions concerning the placing of contracts shall always be interpreted so instructions concerning the placing of contracts shall always be interpreted so as to ensure the most economic and effective employment of the Agency’s as to ensure the most economic and effective employment of the Agency’s resources,'resources,'
ARTICLE 5ARTICLE 5 (Chapter II) establishes that: (Chapter II) establishes that: 'Open competitive tender shall be the 'Open competitive tender shall be the normal procedure for the placing of contracts', normal procedure for the placing of contracts',
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Selection ProcessSelection Process
STEP 1
ESA selects 2 bidders for Due Diligence
Incumbent offer kept
closed
Tender documentation ready
Tender published
Offers Received
Other offers distributed
Evaluation by ESA
2 offers selected
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Confirm / update proposals and convert price
Due Diligence
Revised offers
Confirm / update proposals and convert price
DUE DILIGENCE
Selection ProcessSelection Process
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Evaluation by ESA
One winning bidder recommended
Negotiation with 2 or 3 bidders
Evaluation by ESA
1 winning bidder recommended
Final negotiation and contract Kick Off
STEP 2 Revised offers received
Contract signed
Selection ProcessSelection Process
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Step 1
30/09
Offers in
.
Bidders Briefing
3rd/4th Quarter 2006
Due Diligence
Step 2
ITT Issue
.
ESA Evaluation
28/02
End DD
Revised Offers
in
20052006
Tender Prepa
Evaluation and Selection scheduleEvaluation and Selection schedule
30/11
30/04 30/05
ESA Evaluation
End Negotiation
ESA Selects Winning Bidder
Contract Kick-Off
StartDD
Contract Signed
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Communications with Bidders (1)Communications with Bidders (1)
Communications with potential tenderers shall be formal, in writing, and Communications with potential tenderers shall be formal, in writing, and restricted to what is necessary to ensure clarity of the Agency’s requirements restricted to what is necessary to ensure clarity of the Agency’s requirements and to preserve fair competition. Any communications shall be issued through and to preserve fair competition. Any communications shall be issued through the local Procurement Division/Service.the local Procurement Division/Service.
For this tender: For this tender: Sergio Benetti Sergio Benetti
Tel: +39 06 94180387Tel: +39 06 94180387Fax: +39 06 94180382Fax: +39 06 94180382
The Agency may issue clarifications or amendments to the ITT. In accordance The Agency may issue clarifications or amendments to the ITT. In accordance with the tender conditions, any questions from potential tenderers shall be with the tender conditions, any questions from potential tenderers shall be submitted in writing to the local Procurement Division/Service. Only questions submitted in writing to the local Procurement Division/Service. Only questions concerning the understanding of the Agency’s requirements will be answered. concerning the understanding of the Agency’s requirements will be answered. Amendments and questions and the answers thereto if of possible interest to Amendments and questions and the answers thereto if of possible interest to other potential tenderers, shall be distributed in writing.other potential tenderers, shall be distributed in writing.
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Communications with Bidders (2)Communications with Bidders (2)
Tenderers who have not been selected for the placing of a contract will, as a matter of Tenderers who have not been selected for the placing of a contract will, as a matter of routine, be notified thereof by the local Procurement Division/Service, after a final routine, be notified thereof by the local Procurement Division/Service, after a final decision has been taken. Upon request of a tenderer, the contracts officer may, decision has been taken. Upon request of a tenderer, the contracts officer may, together with the initiator, explain to such tenderer the reasons why this tender has not together with the initiator, explain to such tenderer the reasons why this tender has not been accepted. Explanations shall be limited to the findings of the TEB on the tender in been accepted. Explanations shall be limited to the findings of the TEB on the tender in question, and shall not cover the quality or contents of other tenders.question, and shall not cover the quality or contents of other tenders.
"Tenderers are not entitled to contact Agency staff during the evaluation and selection "Tenderers are not entitled to contact Agency staff during the evaluation and selection period..." and further: "..The Agency reserves the right to eliminate from the evaluation period..." and further: "..The Agency reserves the right to eliminate from the evaluation a tenderer contravening this provision."a tenderer contravening this provision."
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
To know more about ESA tendering:To know more about ESA tendering:
http://emits.http://emits.esaesa..intintclick onclick on
““How to do business with ESA”How to do business with ESA”
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to be a registered user of EMITS:How to be a registered user of EMITS:
http://emits.http://emits.esaesa..intint
click onclick on
Registration RequestRegistration Request
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Coffee Break30 minutes
ESA Information Systems DepartmentDirectorate of Operations
ESA’s IT Outsourcing:ESA’s IT Outsourcing: Subject and ScopeSubject and Scope ObjectivesObjectives SituationSituation ModelModel
Baseline / Delta / OptionalBaseline / Delta / Optional
How to commit workHow to commit work
Eric Schreyers – Head of IT Division
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
3800 Desktop seats (1100 laptops) – 85 servers
4100 Lotus Notes accounts – 100 servers
100 applications – 70 servers4800 Local Area Network connections
ESACOM Wide Area Network
• 15 ESA Intranet sites
• 15 Extranet sites (partners)
• 6 Internet connections
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
(excluding application users that are not on ESA sites)
3.700 Service Desk Users
ESTEC (NL)52%
Other Sites8%
ESA-HQ (F)10%
ESRIN (I)13%
ESOC (D)17%
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Other Sites: 312 Service Desk Users
67
41
29
16
1610 6 3
124 Villafranca (E)
European Astronaut Centre, Köln (D)
Toulouse (F)
Redu (B)
Brussels (B)
Kourou (French Guyana)
Pasadena-JPL (USA)
Moscow (RU)
Washington (USA)
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
ObjectivesObjectives
Match ESA’s IS needs with the offerings on the Match ESA’s IS needs with the offerings on the marketmarket
Improve / extend IS services and reduce their costImprove / extend IS services and reduce their cost
Increase organizational flexibility to new IS service Increase organizational flexibility to new IS service models and practicesmodels and practices
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
ESA’s first structured IT outsourcing started in ESA’s first structured IT outsourcing started in 19991999
20 contracts were managed separately in 199820 contracts were managed separately in 1998
Achieved since then:Achieved since then: Rationalised and centralised management of IT service Rationalised and centralised management of IT service
contractscontracts ‘‘Service’ approach as opposed to a ‘Support’ approachService’ approach as opposed to a ‘Support’ approach Increased scope, size and functionality of IT services Increased scope, size and functionality of IT services Biggest contribution to ESA’s IS cost reductionBiggest contribution to ESA’s IS cost reduction
(complement and obligations)(complement and obligations)
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Procurement StatusProcurement Status
Multi-sourcing:
Main Services & Engineering contract
WAN & Mobility Services
Application Maintenance and Functional Support
Additionally:
Third line support
Third party maintenance
Hardware and software
14 companies
250 procurements per annum
with 60 different suppliers
Serco Serco ((VitroCisetVitroCiset))
11 companies11 companies
EquantEquant
Multi-sourcing:
Main Services & Engineering contract
WAN & Mobility Services
Application Maintenance and Functional Support
Additionally:
Third line support
Third party maintenance
Hardware and software
14 companies
250 procurements per annum
with 60 different suppliers
Serco Serco ((VitroCisetVitroCiset))
11 companies11 companies
EquantEquant
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Outsourcing StatusOutsourcing Status
Greatest part of service delivery coordination, Greatest part of service delivery coordination, interfaces & coherence management and supplier interfaces & coherence management and supplier management are taken care by ESA: too many ‘lead’ management are taken care by ESA: too many ‘lead’ and coordination processes remain with ESAand coordination processes remain with ESA
Coordination frame: bilateral mechanisms between Coordination frame: bilateral mechanisms between each individual providers and ESA each individual providers and ESA
‘‘One-size-fits-all’ approach alleviated with ‘delta-One-size-fits-all’ approach alleviated with ‘delta-services’ & ‘tailor-made’ support approachservices’ & ‘tailor-made’ support approach
ITILPRINCE2
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Outsourcing Model (1)Outsourcing Model (1)
Establish a Prime Contractor in charge of service delivery, Establish a Prime Contractor in charge of service delivery, service coherence and service quality managementservice coherence and service quality management
Prime selects and manages IS service providersPrime selects and manages IS service providers
Extend ‘Managed Service’ concept: outsource complete Extend ‘Managed Service’ concept: outsource complete and coherent service packages and related end-to-end and coherent service packages and related end-to-end processesprocesses
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Outsourcing Model (2)Outsourcing Model (2)
1.1. De-fragment the management (Prime Contractor)De-fragment the management (Prime Contractor)
2.2. Include sustaining engineeringInclude sustaining engineering
3.3. Service providers own hardware and softwareService providers own hardware and software
4.4. Prime and service providers commit to deliver service Prime and service providers commit to deliver service improvements and cost savingsimprovements and cost savings
5.5. Develop / promote Service Catalogue and customer Develop / promote Service Catalogue and customer fundingfunding
6.6. Improve ESA’s Sourcing ManagementImprove ESA’s Sourcing Management
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
ScopeScope
Service Desk
Engineering and Project Support
Desktop
Messaging
Networks Security Mobility
Applications Infrastructure
(Maintenance & Functional Support)
Service Desk
Engineering and Project Support
Desktop
Messaging
Networks Security Mobility
Applications Infrastructure
(Maintenance & Functional Support)
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Desktop - Distributed Computing Infrastructure
Messaging - Distributed Computing Applications
Additional Optional Work
Mobility
Service Desk
Networks
Security
Service Delivery and Support
Capacity Management
Availability Management
Service Continuity
Release Management
Incident Management
Problem Management
Configuration Management
Change Management
Service Level Management
Project Management
Asset & Innovation Management
Supplier Management
Transition Management
Risk Management
Governance
Performance Management Measurement & Reporting
Service & Project Portfolio
Financial Management
Application Infrastructure
Desktop - Distributed Computing Infrastructure
Messaging - Distributed Computing Applications
Additional Optional Work
Mobility
Service Desk
Networks
Security
Service Delivery and Support
Capacity Management
Availability Management
Service Continuity
Release Management
Incident Management
Problem Management
Configuration Management
Change Management
Service Level Management
Project Management
Asset & Innovation Management
Supplier Management
Transition Management
Risk Management
Governance
Performance Management Measurement & Reporting
Service & Project Portfolio
Financial Management
Application Infrastructure
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
Some DefinitionsSome Definitions
Baseline ServicesBaseline ServicesBasic services that are available for all eligible ESA users Basic services that are available for all eligible ESA users
Corporate fundingCorporate funding Included in the requirements – to be quoted Included in the requirements – to be quoted
Delta ServicesDelta ServicesServices that cater for specific needs (not common for all users)Services that cater for specific needs (not common for all users)
Customer fundingCustomer funding Included in the requirements – to be quoted Included in the requirements – to be quoted
Optional WorkOptional WorkAdditional work that might be contracted through Contract ChangesAdditional work that might be contracted through Contract Changes
Corporate or Customer fundingCorporate or Customer funding NotNot included in initial requirements included in initial requirements
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to commit work (1)How to commit work (1)
Contract duration: 5 years + 2 years extension riderContract duration: 5 years + 2 years extension rider Delta services are a significant part and cannot anymore Delta services are a significant part and cannot anymore
be treated as a marginal add-on in year-by-year Contract be treated as a marginal add-on in year-by-year Contract Changes (= current practice)Changes (= current practice)
Start tender with a Start tender with a forecastforecast of 90 M€: of 90 M€: corporate funding for the baseline services covering the first 5 corporate funding for the baseline services covering the first 5
years of the contractyears of the contract customer funding for the delta services covering the initial 3 yearscustomer funding for the delta services covering the initial 3 years
In Q4 2005, agree and negotiate with each customer the In Q4 2005, agree and negotiate with each customer the initial 3 years commitment for delta servicesinitial 3 years commitment for delta services
CommitCommit at contract start: at contract start: baseline services - corporate funding (5 years)baseline services - corporate funding (5 years) delta services - negotiated and agreed customer funding (3 delta services - negotiated and agreed customer funding (3
years)years)
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to commit work (2)How to commit work (2)
After 3 years running of the contract, After 3 years running of the contract, commitcommit the the remaining 2 years of delta services / customer fundingremaining 2 years of delta services / customer funding
Introduce Introduce optional workoptional work at pace and conditions that suit at pace and conditions that suit ESA:ESA: Application maintenance and functional supportApplication maintenance and functional support Synergies with Ground Segment OperationsSynergies with Ground Segment Operations Project workProject work
If baseline / delta services are successful, optional work If baseline / delta services are successful, optional work will add up to substantial amountswill add up to substantial amounts
After 5 years of running of the contract, After 5 years of running of the contract, commitcommit the 2 the 2 years extensionyears extension
ESA Information Systems DepartmentDirectorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to commit work (3)How to commit work (3)
Baseline
Delta Delta
Baseline
Optional Work
2007 2010 2012 2014
Delta
At contract start Rider after 3 years Rider after 5 years Contract Changes