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ESO & Portugal

Procurement and business opportunities

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ESO and Industry

n Construction of world-class observatoriesØBuildings, telescopes, instrumentsØOnly possible with strong involvement of industry

n Procurement by competitive tenderingØPreferably in the Member StatesØAim for reasonable balance over Member States

• ESO works pro-actively with ‘under-returned’ MS

n This approachØKeeps costs downØHelps develop high-tech industry in Member States

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Contracts awarded worldwide over the period2005 - 2012

526 MEUR

246 MEUR

13 MEUR 23 MEUR 11 MEUR

Member States

Chile

Europe Non-Member States

USA

Others

Total Contracts 8 years: 819 million EUR

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Contracts awarded within ESO Member States over the period 2005 - 2012

29 MEUR

249 MEUR

47 MEUR

59 MEUR

140 MEUR

VLT

ALMA

ELT

Other Projects

Operations

Cumulative values, per “project”

Total Contracts 8 years, 526 million EUR

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Number of contracts awarded over the period 2005 - 2012

Number of contracts, for different price ranges

232

80

71

23

150 KEUR -500 KEUR

500 KEUR - 1MEUR

1 MEUR - 5MEUR

> 5 MEUR

46.742 contracts below 150 KEUR were placed in this period

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Procurement Policy

n Overall objective: technical excellence at an affordable cost

n Key principles:ØCompetitive TenderingØWithin ESO Member States (Chile for operations)ØContracts awarded to the lowest priced compliant tenderØFair distribution of the contracts among the ESO Member

States

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Procurement Process (1/2)

n ESO selects the recipients of its procurement actions from:Ø Its database, plus its staff’s own knowledgeØSuggestions received from ESO Member StatesØ Interest expressed by companies:

• In relation to forthcoming procurements announced on the ESO web page

• Generically

n ESO gives great importance to the quality of its tenders, and expects the same from the bidders: “one shot only”, no room for improving a tender after its submission

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Calls for tender (CFT)

Typically used for Procurements

> 150k EUR

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ESO’s industrial partners

OpticsElectronics

TelecommunicationsPhotonicsSoftware

IT hardwareFiber technology

ImagingCCD systems

Infrared detector systemsOptical detector systems

HolographicsSensor technology

Laser technicsCryogenics

ConstructionTransport

InternationalNational

Small and medium sized

company (SME)Micro company

GmbH (company with limited liability)

S.A. (corporation)AG/plc . (public limited

company)S.r.l. (private limited

company)Ltd (proprietary limited

company)

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Collaboration with industry was key for the success of the VLT

Schott

REOSC

GIAT Dornier

Ansaldo AES

SEBIS

AMOS

FokkerTNO/TPD

Zeiss Linde Cegelec

Skanska

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Sunset

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The E-ELT: overview

First Light Instruments

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Residencia (Kouvo Partanen)

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Headquarters

n HQ built in 1981ØExpanded a few timesØCapacity ~290 personsØ~200 others

• In temporary offices • Elsewhere on campus

n HQ ExtensionØDesign: Auer & Weber ØOffice building + auditoriumØTechnical building ØConstruction 2012-13

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Closed Session Remarks

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Technology Transfer

n ESO’s Technology Transfer Policy ØApproved by Council in Dec 2010ØDefines rules for licensing of in-house developments

n First royalties now receivedØESO Fiber RAMAN AmplifierØALMA Calibration Loads TechnologyØCompanies in Canada, Germany, UK

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Industrial Return (1/3)

n No requirement for juste retour…but a strong expectation from all ESO Member States of an equitable distribution

n Measured through each country’s return coefficient: ratio between the percentage of expenditures in an individual MS and the MS percentage contribution to the budget

n Expenditures calculated on data collected from the Contractors re: the “origin of the supply”

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Industrial Return (2/3)

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Industrial Return (3/3)

n Additional efforts invested by the Management to increase awareness in the Member States of the procurement opportunities offered by ESO:ØClose monitoring + regular reporting to the ESO Finance

CommitteeØStronger involvement of the Industrial Liaison Officers in

identifying competent suppliersØ Increased programme of Industry days and networking

eventsØUpdate of the procurement rules

n….also, pro-activeness of the Member States encouraged

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Contracts with Portugal

n Since 2005: Ø~4.0 MEURØ49 (sub)contracts

n Great diversity, from software consulting, graphical work to turn key delivery of LPG storage tanks

n High level quality deliverablesn Recurring suppliers:ØCritical software; several SW consultancy assignmentsØ ISQ; QA assignments, development of safety manualØExatronic; supply of electronic parts

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A. Silva Matosn Manufacture and Delivery of ALMA LPG Storage

Tanks

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Turbo Constroi n Subcontractor for concrete work of new ESO HQ

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Solidaln Subcontractor delivering the Aluminum cables for

the 23 kV installation for ALMA

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Approach

n Our procurement actions are targeted ÞØYou either know about itØor ESO knows about you and your competenciesØor…..the opportunity is lost

n For procurements expected to exceed 150 KEUR, announcement is made on the ESO web page:

http://www.eso.org/public/industry/cp.html

Þ companies have the opportunity to make their interest known to ESO (cp@eso.org)

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Wrap-up

n Our procurement process may be different, but is certainly NOT complicated

n The window of opportunity for companies to participate in a competitive procurement is limitedØMake yourself known ØSign up for the RSS feed at the CP page

n Normally we evaluate (qualification/PI and compliance/CFT) on the basis of your written response ÞØAsk questions when uncertain before submitting responseØComply with our requirements for content of your response

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ESO CP Web PageESO CP Webpage

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