CERN LIBRARIES, GENEVA CERN/FC/2721 Original: English CONFIDENTIAL 2 April 1984

CM-P00088646

ORGANISATION EUROPĒENNE POUR LA RECHERCHE NUCLĒAIRE CERN EUROPEAN ORGANIZATION FOR NUCLEAR RESEARCH

FINANCE COMMITTEE

Hundred-and-ninety-eighth Meeting

Geneva - 26 April 1984

PROPOSAL FOR THE AWARD OF A CONTRACT FOR THE SUPPLY OF THE BUS-BAR MODULES AND THEIR ASSOCIATED COMPONENTS FOR THE LEP QUADRUPOLE AND SEXTUPOLE MAGNETS

This document concerns the award of a contract for the supply of the bus-bar modules and their associated components for the LEP quadrupole and sextupole magnets.

Following a preliminary enquiry, sent to 137 firms in 12 Member States, a call for tenders was sent on 4 November 1983 to the 30 firms selected in ten Member States. By the closing date, CERN had received offers from 20 firms.

The Finance Committee is invited to agree that a contract be negotiated with SPIE-BATIGNOLLES, the lowest bidder, for the supply of the bus-bar modules and their associated components for the LEP quadrupole and sextupole magnets at a total net price, subject to revision, of 4 940 000 Swiss francs.

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PROPOSAL FOR THE AWARD OF A CONTRACT FOR THE SUPPLY OF THE BUS-BAR MODULES AND THEIR ASSOCIATED COMPONENTS FOR THE LEP QUADRUPOLE AND SEXTUPOLE MAGNETS

INTRODUCTION

1 The focussing and defocussing quadrupole magnets of the regular lattice of LEP are placed at regular intervals of 39.5 m around the ring. They are electrically connected in series so as to form two independent electrical circuits. The sextupole magnets, which are close to the quadrupoles, are grouped into six independent circuits in each quadrant of the machine. The inter• connection of these magnets is made by aluminium conductors which are called bus-bars. The bus-bars are assembled into modules of 9.47 m length.

2 The technical auditing of the contract to be adjudicated according to the proposal put forward in this document was carried out in compliance with the procedure approved by the Finance Committee (CERN/FC/2512).

PRELIMINARY ENQUIRY

3 In order to give the largest possible number of firms working in the field of electrical installations from the CERN Member States the opportunity to express their interest in the supply of the bus-bar modules and their associated components, a preliminary enquiry, bearing the reference I-1156-A/LEP, was sent out on 20 January 1983 (cf. letter to the members of the Finance Committee dated 14 February 1983) to 137 companies in 12 Member States.

4 In this enquiry, the companies were not only requested to express their interest, but also to supply technical information in order to prove that they have adequate installations and experience for the manufacture of the bus-bar modules and their associated components. Table I shows, for each Member State, the number of firms contacted and the replies obtained. As a result of this enquiry, 38 firms declined, 70 did not reply and 29 expressed their interest.

CALL FOR TENDERS

5 The call for tenders I-1156-A/LEP was sent on 4 November 1983 to 30 firms in ten Member States (cf. letter to the members of the Finance Committee dated 7 November 1983). One firm not having participated in the preliminary enquiry was added to the list, subject to the conditions of meeting the qualification criteria.

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6 When the tenders were opened on 1 February 1984, 20 firms had submitted tenders, six companies had declined and four had not replied. Table II shows the list of firms contacted and their replies to the call for tenders.

ANALYSIS OF THE TENDERS

7 Table III shows the tender prices at the opening of the offers. Two firms offered two variants. All tenderers accepted the delivery schedule requested by CERN, with the exception of SPIE-BATIGNOLLES, the firm with the lowest offer. SPIE- BATIGNOLLES proposed a delivery schedule advanced by more than a year, which was not in accordance with the specification. In addition, two technical modifications, not acceptable to CERN, were proposed. Upon request by CERN, SPIE-BATIGNOLLES accepted the delivery schedule as asked for. As a consequence, the total amount offered (instead of the aluminium part only) became subject to revision. The firm further amended its technical proposals to bring them fully in line with CERN's specification at an additional cost of 144 800 Swiss francs.

8 Detailed technical discussions with SPIE-BATIGNOLLES and with VEREINIGTE METALLWERKE RANSHOFEN-BERNDORF have provided convincing evidence that all problems for the production of the bus-bar modules and their associated components have been correctly appreciated and that the required equipment and know- how are available.

9 Table IV shows the four lowest offers after evaluation of the price revision formulae proposed by the lowest tenderers. The revised price for VEREINIGTE METALLWERKE RANSHOFEN-BERNDORF was evaluated by applying their offered inflation rate limited to 7% per annum (as compared with the official inflation rates used by CERN for this call for tenders, i.e. 9.5% for materials and 11.4% for labour per annum). The outcome of this comparison is that the offer for the supply of the bus-bar modules and their associated components made by SPIE-BATIGNOLLES, taking into account the correction explained in paragraph 7, remains the lowest. CONCLUDING REMARKS

10 The contract to be placed should contain, in addition to the basic requirement, a provision of approximately 200 000 Swiss francs to cover any cost of additional equipment which might become necessary as a result of some development work which is still going on.

RECOMMENDATION

11 The Finance Committee is invited to agree that a contract be negotiated with SPIE-BATIGNOLLES, the lowest bidder, for the supply of the bus-bar modules and their associated components for the LEP quadrupole and sextupole magnets at a total net price, subject to revision, of 4 940 000 Swiss francs.

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TABLE I

NUMBER OF FIRMS TO WHICH THE PRELIMINARY ENQUIRY WAS SENT

NUMBER OF FIRMS COUNTRY

Consulted Interested Declined No reply and qualified

Austria 8 1 3 4 Belgium 4 - 1 3 Denmark 5 1 1 3 14 5 5 4 (Fed. Rep. of) 19 3 7 9 Italy 20 5 3 12 Netherlands 10 3 3 4 Norway 12 1 4 7 5 3 1 1 Sweden 10 - 3 7 11 3 2 6 19 4 5 10

TOTAL 137 29 38 70

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TABLE II

LIST OF FIRMS TO WHICH THE CALL FOR TENDERS WAS SENT

COUNTRY FIRM REPLY

Austria VEREINIGTE METALLWERKE RANSHOFEN-BERNDORF Braunau-Ranshofen Offer

Denmark ER-ELEKTRIC Fredericia Offer

France CEM SYSTEMES SCAM Bagnolet Offer* ENTREPRISE INDUSTRIELLE Lyon Offer SIMELECTRO Gevrey-Chambertin Offer SOCIETE NOUVELLE DES ETABLISSEMENTS VERGER & DELPORTE St. Ouen l'Aumone Declined SPIE-BATIGNOLLES Feyzin Offer

Germany ERICO-ELEKTROTECHNISCHE (Fed. Rep. SPEZIALFABRIK Schwanenmühle No reply of) FELTEN & GUILLEAUME Krefeld Declined KLÖCKNER-MÖLLER Bonn Declined

Italy CEME Noventa di Piave Offer CIMI Milano Offer COMES COMPAGNIA MONTAGGI ELETTRICI Roma Offer IMESA Jessi/Ab No reply POGLIANO DEI FRATELLI POGLIANO Torino Offer ZUCCHINI Brescia Offer

Netherlands CROON ELEKTROTECHNIK Rotterdam Offer ELEKTRON BREDA Breda Offer HOLEC EXPORT Hengelo Declined

* Offer received via ALSTHOM-ATLANTIQUE.

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TABLE II (Cont'd)

COUNTRY FIRM REPLY

Norway NORSK HYDRO Oslo Declined

Spain ABENGOA Sevilla Offer ALUMINIO DE GALICIA Madrid Offer GENERAL ELECTRICA ESPANOLA Bilbao No reply

Switzerland BROWN, BOVERI & CIE Zürich Offer BROWN, BOVERI & CIE Genève Offer GEILINGER Yvonand Declined

United BALFOUR BEATTY Liverpool Offer Kingdom GEC MACHINES Stafford Offer MONITOR ENGINEERS Wallsend Offer N.E.I. PARSONS PEEBLES Birmingham No reply

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TABLE III PRICES AT THE OPENING OF THE TENDERS (in Swiss francs)

TOTAL PRICE PRICE PRICE FIRM DELIVERED CERN RATIO REVISION

SPIE-BATIGNOLLES 4 593 548 1.00 Yes (A1 only) ENTREPRISE INDUSTRIELLE 5 794 728 1.26 Yes VEREINIGTE METALLWERKE RANSHOFEN-BERNDORF 5 983 054 1.30 Yes GEC MACHINES 6 394 936 1.39 Yes ABENGOA 6 998 550 1.52 No ER-ELEKTRIC 7 604 871 1.66 Yes ALSTHOM-ATLANTIQUE 7 647 880 1.66 No CEME Variant A 7 827 456 1.70 Yes Variant B 7 592 276 1.65 Yes CIMI Variant A 8 093 325 1.76 No Variant B 7 880 180 1.72 No BALFOUR BEATTY 7 921 009 1.72 Yes SIMELECTRO (1) 8 002 097 1.74 Yes COMES COMPAGNIA MONTAGGI ELETTRICI 8 250 700 1.80 Yes BROWN, BOVERI & CIE Zürich 8 782 300 1.91 No ZUCCHINI 8 852 700 1.93 Yes ALUMINIO DE GALICIA 8 870 397 1.93 No BROWN, BOVERI & CIE Genève 8 990 080 1.96 No ELEKTRON BREDA (2) 9 221 670 2.01 No CROON ELEKTROTECHNIK (2) 9 573 611 2.08 No POGLIANO DEI FRATELLI POGLIANO 12 735 000 2.77 No MONITOR ENGINEERS (3) 13 569 642 2.95 No

(1) Offer in French francs converted into Swiss francs at the exchange rate of 100 FF = 26.35 SF.

(2) Offer in Dutch guilders converted into Swiss francs at the exchange rate of 100 Hf1 = 71.10 SF.

(3) Offer in pounds sterling converted into Swiss francs at the exchange rat of 1£ = 3.18 SF.

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TABLE IV

TOTAL PRICES AFTER APPLICATION OF PRICE REVISION FORMULAE PROPOSED BY THE TENDERERS AND FIRM PRICES, NOT SUBJECT TO REVISION, FOR THE FOUR LOWEST TENDERERS

(in Swiss francs)

FIRM PRICE REVISION REVISED PRICE PRICE FACTOR DELIVERED CERN RATIO

SPIE-BATIGNOLLES (1) 1.204 5 704 971 1.00

VEREINIGTE METALLWERKE RANSHOFEN-BERNDORF 1.135 6 790 766 1.19

ENTREPRISE INDUSTRIELLE 1.189 6 889 932 1.21

ABENGOA 1.000 6 998 550 1.23

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