ESO &

Procurement and business opportunities

Lisbon 03 June 2013 1 ESO and Industry n Construction of world-class observatories Ø Buildings, telescopes, instruments Ø Only possible with strong involvement of industry n Procurement by competitive tendering Ø Preferably in the Member States Ø Aim for reasonable balance over Member States • ESO works pro-actively with ‘under-returned’ MS n This approach Ø Keeps costs down Ø Helps develop high-tech industry in Member States

Lisbon 03 June 2013 2 Contracts awarded worldwide over the period 2005 - 2012

13 MEUR 23 MEUR 11 MEUR

246 MEUR Member States Chile 526 MEUR Europe Non-Member States USA Others

Total Contracts 8 years: 819 million EUR

Lisbon 03 June 2013 3 Contracts awarded within ESO Member States over the period 2005 - 2012

Cumulative values, per “project” 29 MEUR VLT ALMA ELT 140 MEUR Other Projects Operations

249 MEUR

59 MEUR

47 MEUR Total Contracts 8 years, 526 million EUR

Lisbon 03 June 2013 4 Number of contracts awarded over the period 2005 - 2012

Number of contracts, for different price ranges

23

71

150 KEUR - 232 500 KEUR 80 500 KEUR - 1 MEUR

1 MEUR - 5 MEUR

> 5 MEUR

46.742 contracts below 150 KEUR were placed in this period

Lisbon 03 June 2013 5 Procurement Policy n Overall objective: technical excellence at an affordable cost n Key principles: Ø Competitive Tendering Ø Within ESO Member States (Chile for operations) Ø Contracts awarded to the lowest priced compliant tender Ø Fair distribution of the contracts among the ESO Member States

Lisbon 03 June 2013 6 Procurement Process (1/2) n ESO selects the recipients of its procurement actions from: Ø Its database, plus its staff’s own knowledge Ø Suggestions received from ESO Member States Ø 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

Lisbon 03 June 2013 7 Calls for tender (CFT)

Typically used for Procurements > 150k EUR

Lisbon 03 June 2013 8 ESO’s industrial partners

GmbH (company with Optics limited liability) S.A. (corporation) Electronics AG/plc . (public limited company) Telecommunications S.r.l. (private limited company) Ltd (proprietary limited company) Software IT hardware Fiber technology Imaging CCD systems Infrared detector systems Optical detector systems International Holographics National Small and Sensor technology medium sized Laser technics company (SME) Micro company Cryogenics Construction

Lisbon 03 June 2013 Collaboration with industry was key for the success of the VLT

Schott Zeiss Linde Cegelec SEBIS

Ansaldo AES Fokker TNO/TPD

REOSC AMOS

GIAT Dornier

Skanska

Lisbon 03 June 2013 Sunset

Lisbon 03 June 2013 11 Lisbon 03 June 2013 Lisbon 03 June 2013 13 The E-ELT: overview

First Light Instruments

Lisbon 03 June 2013 Residencia (Kouvo Partanen)

Lisbon 03 June 2013 15 Headquarters n HQ built in 1981 Ø Expanded a few times Ø Capacity ~290 persons Ø ~200 others • In temporary offices • Elsewhere on campus n HQ Extension Ø Design: Auer & Weber Ø Office building + auditorium Ø Technical building Ø Construction 2012-13

Lisbon 03 June 2013 16 Closed Session Remarks

Lisbon 03 June 2013 17 Technology Transfer n ESO’s Technology Transfer Policy Ø Approved by Council in Dec 2010 Ø Defines rules for licensing of in-house developments n First royalties now received Ø ESO Fiber RAMAN Amplifier Ø ALMA Calibration Loads Technology Ø Companies in Canada, , UK

Lisbon 03 June 2013 18 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”

Lisbon 03 June 2013 19 Industrial Return (2/3)

Lisbon 03 June 2013 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: Ø Close monitoring + regular reporting to the ESO Finance Committee Ø Stronger involvement of the Industrial Liaison Officers in identifying competent suppliers Ø Increased programme of Industry days and networking events Ø Update of the procurement rules n ….also, pro-activeness of the Member States encouraged

Lisbon 03 June 2013 21 Contracts with Portugal n Since 2005: Ø ~4.0 MEUR Ø 49 (sub)contracts n Great diversity, from software consulting, graphical work to turn key delivery of LPG storage tanks n High level quality deliverables n Recurring suppliers: Ø Critical software; several SW consultancy assignments Ø ISQ; QA assignments, development of safety manual Ø Exatronic; supply of electronic parts

Lisbon 03 June 2013 22 A. Silva Matos n Manufacture and Delivery of ALMA LPG Storage Tanks

Lisbon 03 June 2013 23 Turbo Constroi n Subcontractor for concrete work of new ESO HQ

Lisbon 03 June 2013 24 Solidal n Subcontractor delivering the Aluminum cables for the 23 kV installation for ALMA

Lisbon 03 June 2013 25 Approach n Our procurement actions are targeted Þ Ø You either know about it Ø or ESO knows about you and your competencies Ø or…..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 ([email protected])

Lisbon 03 June 2013 26 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 limited Ø Make yourself known Ø Sign 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 Þ Ø Ask questions when uncertain before submitting response Ø Comply with our requirements for content of your response

Lisbon 03 June 2013 ESOESO CP CP Web Webpage Page

Lisbon 03 June 2013 Lisbon 03 June 2013 29