CERN LIBRARIES, GENEVA CERN/FC/2978 Original: English CONFIDENTIAL 21 August 1986
CM-P00088750
ORGANISATION EUROPÉENNE POUR LA RECHERCHE NUCLÉAIRE CERN EUROPEAN ORGANIZATION FOR NUCLEAR RESEARCH
FINANCE COMMITTEE
Two-hundred-and-twelfth Meeting
Geneva - 25 September 1986
PROPOSAL FOR THE AWARD OF A CONTRACT FOR THE SUPPLY AND INSTALLATION OF WATER COOLING PLANTS FOR LEP
This document concerns the installation of ten turnkey plants, above and below ground, capable of providing the cooling water for the LEP machine.
Following a preliminary enquiry sent to 225 potential suppliers in thirteen Member States, a call for tenders was sent on 19 February 1986 to 65 selected firms in twelve Member States. By the closing date, CERN had received sixteen tenders.
The Finance Committee is invited to agree that a contract be negotiated with the consortium TECHNIP - ENTREPRISE INDUSTRIELLE - SNIG, the lowest bidder conforming to the technical specification, for the supply and installation of ten water cooling plants for a total firm price, not subject to revision, of 20 632 000 Swiss francs, with an option for the installation of additional silencers for an amount not exceeding 395 000 Swiss francs, also not subject to revision.
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PROPOSAL FOR THE AWARD OF A CONTRACT FOR THE SUPPLY AND INSTALLATION OF WATER COOLING PLANTS FOR LEP
INTRODUCTION
1. This adjudication concerns the detailed design, manufacture, supply, installation, testing and commissioning of ten turnkey plants, above and below ground, capable of providing cooling water for the LEP magnets, vacuum system, RF equipment, air conditioning systems, helium compressors, as well as LEP experiments.
2. The requirement includes:
- four cooling plants consisting of ten atmospheric cooling towers installed at the LEP Access points 2,4,6 and 8 (4 - 1-4-1 units respectively), with primary water pumps and strainers;
four demineralized-water plants installed in the underground halls at the bottom of the access shafts at points 2, 4, 6 and 8, consisting of heat exchangers (demineralized water to primary water), circulation pumps, strainers, demineralizers, expansion vessels and control valves;
- two small demineralized-water plants for the cooling of the beam injection magnets;
- one relay station with two high-pressure pumps installed at the bottom of LEP access shaft PM 15 for the filling with demineralized water of the underground plants at points 2,4, 6 and 8.
All facilities needed for local and remote control from the LEP central control room of all plants have to be included.
3. Installation work is scheduled to start in March 1987 and to be completed in June 1988.
4. The technical auditing of the contract to be awarded 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
5. A preliminary enquiry, bearing the reference I-1315/LEP, was sent on 23 July 1984 to 225 firms in thirteen Member States (cf. letter to the members of the Finance Committee dated 26 July 1984).
6. The preliminary enquiry documents set out the main conditions for the supply and installation of the water cooling plants and also the selection criteria which CERN would apply when issuing the call for tenders. Table I shows, for each Member State, the number of firms consulted and their replies.
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7. Following this enquiry, 42 firms declined, 118 did not reply and 65 expressed the desire to be consulted. All of the latter were found to meet CERN's qualification criteria.
CALL FOR TENDERS
8. The call for tenders I-1315/LEP for the supply and installa-tion of the LEP cooling plants was sent on 19 February 1986 to 65 firms in twelve Member States (cf. letter to the members of the Finance Committee dated 24 February 1986).
9. Bidders were invited to complete a list of quantities and prices and to attach technical documents concerning the various components.
10. When the tenders were opened on 28 May 1986, it was esta-blished that CERN had received sixteen tenders, including eight submitted by consortia formed by 21 of the firms contacted; 14 firms had declined to tender and 22 failed to reply. Table II gives the list of the firms consulted and their replies.
ANALYSIS OF THE TENDERS
11. Table III shows the order into which the offers fell at the opening, taking into account the exchange rate applied to tenders quoted in currencies other than the Swiss franc. All but three tenderers quoted firm prices, not subject to revision.
12. All tenders received were checked for completeness and for conformity with the technical specification. The four lowest offers (see bottom of Table III) were found either not to comply with the specification in its essential points or to be vague and incomplete, or both. Some of their major shortcomings are listed below:
13. The SPIE-TRINDEL tender is based on a poor design study of the project. Most of the fundamental parameters are missing, some of the indicated ones are outside the specifi-cation range. Costs for cable laying (more than 60 km) and commissioning of the plants are not included in the offer.
14. The CALIQUA - SETIP - SOFRESID tender omits the required design studies. No account is taken of the particularities of the LEP cooling installations, such as long pipe runs, open or closed, and of the inherent danger of desastrous pressure surges or water hammer. Frost protection of the cooling tower basins is inadequate and the cooling tower design is not in conformity with the specification.
15. The CSEE - BOCCARD consortium proposes cooling towers, pumps and primary water control and isolation valves which are not in conformity with the specification. The 48 radiation-resistant
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anti-flood valves required and specified by CERN for the machine tunnel were, according to the tender, not to be exposed to radiation.
16. In the ENTREPOSE offer, substantial parts of the turnkey installation are not included: all civil engineering work, i.e. cooling towers and pumping stations, as well as the control huts and frost protection of the tower basins.
17. Bearing in mind the discussion at the last Finance Committee meeting in June and the general guidelines given to the CERN Management at that occasion, it has been decided not to approach the four lowest bidders. Such contacts would have given an opportunity to firms not having submitted complete offers to define a number of important points which had been omitted in the tender. Those competitors who had made fully thought out offers may have been unfairly penalized in such a case. In addition, the deviations from the technical specification and/or the omissions were such that the necessary modifications and additions would have led to a substantial increase in price.
18. A number of tenders that follow were studied with great care. The documents submitted by these bidders showed that the specification is fully understood; only very few questions were left outstanding. These have since been answered satisfactorily by the firms concerned without any consequent modifications to their respective tenders.
19. TECHNIP - ENTREPRISE INDUSTRIELLE - SNIG, the lowest bidder in conformity with the technical specification, quoted optional silencers to be installed at the air inlet side of the cooling towers, if and where necessary. Should all ten towers be thus equipped, the extra cost would come to 395 000 Swiss francs.
PROPOSAL
20. In anticipation of possible future environmental noise problems, protective means should be foreseen and integrated into the contract. It is therefore proposed that an option be included in the contract for the installation of additional silencers, if found to be necessary, for a maximum amount of 395 000 Swiss francs.
RECOMMENDATION
21. The Finance Committee is invited to agree that a contract be negotiated with the consortium TECHNIP - ENTREPRISE INDUSTRIELLE - SNIG, the lowest bidder conforming to the technical specification, for the supply and installation of ten water cooling plants for a total firm price, not subject to revision, of 20 632 000 Swiss francs, with an option for the installation of additional silencers for an amount not exceeding 395 000 Swiss francs, also not subject to revision.
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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
Austria 15 4 - 11 Belgium 5 1 - 4 Denmark 9 - 3 6 France 46 20 7 19 Germany (Fed. Rep. of) 29 9 4 16 Greece 1 1 - - Italy 26 7 7 12 Netherlands 6 3 2 1 Norway 8 1 1 6 Spain 8 6 - 2 Sweden 6 4 1 1 Switzerland 28 5 8 15 United Kingdom 38 4 9 25
TOTAL 225 65 42 118
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TABLE II
LIST OF FIRMS TO WHICH THE CALL FOR TENDERS WAS SENT
COUNTRY FIRM REPLY
Austria AEG AUSTRIA Wien Offer (1) BOHR- UND ROHRTECHNIK Wien Offer (1) VOEST-ALPINE Linz No reply WAAGNER-BIRO Graz Offer (1)
Belgium ABAY Bruxelles Offer
France ALSTHOM ATLANTIQUE Belfort Offer BERGERON Paris No reply BOCCARD Villeurbanne Offer (2) CALIQUA Paris Offer (3) CSEE Paris Offer (2) ENTREPOSE Paris Offer ENTREPRISE INDUSTRIELLE Lyon Offer (4) GUINARD Courbevoie No reply HAMON Paris No reply JEUMONT SCHNEIDER Puteaux No reply NORDON Nancy Declined SARTEC Paris No reply SETIP Vitrolles Offer (3) SNIG Venissieux Offer (4) SOFRESID Paris Offer (3) SPIE-TRINDEL Feyzin Offer TECHNIP Lyon Offer (4) TNEE Argenteuil No reply VICARB Saint-Martin-d'Hères No reply YVROUD Saint-Jean-de-Maurienne No reply
(1) Joint offer submitted by WAAGNER-BIRO, AEG AUSTRIA, BOHR- UND ROHRTECHNIK and POLACEL.
(2) Joint offer submitted by CSEE and BOCCARD.
(3) Joint offer submitted by CALIQUA, SETIP and SOFRESID.
(4) Joint offer submitted by TECHNIP, ENTREPRISE INDUSTRIELLE and SNIG.
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COUNTRY FIRM REPLY
Germany BWB ENGINEERING Lörrach Offer (5) (Fed. Rep. DEUTSCHE BABCOCK Oberhausen Offer (6) of) ERHARD Heidenheim Declined GEA AHLBORN Sarstedt Declined HAMON SOBELCO Bochum No reply INTERATOM Bergisch Gladbach Offer (6) KAHLE ROHRLEITUNGSBAU Düsseldorf No reply KRAFTANLAGEN Heidelberg Declined LURGI Frankfurt Offer
Greece BIOCAT Athinai Declined
Italy ANSALDO Genova Declined CTIP Roma Offer EREDI TRASCHETTI Torino Declined FILIPPO FOCHI Bologna Offer (7) MARELLI Milano No reply OLIVERO DOMENICO Torino Declined TECHINT Milano No reply
Netherlands POLACEL Doetinchem Offer (1) STORK Hengelo No reply WESCON Utrecht No reply
Norway KVAERNER KULDE Sandvika Declined
Spain ALFA-LAVAL Madrid Offer (8) ANISA Barcelona No reply DRAGADOS Y CONSTRUCCIONES Madrid Offer (8) INTECSA Madrid No reply SULZER ESPANA Madrid Declined TORRAVAL Zamudio Offer (8)
(5) Joint offer submitted by ALFA-LAVAL (CH) and BWB ENGINNERING.
(6) Joint offer submitted by DEUTSCHE BABCOCK and INTERATOM.
(7) Joint offer submitted by CHRIST and FILIPPO FOCHI.
(8) Joint offer submitted by DRAGADOS Y CONSTRUCCIONES, ALFA-LAVAL (E), and TORRAVAL.
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TABLE II (cont'd)
COUNTRY FIRM REPLY
Sweden ALFA LAVAL Lund No reply ASEA Västerås No reply CALOR CELSIUS Sozna Declined REHEAT Tabi No reply
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TABLE III
PRICES AT THE OPENING OF THE TENDERS (in Swiss francs)
FIRM TOTAL PRICE PRICE RATIO
TECHNIP - ENTREPRISE INDUSTRIELLE - SNIG 20 632 000 1.00 DEUTSCHE BABCOCK - INTERATOM (1) 21 892 611 1.06 DRAGADOS Y CONSTRUCCIONES - ALFA-LAVAL (E) - TORRAVAL 22 657 196 1.10 ABAY (*) 22 709 380 1.10 ALSTHOM ATLANTIQUE 22 887 470 1.11 CHRIST - FILIPPO FOCHI 22 917 062 1.11 ALFA-LAVAL (CH) - BWB ENGINEERING 24 411 056 1.18 SULZER 25 746 700 1.25 LURGI 26 742 000 1.30
WAAGNER-BIRO - AEG AUSTRIA - BOHR- UND ROHRTECHNIK - POLACEL 30 823 282 1.49 CTIP 31 440 000 1.52 NEI NUCLEAR SYSTEMS (2) (*) 39 885 983 1.93
SPIE-TRINDEL (3) 13 856 607 CALIQUA - SETIP - SOFRESID (3) 14 360 313 CSEE - BOCCARD (3) 15 118 469 ENTREPOSE (3) (**) 16 448 660
(1) Offer in Deutschmarks converted into Swiss francs at the exchange rate of 100 DEM = 83.11 CHF.
(2) Offer in pounds sterling converted into Swiss francs at the exchange rate of 1 £ = 2.8475 CHF.
(3) Tender not in conformity with the technical specification and/or incomplete.
* Price subject to revision for the civil engineering part.
** Total price subject to revision.
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