VISTA Presentation

1
VISTA Presentation

• 27 September 2002
• London Heathrow

2
Enclosure Buildings Work PackageTender
Commercial Overview

• Who Am I?
• Daniel G Duff (LLB FCIPS)
• VISTA Commercial Manager
• Head of Procurement, UK ATC
• Questions Relative to Tender/Commercial
  Sensitivity

3
Selection Criteria(ITT Letter)

• The selection criteria for this procurement will
  be based on a combination of three areas
• Compliance with Technical Science Requirements
• Project Management
• Commercial (Including Price)
• Each bid assessed separately within the above
  criteria, the only group initially having cost
  information being the Commercial Team.
• The assessment teams will review the detailed
  areas to be covered within a pre-determined
  scoring system and a weighting applied.
• A final assessment panel will then be held where
  all three scores will be brought together. It is
  only at this point that tender prices are
  revealed.
• Fully Auditable Process.
• Results published in OJEC.

4
Invitation to Tender Letter

• Dear Sirs
• VISTA Telescope Project.
• OUR TENDER REF 1455 ENCLOSURE BUILDINGS
• 1. You are invited to submit a tender on a firm
  and fixed price basis on the terms and conditions
  specified herein / attached hereto for work
  detailed in the attached documentation. Prices
  are to be on an all inclusive basis, in
  particular the tenderer shall include within the
  tendered price allowances for travelling costs,
  travelling time, expenses, subsistence and
  similar items.
• 2. The work will commence in December 2002 and
  all Tenderers are required to submit a schedule
  which includes all construction testing and
  documentation completed no later than December
  2004.
• 3. The mechanism for payment shall be the
  production of a valid invoice presented in pounds
  sterling (GBP) excluding tax. Payment of duly
  authorised invoices shall be made within 30 days
  from receipt by the VPO of said invoice.

5
Invitation to Tender Letter

• Commercial In Confidence
• 4. The proposed milestone payments are as
  follows-
• Milestone Designation Timescale
• Kick-off meeting T/O (December 02)
• Preliminary Design Review PDR T/O 4
  months 20
• Final Design Review FDR T/O 9months 20
• Manufacturing Inspection Point 1 MIP1 T/O 12
  months 25
• Preliminary Acceptance Review PLA T/O 15
  months 15
• Provisional Acceptance PVA T/O 24
  months 20
• 5. It should be noted that all milestone
  payments and percentages payable are proposals
  and are subject to negotiation prior to contract
  award.
• 6. All of the above payment milestones would be
  subject to a retention of 10, for a period of 12
  months from date of provisional acceptance.
• 7. In addition a penalty clause of 3 per
  calendar month up to a maximum of 15, of the
  final firm and fixed contract price, would
  commence if failure to meet the contractually
  agreed milestone date in respect of provisional
  acceptance is not achieved. Tenderers may wish
  to offer an incentive scheme and any proposals
  for such shall be made as part of the offer.
• 8. For clarity, the milestone dates shall be
  deemed to be the baseline dates as defined in the
  approved project plan, following contract award.

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Invitation to Tender Letter

• Commercial In Confidence
• 9. The PPARC have recently concluded
  negotiations for membership of ESO on behalf of
  the UK Government, the VISTA Telescope will be a
  significant contribution towards membership
  contributions and as such must be ESO compliant.
• 10. Contractors are actively encouraged to
  submit options to design and manufacture that
  demonstrate significant advantages to
  cost/schedule/performance.
• 11. The selection criteria for this procurement
  will be based on a combination of three areas
• Compliance with Technical and Science
  Requirements
• Project Management
• Commercial (including price)
• Each bid will be assessed within the above
  criteria, the only group initially having cost
  information being the Commercial team. The ITT
  assessment panel will review the detailed areas
  to be covered within a pre-determined scoring
  system. The scoring will then be weighted and a
  final assessment panel held where all three
  scores will be brought
• together. It is only at this time that the full
  assessment team will be aware of the tender
  prices submitted.
• 12. The VPO do not bind themselves to accept the
  lowest or any tender and may at its absolute
  discretion accept or reject the whole or any of
  part of any tender. The attached form of tender
  must be completed for all offers presented
  together with the annexes attached thereto.
• 13. The offer(s) shall comply with the following
  documents as attached
• PPARC Contract Terms and Conditions Ref
  CON4/VISTA-ENCLOSURE-09-2002.
• Standard Instructions to Tenderers Ref
  SITT-1455.
• Statement of Works Ref VIS-SOW-ATC-10000-0015
  Issue 1.0 dated 6 September 2002.
• Technical Specification Ref VIS-SPE-ATC-10000-000
  9 Issue 2.0 Dated 6 September 2002.

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Invitation to Tender Letter

• Commercial In Confidence
• 14. The specific requirements of this enquiry
  letter shall take precedence over the
  requirements of the above documents.
• 15. It is important to note that all enquiries
  whether of a technical or commercial nature
  should be forwarded to the undersigned in
  writing. All questions together with our response
  will be formally distributed to all tenderers,
  unless at our sole discretion any such question
  and/or response is considered to be commercially
  sensitive. Theidentity of the company asking the
  question will not be disclosed and all Tenderers
  are actively encouraged to ask relevant questions
  to gain a clear understanding of our
  requirements.
• 16. You are requested to return five copies of
  your tender (one copy clearly marked priced and
  four copies marked unpriced) to be received at
  this office not later than 12 noon on 15th
  November 2002.
• 17. An addressed label is enclosed for use in
  submitting your tender, it is essential that you
  make use of this label and all packaging must be
  clearly marked as undernoted
• Head of Procurement
• UK ATC
• Royal Observatory Edinburgh
• Blackford Hill
• Edinburgh
• EH9 3HJ

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Invitation to Tender Letter

• Commercial In Confidence
• 18. A Pre-Tender meeting will be arranged to
  which all Tenderers are invited. The date which
  is Friday 27/09/02 and the meeting will be held
  in Heathrow, London. Exact details regarding
  this meeting to which all tenders are invited to
  attend will be distributed in due course.
  Attendance at this meeting is highly recommended.
• 19. Please acknowledge receipt of this letter in
  writing intimating your intention to submit a
  tender or otherwise within 7days from the date of
  this invitation to tender using the
  acknowledgement form provided.
• Yours faithfully
• Daniel G. Duff (LLB FCIPS)
• VISTA COMMERCIAL MANAGER
• E OE
• Enc.

9
Conditions of Contract(Con 4 VISTA
Enclosure-09-02)

• Particle Physics and Astronomy Research Council
  Standard Conditions of Contract for the Supply,
  Delivery and Installation of Plant.
• Table of Contents
• Section 1 - General Conditions
• Part I
• 1. Interpretation, etc.
• 2. Description
• 3. Alteration of Specifications, Plans,
  Drawings, Patterns and Samples
• 4. Acceptance Marks
• 5. Packages
• 6. Extension of Time for Completion
• 7. Payment on or after Completion
• 8. Recovery of Sums Due
• 9. Progress Reports
• 10. Default

10
Conditions of Contract(Con 4 VISTA
Enclosure-09-02)

• 11. Bankruptcy
• 12. Transfer, Assignment and Sub-contracts
• 13. Value Added Tax
• 14. Corrupt Gifts and Payments of Commission
• 15. Law
• 16. Arbitration
• Part II
• 17 Issues of PPARC Property
• 18. Accounting for Issues of Property
• 19. Use of Documents, Information, etc.
• 20A. Patent Rights, etc.
• 20B. Patent Rights, etc.
• 21. Liquidated Damages
• 22. Break

11
Conditions of Contract(Con 4 VISTA
Enclosure-09-02)

• Section 2 - Conditions Relating to the Supply and
  Delivery of Plant
• Part I
• 23. Drawings and Specifications
• 24. Mistakes in Information
• 25. Loss of or Damage to the Plant, etc.
• 26. Inspection and Rejection
• 27. Tests
• 28. Limitation of Precedent
• 29. Suspension of Work on the Plant
• 30. Delivery
• 31. Performance Acceptance Tests
• 32. Interference with Tests
• 33. Taking-Over/Taking into Use
• 34. Defects after Taking Over

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Conditions of Contract(Con 4 VISTA
Enclosure-09-02)

• Part II
• 35. Entirety of Contract
• 36. Stage Payments
• 37. Vesting of Plant, etc. at Contractors
  Premises
• 38. Retention of Information
• 39. Special Jigs, Tools, etc.
• 40. Disposal of Scrap and/or Rejected Material
• Section 3 - Conditions Relating to Installation
• Part I
• 41. Compliance with the Instructions of the SO
• 42. Regulations on the PPARC Premises
• 43. Passes
• 44. Admission to the PPARC Premises
• 45. Precautions Against Fire and Other Risks
• 46. Injury to Persons Loss of Property

13
Conditions of Contract(Con 4 VISTA
Enclosure-09-02)

• 47. Vesting of Plant and Equipment on Site
• 48. Loss of or Damage to the Works and Equipment
  on Site
• 49. Making Good Loss or Damage where the
  Contractor is not Responsible
• 50. Labour, Materials, Scaffolding and other
  Appliances
• 51. Surplus Material/Removal of Rubbish
• Part II
• 52. Site Conditions
• 53. Access to and Possession of Site
• 54. Foundations
• 55. Contractors Agent
• 56. Replacement of Contractors Employees
• 57. Suspension of Work on Site
• 58. Watching, Lighting and Protection of Works

14
Standard Instructions to Tenderers

• Standard Instructions to Tenderers
• 1. Any reference to the VISTA Project Office
  (hereinafter referred to as the VPO) and/or the
  UK Astronomy Technology Centre (hereinafter
  referred to as the UK ATC), that may appear in
  any documentation (including drawings) referred
  to herein, attached hereto, and/or previously or
  subsequently issued to you, shall be deemed to
  refer to the aforementioned and/or The Royal
  Observatory of Edinburgh and/or The Particle
  Physics and Astronomy Research Council and/or
  their successor/sister/associated organisations,
  unless expressly and specifically agreed
  otherwise in writing.
• 2. For clarification, the Particle Physics and
  Astronomy Research Council (The PPARC) and the UK
  Astronomy Technology Centre (UK ATC) are the same
  legal entity. Therefore, any contract resulting
  from this Invitation to Tender will be placed on
  behalf of the PPARC, acting through the VPO,
  which is the management organisation for the
  Vista project within the UK ATC, incorporating by
  Royal Charter and having a place of business at
  the Royal Observatory Edinburgh, Blackford Hill,
  Edinburgh, EH9 3HJ.
• 3. A suitable Bank Security Bond may be
  considered necessary for any contract resulting
  from this invitation to tender. You are therefore
  required to make allowance for the provision of a
  suitable form of Bank Security Bond within your
  tender price. The cost of providing a Bank
  Security Bond shall be clearly shown in the
  Segregation of Tender Price Annex 1 attached to
  the Form of Tender (Document Reference CD4).
  We reserve the irrevocable right to include or
  reject the provision of a Bank Security Bond in
  the contract and to approve the format, content,
  etc., of same, prior to issuing the contract.
• 4. It is a mandatory condition of Tender that
  you shall make available information, which we
  may require for the purpose of assessing your
  Tender prices and rates. In order that we can
  carry out an effective Tender Review Process, you
  must complete the Tender Price Breakdown Schedule
  attached as Annex 2 to the Form of Tender, (
  Doc. Ref CD4) enclosed herewith.

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Standard Instructions to Tenderers

• 5. The Tenderer is required to complete and sign
  the Form of Tender and complete and extend price
  schedules and appendices, as the case may be.
• 6. Extensions and totals are to be marked to
  indicate that they have been arithmetically
  checked and that they are accurate. Items against
  which no rate or price is entered shall be deemed
  to be covered by other rates and prices in the
  Tender.
• 7. The tender price sum shall fully cover the
  value of the work described, together with all
  costs and expenses, risks and obligations set
  forth or implied. The submission of a Tender
  will be deemed to be an undertaking that the
  Tender price includes all costs.
• 8. No alteration is permitted to the Form of
  Tender or to the Specification, Schedules or
  Bills of Quantities, and Tenders must comply with
  the Invitation, Specification and Statement of
  Works. However, the Tenderer may in addition
  submit options, on separate sheets, giving
  particulars of changes and prices that
  demonstrate significant advantages to cost,
  schedule and / or performance.
• 9. The Tenderer and all other recipients of the
  Enquiry Document (whether they submit a Tender or
  not) must treat the details of the Enquiry
  Documents (together with any drawings) as private
  and confidential and ensure that they are used
  for the sole purpose of tendering.

16
Standard Instructions to Tenderers

• 10. The VPO will not be responsible for any
  expenses which may be incurred by the Tenderer in
  the preparation of this Tender.
• 11. The VPO does not bind itself to accept the
  lowest or any Tender.
• 12. The following provision applies in this
  particular case
• The Tenderer is required to allow in his prices
  for ascertaining the position of, and depth, and
  for safe working around, buried services of all
  kinds, whether owned by the PPARC or by others.
• 13. The PPARC attaches great importance to
  safety. Notwithstanding safety requirements
  described elsewhere, Tenderers shall be required
  to ascertain the nature and extent of any
  possible hazard at or in the vicinity of the
  intended site location. Successful Tenderers
  shall be required to describe the methods and
  plant they intend to employ, and ensure that
  their employees, and those of their
  sub-contractors, are properly and regularly
  briefed on safety and safe working practices.
  Receipt of a Tender shall be deemed to be an
  acknowledgement that the Tenderer has taken full
  account of safety.
• 14. The parties confirm that the occurrence or
  non-occurrence of an event associated with
  economic and monetary union in the European
  Community will not have the effect of altering
  any term of, or discharging or excusing
  performance under, this order or entitle either
  party unilaterally to alter or terminate this
  order. All prices/values tendered including the
  firm and fixed total tender value shall be
  presented in Pounds Sterling (GBP).
• 15. It is a mandatory requirement that
  Sub-Contractors in any tier are all duly approved
  by the PPARC.

17
Standard Instructions to Tenderers
16. All tenders must be based on the Conditions
of Contract referred to / enclosed with the
invitation to tender and shall be deemed to
establish irrevocable precedence. Any
qualification accompanying a tender may, at the
PPARCs sole discretion, be negotiated and agreed
prior to formal issue / acceptance of a contract
award letter. Pre-printed conditions accompanying
or shown on the reverse of the Tenderers
documents, either prior to or following contract
award, shall be regarded as an oversight and
shall not apply at any time under any
circumstances whatsoever. 17. Environmental
Management Systems in accordance with
International Environmental Standard ISO 14001
must be observed at all times. 18. The tender
is to be valid and open for acceptance for a
period of 120 days from the date of tender
submission stipulated in the invitation to tender
letter.
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Segregation of Tender Price(Annex 1 to Form of
Tender Doc. Ref CD4)
Tender No 1455 Annex 1 (September
2002) Attachment to Form of Tender (Doc.Ref
CD4) Segregation of Tender Price Item No.1
Price Excluding Provision of a Bank Security
Bond We the undersigned do hereby confirm that
the segregation of the contract price Exclusive
of any Bank Guarantee Fees is a Firm and Fixed
Price of ------------------------------ (UK
Pounds Sterling) Excluding UK Valued Added Tax or
equivalent. Item No.2 Price for Provision of
a Bank Garauntee We the undersigned do hereby
confirm that the total price for provision of a
suitable Bank Guarantee, in accordance with the
requirements of the VPO invitation to tender
covering letter dated 9 September 2002, shall be
at a Firm and Fixed Price of --------------------
(UK Pounds Sterling) Excluding UK Value Added
Tax or equivalent. Item No.3 Overall Contract
Price We the undersigned do hereby confirm that
the Total Overall Tender Price (The total of Item
Nos 1 and 2 Above) is a Firm and Fixed Value of
-------------------------------- (UK Pounds
Sterling) Excluding UK Value Added Tax or
equivalent. IT IS IMPERATIVE THAT THE VALUE
ENTERED BY YOU ON THE FORM OF TENDER IS THE
OVERALL VALUE SHOWN IN ITEM No.3 ABOVE. (NOTE
The Form of Tender is the document to which this
is attached Doc.RefCD4). -----------------------
--------------------------------------------------
--------------------------------------- Signature

Title / Position Please Print Name

Date A duly authorised signatory for
and on behalf of
19
Price Build Up Schedule(Annex 2 to Form of
Tender Doc. Ref CD4)
20
Form of Tender(Doc Ref CD 4)
21
Address Label

• All Tenderers MUST be received no later than 12
  Noon (UK Time) 15 November 2002

Head of Procurement UK ATC Royal Observatory
Edinburgh Blackford Hill Edinburgh EH9 3HJ