Purchasing supplies at CERN Procurement Rules Someone FP-PI

Definition Supply contracts: Contracts for supplies of equipment including R&D contracts, electricity, telecommunications and insurance contracts as well as maintenance and leasing contracts covering data processing, printing and telecommunication equipment. CERN — 15/08/11 Purchasing Supplies — Procurement Rules 2

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 3 Procedure = ƒ( Price estimate )

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 4

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 5

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 6 Accessing Procurement Lifecycles

1 Requirements below 10’000 CHF Range: 0 CHF – 1000 CHF Range: 1000 CHF – 5000 CHF Range: 5000 CHF – 10’000 CHF

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 8

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 9 Range: 0 CHF – 5000 CHF Only one written bid is necessary Simplified template available Below 1000 CHF: orders sent by fax Firms from CERN’s Member States If possible, firms from very poorly balanced Member States (IRC < 0.30) Range: 0 CHF – 5000 CHF Only one written bid is necessary Simplified template available Below 1000 CHF: orders sent by fax Firms from CERN’s Member States If possible, firms from very poorly balanced Member States (IRC < 0.30)

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 10 Range: 5000 CHF – 10’000 CHF Bids can be requested by Technical Officer provided CERN Procurement Rules are followed: At least 3 written bids to be sought Simplified template available If < 3 firms contacted  single tender procedure Handled by FP-PI’s Centrale d’Achats Firms from CERN’s Member States If possible, firms from very poorly balanced Member States. Range: 5000 CHF – 10’000 CHF Bids can be requested by Technical Officer provided CERN Procurement Rules are followed: At least 3 written bids to be sought Simplified template available If < 3 firms contacted  single tender procedure Handled by FP-PI’s Centrale d’Achats Firms from CERN’s Member States If possible, firms from very poorly balanced Member States.

2 Requirements ranging between 10 kCHF and 200 kCHF Range: 10 kCHF – 50 kCHF Range: 50 kCHF – 200 kCHF

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 12

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 13 Range: 10 kCHF – 200 kCHF Price enquiry documents in English 3 to 5 firms will be contacted Annexes may include: Technical drawings Description & Quantities Estimate (DQE) “Working on the CERN Site” (PSO/ /Rev.5) Range: 10 kCHF – 200 kCHF Price enquiry documents in English 3 to 5 firms will be contacted Annexes may include: Technical drawings Description & Quantities Estimate (DQE) “Working on the CERN Site” (PSO/ /Rev.5)

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 14 Range: 10 kCHF – 200 kCHF Adjudication 10kCHF-100kCHF Lowest Compliant Bid i.e. to the firm whose bid complies with the technical requirements the financial requirements the delivery requirements And is the lowest Range: 10 kCHF – 200 kCHF Adjudication 10kCHF-100kCHF Lowest Compliant Bid i.e. to the firm whose bid complies with the technical requirements the financial requirements the delivery requirements And is the lowest

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 15 Range: 10 kCHF – 200 kCHF Adjudication 10kCHF-100kCHF Price based on Free Carrier basis (FCA as per Incoterms 2010), i.e.: Without transport costs With packing and loading No disadvantage to firms located in distant countries Range: 10 kCHF – 200 kCHF Adjudication 10kCHF-100kCHF Price based on Free Carrier basis (FCA as per Incoterms 2010), i.e.: Without transport costs With packing and loading No disadvantage to firms located in distant countries

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 16 Range: 10 kCHF – 200 kCHF Adjudication 10kCHF-100kCHF However, Supply contracts shall be adjudicated on a DAP basis (Delivered at Place as per Incoterms 2010) if the ratio of DAP price of the lowest FCA bid to the lowest DAP bid exceeds Range: 10 kCHF – 200 kCHF Adjudication 10kCHF-100kCHF However, Supply contracts shall be adjudicated on a DAP basis (Delivered at Place as per Incoterms 2010) if the ratio of DAP price of the lowest FCA bid to the lowest DAP bid exceeds 1.10.

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 17 Range: 10 kCHF – 200 kCHF Adjudication 100kCHF-200kCHF Supply contracts exceeding 100 kCHF shall be subject to the alignment rule (see later). Range: 10 kCHF – 200 kCHF Adjudication 100kCHF-200kCHF Supply contracts exceeding 100 kCHF shall be subject to the alignment rule (see later).

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 18

3 Requirements exceeding 200 kCHF Range: 200 kCHF – 750 kCHF Range: 750 kCHF and above

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CERN — 15/08/11 Purchasing Supplies — Procurement Rules 21 Range: exceeding 200 kCHF Firms  Market Survey Proposed by Technical Officer From CERN’s Supplier Database (by Procurement Officer) Which have expressed an interest Proposed by ILOs and Delegations Range: exceeding 200 kCHF Firms  Market Survey Proposed by Technical Officer From CERN’s Supplier Database (by Procurement Officer) Which have expressed an interest Proposed by ILOs and Delegations

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 22 Range: exceeding 200 kCHF IT  Technical auditing Purpose: to review IT documents to ensure Procurement Rules are complied with Meetings organised by Technical Officers Technical and Procurement Officers Head of TO’s Dept. or representative Head of FP Dept. or representative A representative from HSE Unit A technical expert from another dept. If necessary, another representative appointed by chairman; e.g. Legal Service Range: exceeding 200 kCHF IT  Technical auditing Purpose: to review IT documents to ensure Procurement Rules are complied with Meetings organised by Technical Officers Technical and Procurement Officers Head of TO’s Dept. or representative Head of FP Dept. or representative A representative from HSE Unit A technical expert from another dept. If necessary, another representative appointed by chairman; e.g. Legal Service

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 23 Range: exceeding 200 kCHF IT  Bid assessment Bids shall be examined to establish that they comply with the technical, financial and delivery requirements in all respects Communication of relevant information to bidders limited to: Procurement Service (< 750 kCHF) A member of Directorate (≥ 750 kCHF) Range: exceeding 200 kCHF IT  Bid assessment Bids shall be examined to establish that they comply with the technical, financial and delivery requirements in all respects Communication of relevant information to bidders limited to: Procurement Service (< 750 kCHF) A member of Directorate (≥ 750 kCHF)

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 24 Range: exceeding 200 kCHF Adjudication Lowest Compliant Bid i.e. to the firm whose bid: complies with the technical, financial and delivery requirements And is the lowest Taking into account the origin of the offer in order to ensure balanced industrial return coefficients for the MS Range: exceeding 200 kCHF Adjudication Lowest Compliant Bid i.e. to the firm whose bid: complies with the technical, financial and delivery requirements And is the lowest Taking into account the origin of the offer in order to ensure balanced industrial return coefficients for the MS

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 25 Range: exceeding 200 kCHF Adjudication Price based on Free Carrier basis (FCA as per Incoterms 2010), i.e.: Without transport costs With packing and loading No disadvantage to firms located in distant countries Range: exceeding 200 kCHF Adjudication Price based on Free Carrier basis (FCA as per Incoterms 2010), i.e.: Without transport costs With packing and loading No disadvantage to firms located in distant countries

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 26 Range: exceeding 200 kCHF Adjudication However, Supply contracts shall be adjudicated on a DAP basis (Delivered at Place as per Incoterms 2010) if the ratio of DAP price of the lowest FCA bid to the lowest DAP bid exceeds Range: exceeding 200 kCHF Adjudication However, Supply contracts shall be adjudicated on a DAP basis (Delivered at Place as per Incoterms 2010) if the ratio of DAP price of the lowest FCA bid to the lowest DAP bid exceeds 1.10.

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 27 Range: exceeding 200 kCHF Industrial Return Coefficient For Supply contracts and for a 12-month period starting on 1 st March, defined as: “The ratio between that Member State's percentage share of all purchases of supplies (excluding purchases funded by non-Member States) during the preceding four calendar years and that State's percentage contribution to the Budget over the same period” Range: exceeding 200 kCHF Industrial Return Coefficient For Supply contracts and for a 12-month period starting on 1 st March, defined as: “The ratio between that Member State's percentage share of all purchases of supplies (excluding purchases funded by non-Member States) during the preceding four calendar years and that State's percentage contribution to the Budget over the same period”

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 28 Range: exceeding 200 kCHF Industrial Return Coefficient For 2013: Poorly balanced  < 0.91 Well balanced  ≥ 0.91 Range: exceeding 200 kCHF Industrial Return Coefficient For 2013: Poorly balanced  < 0.91 Well balanced  ≥ 0.91

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 29 Range: exceeding 200 kCHF Origin of the Offer According to standards defined by EU: “the country(ies) where the supplies (including their components and sub-assemblies) are manufactured or undergo the last major transformation by the contactor or his sub- contractor” If at least 60% of the total amount of the bid comes from a poorly balanced MS, then the whole bid will be treated as that from a bidder in a poorly balanced MS Range: exceeding 200 kCHF Origin of the Offer According to standards defined by EU: “the country(ies) where the supplies (including their components and sub-assemblies) are manufactured or undergo the last major transformation by the contactor or his sub- contractor” If at least 60% of the total amount of the bid comes from a poorly balanced MS, then the whole bid will be treated as that from a bidder in a poorly balanced MS

CERN — 15/08/11 Purchasing Supplies — Procurement Rules 30 Range: exceeding 200 kCHF Alignment Rule 2 possibilities, if lowest bid compliant is from poorly balanced MS  the bidder gets the contract from well balanced MS and if first lowest bid compliant is from poorly balanced MS is < 20% and if it aligns with cheapest bid  this bidder gets the contract Range: exceeding 200 kCHF Alignment Rule 2 possibilities, if lowest bid compliant is from poorly balanced MS  the bidder gets the contract from well balanced MS and if first lowest bid compliant is from poorly balanced MS is < 20% and if it aligns with cheapest bid  this bidder gets the contract