1. SG May 2015 - Total M&O Cat. A budget and detailed expenditure in 2014 - M&O Cat. A budgets for the coming years - Currencies Exchange Rates Issue: possible mitigations - LHCb Farm - Approved budget for 2015 and projected for 2016 - M&O Cat. B - Conclusions The LHCb Upgrade - Addendum 1 to the Construction MoU - Addendum 2 to the Construction MoU - Risk Table 19/05/2015 SG1C. D'Ambrosio, CERN CERN-SG-2015-045

2. Basic principle of LHCb M&O Cat. A policy - Keep budget as constant as possible: - foresee what is foreseeable and budget for it; - provide a mechanism to compensate between “collision years” and “shutdown years”; - smooth as much as possible Online CPU replacement needs (“just-in-time” principle) and, in any case, smear their cost over a few years; - as LHCb is running to optimize physics throughput, effects on the related expenditures have to be carefully studied and taken into account for the coming years budgets. 2014 BudgetExpenditures*Difference 2,5802,608- 28 The strategy of asking to keep small surpluses as buffers for shutdown years has paid. *In kCHF 19/05/2015 SG2C. D'Ambrosio, CERN 2013 BudgetExpenditures*Difference 2,5802,847- 267

3. M&O Cat.A Contributions (end of 2014) 2014 BudgetContributions*Difference 2,5802,461- 119 19/05/2015 SG3C. D'Ambrosio, CERN In spite of an overspent exploitation result and missing contributions, the account is still positive, thanks to the previously buffered funds. Taking this in account, this has been sufficient to ensure no cash flow issues. Between end of 2014 and beginning of 2015, essentially all pluri-annual missing contributions up to 2014 included have come in (except part of Brasil and Ukraine). We warmly thank the efforts shown by our FAs. *Pluri-annual, in kCHF

4. Budget 2014 main lines (without Power) In general, we expect ~5 – 10 % cost increase in M&O cat. A, from a shutdown year with respect to a collision year. In 2013, the main deviations are on detector related and general services lines. To be noted, the 300 kCHF moved in the online account (RRB-2011-088). 4 2014 BudgetUsedDifference detector related 920 972-52 secretariat 185 219-34 communication 10 55 core comp 170 180-10 on line (see text) 890 555 + 30035 test beams 35 278 laboratory 50 419 general services 320 30911 Totals 2,580 2608-28 Online account 300 19/05/2015 SG4C. D'Ambrosio, CERN

5. Online Replacement Strategy ONLINE replacements In 2014, we have reached a total sum of 1600 kCHF on the special “Online Account”*. These transfers constitute the base of our CPU replacement strategy. The acquisition of the farm bulk was finalized in end 2014. We needed ~2 MCHF to satisfy an order for ~1.7 MEuro. With the recent exchange rate shake, we need “only” ~1.8 MCHF. ~200 kCHF will be there to cover for likely 2015 missing funds. Foreseen timeline for fund transfers to the special Online account and for purchasing replacements. *Set following our proposal in CERN-RRB-2009-117 and subsequently accepted by SG and RRB 19/05/2015 SG5C. D'Ambrosio, CERN Year<2011201120122013201420152016 Online Comp. Repl. Funds300370 Actual Accruals400300 200 Cost/Comm.1790 Cash Balance4007001,0001,3001,600110310

6. Construction Common Funds 19/05/2015 SG6C. D'Ambrosio, CERN As already pointed out in previous RRBs, we also make use of funds left in our Construction Common Accounts, which we kindly asked RRB to leave active (CERN- RRB-2010-040). This alleviated the expenditure load on M&O Cat.A during LS1 and allowed some further consolidation. Infrastructure 159 kCHF Consolidations

7. LHCb M&O Category A at Book Closing end 2014 (all in kCHF) - Det. Related: small anticipated overspending; further infrastructure consolidation funds have been taken from Construction Common Funds. - Secretarial aid: small overspending mostly due to secretarial rotation (due indemnities). - Core computing: relative overspending. This line is been increased to 190 kCHF from 2015. - Online Sys. Man.: planned underspending by strategically delaying a position. This allowed a small overspending in hardware. Thanks to buffered funds from previous years, we expect no cash flow issues. 19/05/2015 SG7C. D'Ambrosio, CERN 2014 BudgetUsedDifference detector related920 972-52 secretariat185 219-34 communication10 55 core comp170 180-10 on line890 555+30035 test beams35 278 laboratory50 419 general services320 30911 Totals2,580 2608-28 Online account 300 Detector related costs Magnet71 Gas271 Cooling87 Safety38 Tech. support236 Beam pipe84 Secretariat Secretarial aid211 Communication 5 On-line computing System Manag.222 Hardware333 Test beams, calibration Operation27 Laboratory operations Operation41 General services Cool., vent. etc164 Transport and cranes96 Survey0

8. 2015 Category A M&O Budget 19/05/2015 SG8C. D'Ambrosio, CERN 2015 PhD eq. total/ funding auth. M&O AVELOPower kCHF 2,5300300 Total %CHF BRAZIL 204.4111,947013,274125,221 COLOMBIA 20.411,19501,32712,522 FRANCE 429.3235,08800 BMBF GERMANY 255.5139,93400 MPI, MPG, GERMANY 61.333,58400 IRELAND 10.25,59706646,261 INFN ITALY 8117.9453,38500 NETHERLANDS 153.383,96000 P. R. CHINA 40.922,38902,65525,044 POLAND 132.972,76500 HHNIPNE ROMANIA 51.127,98700 RUSSIA 327.1179,11508,999188,114 SPAIN 163.589,55800 SWITZERLAND 276.0151,12800 TURKEY 10.25,59700 UKRAINE 30.716,79201,99118,783 UK 8117.9453,38500 USA 153.383,96009,42893,388 CERN 6313.9352,63300 TOTAL 452100.02,530,000038,3392,568,339

9. Footnote to previous slide Trend in PhD equivalent number together with the M&O Cat.A cost for 1 PhD equivent*. Also shown the essentially constant M&O Cat.A budget in kCHF. *end of August numbers for 2016 19/05/2015 SG9C. D'Ambrosio, CERN ~5600 CHF per PhD equiv.

10. 19/05/2015 SGC. D'Ambrosio, CERN10 Forecast for 2016 and successive M&O Category A budgets The estimated budget for 2016 and following years will be examined together with the Scrutiny Group in the coming months. In principle, there are no main changes from 2015 to 2016 and successive years, which reflect the discussions from last year, agreed upon with the SG, and which are described in CERN-RRB-2014-037 and CERN-RRB-2014-96 and in line with the principle of keeping the budget as constant as possible over the years. However, also in view of the recent financial instabilities between important currencies, we shall try to re-optimize our budget and re-orient expenditures, to better include effects of currency fluctuations. To this end and with the help of the SG and the RRB, we expect that a solution will be found. We shall report on it in October. Is it possible to find a solution for all LHC experiments?

11. 19/05/2015 SGC. D'Ambrosio, CERN11 Currencies Exchange Rates Issue: possible mitigations (specific LHCb) No easy solution In general: - No changes to the approved year budget should be carried out during the exploitation year (ex. change the budget of 2015 during 2015!!). - No special “discounts” to specific FAs… Mechanisms of “mitigation” can be thought: 1.as for budget underspending larger than 10%, rebate in year N+2 what effectively has been saved in year N; (constant budget, with rebates on contributions) 2.foresee during year N a most probable scenario and decrease of a suitable % the provisional budget for year N+1; (variable budget) 3.more?? In all cases, any type of “discount” will be on the whole budget and therefore will not offset the real extra-funds provided by the affected FAs. Of these two options, the first is by far the more efficient, as does not touch the constant budget principle, it just allows the underspending to be recycled as a rebate for FAs. It works also if the Euro appreciates on the CHF. Only it takes 2 years to show up … unless … Example for the present situation will follow.

12. 19/05/2015 SGC. D'Ambrosio, CERN12 Currencies Exchange Rates Issue: possible mitigations (specific LHCb) For a ~20% of direct expenditures in euros 20% * 15% = 3% budget (kCHF)% of total 20142015 cern services17 salaries and subsistencies24 30 euro exp. (in kCHF)*19 17 CHF exp. (in kCHF)**40 36 100 * orders executed in euros and converted in CHF (1.2 rate) **orders in CHF, mainly, gas, electronic pool, magaz, atelier, IT hardware and software, etc. Disclaimer: numbers are rough approx.; expenditures are all converted in CHF Not easy to foresee how this fractions will change

13. Preliminary 2016 Category A M&O Budget 19/05/2015 SG13C. D'Ambrosio, CERN 2016 PhD eq. total/ funding auth. M&O A-2% M&O APower kCHF 2,5302,480600 Total %CHF BRAZIL 204.4 111,947 109,735 26,549 136,283 COLOMBIA 20.4 11,195 10,973 2,655 13,628 FRANCE 429.3 235,088 230,442 0 BMBF GERMANY 255.5 139,934 137,168 0 MPI, MPG, GERMANY 61.3 33,584 32,920 0 IRELAND 10.2 5,597 5,487 1,327 6,814 INFN ITALY 8117.9 453,385 444,425 0 NETHERLANDS 153.3 83,960 82,301 0 P. R. CHINA 40.9 22,389 21,947 5,310 27,257 POLAND 132.9 72,765 71,327 0 HHNIPNE ROMANIA 51.1 27,987 27,434 0 RUSSIA 327.1 179,115 175,575 17,998 193,573 SPAIN 163.5 89,558 87,788 0 SWITZERLAND 276.0 151,128 148,142 0 TURKEY 10.2 5,597 5,487 1,327 6,814 UKRAINE 30.7 16,792 16,460 3,982 20,442 UK 8117.9 453,385 444,425 0 USA 153.3 83,960 82,301 18,856 101,157 CERN 6313.9 352,633 345,664 0 TOTAL 452100.02,530,000 2,480,000 78,005 2,558,005

14. M&O A forecast (without VELO and Power) in kCHF: 19/05/2015 SG14C. D'Ambrosio, CERN Year20122013201420152016201720182019 Detector related costs 880920 880 Secretariat 185 180 Communications 5010 Core Computing 150170 190 Online Computing 900890 860 Test beams, cal. facilities 3035 2520 Laboratory operations 50 40 General services 330320 310300 Total25752580 25302480 Budget kept constant, except for a small difference between running and shutdown years. Overall budget has been decreased of 2% due to recent exchange rate variations. Most of it is attributed to Online.

15. Online Replacement Strategy ONLINE replacements The acquisition of the farm bulk was finalized in end 2014. We needed ~2 MCHF to satisfy an order for ~1.7 MEuro. With the recent exchange rate shake, we need ~1.8 MCHF. ~200 kCHF will be there to cover for likely 2015 missing funds. Foreseen timeline for fund transfers to the special Online account and for purchasing replacements. *LS2 19/05/2015 SG15C. D'Ambrosio, CERN Year201320142015201620172018*2019* Online Comp. Repl. Funds370 340 Actual Accruals300 200100 Cost/Comm.1790 Cash Balance1,3001,600110310410510610

16. 1) Values expected to decrease due to CHF/Other Currencies fluctuations (larger than 5%). 19/05/2015 SG16C. D'Ambrosio, CERN Cat. B M&O budget for 2014 in kCHF and per FA (>10 kCHF) Category B M&O status Cat. B M&O 2014 budget is given in the Table. The total is ~1130 kCHF including in-kind contributions, a bit less than half of the M&O Cat.A total. Category B M&O spent funds show to be constant over time inside ~10% *. *Fluctuating exchange rates increase the approximation for these figures CALO (CERN, ES, FR, RO, RU) 240 Level_0 (FR, IT) 60 Muons (CERN, IT, RU) 151 On Line (CERN) 80 Outer Tracker (GE, NL, PL, PRC) 120 RICH (CERN, IT, UK) 131 Silicon Trackers (CH, ES, GE, UKR) 80 VELO (CERN, CH, EI, NL, RU, UK, USA) 220 CERN (CA, MU, ON, RI, VE) 184 CH (STs, VE) 81 ES (CA, STs) 35 1) FR (CA, L0) 140 1) GE (OT, STs) 93 1) IT (L0, MU, RI) 134 1) NL (OT, VE) 90 1) RU (CA, MU, VE) 105 1) UK (RI, VE) 200 1)

17. M&O Cat. B 2010 - 2014 and projected preliminary 2015 - 2019 19/05/2015 SG17C. D'Ambrosio, CERN M&O Cat. B REQUESTS 2010 - 14 and PROJECTED 2015 - 192010201120122013201420152016201720182019 Mechanics 11165 11065 Gas-system 10 Cryo-system 0000000000 Cooling system 15 FE electronics 124125 Standard electronics, PS (LV, HV), Crates, RO Modules 229224 225240224 Controls, (DCS, DSS) 68707170 60 Sub-Detector Spares 200 170200180190170 Maintenance of clean rooms, active and passive storage (including rentals), workshops45 Communications (Piquet tools (ACB, GSM, etc...)) 31373630 Store Items (Materials (screws, washers, tools, etc…)) 25 Hired Manpower @ CERN (in CHF (Industrial Support)) 0000000000 Technical Manpower @CERN (in FTE (Technicians from Collaboration Institutes)) 290295280 Totals (CHF) 1148111110661090113010691049 All numbers in CHF (1 to ~1.25 EURO/CHF). Actual funds may be managed by each institute (or project) in different currencies. Expect between 10% and 15% average decrease, when re-extracted in CHF (with present exchange rates).

18. Conclusions On the second year of LS1, a small overspending appears in our budget lines. Some consolidation work was budgeted on the Construction Common Funds. A Online position was strategically delayed. We are using the funds, buffered from previous years with the approval of RRB, to replenish the small deficit. Detector Related line show an overspending of ~6%. Core computing an overspending of ~6%. The farm has been entirely re-furbished with some non-anticipated returns due to the fluctuation CHF/EURO. A possible mechanism to mitigate exchange rate effects has been proposed. Cat.B funds and resources are healthy and they seem to have taken well the increased LS1 activities, thanks to well planned/anticipated expenditures (Calo, Muons and Outer Tracker). We register some delayed payments for some detectors (see RICH HPD refurbishing) which will be soon fulfilled. As Cat. B funds are mostly managed by the specific projects (largely euro-funded), we expect a decrease in their budgeted value as calculated in CHF. We will discuss all this with the SG and report at the October RRB. 19/05/2015 SG18C. D'Ambrosio, CERN

19. 19/05/2015 SG19C. D'Ambrosio, CERN The LHCb Upgrade The LHCb Upgrade builds legally and technically on the framework offered by the MoU for LHCb construction (CERN-LHCb-RRB-D-2000-24 rev.). As a direct consequence, the MoU for M&O Cat.A will still provide the (technical and financial) framework for the M&O Cat.A Expenditures, unless non renewed and declared finished by the RRB and CERN. Addenda will complete and fulfil the already present structure in this case too. Addenda to this MoU are being written, submitted to and approved by the RRB, in order to complete/overwrite sections of the MoU. In such scenario we consider the LHCb Upgrade as a major consolidation of the present detector. Thus, on a first approximation only, we would continue with the same M&O Cat.A budget lines and levels as at present. A detailed and complete picture will not be ready before ~1.5 years from now.

20. 19/05/2015 SG20C. D'Ambrosio, CERN

21. 19/05/2015 SG21C. D'Ambrosio, CERN

22. 19/05/2015 SG22C. D'Ambrosio, CERN From Guy at the RRB

23. 19/05/2015 SG23C. D'Ambrosio, CERN LS2 First Schedule

24. 19/05/2015 SG24C. D'Ambrosio, CERN

25. 25C. D'Ambrosio, CERN

26. 26C. D'Ambrosio, CERN

27. 27C. D'Ambrosio, CERN

28. 28C. D'Ambrosio, CERN Addendum nr. 2

29. 29C. D'Ambrosio, CERN What we need from YOU LHCb Upgrade: from each Upgrade Project* (as detailed in the Add. Nr. 1 and 2) A table like this: Main Lines Time Profile (with expected and real expenditures) JUST AN EXAMPLE... RICH Upgrade 2015 and before20162017201820192020 Main LinesValue(kCHF) Planned Spent Planned Spent Planned Spent Planned Spent Planned Spent Planned Spent RICH 1 Mechanics868 Gas Enclosure Optical System Photodetector Boxes Services RICH 2 Mechanics180 Photodetector Boxes Services RICH Photodetectors5433 Photodetectors 1 Photodetector 2 QA Testbenches RICH Electronics2649 Elementary Cell CLARO Chip Digital Board PCI40 Computing Total RICH9185 Main MilestonesPlannedAchieved CLARO EDROct-14 Elementary Cell EDROct-14 … … … Main Milestones *Includes Common Projects

30. 19/05/2015 SGC. D'Ambrosio, CERN30