F4E and the Procurement Process F4E and the Procurement Process Culham 15/05/2012 Culham 15/05/2012 Mehdi Daval Mehdi Daval (Market policies, analysis & Reporting (Market policies, analysis & Reporting group) group)
Agenda Agenda 1. Fusion Energy 2. ITER 3. Europe in ITER: F4E – Fusion for Energy 4. F4E Contractual Process 5. F4E Industrial Policy and Tools 6. Achievements and Next Steps F4E & Industry- Culham 2
1. Fusion Energy 1. Fusion Energy Principles Principles • Hydrogen nuclei fuse and release large amounts of energy • Fusion powers the sun and the stars • On earth, the most efficient process is a D-T reaction • Requires a plasma at 150 000 000 ℃ Plasma inside JET Plasma inside JET F4E & Industry- Culham 3
1. Fusion Energy 1. Fusion Energy Advantages Advantages Environmental: No CO2 emissions � There is very low global impact on the environment. � There is no long-lasting radioactive waste to create a burden on future generations. Safety: No possibility of “meltdown” or “runaway reactions” 4 F4E & Industry- Culham 16th ILO Meeting - Barcelona 4
Agenda Agenda 1. Fusion Energy 2. ITER 3. Europe in ITER: F4E – Fusion for Energy 4. F4E Contractual Process 5. F4E Industrial Policy and Tools 6. Achievements and Next Steps F4E & Industry- Culham 5
2. ITER 2. ITER Genesis Genesis “ For the benefit of mankind ” The idea for ITER originated from the Geneva Superpower Summit in 1985 where Gorbachev and Reagan proposed international effort to develop fusion energy… …“ as an inexhaustible source of energy for the benefit of mankind ”. November 21, 2006: China, Europe, India, Japan, Korea, Russian Federation and the USA sign the ITER Agreement F4E & Industry- Culham 6
2. ITER 2. ITER Aims Aims Demonstrate the scientific and technological viability of controlled fusion for power production. It means: � Study and optimise plasma (heated gas) behaviour � Produce about 500 MW of fusion power (Q>10) � Demonstrate the technologies required for � fusion for power stations � Operate for about 20 years F4E & Industry- Culham 7
2. ITER 2. ITER Perspectives Perspectives ITER is a milestone towards an industrial Tokamak F4E & Industry- Culham 8
2. ITER 2. ITER The Machine The Machine F4E & Industry- Culham 9
2. ITER 2. ITER Participants Participants World’s biggest fusion energy research project & world’s largest S&T cooperation endeavor Objective: to demonstrate the scientific and technological feasibility of fusion power. Being built in Europe in Cadarache, France 7 parties: F4E & Industry- Culham 10
2. ITER 2. ITER Project Organization Project Organization ITER Organization (IO), Cadarache, undertakes Planning/Design, reactor assembly (with QA, safety, licensing & schedule), & operational start (Testing+ Commissioning) of ITER device. + few components (ex: He refrigerators) ITER France agency , Cadarache, is in charge of ground preparation, safety related questions on behalf of IO, & on-site staff welcoming. 7 Domestic Agencies manage the operational procurements and budget relative to their contribution. The DAs deliver in-kind contribution to IO in the form of components, works & services. Fusion for Energy (F4E) is the European Domestic Agency F4E & Industry- Culham 11
Agenda Agenda 1. Fusion Energy 2. ITER 3. Europe in ITER: F4E – Fusion for Energy 4. F4E Contractual Process 5. F4E Industrial Policy and Tools 6. Achievements and Next Steps F4E & Industry- Culham 12
3. Fusion for Energy (F4E) 3. Fusion for Energy (F4E) Commitments Commitments 1. Europe’s contribution / commitment to ITER which represents 45 % of the cost / value of ITER construction. � Total capped budget : M€ 6 600 (€ 2008) � EU + CH (Euratom) are involved on most of the 85 procurement packages shared with the 6 other parties +IO 2. Implementation of the Broader Approach Agreement between Europe and Japan. 3. Preparation of demonstration fusion reactors (DEMO) F4E & Industry- Culham 13
3. Fusion for Energy (F4E) 3. Fusion for Energy (F4E) Main Facts and Figures Main Facts and Figures Joint Undertaking established in April 2007 for a period of 35 years Industrial & procurement agency 29 members: European Union states + Switzerland+ Euratom Headcount of roughly 300 people today Based in Barcelona – Spain but also with an antenna in Garching (D) and in Cadarache (F). F4E manages 6,6G€ (€ 2008) on behalf of EU F4E & Industry- Culham 14
3. Fusion for Energy (F4E) 3. Fusion for Energy (F4E) Main Facts and Figures Main Facts and Figures F4E & Industry- Culham 15
Agenda Agenda 1. Fusion Energy 2. ITER 3. Europe in ITER: F4E – Fusion for Energy 4. F4E Contractual Process 5. F4E Industrial Policy and Tools 6. Achievements and Next Steps F4E & Industry- Culham 16
4. F4E Contractual Process 4. F4E Contractual Process Contracting Principles Contracting Principles Contracts have to comply with the principles of: � transparency, proportionality, equal treatment and non- discrimination. No ‘juste retour’. Best value for money is our policy => “Design must follow budget” � with a strong cost and quality awareness � with pragmatic risk assessment Tenders are opened to all European economic operators through fair competition � but we may go worldwide if necessary. � We connect with other Domestic Agencies in order to share information on best practices and suppliers. Strong cooperation between F4E and IO (and some Joint Tenders) F4E & Industry- Culham 17
4. F4E Contractual Process 4. F4E Contractual Process Procurement Procedures Procurement Procedures F4E contracts with organisations via: � Grants through Calls for proposals � Procurement contracts through calls for tender Grants support R&D at 40% through specific contracts or Framework Partnership Agreements (FPA) Procurement contracts provide goods, works or services through: � Open procedure : All interested economic operators can submit a full tender � Restricted procedure � 2 phases � 1: Pre-selection following a Call for Expression of Interest � 2: Call for Tender: only pre-selected companies may submit a tender. � Competitive dialogue: For particularly complex contracts, collaboration with industry to clarify technical specifications � Negotiated procedure : Only for contracts below 250.000 Euro and in exceptional cases (justification required) F4E & Industry- Culham 18
4. F4E Contractual Process 4. F4E Contractual Process Procurement Procedure Procurement Procedure Application Rationale Application Rationale Commercial risk High Medium Low Technical risk Low Medium High F4E & Industry- Culham 19
4. F4E Contractual Process 4. F4E Contractual Process Joint Teams Joint Teams Organization Each procedure is managed by a Technical Responsible Officer � (TRO) and a Procurement Responsible Officer (PRO) Actions and information are jointly managed. � The Joint Teams have the support of specialized group Legal and Budget officers � Business Intelligence officers � Quality officers � F4E & Industry- Culham 20
Agenda Agenda 1. Fusion Energy 2. ITER 3. Europe in ITER: F4E – Fusion for Energy 4. F4E Contractual Process 5. F4E Industrial Policy and Tools 6. Achievements and Next Steps F4E & Industry- Culham 21
5. F4E Industrial Policy and Tools 5. F4E Industrial Policy and Tools Industrial Policy Industrial Policy Spread information for better cooperation � Publication of our Work Programme on our Industry Portal � Dedicated Information days (per country or per subject) � Mappings = identification of required competences for CFTs Take industry’s considerations on contractual conditions � Terms of payment � Insurance and Liabilities � Intellectual Property Rights (GB decision in March 2012) Support SMEs � Specific networking tools in New f4E Portal F4E & Industry- Culham 22
5. F4E Industrial Policy and Tools 5. F4E Industrial Policy and Tools Tools Tools F4E website and Industry Portal � Announcements & mappings � Supplier database See Portal: https://industryportal.f4e.europa.eu/default.aspx Information days � General � Thematic (ex: remote handling, or first wall) Close cooperation with ILOs � Regular ILOs meetings � Market surveys required competences for CFTs) for � Consortia � Subcontracting (opportunities for SMEs) � ILOs’ network and databases F4E & Industry- Culham 23
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