Proposal for the award of two contracts for the supply of fine-blanked austenitic steel collars for the cold masses of the LHC superconducting dipole magnets

This document concerns the award of two contracts for the supply of 12 500 000 fine-blanked austenitic steel collars in three different shapes and of two different types for the cold masses of the LHC superconducting dipole magnets. Following a market survey carried out among 70 firms in fourteen Member States and one firm in Japan, a call for tenders (IT-2469/LHC/LHC) was sent on 3 June 1999 to eleven firms in five Member States and one firm in Japan. By the closing date, CERN had received five tenders. The Finance Committee is invited to agree to the negotiation of two contracts with: - MALVESTITI (IT) for the supply of up to 7 812 500 fine-blanked austenitic steel collars, which represents 5/8 of the total quantity required for the cold masses of the LHC superconducting dipole magnets, for a total amount of up to 6 908 509 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, with an option for the supply of up to 4 687 500 additional fine-blanked austenitic steel collars, which represents 3/8 of the total quantity required for the cold masses, for a total amount of up to 4 145 105 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, bringing the total amount to a maximum of 11 053 614 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, and - FUG (DE) for the supply of up to 4 687 500 fine-blanked austenitic steel collars, which represents 3/8 of the total quantity required for the cold masses of the LHC superconducting dipole magnets, for a total amount of up to 1 533 912 euros, which at the exchange rate given in the tender correspond to 2 440 980 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, with an option for the supply of up to 7 812 500 additional fine-blanked austenitic steel collars, which represents 5/8 of the total quantity required, for a total amount of up to 2 556 520 euros, which at the exchange rate given in the tender correspond to 4 068 300 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, bringing the total amount to a maximum of 4 090 432 euros, subject to revision for contractual deliveries after 31 December 2001. At the exchange rate given in the tender, this amount is equal to approximately 6 509 280 Swiss francs. The firms have indicated the following distribution by country of the work covered by this adjudication proposal: MALVESTITI: IT-100%; FUG: DE-100%. The Finance Committee is further invited to authorise CERN to decide either a) to take up a part of, or the complete above-mentioned options should one of the contractors encounter unforeseen difficulties in the fine-blanking or b) in the event that one of the contractors fails to deliver collars of the required quality or is so late with deliveries as to jeopardise the LHC construction schedule, to negotiate a contract with ELAY INDUSTRIAL (ES) the next bidder quoting a price within 20% of the lowest and offering goods originating from a poorly balanced Member State, on the condition that ELAY INDUSTRIAL agrees to align its price to a level deemed appropriate by CERN.