Proposal for the award of two contracts for the supply of fine-blanked low-carbon steel yoke laminations and inserts for the cold masses of the LHC superconducting dipole magnets

This document concerns the award of two contracts for the supply of 5 812 000 fine-blanked low-carbon steel yoke laminations, of two different types, and 5 800 000 inserts for the cold masses of the LHC superconducting dipole magnets. Following a market survey carried out among 70 firms in sixteen Member States and one firm in Japan, a call for tenders (IT-2467/LHC/LHC) was sent on 3 June 1999 to seven firms in four Member States. By the closing date, CERN had received five tenders. The Finance Committee is invited to agree to the negotiation of two contracts with: - FUG (DE) for the supply of 3 632 000 fine-blanked low-carbon steel yoke laminations and 3 625 000 inserts, which represents 5/8 of the total quantity required for the cold masses of the LHC superconducting dipole magnets, for a total amount of 2 525 563 euros, which at the exchange rate given in the tender correspond to 4 019 038 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, with an option for the supply of up to 2 180 000 additional fine-blanked low-carbon steel yoke laminations and 2 175 000 inserts, which represents 3/8 of the total quantity required for the cold masses, for a total amount of up to 1 515 338 euros, which at the exchange rate given in the tender correspond to 2 411 422 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, bringing the total amount to a maximum of 4 040 900 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 6 430 460 Swiss francs. - ELAY INDUSTRIAL (ES) for the supply of 2 180 000 fine-blanked low-carbon steel yoke laminations and 2 175 000 inserts, which represents 3/8 of the total quantity required for the cold masses of the LHC superconducting dipole magnets for a total amount of 2 949 378 euros, which at the exchange rate given in the tender correspond to 4 718 628 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, with an option for the supply of up to 3 632 000 additional fine-blanked low-carbon steel yoke laminations and 3 625 000 inserts, which represents 5/8 of the total quantity required for the cold masses, for a total amount of up to 4 915 631 euros, which at the exchange rate given in the tender correspond to 7 864 380 Swiss francs, subject to revision for contractual deliveries after 31 December 2001, bringing the total amount to a maximum of 7 865 009 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 12 583 008 Swiss francs. The firms have indicated the following distribution by country of the work covered by this adjudication proposal: FUG: DE-100%; ELAY INDUSTRIAL: ES-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 low-carbon steel yoke laminations and inserts of the required quality or is so late with deliveries as to jeopardise the LHC construction schedule, to negotiate another contract with MALVESTITI (IT) 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 MALVESTITI agrees to align its price to a level deemed appropriate by CERN.