esa’s information systems infrastructure and user...

ESA Information Systems DepartmentDirectorate of Operations

ESA’sInformation Systems Infrastructure and

User Support Services Tender-

Information Session for IT Outsourcing Industry

30th June 2005 ESA ESRIN

Conference Room Magellan


Tendering Rules and Tendering Rules and PrinciplesTender Process:Tender Process:!! ScheduleSchedule!! Milestones Milestones !! Interaction PointsInteraction PointsCommunications with ESACommunications with ESAHow to do business with ESAHow to do business with ESA

Sergio Benetti - Contracts Officer


ESA Outsourcing Information Session 30.06.2005

ESA tendering principlesESA tendering principlesESA tendering principlesESA tendering principlesESA tendering principlesESA tendering principlesESA tendering principlesESA tendering principles

Two of the principal provisions of the ESA's Council Contracts RTwo of the principal provisions of the ESA's Council Contracts Regulations egulations establishing the basic rules read as follows:establishing the basic rules read as follows:

"" ARTICLE 4ARTICLE 4 establishes thatestablishes that ‘Provisions in these Regulations and in any other ‘Provisions in these Regulations and in any other instructions concerning the placing of contracts shall always beinstructions concerning the placing of contracts shall always be interpreted so interpreted so as to ensure the most economic and effective employment of the Aas to ensure the most economic and effective employment of the Agency’s gency’s resources,'resources,'

"" ARTICLE 5ARTICLE 5 (Chapter II) establishes that:(Chapter II) establishes that: 'Open competitive tender shall be the 'Open competitive tender shall be the normal procedure for the placing of contracts', normal procedure for the placing of contracts',



Selection ProcessSelection ProcessSelection ProcessSelection ProcessSelection ProcessSelection ProcessSelection ProcessSelection Process

STEP 1

ESA selects 2 bidders for Due Diligence

Incumbent offer kept

closed

Tender documentation ready

Tender published

Offers Received

Other offers distributed

Evaluation by ESA

2 offers selected



Confirm / update proposals and convert price

Due Diligence

Revised offers

Confirm / update proposals and convert price

DUE DILIGENCE




Evaluation by ESA

One winning bidderrecommended

Negotiation with 2 or 3 bidders

Evaluation by ESA

1 winning bidder recommended

Final negotiation and contract Kick Off

STEP 2 Revised offers received

Contract signed




Step 1

30/09

Offers in

.

Bidders Briefing

3rd/4th Quarter 2006

Due Diligence

Step 2

ITT Issue

.

ESA Evaluation

28/02

End DD

Revised Offers

in

20052006

Tender Prepa

Evaluation and Selection Evaluation and Selection Evaluation and Selection Evaluation and Selection Evaluation and Selection Evaluation and Selection Evaluation and Selection Evaluation and Selection scheduleschedulescheduleschedulescheduleschedulescheduleschedule

30/11

30/04 30/05

ESA Evaluation

End Negotiation

ESA Selects Winning Bidder

Contract Kick-Off

StartDD

Contract Signed



Communications with Bidders (1)Communications with Bidders (1)Communications with Bidders (1)Communications with Bidders (1)Communications with Bidders (1)Communications with Bidders (1)Communications with Bidders (1)Communications with Bidders (1)

"" Communications with potential Communications with potential tendererstenderers shall be formal, in writing, and shall be formal, in writing, and restricted to what is necessary to ensure clarity of the Agency’restricted to what is necessary to ensure clarity of the Agency’s requirements s requirements and to preserve fair competition. Any communications shall be isand to preserve fair competition. Any communications shall be issued through sued through the local Procurement Division/Service.the local Procurement Division/Service.

For this tender: For this tender: Sergio Sergio Benetti Benetti Tel: +39 06 94180387Tel: +39 06 94180387Fax: +39 06 94180382Fax: +39 06 94180382

"" The Agency may issue clarifications or amendments to the ITT. InThe Agency may issue clarifications or amendments to the ITT. In accordance accordance with the tender conditions, any questions from potential with the tender conditions, any questions from potential tendererstenderers shall be shall be submitted in writing to the local Procurement Division/Service. submitted in writing to the local Procurement Division/Service. Only questions Only questions concerning the understanding of the Agency’s requirements will bconcerning the understanding of the Agency’s requirements will be answered. e answered. Amendments and questions and the answers thereto if of possible Amendments and questions and the answers thereto if of possible interest to interest to other potential other potential tendererstenderers, shall be distributed in writing., shall be distributed in writing.



Communications with Bidders (2)Communications with Bidders (2)Communications with Bidders (2)Communications with Bidders (2)Communications with Bidders (2)Communications with Bidders (2)Communications with Bidders (2)Communications with Bidders (2)

"" TenderersTenderers who have not been selected for the placing of a contract will, who have not been selected for the placing of a contract will, as a matter of as a matter of routine, be notified thereof by the local Procurement Division/Sroutine, be notified thereof by the local Procurement Division/Service, after a final ervice, after a final decision has been taken. Upon request of a decision has been taken. Upon request of a tenderertenderer, the contracts officer may, , the contracts officer may, together with the initiator, explain to such together with the initiator, explain to such tenderertenderer the reasons why this tender has not the reasons why this tender has not been accepted. Explanations shall be limited to the findings of been accepted. Explanations shall be limited to the findings of the TEB on the tender in the TEB on the tender in question, and shall not cover the quality or contents of other tquestion, and shall not cover the quality or contents of other tenders.enders.

"" ""TenderersTenderers are not entitled to contact Agency staff during the evaluation are not entitled to contact Agency staff during the evaluation and selection and selection period..." and further: "..The Agency reserves the right to eliperiod..." and further: "..The Agency reserves the right to eliminate from the evaluation minate from the evaluation a a tenderertenderer contravening this provision."contravening this provision."



To know more about ESA To know more about ESA To know more about ESA To know more about ESA To know more about ESA To know more about ESA To know more about ESA To know more about ESA tendering:tendering:tendering:tendering:tendering:tendering:tendering:tendering:

http://emits.http://emits.esaesa..intintclick onclick on

“How to do business with ESA”“How to do business with ESA”



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Registration RequestRegistration Request



Coffee Break30 minutes


ESA’sESA’s IT Outsourcing:IT Outsourcing:"" Subject and ScopeSubject and Scope"" ObjectivesObjectives"" SituationSituation"" ModelModelBaseline / Delta / OptionalBaseline / Delta / OptionalHow to commit workHow to commit work

Eric Schreyers – Head of IT Division



3800 Desktop seats (1100 laptops) – 85 servers

4100 Lotus Notes accounts –100 servers

100 applications – 70 servers4800 Local Area Network connections

ESACOM Wide Area Network

• 15 ESA Intranet sites

• 15 Extranet sites (partners)

• 6 Internet connections



(excluding application users that are not on ESA sites) 3.700 Service Desk Users

ESTEC (NL)52%

Other Sites8%

ESA-HQ (F)10%

ESRIN (I)13%

ESOC (D)17%



Other Sites: 312 Service Desk Users

67

41

29

16

1610 6 3

124 Villafranca (E)

European Astronaut Centre, Köln (D)

Toulouse (F)

Redu (B)

Brussels (B)

Kourou (French Guyana)

Pasadena-JPL (USA)

Moscow (RU)

Washington (USA)



ObjectivesObjectivesObjectivesObjectivesObjectivesObjectivesObjectivesObjectives

"" Match ESA’s IS needs with the offerings on the Match ESA’s IS needs with the offerings on the marketmarket

"" Improve / extend IS services and reduce their costImprove / extend IS services and reduce their cost

"" Increase organizational flexibility to new IS service Increase organizational flexibility to new IS service models and practicesmodels and practices



ESA’s first structured IT ESA’s first structured IT ESA’s first structured IT ESA’s first structured IT ESA’s first structured IT ESA’s first structured IT ESA’s first structured IT ESA’s first structured IT outsourcing started in 1999outsourcing started in 1999outsourcing started in 1999outsourcing started in 1999outsourcing started in 1999outsourcing started in 1999outsourcing started in 1999outsourcing started in 1999

20 contracts were managed separately in 199820 contracts were managed separately in 1998

Achieved since then:Achieved since then:"" Rationalised and centralised management of IT service Rationalised and centralised management of IT service

contractscontracts"" ‘Service’ approach as opposed to a ‘Support’ approach‘Service’ approach as opposed to a ‘Support’ approach"" Increased scope, size and functionality of IT services Increased scope, size and functionality of IT services "" Biggest contribution to ESA’s IS cost reductionBiggest contribution to ESA’s IS cost reduction

(complement and obligations)(complement and obligations)



Procurement StatusProcurement StatusProcurement StatusProcurement StatusProcurement StatusProcurement StatusProcurement StatusProcurement Status

Multi-sourcing:

#Main Services & Engineering contract

# WAN & Mobility Services

# Application Maintenance and Functional Support

Additionally:

# Third line support # Third party maintenance# Hardware and software

14 companies

250 procurements per annum

with 60 different suppliers

Serco Serco ((VitroCisetVitroCiset))

11 companies11 companies

EquantEquant

Multi-sourcing:

#Main Services & Engineering contract

# WAN & Mobility Services

# Application Maintenance and Functional Support

Additionally:

# Third line support # Third party maintenance# Hardware and software

14 companies

250 procurements per annum

with 60 different suppliers

Serco Serco ((VitroCisetVitroCiset))

11 companies11 companies

EquantEquant



Outsourcing StatusOutsourcing StatusOutsourcing StatusOutsourcing StatusOutsourcing StatusOutsourcing StatusOutsourcing StatusOutsourcing Status

"" Greatest part of service delivery coordination, Greatest part of service delivery coordination, interfaces & coherence management and supplier interfaces & coherence management and supplier management are taken care by ESA: too many ‘lead’ management are taken care by ESA: too many ‘lead’ and coordination processes remain with ESAand coordination processes remain with ESA

"" Coordination frame: bilateral mechanisms between Coordination frame: bilateral mechanisms between each individual providers and ESA each individual providers and ESA

"" ‘One‘One--sizesize--fitsfits--all’ approach alleviated with ‘deltaall’ approach alleviated with ‘delta--services’ & ‘tailorservices’ & ‘tailor--made’ support approachmade’ support approach

ITILPRINCE2



Outsourcing Model (1)Outsourcing Model (1)Outsourcing Model (1)Outsourcing Model (1)Outsourcing Model (1)Outsourcing Model (1)Outsourcing Model (1)Outsourcing Model (1)

"" Establish a Prime Contractor in charge of service delivery, Establish a Prime Contractor in charge of service delivery, service coherence and service quality managementservice coherence and service quality management

Prime selects and manages IS service providersPrime selects and manages IS service providers

"" Extend ‘Managed Service’ concept: outsource complete Extend ‘Managed Service’ concept: outsource complete and coherent service packages and related endand coherent service packages and related end--toto--end end processesprocesses



Outsourcing Model (2)Outsourcing Model (2)Outsourcing Model (2)Outsourcing Model (2)Outsourcing Model (2)Outsourcing Model (2)Outsourcing Model (2)Outsourcing Model (2)

1.1. DeDe--fragment the management (Prime Contractor)fragment the management (Prime Contractor)2.2. Include sustaining engineeringInclude sustaining engineering3.3. Service providers own hardware and softwareService providers own hardware and software4.4. Prime and service providers commit to deliver service Prime and service providers commit to deliver service

improvements and cost savingsimprovements and cost savings

5.5. Develop / promote Service Catalogue and customer Develop / promote Service Catalogue and customer fundingfunding

6.6. Improve ESA’s Sourcing ManagementImprove ESA’s Sourcing Management



ScopeScopeScopeScopeScopeScopeScopeScope

Service Desk

Engineering and Project Support

DesktopMessaging

Networks Security Mobility

Applications Infrastructure

(Maintenance & Functional Support)

Service Desk

Engineering and Project Support

DesktopMessaging

Networks Security Mobility

Applications Infrastructure

(Maintenance & Functional Support)



Desktop - Distributed Computing Infrastructure

Messaging - Distributed Computing Applications

Additional Optional Work

Mobility

Service Desk

Networks

Security

Service Delivery and SupportCapacity Management

Availability Management

Service Continuity

Release Management

Incident Management

Problem Management

Configuration Management

Change Management

Service Level Management

Project Management

Asset & Innovation Management

Supplier Management

Transition ManagementRisk Management

Governance

Performance Management Measurement & Reporting

Service & Project Portfolio

Financial Management

Application Infrastructure

Desktop - Distributed Computing Infrastructure

Messaging - Distributed Computing Applications

Additional Optional Work

Mobility

Service Desk

Networks

Security

Service Delivery and SupportCapacity Management

Availability Management

Service Continuity

Release Management

Incident Management

Problem Management

Configuration Management

Change Management

Service Level Management

Project Management

Asset & Innovation Management

Supplier Management

Transition ManagementRisk Management

Governance

Performance Management Measurement & Reporting

Service & Project Portfolio

Financial Management

Application Infrastructure



Some DefinitionsSome DefinitionsSome DefinitionsSome DefinitionsSome DefinitionsSome DefinitionsSome DefinitionsSome Definitions

Baseline ServicesBaseline ServicesBasic services that are available for all eligible ESA users Basic services that are available for all eligible ESA users

Corporate fundingCorporate funding$$$$$$$$ Included in the requirements Included in the requirements –– to be quotedto be quoted

Delta ServicesDelta ServicesServices that cater for specific needs (not common for all usersServices that cater for specific needs (not common for all users))

Customer fundingCustomer funding$$$$$$$$ Included in the requirements Included in the requirements –– to be quotedto be quoted

Optional WorkOptional WorkAdditional work that might be contracted through Contract ChangeAdditional work that might be contracted through Contract Changess

Corporate or Customer fundingCorporate or Customer funding$$$$$$$$ NotNot included in initial requirementsincluded in initial requirements



How to commit work (1)How to commit work (1)How to commit work (1)How to commit work (1)How to commit work (1)How to commit work (1)How to commit work (1)How to commit work (1)

"" Contract duration: 5 years + 2 years extension riderContract duration: 5 years + 2 years extension rider"" Delta services are a significant part and cannot anymore Delta services are a significant part and cannot anymore

be treated as a marginal addbe treated as a marginal add--on in yearon in year--byby--year Contract year Contract Changes (= Changes (= current practice)current practice)

"" Start tender with a Start tender with a forecastforecast of 90 M€:of 90 M€:%% corporate funding for the baseline services covering the first 5corporate funding for the baseline services covering the first 5

years of the contractyears of the contract%% customer funding for the delta services covering the initial 3 ycustomer funding for the delta services covering the initial 3 yearsears

"" In Q4 2005, agree and negotiate with each customer the In Q4 2005, agree and negotiate with each customer the initial 3 years commitment for delta servicesinitial 3 years commitment for delta services

"" CommitCommit at contract start:at contract start:%% baseline services baseline services -- corporate funding (5 years)corporate funding (5 years)%% delta services delta services -- negotiated and agreed customer funding (3 years)negotiated and agreed customer funding (3 years)




"" After 3 years running of the contract, After 3 years running of the contract, commitcommit the the remaining 2 years of delta services / customer fundingremaining 2 years of delta services / customer funding

"" Introduce Introduce optional workoptional work at pace and conditions that suit at pace and conditions that suit ESA:ESA:%% Application maintenance and functional supportApplication maintenance and functional support%% Synergies with Ground Segment OperationsSynergies with Ground Segment Operations%% Project workProject work

If baseline / delta services are successful, optional work If baseline / delta services are successful, optional work will add up to substantial amountswill add up to substantial amounts

"" After 5 years of running of the contract, After 5 years of running of the contract, commitcommit the 2 the 2 years extensionyears extension




BaselineDelta Delta

Baseline

Optional Work

2007 2010 2012 2014

Delta

At contract start Rider after 3 years Rider after 5 years Contract Changes


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