Group 1: In-Kind models in practice

ESS and FAIR (add others as we go along)

Starting topics

Adressed:

• What are the in-kind models of different big science facilities?
• Relationship between members and institutes
• Towards a global in-kind model (see also: group 2, legal aspects)
• How to really achieve joined-up approach in IK contracting?

Not addressed:

• What are the limits of in-kind? Are there limits?
• How to address in-kind contributions with travelling detectors?
• History, previous contributions
• How to unite in-kind and €-procurement?
• Technical interdependency of IKC

Main results

Felix and Gareth, please complete:

• Functional specifications only
• Be international and write your own procurement rules: that allows geographic return
• Keep your paperwork to a minimum
• Introduce the sexy factor

Session 2 - protocol

Group members: Gareth, Felix

Key words:

• IKCA
• in-kind contracts, contributions, agreements
• in-kind models
• institutes, host, shareholder, member states

Main results:

• Breakdown of contract models: structure and responsibilities
• Sexy/boring factors, geographical return
• Contract philosophy

Contract philosophy

• Equal treatment to all partners
• Comprehensive vs. minimalist
• Functional technical/scientific specification
• Geographical return (countries profit from the project proportional to thier contribution)
• Correction factor: CB-value x sexy factor (say, 0,8) for sexy topics, CB-value x boring factor (say, 1,3) for dull contributions

Lessons learned

ESS: Institutes only get cost book value. CB assumes universal labour rates. Institutes were not consulted sufficiently on contract template --> push-back, insufficient backing from ministry --> scope reduction. Model was not designed for in-kind, so does not address the inherent power imbalance of a procurement relationship --> needs to be addressed on a country-to-country basis.

FAIR: Development and personnel costs were omitted from cost book. CB prices (frozen 2005) were estimates; partners were not (always) consulted on feasibiliy of CB prices --> individual revisions by experts were needed. Cost-escalation process is being negotiated with individual partners --> should be council for fairness & transparency. Host institute covers most extra costs. IKC come in cheaper than tenders. Political underestimation of costs --> costs "hidden" in risk assessment. In Germany, no buffer/margin is allowed (but in France it is). Pressure can be applied by restricting acceptance or partial cost book value, then shareholder will not recieve full value from member state.

Structure of IKCA

FAIR:

https://fair-center.eu/fair-gmbh/in-kind-procurement.html

Part	content	responsible
Main body	Council-approved template, fixed content	Legal
Annex 1	Council decision of assignment	Council
Annex 2	Purpose and specifications	Technical
Annex 3	Scope, negotiable	Technical
Annexes 4-6	not used
Annex 7	Legal German stuff (like VOL/B), negotiable	Legal
Appendices I - IV	Statutes and convention, fixed content	Council

Where an appropriate agreement has been made with a shareholder, this can be replaced by an AFAA (annex for additional assignment) and annexes 1-3.

ESS:

https://europeanspallationsource.se/in-kind-contributions

There is one framework IKC agreement per institute (usually).

Part	content	responsible
Main text	Terms and conditions	Legal
TA	Technical annex(es) (warranty, scope, specs)	Technical and legal
Framework IKA	Framework	Council?

Open questions

What tools can we provide to equilibrate the power imbalance betweeen provider and ministry? Milestones, interventions, mediation...

How can we include uncertainty? How much and what is allowed?

Shared resources

ESS and FAIR model contracts --Sonia to upload/link.

• ess_construction_phase_in-kind_agreement_template_eric_january_2016.pdf: ESS_model_IKCA
• ESS-0047398_-_Technical_Annex_-_Generic.pdf: ESS_generic_technical_annex
• FAIR_IKCC-template_main_-.pdf: FAIR_main_body
• FAIR_Annex_7__Appendix_4_.pdf: FAIR_annex_7
• FAIR_2Appendix_1__2_Convention__AoA.pdf: FAIR_Appendices_1-3
• FAIR_4Appendix_3_TechDoc_4.pdf: FAIR_appendix_4

https://www.xfel.eu/organization/procurement/legal_and_regulatory_information/index_eng.html European XFEL terms and conditions

-- SoniaUtermann - 2018-05-14