ESA’s
Information Systems Infrastructure and
User Support Services Tender
Information Session
for IT Outsourcing Industry
30th June 2005
ESA ESRIN
Conference Room Magellan
ESA Information Systems Department
Directorate of Operations
Tendering Rules and Principles
Tender Process:
! Schedule
! Milestones
! Interaction Points
Communications with ESA
How to do business with ESA
Sergio Benetti - Contracts Officer
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
ESA tendering principles
Two of the principal provisions of the ESA's Council Contracts Regulations
establishing the basic rules read as follows:
"
ARTICLE 4 establishes that ‘Provisions in these Regulations and in any other
instructions concerning the placing of contracts shall always be interpreted so
as to ensure the most economic and effective employment of the Agency’s
resources,'
"
ARTICLE 5 (Chapter II) establishes that: 'Open competitive tender shall be the
normal procedure for the placing of contracts',
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Selection Process
STEP 1
Tender documentation ready
Tender published
Offers Received
Incumbent
offer kept
closed
Other offers
distributed
Evaluation by ESA
2 offers selected
ESA selects 2 bidders for Due Diligence
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Selection Process
DUE DILIGENCE
Due Diligence
Revised offers
Confirm
/ update
proposalsand
and convert
convert price
Confirm
/ update
proposals
price
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Selection Process
STEP 2
Revised offers received
Evaluation by ESA
One winning bidder
recommended
Negotiation
with 2 or 3 bidders
Evaluation by ESA
1 winning bidder
recommended
Final negotiation and contract Kick Off
Contract signed
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
ITT
Issue
30/09
Tender
Prepa
Evaluation and Selection
schedule
.
Offers
in
30/11
Step 1
Bidders
Briefing
ESA
Evaluation
Start
DD
28/02
End
DD
30/04
Revised
Offers
in
30/05
Due Diligence
ESA
Selects
Winning
Bidder
Contract
Signed
ESA
Evaluation
Step 2
End
Negotiation
2005
2006
Contract
Kick-Off
3rd/4th Quarter 2006
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Communications with Bidders (1)
"
Communications with potential tenderers shall be formal, in writing, and
restricted to what is necessary to ensure clarity of the Agency’s requirements
and to preserve fair competition. Any communications shall be issued through
the local Procurement Division/Service.
For this tender:
"
Sergio Benetti
Tel: +39 06 94180387
Fax: +39 06 94180382
The Agency may issue clarifications or amendments to the ITT. In accordance
with the tender conditions, any questions from potential tenderers shall be
submitted in writing to the local Procurement Division/Service. Only questions
concerning the understanding of the Agency’s requirements will be answered.
Amendments and questions and the answers thereto if of possible interest to
other potential tenderers, shall be distributed in writing.
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Communications with Bidders (2)
"
Tenderers who have not been selected for the placing of a contract will, as a matter of
routine, be notified thereof by the local Procurement Division/Service, after a final
decision has been taken. Upon request of a tenderer, the contracts officer may,
together with the initiator, explain to such tenderer the reasons why this tender has not
been accepted. Explanations shall be limited to the findings of the TEB on the tender in
question, and shall not cover the quality or contents of other tenders.
"
"Tenderers are not entitled to contact Agency staff during the evaluation and selection
period..." and further: "..The Agency reserves the right to eliminate from the evaluation
a tenderer contravening this provision."
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
To know more about ESA
tendering:
http://emits.esa.int
click on
“How to do business with ESA”
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to be a registered user of
EMITS:
http://emits.esa.int
click on
Registration Request
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Coffee Break
30 minutes
ESA Information Systems Department
Directorate of Operations
ESA’s IT Outsourcing:
" Subject and Scope
" Objectives
" Situation
" Model
Baseline / Delta / Optional
How to commit work
Eric Schreyers – Head of IT Division
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
3800 Desktop seats (1100
laptops) – 85 servers
4800 Local Area Network
connections
4100 Lotus Notes accounts –
100 servers
100 applications – 70 servers
ESACOM Wide Area Network
• 15 ESA Intranet sites
• 15 Extranet sites (partners)
• 6 Internet connections
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
3.700 Service Desk Users
(excluding application users that are not on ESA sites)
Other Sites
8%
ESTEC (NL)
52%
ESA-HQ (F)
10%
ESRIN (I)
13%
ESOC (D)
17%
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Other Sites: 312 Service Desk Users
16
10
6 3
16
124
Villafranca (E)
European Astronaut Centre, Köln (D)
Toulouse (F)
29
Redu (B)
Brussels (B)
Kourou (French Guyana)
41
Pasadena-JPL (USA)
Moscow (RU)
67
Washington (USA)
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Objectives
" Match ESA’s IS needs with the offerings on the
market
" Improve / extend IS services and reduce their cost
" Increase organizational flexibility to new IS service
models and practices
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
ESA’s first structured IT
outsourcing started in 1999
20 contracts were managed separately in 1998
Achieved since then:
" Rationalised and centralised management of IT service
contracts
" ‘Service’ approach as opposed to a ‘Support’ approach
" Increased scope, size and functionality of IT services
" Biggest contribution to ESA’s IS cost reduction
(complement and obligations)
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Procurement Status
Multi-sourcing:
#Main Services & Engineering contract
Serco (VitroCiset)
# WAN & Mobility Services
Equant
# Application Maintenance and
Functional Support
11 companies
Additionally:
# Third line support
# Third party maintenance
# Hardware and software
250 procurements per
annum
with 60 different suppliers
14 companies
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Outsourcing Status
" Greatest part of service delivery coordination,
interfaces & coherence management and supplier
management are taken care by ESA: too many ‘lead’
and coordination processes remain with ESA
" Coordination frame: bilateral mechanisms between
each individual providers and ESA
" ‘One-size-fits-all’ approach alleviated with ‘deltaservices’ & ‘tailor-made’ support approach
PRINCE2
ITIL
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Outsourcing Model (1)
" Establish a Prime Contractor in charge of service delivery,
service coherence and service quality management
Prime selects and manages IS service providers
" Extend ‘Managed Service’ concept: outsource complete
and coherent service packages and related end-to-end
processes
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Outsourcing Model (2)
1. De-fragment the management (Prime Contractor)
2. Include sustaining engineering
3. Service providers own hardware and software
4. Prime and service providers commit to deliver service
improvements and cost savings
5. Develop / promote Service Catalogue and customer
funding
6. Improve ESA’s Sourcing Management
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Scope
Service Desk
Desktop
Messaging
Networks
Security
Mobility
Applications
Infrastructure
(Maintenance &
Functional Support)
Engineering and Project Support
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Desktop - Distributed Computing
Infrastructure
Messaging - Distributed Computing
Applications
Service Delivery and Support
Capacity Management
Networks
Service Level Management
Availability Management
Incident Management
Problem Management
Service Continuity
Mobility
Configuration Management
Governance
Release Management
Change Management
Performance Management
Measurement & Reporting
Service & Project Portfolio
Financial Management
Security
Project Management
Supplier Management
Service
Desk
Asset & Innovation
Transition Management
Management
Risk Management
Application
Infrastructure
Additional Optional
Work
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
Some Definitions
Baseline Services
Basic services that are available for all eligible ESA users
Corporate funding
$ Included in the requirements – to be quoted
Delta Services
Services that cater for specific needs (not common for all users)
Customer funding
$ Included in the requirements – to be quoted
Optional Work
Additional work that might be contracted through Contract Changes
Corporate or Customer funding
$ Not included in initial requirements
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to commit work (1)
" Contract duration: 5 years + 2 years extension rider
" Delta services are a significant part and cannot anymore
be treated as a marginal add-on in year-by-year Contract
Changes (= current practice)
" Start tender with a forecast of 90 M€:
% corporate funding for the baseline services covering the first 5
years of the contract
% customer funding for the delta services covering the initial 3 years
" In Q4 2005, agree and negotiate with each customer the
initial 3 years commitment for delta services
" Commit at contract start:
% baseline services - corporate funding (5 years)
% delta services - negotiated and agreed customer funding (3 years)
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to commit work (2)
" After 3 years running of the contract, commit the
remaining 2 years of delta services / customer funding
" Introduce optional work at pace and conditions that suit
ESA:
% Application maintenance and functional support
% Synergies with Ground Segment Operations
% Project work
If baseline / delta services are successful, optional work
will add up to substantial amounts
" After 5 years of running of the contract, commit the 2
years extension
ESA Information Systems Department
Directorate of Operations
ESA Outsourcing Information Session 30.06.2005
How to commit work (3)
2007
2010
2012
Baseline
2014
Baseline
Delta
Delta
Delta
Optional Work
At contract start
Rider after 3 years
Rider after 5 years
Contract Changes
ESA Information Systems Department
Directorate of Operations
Questions and Answers
ESA Information Systems Department
Directorate of Operations