In-Kind Contribution Management Update

Allen WeeksMarch 20, Lund

Contents

• IKC Potential for construction phase• IKC Agreed and Planned vs total Possible value• HoA/IKC Agreements planned for Q1 and Q2

2015

Host Countries of Sweden and Denmark 47,5% Construction 15% Operations In-kind Deliverables ~3.5% Cash Investment ~96.5%

Non Host Member Countries 52,5% Construction 85% Operations In-kind Deliverables ~ 70% Cash Investment ~ 30%

Financing includes cash and deliverables

ESS construction funding status

5

ESS In-Kind Contributions – General principles

• Potential in-kind contributions are defined by the ESS Programme Plan

• Values based on ESS Cost Book

• Each contract to follow a pre-defined structure

• The delivering party is wholly responsible for the contribution (technical, financial, commercial)

• In-Kind Review Committee to evaluate all IKC agreement proposals

• ESS STC/Council to approve all in-kind contracts

• Based on final evaluation the Member Country gets accredited the value of the In-Kind Contribution

€ 0

€ 100

€ 200

€ 300

€ 400

€ 500

€ 600

€ 42€ 109

€ 228

€ 382

€ 29

€ 47

€ 123

€ 127

IKC Cash

Construction cost: € 1,84 BillionIn-kind: € 750 Million

AcceleratorInstrumentsTargetControls

65%

59%

65%

75%

€ 509 M

€ 350 M

€ 155 M

€ 71 M

ESS In-kind Goals

7

Increase Emphasis on In-Kind

• Commitments by member countries to fund over one-third of ESS as in-kind

• Partners identified for more than €400M value of WPs (55% of estimated total in-kind value)

• 51 agreements in place by the end of Q1 & Q2 2015 – over €100M

• In-kind agreements on the critical path – essential to close IKC agreements with partners in 2015 to avoid schedule delay

The ESS Organization

ESS Council

Director GeneralJames Yeck

Admin & Finance Committee

In-Kind ReviewCommittee

Technical Advisory Committee

Scientific Advisory Committee

Communications, External Relations &

In-kind

Environment, Safety, Health & QA

Technical Directorate

Science Directorate

Project Support & Admin. Directorate

Conventional Facilities

PHASE 3PHASE 2PHASE 1

ESS In-kind contributions – In-Kind process

ESS Programme

PlanWPs/WU

1WPs/WU

2WPs/WU

3WPs/WU

4

EOI response

ESS + Potential party

discussion

Contract proposal

IKRC recommendation

+ Council approval

IKC frame contract +

technical annex

Detailed Design Phase

ESS + Partner Critical Design Review (CDR)

Realization and

Verification

ESS + PartnerSystem

Acceptance Review (SAR)

IKRC + Council

approval

Transfer of ownership

IKC value crediting to

member country

10

ESS In-kind Criteria

Eligible partners• Public Institutes/ universities• Partnership of public & private organizations

Partner selection criteria • Relevance to project requirements• Technical capabilities and capacities• Management and human resources• Procurement capabilities• Quality/Risk management• Historical track record and references• Availability of funding• Acceptance of ESS Schedule and Cost book value

1111

IKC Agreement template documents published

12

Project leaders, together with IKCM and ESS management select partners.Potential partners may appeal to IKRC.

Sum of 2014

Sum of 2015

Sum of 2016

Sum of 2017

Sum of 2018

Sum of 2019

Sum of 2020

Sum of 2021

Sum of 2022

Sum of 2023

Sum of 2024

Sum of 2025

0

20,000

40,000

60,000

80,000

100,000

120,000

11 12 13 14

IKC Status in P6 – Agreed, Planned and Potential - grouped by ESS Projects

IKC – Agreed, Planned and Potential activities in Primavera

AcceleratorTargetNSSICS

WBS L2Sum of 2014

Sum of 2015

Sum of 2016

Sum of 2017

Sum of 2018

Sum of 2019

Sum of 2020

Sum of 2021

Sum of 2022

Sum of 2023

Sum of 2024

Sum of 2025

Sum of Total

11 1,665 12,875 67,383 92,477 79,902 28,960 8,029 6,736 2,249 0 0 0 300,277

12 4 5,274 23,093 42,120 30,699 2,940 0 0 0 0 0 0 104,131

13 94 4,935 23,913 27,356 35,020 36,681 29,023 24,037 19,877 12,025 5,930 1,418 220,309

14 0 333 6,522 10,304 9,870 4,670 0 0 0 0 0 0 31,698

Grand Total 1,764 23,417 120,912 172,256 155,491 73,252 37,052 30,773 22,126 12,025 5,930 1,418 656,416

IKC Planned value vs Potential (cumulative)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250 €M

100 €M

200 €M

300 €M

400 €M

500 €M

600 €M

700 €M

Agreed + Planned (Cumulative) Total

Agreed + Planned + Possible (Cumulative) Total

IKC Status in P6 - Agreed, Planned, Potential Projects: 11 Accelerator, 12 Target, 13 NSS, 14 ICS

15

Accelerator IKC

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250 €M

50 €M

100 €M

150 €M

200 €M

250 €M

300 €M

350 €M

Agreed + Planned (Cumu-lative)

Agreed + Planned + Possible (Cumulative)

IKC Status - Accelerator Project Description Budget Agreed+Planned Possible Grand

TotalAgreement signed or shortlisted to one partner

Further value possible to be provided as in-kind

11 Accelerator Systems 511,225 k 220,476 k 79,801 k

11.0

Budget Reserve. ACCSYS Project Milestones and Main Phases during Construction 6,264 k 0 k 0 k

11.1Management & Administration 20,684 k 0 k 0 k

11.2 Accelerator Physics 14,565 k 7,302 k 1,622 k

11.3Normal Conducting Front End 31,347 k 22,034 k 10,194 k

11.4Spoke Cavitites and Cryomodules (CNRS) 16,882 k 15,119 k 0 k

11.5Elliptical Cavities and Cryomodules 104,046 k 98,547 k 0 k

11.6 Beam Delivery Systems 7,726 k 0 k 0 k 11.7 Beam Diagnostics 23,232 k 1,103 k 9,955 k 11.8 Radio Frequency Systems 116,628 k 51,646 k 35,715 k 11.10 Test Stands 14,468 k 2,056 k 0 k 11.11 Cryogenics 56,073 k 9,990 k 8,371 k 11.12 Vacuum 14,302 k 0 k 8,175 k 11.13 Safety 1,643 k 0 k 0 k

11.14Lead Engineers and Availability 7,336 k 0 k 0 k

11.15 Electrical Support 6,798 k 0 k 0 k 11.16 Cooling Support 7,759 k 885 k 1,217 k 11.17 Power Converters 51,340 k 11,793 k 0 k 11.99 Installation 10,134 k 0 k 4,551 k

16

The ESS Collaboration Framework

Industrial Liaison Officers

ESS ProjectIn-kind Partner Industrial

Partner

Funding Agency

ESS Council

In-kind Review Committee

17

Summary

• ESS is already underway and very schedule driven.• Industrial Partners should view ESS long-term, as a

development opportunity, and with an eye to other research infrastructure.

• The project is a major European collaboration of the public and private sector.

• Much of ESS will be built by ‘in-kind’ partners all over Europe so its important to understand how we are organized to identify the right customer in the project.