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Case Study

Case Study Tender Procedure to Acquire Tunnel Equipment for the Austrian Access Route of the Brenner Base Tunnel Lower Inn Valley Section Christian Hagen AEE Consultant for Infrastructure Projects Project Development, Support, and Control Services Procurement Risk Assessment

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Case Study

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  1. Case Study Tender Procedure to Acquire Tunnel Equipment for the Austrian Access Route of the Brenner Base Tunnel Lower Inn Valley Section Christian Hagen AEE Consultant for Infrastructure Projects Project Development, Support, and Control Services Procurement Risk Assessment Preventative Measures of Additional Costs Kiev, 6-7 September 2012

  2. Agenda I. Introduction II. Railway Technology III. Tender Procedure

  3. I. Introduction The most important aim of any effort to improve a company’s procurement strategy is to increase efficiency and effectiveness, to start right on time and to reduce risks … …therefore the challenges to manage are: Pressure to maintain costs Risks of increasing costs (raw materials, costs of exchange, …) Tight time schedule Deadlines to be met in all projects Different and development of technologies Complexity of procurement laws Corruption

  4. II. Railway Technology

  5. Safety Concept •  Safety Measures: • Modern European Train Control System •  Accessibility and Ventilation: • Emergency exits every 500 m • Illuminated handrail along escape routes • extinguishing water, hoses • Allocated Space for Rescue Operation and Building at TunnelShaft Exit: • Space for emergency vehicles • Landing field for emergency rescue helicopter

  6. Tunnel Safety Equipment Vibrated concrete Installation of fire hydrants Hoses and extinguisher Tunnel radio Special equipment (oxygen)

  7. Telecommunication Digital Radio Network: • Radio communication between train driver and dispatcher • Radio communication between technical personnel responsible for maintenance and repair • Data transmission for train control • Radio communication for emergency services (ambulance, fire brigade) in case of emergency Emergency Call Systems:

  8. European Train ControlSystem Level 2 Electronic Signal Box

  9. Spring-Mass-System

  10. Shock and Vibration Control – Spring-Mass-System

  11. Noise and Vibration Control Lining of smooth concrete areas with sound absorbing elements Special elements for noise reduction Noise barrier or embankment ◄ High exposure Low exposure ►

  12. III. Tender Procedure - Conditions The contract was awarded following an EU invitation for bids (Negotiated procedure) Principles of awarding contracts (Article 2 Directive 2004/18/EC) Contracting authorities shall treat economic operators equally and non‑discriminatorily and shall act in a transparent way The contracting authorities issued as a first step a pre-tender information brief Preparation of tender documents for the award of contract of the project with the following content: Tender specification Construction description Technical contractual terms Legal contractual terms Opinions and reports Dates and deadlines Terms of specifications Declarations and notifications of the bidder Plans

  13. The Tenderer's Offer The tenderer's offer must contain all the essential elements required in the invitation to tender from the outset, otherwise it is subject to being considered inadmissible Two firmly sealed envelopes (e.g. signed across the seal) Part I: Documents necessary for the assessment of the commission “organization” Documents necessary for the assessment of the commission “railway track systems“ Documents necessary for the assessment of specifications, functions, and technical details Deposit (Vadium) Tenderer's declaration Part II: Time-dependent costs Long text of technical specifications Calculation sheets The tenderer takes the risk due to defectiveness or incompleteness For all parts a legally valid signature is required

  14. Award Procedure The bid opening commission opens the bids almost immediately after the deadline for the submission of tenders expires(date/time) A record of the bid opening session is prepared, and signed by the members of the bid opening commission The bids and their annexes, as well as the documentation of opening of bids, must also be kept safe and confidential after completion of the award procedure After the opening of the bids, the bids are examined with regard to the compliance with the tender documents; compliant bids are then reviewed with regard to the fulfillment of eligibility and selection criteria (i.e. verification of the eligibility and of the financial, economic, technical and professional standing of tenderers) and the award criteria Assessment of the commissions begins (supervision of the commissions by an external advisor increases the chances of success considerably) Elimination of tenders violating the tender documents (organizational and technical terms and conditions) Clarification procedure and meeting

  15. Award Criteria Quality assessment in relation to the costs of the project Evaluated total price = total price * [1 – (achieved credit point amount-commission / weighting factor)] Commission "organization": Organization of the construction team Key personnel and/or departments Organization of the external interfaces Quality and deadline management Logistics and coordination Special safety management Overall concept of the temporary power supply Commission "railway track systems": Technical functionality and price of the tracks Maintenance and quality improvement Regulation The contract is awarded to the bidder who submitted the (commercially and technically) best bid

  16. Commissions Two commissions to evaluate and assess the quality of the bids(railway track systems + organization) Examine and evaluate tender documents Evaluate bids Negotiate the contract Best practice to achieve unanimity Evaluation and rating process by using different valuation methods Duties and responsibilities of the members of the evaluation commission Duties and power of the person chairing the commissions

  17. Commissions (2) Duties of the members of the commissions Evaluation, valuation, rating of the bids Confidentiality obligation Self direction and independence Elimination of tenders violating the tender documents Duties of the chair person Supervision of the commission In the case of disagreement the chair person should promote compromise and unity Confidentiality obligation External and neutral advisor

  18. Contact MMag. Dr. Christian Hagen AEE Consultant – Innovative Solutions & Strategies Tel: + 43 / 676 / 907 88 22 E-Mail: hagenconsulting@aon.at www.hagenconsulting.at Seidengasse 31/II/22 1070 ViennaAustria

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