SMEs and ESA Industrial Policy

Industry Space Days 2014
SMEs and the Agency’s Industrial and
Procurement Policy
Eric Morel de Westgaver - D/IPL
ESTEC
03/06/2014
ESA UNCLASSIFIED – For Official Use
How many SMEs at ESA?
• Number of active companies registered in ESA
suppliers’ data base: some 1500
• Number of SMEs working with ESA over the last
5 years (all areas):
721
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 2
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Distribution of SMEs by Country
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 3
ESA UNCLASSIFIED – For Official Use
Distribution by Country – Value of
Commitments 2009-2014 (Average:
Some 6% of Total Commitments)
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 4
ESA UNCLASSIFIED – For Official Use
SME Turnover at ESA - Distribution
by Year
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 5
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Distribution by IP Programme
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 6
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Industrial Policy (1)
The Origin of SME Policy
1. Since 2001, ESA has established a SME Office, in charge of liaising
with SMEs, and a SME Initiative with limited ad hoc support
resources (including specific Announcements for Opportunities,
discontinued in 2010)
Today headed by Ms Kenza Benamar with the help of Ms Vanessa
Bleger, reachable by email at:
[email protected]
2. The definition of SME at ESA is identical to the one recommended
by EU in 2003
3. ESA Member States appreciate SMEs for their innovation character,
their flexibility, and their business attitude (ready to work inside
and outside ESA, spinning-off /spinning-in their acquired know-how)
4. SMEs are the backbone of the industrial tissue of many ESA
Member States, foreseen to increase because of New Member States
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 7
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Industrial Policy (2)
ESA Programmes and SMEs
5. ESA IP supports participation of SMEs in all ESA programmes
and activities
a. In particular through technology programmes like CTP,
TRP and ITI, GSTP, EOP (programmes where up to 20% is
captured by SMEs)  ask SME Office
b. Through proper segmentation in certain missions
c. By fostering teaming-up among SMEs (major purpose of
ISD)
d. By encouraging teaming-up with Large System
Integrators (LSIs)
e. By fostering coaching by LSIs
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 8
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Industrial Policy (3)
Overall Space Turnover (2010)
Total Turnover 2010
Institutional budget ex ESA
ESA contribution (average)
2000
1500
1000
500
0
-500
-1000
-1500
-2000
France turnover 6.1 B€
-2500
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 9
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Industrial Policy (4)
Industrial Evolution:
Relative Market Shares
Share by domain:
Share within each type of company:
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
Independent
LES
40%
LSI
50%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Spacecraft Launchers
Ground
and
Services
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 10
ESA UNCLASSIFIED – For Official Use
Ground and
Services
Launchers
Spacecraft
SMEs and ESA Industrial Policy (5)
Downstream
6. Total turnover addresses mainly a traditional space
market
7. Independent companies (essentially SMEs) have
identified a large potential market in G/S and services
area (much more than in traditional space activities)
8. ESA IP has therefore the role of addressing and
encouraging downstream opportunities for SMEs
(e.g. Integrated Application Programme, VAT and CCI in
EOP)
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 11
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Industrial Policy (6)
Training requested : Poll of Nov. 2013
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 12
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Industrial Policy (7)
The solution to Increasing Training needs:
an Improved Industry Portal for Early 2015
Presentation of
the Industry
Portal by D/IPL (
video )
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 13
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SMEs and ESA Industrial Policy (8)
Improved Industry Portal:
Multifunction
Change Frequency
Latest
News
Industry Portal
on Front page
Navigation bar
Business
Opportuniti
es
Special Page
for
newcomers
How to Do
business =
Education
Portal
Welcome and
presentation of
Industry portal
by D/IPL
Static
Latest Events
High Frequency
1/week
Announcement
of Training
opportunities
Medium Frequency
1/ 2 months
Latest
opportunities
Medium Frequency
1/ 2 months
Static information
on each Business
types by
directorate –
pointing to EMITS
Presentation
of EMITS
Static
Static
Static articles
( Subjects )
Static
Static
Short 5 min
Videos on
specialised
subjects
Static
Industry Space Days 2014 | Eric Morel de Westgaver
SMEs - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 14Announcement
ESA UNCLASSIFIED – For Official Use
On-line
registration
Static
Static
of Webinars
Medium Frequency
1/ 2 months
SMEs and ESA Industrial Policy (9)
One Example: How to do Business
Change Frequency
Special Page for
newcomers
How to Do
business =
Education Portal
Static articles ( Topics
revisited to give more content
on specific subjects – BP’s - ,
and adding content on
costing, geo return rules )
Short 5 min Videos on
specialised subjects
Static
Static
Announcement of
Webinars ( pointer to Webex
Events page for ESA allowing
On-line
participants to register and
registration
obtain their credential ) +
recorded
past webinars
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL
| ESTEC | 03/06/2014
| D/IPL | Slide 15
ESA UNCLASSIFIED – For Official Use
Medium Frequency
1/ 2 months
SMEs and ESA Procurement Policy (1)
Optimising Time-to-Contract
BACKGROUND
1. Optimising “Time-to-Contract” for low / medium budget
procurement actions has always been ESA’s objective, as well
as a requirement of both Member States and Industry
2. The Procurement Department (IPL-P) has a long track record in
devising new measures, processes and standards aimed at
keeping the target procurement types agile and efficient while not
forsaking the quality which ESA, the Member States and Industry
are used to
3. This is also the case following the far-reaching series of reforms
which have changed the Agency’s regulations and working
methods
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 16
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (2)
Optimising Time-to-Contract
THE ISSUE
1. The “ESA Procurement Process” as currently defined covers
a very wide spectrum of space procurement types, going from
complex space systems to work (small studies; punctual
technical activities, etc.) costing only a few k€
2. ESA’s industrial partners have often indicated that the above is
perceived (especially by SMEs or “newcomer” space
companies) as disproportionately complex and time-consuming
when applied to low to medium budget activities
3. Such complexity is seen as one of the factors often stretching
the time between the announcement of ESA’s intention to
initiate a tender action (List of Intended ITTs) and contract
signature
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 17
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (3)
Optimising Time-to-Contract
THE SOLUTION
As a result of recent consultations with Industry,
D/IPL and D/TEC, with the full support of other
ESA Directorates, have agreed to put in place
measures having as target a tangible reduction of
“Time-to-Contract” for small (i.e. up to 100k€) to
medium budget (typically between 100k€ and the
applicable IPC approval threshold) procurements
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 18
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (4)
Optimising Time-to-Contract
THE “EXPRO – EXPRESS PROCUREMENT” STANDARD
New express procedure for Studies, R&D, Small Services, etc.
procurements up to 100k€ already in use (since Spring
2013)
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 19
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (5)
Optimising Time-to-Contract
EXPRO’S MAIN FEATURES
1. Quick procedure similar to the one used for Purchase Orders
2. Non-competitive and restricted-competitive procedure available
3. Standard templates with embedded instructions for Proposal
and Cover Letter instead of Special Conditions of Tender
4. Self-contained and easily legible contract standard with
embedded the (relevant part of the) GC&C. No need to study
separate Applicable Documents. It accommodates virtually all
procurement types
5. ESA can waive the submission of a full proposal (for noncompetitive tendering), replaced by the submission of a standard
“Compliance Letter” (also based on a template)
6. Shorter tendering (4 weeks with proposal / 1 to 2 weeks with
“Compliance Letter”)
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 20
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (6)
Optimising Time-to-Contract
ADDITIONAL PROCUREMENT STANDARDS: “EXPRO+”
1. Still in view of the outcome of the recent consultations
with industry, another standard has been developed,
widening the EXPRO applicability range to cover larger
procurement actions, namely those with budgets
between 100k€ and the IPC approval threshold: the socalled “EXPRO+” package;
2. EXPRO+ re-uses as much as possible the “EXPRO”
features excluding, for the time being, those requiring
major modifications of ESA’s regulations;
3. EXPRO+ experimental pilots are being run since July
2013.
.
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 21
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (7)
Optimising Time-to-Contract
SUMMARY OF EXPRO/EXPRO+ EXPECTED BENEFITS
1. Standard Proposal and Cover Letter templates  simplifies proposal
writing (Industry) and evaluation (ESA)
2. Self-contained contract, no external Appl. Documents  improves
legibility and understanding of contract terms and conditions (Industry)
3. Waiver of full proposal for non-competitive tendering  makes
responding to an ESA RFQ (Industry) and evaluation (ESA) much easier
4. Shorter overall tendering procedure (EXPRO and EXPRO+ noncompetitive)  outcome of tender action known more quickly (Industry)
5. Shorter esa-p procedure (EXPRO and EXPRO+ non-competitive) 
simplified internal administration and approval cycles (ESA)
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 22
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (8)
Optimising Time-to-Contract
ADDITIONAL TOOLS AND MEASURES
Next to EXPRO and EXPRO+, a number of complementary
measures are also being implemented. Among these:
• Establishment of a web-based “Procurement Status
Dashboard”, aimed at industry, reflecting the status of
running tender actions (“In preparation”, “ITT out”,
“Under Evaluation”, “Under Negotiation”, “Awarded”)
• This should greatly improve bidders’ visibility on the
progress of the tender actions to which they participate
thus contributing to ease their perception of a “long TtC”
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 23
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (9)
Optimising Time-to-Contract
ADDITIONAL TOOLS AND MEASURES
• More precise planning, between ESA initiators and PFLP, of coming ITTs in order to allow industry to correctly
plan in turn (thus avoiding the re-issue of ITTs due to no
response or repeated extensions of ITT closing dates)
• Internal tools and facilities to reduce the time taken
by purely clerical tasks in Tender Evaluation Boards
(drafting minutes; reviewing of the same; collecting and
accommodating changes / additions / suggestions by
members; finalising TEB reports; collecting signatures;
starting the internal endorsement process which allows
contacting industry and the start of negotiations)
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 24
ESA UNCLASSIFIED – For Official Use
SMEs and ESA Procurement Policy (10)
Optimising Time-to-Contract
OUR TARGETS
Once the necessary measures are in place, the Executive shall compare the current
averages, measuring the time between “Bid Invitation approved” (internal OK to
prepare ITT for publication) and “PO Ordered” with the new actuals.
Our targets are as follows:
KPI#
Start EVENT
End EVENT
Current Avg.
Target Avg.
===========================================
1
Bid Invitation
ITT/RFQ issue
0.8 months
0.5 months
2
ITT/RFQ issue
TOB
2.6 months
2.5 months*
3
TOB
Rec. Bid Resp.
2.0 months
1.0 month
4
Rec. Bid Resp.
Commitment
2.4 months
1.0 month
=======
=======
7.8 months
5.0 months
* To be further updated
The intention is also to reduce the currently high variance relative to the averages
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 25
ESA UNCLASSIFIED – For Official Use
Conclusions
 It is time now to B2B encounters
 Keep in mind all the suggestions and
information myself and my previous colleagues
have given to you
 I wish you very fruitful ISD
 I thank you for the enormous interest this ESA
event has raised throughout Europe
 See you at the next ISD!
Industry Space Days 2014 | Eric Morel de Westgaver - D/IPL | ESTEC | 03/06/2014 | D/IPL | Slide 26
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