The Technical Annex

Checked by F.2 on 20/07/2005

Technical Annex

Analysis of policy measures to reduce ship emissions in the context of the revision of the National Emissions Ceilings Directive

I. Background information

The Clean Air For Europe Programme (CAFE) has provided the technical underpinning for the development of a thematic strategy on air pollution. This technical work undertaken by the International Institute of Applied Systems Analysis (IIASA) using the RAINS integrated assessment model has clearly shown that in the context of further action to improve environmental and health risks, then additional measures to reduce atmospheric pollution from ships are cost-effective.

Following on from the thematic strategy, the Commission intends to start the development of a new legislative proposal to revise the national emissions ceilings directive 2001/81/EC (NECD). This directive sets national emissions totals for four pollutants (NOx, SOx, VOCs, and NH3) which are to be attained by a given year. Emissions from international maritime traffic are excluded from the NECD, but the directive requires the Commission to investigate how such emissions could be treated by a revised NECD.

Annex VI (Air Pollution) of the Marine Pollution Convention (MARPOL) came into force in May 2005 when the requisite number of flag states and shipping tonnage ratified its provisions. Following the entry into force of Annex VI, several Member States have submitted a request to the International Maritime Organization (IMO) for changes to ship emissions standards. These proposals will be discussed in due course and will need to be fully justified if they are to be adopted by the IMO. Moreover, the Council of Ministers has concluded that the Community should adopt its own measures to reduce NOx emissions from EU-flagged ships if progress is not forthcoming at the IMO.

Given this, it is likely that there will be a requirement to analyse in more detail possible measures to reduce atmospheric emissions from maritime sources. This will feed directly into the development of Community proposals for submission to the Marine Environment Pollution Committee of the IMO and/or Community legislation. The modelling work to underpin the NECD will also have to be consistent with this work undertaken for the IMO process.

IIObjectives

The objectives of this contract are to explore the potential for further measures on international shipping emissions of NOx, SOx and primary PM2.5 in European sea areas.This will cover both an assessment of the current and future impacts of maritime emissions but also look at the development of cost-effective policy options.

The work performed under the proposed contract must be undertaken in close cooperation with that undertaken by IIASA in connection with the revision of the NECD. This is in order to ensure consistency in approaches, modelling assumptions and to ensure comparability between results.

III Description of the tasks

The successful tenderer will have to perform the following tasks:

(1)Update the existing griddedemissions of NOx, SOx and Primary PM2.5according to ship movement data collated for the year 2004. This inventory was previously prepared and reported by ENTEC UK (report will be made available to the successful tenderer);

(2)Emissionsof NOx, SOx and Primary PM2.5from international maritime traffic (International Emissions) will need to be clearly identified, on the basis of recent ship movement data (2004),and differentiated from those emissions coming from national shipping. The European sea areas to be treated should include as a minimum, the Baltic, the North Sea, English Channel, Mediterranean, Black sea, and North East Atlantic;

(3)Disaggregate and allocate the International Emissions in each of the European sea areas intotwo sub-sea areas(a) up to the 12 mile limit from shore; and (b) beyond this 12 mile limit to the boundary of the EMEP area;

(4)Differentiate the International emissions by the “flag” of the emitting ship i.e. differentiate between EU-flagged ships versus non-EU flagged ships;

(5)Spatially disaggregate theInternational Emissions in (1), (2) and (3) above according to the EMEP grid;

(6)Calculate source-receptor relationships for the two sub-sea regions (12 mile zone, and remaining sea area) for use in the RAINS integrated assessment model;

(7)Include the latest information on ship abatement measures into the RAINS model (as derived from the ENTEC UK study which the Commission will make available);

(8)Calculate up to 15 different policy scenarios in relation to the revision of the NECD and submission of papers to the International Maritime Organization.These policy scenarios may include detailed dispersion model calculations and assessments or be part of cost-optimal strategies derived from integrated assessment modelling;

(a)The results for each policy scenario will be accompanied by an assessment of the impacts of ship emissions for sensitive ecosystems and health (with maps and tabulated information);

(b)Where appropriate, tabulated data on costs and impacts of cost-optimal abatement strategies designed to meet particular environmental and health objectives;

The successful contractor will perform his contractual duties outside of Commission premises.

IVExperience required of the Contractor

Thecore team of the successful tenderer should have demonstrable expertise in the field of (1) atmospheric dispersion modelling of pollutants and primary particulate matter in particular; (2) experience of integrated assessment modelling to develop cost-optimal strategies to meet multiple environmental and health objectives.

VDuration of the tasks

This is a twelve month contract from date of signature.

VIValidity of the offer

The offer shall remain valid for a period of 6 months, as from the deadline for submission of offers.

VIIReports and Documents/Deliverables

The contractor is expected to commence work immediately after signature of the contract, and to provide results of the modelled policy scenarios to the Commission by 30 April 2006. These scenarios together shall constitute the interim report.

The contractor should then prepare a final report, describing the work done, including the results of the modelled policy scenarios. The draft final report should be submitted by 30 September 2006 in electronic format. The final report should be submitted within 12 months of contract signature in electronic format and print (10 hard copies).

The contractor should allow for one meeting in Brussels as part of the tender.

VIII Subcontracting

Subcontracting is permitted subject to the following conditions:

(a)the subcontractor is the sole responsibility of the main contractor;

(b)tenderers must indicate in their offers the amount of the contract (if any) that they intend to subcontract to third parties, as well as the identity,availability and relevant experience of the potential subcontractor(s). The contractor will not subcontract to third parties not identified in the offer as potential subcontractors without prior written authorisation from the Commission;

(c)the contractor shall not cause the contract to be performed in fact by third parties;

(d)even where the Commission authorises the contractor to subcontract to third parties, the contractor shall nonetheless remain bound by his obligations to the Commission under the contract;

(e)the contractor shall make sure that the subcontract does not affect rights and guarantees to which the Commission is entitled by virtue of the contract.

Where the total amount envisaged for subcontracting is above 30% of the total contract value, evidence of the potential subcontractor’(s) ability to perform the tasks entrusted to him/them shall be included in the offer. Such evidence is the same as that also required from the contractor, as described and identified, in section XII below.

Where the total amount envisaged for subcontracting is above50% of the total contract value, the potential subcontractor(s) must also present evidence of compliance with the exclusion criteria (as required from the potential contractor) as described in section XI below.

Tenderers should note that the Commission will consider intended subcontracting below 30% of the contract value as an indication that the potential contractor has the resources to complete the tasks under the contract, as well as a factor potentially enhancing the proposed team organisation. Therefore this point will be taken into account in the assessment of the award criterion “project management and availability”.

IX Formation of consortia for the purpose of the tender

Where consortia are formed for the purpose of this tender the following conditions shall be met:

- When the offer is submitted the members of the consortium must indicate their willingness both to be a member of the consortium and to enter into an agreement committing them to work together sharing the risks and rewards of a possible future contract;

- Tenders from consortia must specify the role, qualifications and experience of each of the members. In addition, the lead consortium member must be clearly identified;

- Potential contractors should note that prior to the Commission signing the contract with the lead consortium member, all members must sign, and provide to the Commission, an agreement committing them to work together sharing the risks and rewards of the contract;

In addition proof of eligibility, a declaration that there are no conflicts of interest, and documents on exclusion and selection criteria must be supplied by each member of the consortium submitting a tender, as follows:

All members of a consortium must prove compliance with the exclusion criteria laid down in section XI below. For this purpose, further to the declaration signed by all its members (see a model in Annex C to the invitation to tender) the supporting documentation referred to throughout section XI must be provided.

A consortium must, as a whole, comply with the selection criteria laid down in section XII.A and B below, which concern technical and professional capacity requirements and the financial standing of the tenderers. Moreover, the lead consortium member shall be in full compliance with all selection criteria.

Each firm in a consortium must comply with the requirements laid down in section XII C and D below (authorisation to perform the contract and access to the market, respectively).

X Method of payment

This contract will be paid on a lump sum basis. A pre-financing payment of 30% will be paid upon signature of the contract. An interim payment of 40% will be paid upon acceptance by the Commission of the interim report. A final payment of 30% will be paid upon acceptance by the Commission of the final report.

The Commission is exempt from all taxes and dues, including value added tax, pursuant to the provisions of Articles 3 and 4 of the Protocol on the Privileges and Immunities of the European Communities with regard to its financial contribution under the contract.

XI Exclusion criteria:

Tenderers must submit all the supporting evidence and statements required in sections XI.1 and XI.2 below. Where subcontracting above 50% of the total contract value is envisaged, potential subcontractors must also submit all the evidence listed below.

1.Tenderers will be excluded from participation in the contract procedure:

a) if they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

b)if they have been convicted of an offence concerning their professional conduct by a judgment which has the force of res judicata;

c)if they have been guilty of grave professional misconduct proven by any means, which the contracting authority can justify;

d)if they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established, the country of the contracting authority or the country where the contract is to be performed;

e)if they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests;

f)if, following another contract or grant award procedure financed by the Community budget, they have been declared to be in serious breach of contract for failure to comply with their contractual obligations.

Tenderers must certify that they are not in one of the situations listed above by providing:

i)for points a), b) and e), a recent extract from the judicial record or, failing that, a recent equivalent document issued by a judicial or administrative authority in the country of origin or provenance showing that those requirements are satisfied;

ii)for point d), a recent certificate issued by the competent authority of the State concerned. Where no such certificate is issued in the country concerned, it may be replaced by a sworn or, failing that, a solemn statement made by the interested party before a judicial or administrative authority, a notary or a qualified professional body in their country of origin or provenance;

Depending on the national legislation of the country in which the tenderer or candidate is established, the documents referred to in paragraphs i) and ii) shall relate to legal persons and natural persons including, where considered necessary by the contracting authority, company directors or any person with powers of representation, decision-making or control in relation to the candidate or tenderer.

iii)Potential contractors must sign and attach the declaration concerning the exclusion criteria and any conflict of interest (See Annex C page 8).

2.Contracts will not be awarded to tenderers in the following cases:

a)If there is a conflict of interest. Tenderers must therefore state that they:

- are not involved in any conflict of interest in connection with the contract;

- have not made and commit themselves not to make any offer of any type whatsoever from which an advantage could be derived in connection with this contract;

- have not agreed to, have not sought, or accepted any advantage, financial or other, constituting an illegal practice or involving corruption, either directly or indirectly, as an incentive or reward relating to the award of the contract, to or from any party whatsoever.

b)If they are guilty of misrepresentation in supplying the information required by the contracting authority as a condition of participation in the contract procedure or fail to supply this.

XII. Selection Criteria

The potential contractor (whether or not subcontracting is envisaged) or consortium leader must comply and prove compliance with all the selection criteria listed below. Where the total amount envisaged for subcontracting is above 30% of the total contract value, potential subcontractors must also comply and prove compliance with the respective requirements, as laid down in section VIII above. In case the offer is submitted by a consortium, the relevant provisions under section IX above shall be adhered to

Experience as evidenced by the qualifications, both educational and professional, of the service provider or contractor and those of the firm's managerial staff and, in particular those of the person or persons responsible for carrying out the service/work. Curriculum vitae must be provided.

Presentation of balance sheets or extracts from balance sheets for the last 2 years for which accounts have been closed, where publication of the balance sheet is required under the company law of the country in which the economic operator is established.
Proof that the tenderer is authorised to perform the contract under national law, as evidenced by inclusion in a trade or professional register, or a sworn declaration or certificate, membership of a specific organisation, express authorisation or entry in the VAT register.
Indication of the State in which the tenderer has their headquarters or domicile and presentation of supporting evidence normally acceptable under their own law.

XIII Award Criteria

Further to the price quoted for the contract, the following award criteria will be applied:

1. Understanding: this criterion assesses the degree to which the tenderer demonstrates a good understanding all of the issues involved, as well as the nature of the work to be undertaken and the content of the final products.

2. Methodology: this criterion assesses the degree to which the tenderer shows the capacity to resolve the questions underlying in the tender in a realistic and well-structured way, as well as whether the methods proposed are suited to the needs set out by the Commission in the Technical Annex.

3.Project management and availability: this criterion relates to the quality of project planning, the organisation of the team with a view to managing a project of this nature, and the availability of the resources for the completion of the contractual tasks, within the stated deadlines.

XIVPoints system and presentation of the budget:

The following points system will be applied to evaluate the quality of the offers against the award criteria.

Points: a maximum of 20 points will be attributed to criterion 1, a maximum of 40 points will be attributed to criterion 2, a maximum of 40 points will be attributed to criterion 3. In addition two categories of thresholds will be set up under this system of points:

- Technical sufficiency levels: Selected companies will have to score a minimum of 10, 20 and 20 points under criteria 1, 2 and 3 respectively, with a minimum total of 60 points.

- A technical excellence level, set up for the total number of points only, of 80points.

Budget:

The budget is a maximum of €100,000 excluding VAT (including fees, travel and all other costs).

The price quoted must be a firm, non-revisable price and must be quoted in euro.

XV Ranking of the tenders and award of the contract:

The bid offering the best value for money will be chosen, provided that the minimum number of points cited above is achieved. Best value for money will be calculated as follows.

Bids that do not satisfy all technical sufficiency levels will not be considered for contract award. For the offers at, or above, all the technical sufficiency levels, the price will be divided by the total number of points awarded. The award of the contract will be made in accordance with the following principles: