Consultancy Support Services for the Procurement of LEU for the establishment of the IAEA LEU Bank
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1 Statement of Work Services for the Procurement for the establishment of the IAEA LEU Bank 14 June 2016 Page 1 of 8
2 Statement of Work (SOW) Market Research and Procurement - 1. Introduction General Requirements Scope of Work Duties and Responsibilities of the IAEA Deliverables and Acceptance Criteria Qualification Requirements Level of Effort and Period of Performance Conflict of Interest... 8 Page 2 of 8
3 1. Introduction The IAEA ( IAEA or Agency ) is establishing a Low Enriched Uranium (LEU) Bank in the Republic of Kazakhstan ( Kazakhstan ) to serve as a mechanism of last resort to back up the commercial market in the event that an eligible Member State s supply is disrupted and cannot be restored by commercial means. The IAEA LEU Bank will be a physical reserve of up to 90 (ninety) metric tons in cylinders in the form of uranium hexafluoride (UF6) enriched up to nominally 4.95% U-235 suitable for subsequent fuel fabrication for a typical light-water reactor, the most widely used type of nuclear power reactor worldwide. The IAEA LEU Bank will be owned by the IAEA and operated by the Ulba Metallurgical Plant Joint-Stock Company ( UMP JSC) located in Ust-Kamenogorsk, Kazakhstan. In accordance with Board Document GOV/2010/67, the Agency shall purchase LEU using its standard procedures for open tender from vendors willing and able to provide LEU to the Agency in accordance with the Statute and GOV/2010/67 for the purpose of the IAEA LEU Bank ( LEU Procurement ). A key principle of the LEU Procurement is that care should be taken to avoid disrupting the price of uranium on the international market. In that respect, the Agency is seeking to contract an independent consultancy company 1 that will provide technical assistance to the Agency in the areas of market research, planning, and LEU Procurement (the Contractor(s) ). The Contractor(s) initial tasks will be conducting market research related to the procurement. Upon the request of the IAEA, the Contractor(s) will be engaged in supporting the Agency with procurement planning and assistance in the LEU Procurement. This Statement of Work describes the scope of work to be performed by the Contractor(s). As part of its due diligence process for selecting and engaging the Contractor(s), the Agency is in the process of engaging a Due Diligence Consultancy Services company (the Due Diligence Consultant ) to conduct, to the extent possible prior to the award of a contract to the Contractor(s), a background analysis of potential Contractor(s). The Due Diligence Consultant could also be engaged, at the discretion of the Agency, in the review of the Contractor(s) performance. The Agency also intends to invite Member States to a workshop(s) to further gain understanding of the LEU market factors. The first workshop is currently planned for September 2016 in Vienna, as part of the procurement planning. Member States may be accompanied by their own technical experts, as well as others whom they consider appropriate. 1 The IAEA intends to award a contract to more than one company. Page 3 of 8
4 2. General Requirements The Agency seeks to engage an independent Contractor(s) to provide technical assistance to the Agency in the areas of market research, planning and implementation of the LEU Procurement process. The Contractor shall only undertake Work under this Contract on the basis of a Work Order issued by the IAEA. For the avoidance of doubt, the Contractor shall not perform any Services or incur any cost to be reimbursed by the IAEA unless as specifically requested by the IAEA under a Work Order. During Phase 1 of the Contract, covering the period between the signature of the Contract (expected not later than 12th August 2016) and March 2017, the Contractor shall conduct market research and assist the Agency in the planning of workshops as further described below. During Phase 2 of the Contract, covering the period between September 2016 and December 2017, the Contractor shall provide technical assistance to the Agency on planning and implementation of the LEU Procurement. 3. Scope of Work The Contractor shall perform the following tasks, upon request by the IAEA as set out in the relevant Work Order (see Section 4 below): 3.1 Phase 1 Market Research and Workshops: In Phase 1 of the Contract, the Contractor shall: Assist the IAEA in planning workshop(s) related to the LEU market and procurement. The workshop(s) will be organized by the IAEA at the IAEA headquarters with the participation of representatives of IAEA Member States, technical experts, as well as others that Member States consider appropriate Perform market research related to the procurement Provide technical assistance to the IAEA in its planning of the activities under Phase 2, including by participating in meetings as necessary at the IAEA headquarters in Vienna, Austria; 3.2 Phase 2 - Planning and Implementation Procurement process: In Phase 2 of the Contract, the Contractor shall: Provide technical assistance to the IAEA in: Page 4 of 8
5 (a) the revision of its LEU Procurement Plan; and (b) developing the documents for the LEU Procurement Provide technical assistance to the Agency in its review of proposals submitted to the IAEA by bidders participating in the LEU Procurement bidding process Provide technical assistance to the IAEA in its other activities under Phase 2, including by participating in meetings as necessary at the IAEA headquarters in Vienna, Austria. 4. Organization of the Work 4.1 The IAEA, upon signature of the Contract, shall convene a kick-off meeting in Vienna to agree on detailed procedures for the execution of the Work. 4.2 The IAEA will request the initiation of the Work through the issuance of Work Orders. The IAEA shall have the right but not the obligation to issue Work Orders throughout the entire duration of the contract. The Contractor shall not perform any work not requested by the IAEA and defined in Work Orders. 4.3 The Work Order will be based on one or more tasks described in Section 3 above. Each Work Order will contain further definitions and descriptions of the exact nature of the Work to be completed and the deadline for completion. 4.4 As basis for a Work Order, the Contractor shall provide an estimate of the resources needed, together with unit prices established in the Contract, to complete the task in the Work Order, for the Agency s acceptance. 4.5 The majority of work will be done off-site at the Contractor s premises and correspondence will be mostly via telephone and . s may be encrypted, if containing classified information, according to the IAEA information security procedures which will be explained by the IAEA to the Contractor as appropriate. Meetings, as requested by the IAEA, will be held on-site at the IAEA headquarters at the Vienna International Centre (VIC), in Vienna, Austria. Key personnel of the Contractor are not expected to travel to any third party locations. 5. Duties and Responsibilities of the IAEA The IAEA shall: 5.1 Provide all relevant information requested by the Contractor to assist in the fulfilment of their responsibilities. 5.2 Provide overall direction to the Contractor, who shall report to the Director, Office of Procurement Services, and will interact on a day-to-day basis with the IAEA LEU Bank Project Executive, Project Manager and team. Page 5 of 8
6 5.3 Make IAEA s staff available for discussion and to respond to inquiries in person, by electronic mail and through telephone and video conference meetings. 5.4 Explain the IAEA Information Security Policy on how to classify and protect classified information and support the Contractor in setting up appropriate arrangements for information security, including installation of open source encryption software. 5.5 If needed as determined by the IAEA, the IAEA shall provide within its premises at the VIC infrastructure requested by the Contractor such as office space, office equipment and internet connectivity as well as physical access to the VIC. 6. Deliverables and Acceptance Criteria At the end of a particular work under the Work Order, the Contractor shall submit to the IAEA the deliverable as stated in the respective Work Order. The deliverable shall be in accordance with the requirements of the Contract and the applicable Work Order and their acceptance by the IAEA shall be subject to the satisfactory completion thereof. Acceptance by the IAEA of the deliverable shall be the basis for invoicing and payment under the relevant Work Order. At a minimum, and as per the relevant Work Order, the Contractor shall submit to the IAEA the following deliverables: 6.1 Report with inputs to the terms of reference for, and specific issues to be addressed in, the first workshop for Member States in accordance with Section planned for September LEU Market Research Report in accordance with Section above. 6.3 Report with inputs for the preparation of the solicitation documents for the LEU Procurement in accordance with Section above. 6.4 Report on the review of technical (and if required, financial) proposals submitted in accordance with Section above. 6.5 Any other report identified in the relevant Work Order. 7. Qualification Requirements 7.1 The Contractor shall meet or exceed the following qualifications: Proven track record in providing consultancy services relevant to market research related to LEU and the ways and means of procurement, preferably in advising utility companies and/or international organizations/fora on procurement of LEU. Page 6 of 8
7 Have the necessary resources in order to guarantee the satisfactory performance of the services for the period of performance at the level of effort foreseen in this Statement of Work. 7.2 In general, key personnel of the Contractor shall demonstrate in depth knowledge of the international market for LEU and the ways and means of procurement, and should be recognized as specialists in the international LEU market. Additionally, they shall be at the appropriate level of seniority (junior/senior) and possess excellent written and oral communication skills in the English language. Experience and knowledge in the market and practices related to transportation is desirable. 7.3 In particular, the following qualifications are required from the key personnel of the Contractor: For Phase 1: Demonstrated knowledge and experience of all relevant LEU market types (e.g. spot, long term, off-the market). Capabilities to conduct a detailed LEU market analysis (including an analysis of any risk of IAEA LEU acquisition to disrupt the price of uranium in the international market). Demonstrated knowledge and experience purchasers procurement methods and/or demonstrated knowledge suppliers - methods and constraints. Demonstrated knowledge and experience technical specifications (including applicable international standards). Demonstrated knowledge and experience of national obligations (e.g. conditions attached to export, flag-related matters) For Phase 2: Demonstrated knowledge and experience in the procurement and contracting for the acquisition. Demonstrated knowledge and experience in drafting technical specifications, solicitation documents and contracts for acquisition. Demonstrated knowledge and experience in the supply would be an asset. 8. Level of Effort and Period of Performance Services shall commence immediately upon signature of the contract, expected by not later than 12 August 2016, and be completed in accordance with the relevant Work Order. The Page 7 of 8
8 overall anticipated level of effort during that timeframe is estimated in the order of approximately one-hundred (100) person-days for all tasks. However, there is no guarantee or minimum level of effort required under the contract. 9. Conflict of Interest A conflict of interest involving the Contractor or its key personnel risks causing significant damage to the reputation of the IAEA and to the establishment of the IAEA LEU Bank. The Contractor and key personnel shall have no conflict of interest or perceived conflict of interest. It is possible that the Contractor and/or its key personnel, as recognized expert(s) with a track record in the LEU market, may have in the past had business relations with bidders for the LEU Procurement. However, the Contractor and key personnel shall not be or perceived to be associated, directly or indirectly, with any LEU suppliers. The Contractor and key personnel shall neither own shares in, have institutional or on-going contractual relations with any LEU supplier. Key personnel involved in the planning and participation of workshops under Phase 1 should not have been in the employment of any bidders for the LEU Procurement. For the rest of the Services, key personnel should not have been in the employment of any bidders for the LEU Procurement within the last five years. The Contractor and key personnel shall not support any bidder participating in the LEU Procurement process. At the time of the engagement of the Contractor, bidders for the LEU Procurement will not be known. As soon as those have been identified, the Contractor shall immediately disclose any conflict of interest to the IAEA. A breach of these requirements would be deemed a material breach of the Contract. Page 8 of 8
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