Cost Model Cost Model objectives Predictable costs Transparent

Cost Model • Cost Model: objectives – Predictable costs – Transparent costs – Costs linked to the level of activity – Continued benefits of initial competition • 3 phases – Proposal and evaluation phase: • – – FFP per project Negotiation phase: based on the FFP, agreement on the implementation of the cost model including • Units of cost • Charge to ESA for every unit • Cost qualifiers • Resulting formula to calculate project costs Operations phase: • Application of the formula to all projects Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012 Page 1

Example cost model: proposal & evaluation phase • Initial basket attached to So. W contains the currently expected activities • The projects fall into all 4 types: – Collection – Consolidation – Processor integration – Processing For Dataset 1 (200 Gb), Dataset 2 (400 Gb), Dataset 3 (100 Gb) • Financial proposal contains FFP quotes for each project/dataset, taking into account timing and volume Dataset Size Media Collection Consolidation Processor integration Processing Dataset 1 100 Gb LTO 100 Eur 200 Eur 100 Eur 300 Eur Dataset 2 200 Gb LTO 200 Eur … … … Dataset 3 50 Gb HDDT 100 Eur … … … Total 350 Gb 400 Eur … … … Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012 Page 2

Example cost model: negotiation phase For Data Collection projects in the initial basket, based on the negotiated FFP: 1. Agree on Unit of Cost eg 1 Gb 2. Agree on method to count the units eg nb of media * capacity * avg occupancy 3. Apply method to initial basket eg DS 1=100 Gb, DS 2=200 Gb, DS 3=50 Gb 4. Count total for basket eg 100+200+50= 350 Gb 5. Determine average cost per unit eg 400 Eur / 350 Gb = 1. 15 Eur per Gb 6. Define qualifiers if needed eg Type of media 7. Associate coefficients to qualifiers eg LTO -> 0. 9, HDD -> 0. 8, HDDT -> 1. 75 8. Finalise cost calculation formula eg Cost in Eur = size in Gb * 1. 15 * coeff Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012 Page 3

Example cost model: contractual phase Upon request for a Data Collection project: 1. Apply method to count the Gb (Uo. C) -> nb of media * capacity * avg occupancy 2. Look up value of coefficient for qualifier -> LTO -> 0. 9, HDD -> 0. 8, HDDT -> 1. 75 3. Apply cost formula -> Cost in Eur = size in Gb * 1. 15 * coeff For DS 1: 100 * 1. 15 * 0. 9 = 100 Eur For DS 2: 200 * 1. 15 * 0. 9 = 200 Eur For DS 3: 50 * 1. 15 * 1. 75 = 100 Eur ……. . For DSn: size in Gb * 1. 15 * coeff Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012 Page 4

Cost Model main features • Procurement Proposal approved by IPC up to 18 Million over 3+2 years (beyond that amount, new IPC approval is needed) • Initial basket is for quoting and sizing purposes • No relationship between 18 Million (*) and initial basket • Projects assigned case by case – 5 million Euro min. guaranteed over 3+2 year duration • Adjustments of unit costs linked to time and volume • Model applies after the end of the Transition phase (phase-in) which is charged as FFP (*) budget availability depending on CMIN Information Day on Data Consolidation and Bulk Processing Service Initiative ESRIN 22 June 2012 Page 5