BIDDERS’ CONFERENCE IT-3976 Provision of Specialized EOT Crane Maintenance Services on the CERN Site May 5 th 2014 Handling Engineering Group2 Service Level Agreement (SLA)

An SLA is an “agreement” between two or more party(ies), where one is the customer and the other(s) are service provider(s). An SLA generally includes the:  definition of the services;  performance measurement,  enforcement of compensations or penalty application for services not provided;  definition of the level of equipment performance related to “downtime”;  level of customer support;  termination of the agreement/contract. SLA concept (1/2) May 5 th 2014 Handling Engineering Group3

Service level agreements are, by their nature, “result" based – the result of the service as received by the customer is the subject of the "agreement“. It’s expected that the contractor demonstrates their value by delivering the quantity and quality of services required, organizing and providing the necessary means with technical capacity, ingenuity and in an innovative way (RCM). In order to ensure that an SLA is consistently achieved or met a clear and strict measurement shall be done by the 2 parties that shall meet regularly to evaluate the results. SLA concept (2/2) May 5 th 2014 Handling Engineering Group4

SLA agreement described in Annex G tables:  Table G.1 Preventive Maintenance (PS1);  Table G.2 Breakdown Services (CD);  Table G.3 Repair Service (CR);  Table G.4 Modification/improvement (CA);  Table G.5 Assistance to Periodic Safety Inspections (PSI);  Table G.6 Lockout/Tagout (T1);  Table G.7 Consolidation Works (T1 & T2). Services Included May 5 th 2014 Handling Engineering Group5

The SLA tables mentioned in Annex G are organized as following: Structure of the SLA tables (1/2) May 5 th 2014 Handling Engineering Group6 ServiceRequired Quality Level G.1 Preventive Maintenances Service (PS1) following IT-3976/EN section Key Performance Indicators G1, G2, G3, G4, G7, S1, S2, S3, O1 and O2. Frequency Every equipment visited minimum one time per year, priority 1 cranes minimum 2 times per year. Preparation 1)Plan the maintenance with the CERN EN-HE-HM Staff, the TSO, and RP (if necessary); 2)Organise the necessary access requests well in advance (e.g. IMPACT); 3)Prepare the accessibility to the equipment and the components to be serviced (foresee the use of an aerial work platform). 4)Analyse the equipment history of the last 3 years (events and results of preventive + corrective maintenance interventions and periodic safety inspections, use intensity etc.) and anticipate the equipment condition (e.g. wear, lubrication, known problematic components, etc.); 5)Determine the preventive program to be realized; 6)Equip service car with tools, parts, consumables (according to analysis above);

Structure of the SLA tables (2/2) May 5 th 2014 Handling Engineering Group7 Realization (verifications and actions taken): 1)Test all movements, actuating all safety devices and switches; 2)Check for damages, leakages, advanced wear and improper functioning of components (using adequate tools and inspection methods); 3)Check determining sources of unsolved problems part of the equipment history; 4)Correct all detected problems; 5)Free the crane and the crane rails from dirt, oil leaks and waste; 6)Leave the crane in safe condition (doors and gates closed and locked etc.); 7)Note all faults and problems; 8)Check if PSI sticker is present and up to date. If not contact CERN EN-HE equipment responsible. Documentation (to be produced along the preventive maintenance works) 1)Register relevant comments concerning the works preparation; 2)Note the result of all the actions performed; 3)Note all consumables, spares and repair parts used (references, quantities and important technical details); 4)Document the equipment condition regarding wear or any existing malfunction for subsequent analysis and evaluation; 5)Follow-up equipment condition in life-cycle evaluation sheet; 6)Register the hour-meter(s) value(s). Documentation CMMS 1)Verify, correct and complete the work-order data inserted into CERNs’ CMMS database; 2)Finish and close the work-order max.1 day after the job had been finished (status RT);

Minimum allowed service levels are defined by the Key Performance Indicators in ANNEX H:  G – General contractual KPI’s;  S – Safety KPI’s;  O – Organizational KPI’s;  PR – Overhead cranes KPI’s;  PA – Hoists KPI’s;  RR – Lifting Beams KPI’s;  I – Intervention Time KPI’s;  R – Equipment repair KPI’s; Performance Indicators (1/3) May 5 th 2014 Handling Engineering Group8

Performance Indicators (2/3) May 5 th 2014 Handling Engineering Group9 ObjectivePerformance Indicator Description Objective value Term definitionNo Penalties 1st year2nd year3rd year General Contractual Performance Indicators G1 Non-conformity of services with regard to applicable codes of practice and laws 0 G1 = objective; nG1 = real value if nG1 = 0 G2 Non-conformity with regard to documentation (submission, updating and availability) 0 G2 = objective; nG2 = real value if nG2 = 0 G3 Non-conformity of services with regard to the technical requirements demanded in the contract specification or to the contrator's answers in the quality questionnaire. 0 G3 = objective; nG3 = real value if nG3 = 0 G4Non-conformity of a given service inspected by CERN0 G4 = objective; nG4 = real value if nG4 = 0 G5 Maximum allowed delay for official deadlines expressed in hours other than I1, I2 and I3 2h1h G5 = objective; nG5 = real value if G5 - nG5 ≥ 0 G6 Maximum allowed delay for official deadlines expressed in days other than R1, R2A, R2B, R3A, R3B, R4A, R4B, R5A and R5B. 1d0d G6 = objective; nG6 = real value if G6 - nG6 ≥ 0 G7False declaration(s)0 G7 = objective; nG7 = real value if nG7 = 0 Safety Performance Indicators S1 Non respect of safety standards, wearing of PPEs etc. / month 0 S1 = objective; nS1 = real value if S1 = 0 S2 Non respect of safety standards, wearing of PPEs etc. / Semester 6 S2 = objective; nS2 = real value if S2 - nS2 ≥ 0 S3Circulating A2 accident reports24 h S3 = objective; nS3 = real value if S3 - nS3 ≥ 0 S4Non-Conformity of services with the PP0 S4 = objective; nS4 = real value if nS4 = 0

Performance Indicators (2/3) May 5 th 2014 Handling Engineering Group10 No PenaltiesPenalties Criteria Performance measurement Remark if nG1 = 0if G1 - nG1 < 0 → penalties nG1*1000,-CHFmonthly CERN reserves the right to cancel the contract if this penalty is applied three times over a 12 month period. if nG2 = 0if G2 - nG2 < 0 → penalties nG2*1000,-CHFmonthly if nG3 = 0if G3 - nG3 < 0 → penalties nG3*1000,-CHFmonthly if nG4 = 0if G4 - nG4 < 0 → penalties nG4*1000,-CHFmonthly if G5 - nG5 ≥ 0 if G5 - nG5 < 0 → penalty 1000,-CHF per each hour of delay monthly if G6 - nG6 ≥ 0 if G6 - nG6 < 0 → penalty 3000,-CHF per each day of delay monthly if nG7 = 0if G7 - nG7 < 0 → penalties nG7*5000,-CHFmonthly if S1 = 0if S1 - nS1 < 0 → penalties nS1*1000,-CHFmonthly HM realizes minimum 20 assessments each month on all types of work executed by the contractor! if S2 - nS2 ≥ 0if S2 - nS2 < 0 → 5% of next monthly invoicesix-monthly CERN reserves the right to cancel the contract if this penalty is applied three times over a 12 month period. if S3 - nS3 ≥ 0if S3 - nS3 < 0 → penalty 1000,-CHF per day of delaymonthly if nS4 = 0if S4 - nS4 < 0 → penalties nS4*1000,-CHFmonthly CERN reserves the right to cancel the contract if this penalty is applied three times over a 12 month period.