The Cost of the ILC
What did the GDE estimate?
The GDE estimated two quantities: the VALUE for items provided (in ILC Value Units)
and the LABOR (in person-years). These quantities are independent of individual
national costing methods but can be translated into any local currency or costing system.
The value has two components: the value of shared components and the site-dependent
value for hosting the machine.
How did the GDE arrive at the estimate?
The GDE used a value accounting process that is now standard for international scientific
projects such as the ILC. Based on detailed technical requirements of the ILC, the GDE
determined the values of components based on the lowest reasonable estimate for
adequate quality, based on a world-wide call for tender. Value estimates are median
estimates, where, if a given item were purchased many times, taking the lowest bid each
time, half the purchases would be above the median estimate and half below.
What is the VALUE?
The VALUE and LABOR are effectively the barest cost estimate that would be used by
any of the funding agencies to determine a full cost in terms of local cost-estimating
systems and in local currency units. The ILC VALUE plus LABOR estimate is the basis
on which contributions will be apportioned among collaborators. Each participant will
agree to provide a certain value of components and services and to be responsible to
provide the contracted items, independent of what they actually cost.
What did the GDE report?
The following figures are the base VALUE and LABOR quantities that can be translated
into costs, by using a given national costing method:
VALUE = XXXX ILC VU
SHARED VALUE = ILC VU
SITE-DEPENDENT VALUE = ILC VU
LABOR = 13,000 person-years
The ILC VU is an amalgam of estimates in the various currencies used in the estimation
process; they assume the conversion factors 1 ILC VU = 1 $US = 1.2 € = 140 ¥.
What will the ILC cost in U.S dollars?
Different countries determine the cost for a large project using different costing methods.
That is why the GDE works in terms of a base VALUE that individual countries can
translate into their own cost figures. The VALUE figure has not yet been translated into
U.S.-specific costs, but that process has begun.
Is this the final value estimate for the ILC?
The preliminary VALUE and LABOR estimates announced by the GDE provide the ILC
median cost estimate based on the design snapshot at this time. They provide a basis for
continuing ILC engineering, R&D and industrial interactions to optimize the design and
cost.. The design, hence cost estimates will continue to evolve. The next steps along the
pathway to determining the U.S. cost of the ILC are to apply U.S. costing methods to the
VALUE and the LABOR, and to carry out a formal global validation of the value
estimate. This process is expected to take several months. Only on completion of this
process will the reference design and vlue estimate become final.
What does the cost announced by the GDE include and exclude?
The VALUE and LABOR amounts include:

construction of a 500 GeV machine;

tooling-up industry, final engineering designs, and construction management;

construction of all conventional facilities including tunnels, surface buildings,
detector assembly building, underground experimental halls, and access shafts;

explicit labor including that for management, administrative and support
personnel
The VALUE and LABOR amounts exclude:

Full extension to 1 TeV capability;

engineering, design or preparation activities that can be accomplished before
project funding, such as R&D, proof-of-principle prototype tests, and preconstruction;

surface land acquisition or underground easement costs;

experimental detector facilities, assumed to be funded by a separate agreement;

commissioning, operation, pre-operation, decommissioning;

region-dependent general and administrative overheads;

contingencies

escalation (inflation);

taxes.
What would the operating cost be?
At current electric power rates, the operating costs are estimated to be approximately
US$300-350 million per year in 2007 dollars (not including support of the scientific
program).