Request for Proposals 1. Project background and objectives ○ Background The Korean government is scheduled to review standards for the cost of nuclear power decommissioning and nuclear waste processing and to amend relevant laws and guidelines in 2012. Standards for the cost of nuclear power decommissioning and nuclear waste processing were established in 2010 with 64% allocated to total debt and 15% allocated to the cost of development. However, there has been concern over the accuracy of the estimated cost of decommissioning and waste processing. KEEI will conduct research on the estimation of costs of decommissioning and waste processing in the next few years. ○ Need for the project It is important to obtain information on the cost of decommissioning and nuclear waste processing in other countries that have rich experience in this area in order to understand the potential problems associated with the estimation of the cost of decommissioning and nuclear waste processing. ○ Objective of the project Review and analyze the main issues and facts relevant to the cost of decommissioning and nuclear waste processing in selected countries. 2. Scope of the Project 1) Conduct case studies on nuclear power decommissioning costs in Germany, France, U.K., Japan, and U.S. 2) Analyze the decommissioning cost types, explain and compare various estimation methods that have been used or proposed. 3) Explain how the cost types and methods in 2) were used by different countries in the case studies of 5 countries 4) Explain in detail various methods each of the 5 countries has been using in establishing and managing the funds for decommissioning and nuclear waste processing. 5) Explain in detail about the organization, functions, authorities, and responsibilities of the institution that was established to set up and manage the fund or funds in 4) in each of the 5 countries that has such a fund. 6) In case a country does not have such a fund, explain the mechanism that handles the costs of decommissioning and nuclear waste processing used. (For instance, a country may require a generation company that owns and operates a nuclear power plant to handle the costs) 3. Qualification The institution/firm should meet the following conditions in order to be eligible to be selected to do the above project: 1) The institution/firm must have at least 3 projects on nuclear economics, policy on nuclear industry, or strategy for investment and operation of nuclear power plants in the last 5 years. 2) The institution/firm must have at least 3 participants who have 3 year or more experiences with policy and strategy on nuclear economics. 4. Documents to be submitted 1) Letter of bid - A PDF file of a letter, signed by a relevant person with the authority, specifying that your institution/firm is bidding for this project 2) An electronic file for the proposal and an executive summary of the proposal 3) List of participants for the project if your institution/firm is selected to do the project along with their CVs focusing on their prior experiences in related areas. 4) List of the past and current projects in related areas in the last 5 years 5) Certification of at least 3 projects your institution/firm has done in the last 5 years. Certification for each project must include the title of the project, client, project period, budget, name and title of the person in the client organization who certifies the project and his/her signature. 6) List of at least 3 participants with the track record of each in related areas - The list must include the name, title, affiliation of each participant, his/her experience in related areas in the last 5 years, and his/her signature. 7) Financial statement - Balance sheet and income statement of your institution/firm in each of the last 3 years 8) Document that specifies the price your institution/firm bids for this project - A PDF file for a document, signed by a relevant person with the authority, that specifies the price your institution/firm bids for this project. Note that your bid price cannot exceed the announced reservation price in the procurement notice. Note that the reservation price might be around US $132,200 (including VAT). 5. Guidelines on the Proposal 1) Standard Table of Contents All proposals must be prepared using the following standard table of contents. Each chapter of the proposal must include contents on the topics listed under each chapter given below.. Chapter 1. Overview of the project - Understanding of the project, need for the project, and the objectives behind the project - Understanding the scope of the project Chapter 2. Information on the bidding institution/firm - General information: Brief history, organization, businesses, financial information - Information on employees: number, areas, expertise, experiences, etc. - Overall record of your institution/firm in the last 5 years. - Strengths of your institution/firm in conducting this project Chapter 3. Track record of the institution/firm and experiences of participants - List of past and current projects in the related areas - List of past and current projects in the related areas in the last 5 years Note: In completing the list of past and current projects, specify for each project, the title, name of the client, contents of the project, and the budget. - Ability of your institution/firm to complete the project successfully - List of participants, expertise and experience of each participant, demonstration of the ability of participants - Organization of the project team, demonstration of the ability of the team to complete the project successfully Chapter 4. Plan on how to do the project - Explain how your institution/firm will do the project - Describe methodology to be used - For each part of the project, describe a detailed plan to do the part. - Role assigned to each participant Chapter 5. Other issues you think are important 2) Other relevant information on the requirements on the proposal and submission (1) Language to be used in the proposal - English is allowed as the language to be used in preparing a proposal for institutions/firms outside of Korea (2) Method of submission for institutions/firms outside of Korea - Electronic submission is allowed. - Email address to submit a proposal to: kdlee@keei.re.kr, lsy@keei.re.kr 3) Information on the selection process (1) Evaluation committee: An evaluation committee, to be organized by KEEI, will evaluate the submitted proposals and select the winner of each project. (2) Selection process (a)Scoring system The evaluation committee will conduct technical evaluation and price evaluation. Technical evaluation carries 80%, and price evaluation carries 20%. Final score of a bidder is given by the formula, 0.8 x score in the technical evaluation (out of a total of 100 points) + the score for price evaluation (out of a total of 20 points). (b) Eligible candidates The bidders which received 85 points or higher in the technical evaluation (out of a total of 100 points for technical evaluation) will be eligible candidates. The bidders whose scores in the technical evaluation are lower than 85% are ineligible to sign the contract. If there is only one eligible bidder, it will become the priority candidate and will negotiate with KEEI for the signing of the contract. If there are more than one eligible bidder, the eligible bidder whose total score, which is the weighted sum of the scores from technical evaluation and price evaluation, will be declared the priority candidate. KEEI will negotiate with the priority candidate and will sign the contract if the negotiation leads to the signing of the contract. If the negotiation fails, KEEI will negotiate with the eligible candidate whose total score is the second among the eligible candidates. (3) Criterion for technical evaluation Technical evaluation will be done based on the following scoring system. (a) Consistency and concreteness of the proposal (20 points) - How accurately the proposal reflects the objectives, nature, and the scope of the project - How concrete the proposal is. - Clarity of the proposal - Feasibility of the objectives and the research plan in the proposal (b) Ability to complete the project successfully (70 points) - Ability and appropriateness of the institution/firm - Ability and experience of participants, their track record - Appropriateness of the composition, size of the project team and the resource allocation plan (c) Applicability of the output from the project (5 points) - Likelihood for utilizing the output from the project, its expected impact - Likelihood for contributing to the design of relevant policies in the future (d) Probability of successful completion and appropriateness of the budget (5 points) - Probability of successful completion of the project - Appropriateness of the allocation of the budget (4) Evaluation of the bid price (a) If the bid price of a bidder is the same as or higher than 80% of the reservation price, the score will be determined by the following formula: 20 x (lowest bid price/bid price) (b) If the bid of a bidder is lower than 80% of the reservation price, the score will be determined by the following formula: 20 x {(lowest bid price)/(0.8 x RP)} + 2 x {0.8 x RP - bid price)/(0.2 x RP)} Note: lowest bid price is the lowest bid price among the bid prices by eligible bidders. 6. Submission of Proposals and Reports 1) Submission of the reports The winning bidder who signs the contract with KEEI must submit an interim report and the final report. The interim report should be submitted by Nov. 30, 2012. The final report should be submitted by Jan. 31, 2012. Both interim and final reports should be written in Korean. The final report must include an executive summary. 2) Submission of the proposal Language: For institutions/firms outside of Korea, English is allowed as the language for the proposal. Deadline: We request those interested in the project to submit a proposal before seventeen o’clock(16:00), September 21, 2012. Method of submission: For institutions/firms outside of Korea, electronic submission is allowed.