SUPPLY OF THE HE LEAK LOCALIZATION SYSTEMS FOR ITER

Modificación 1

First, the SDR does not alter the subject matter of the Contract. While the scope of the Contract remains the same, the duration of the Contract is extended by 13 months and the Contract price is overall reduced by 340 KEUR. (which is a result of the descoping of -418k EURO as well as the increase by 78k EURO). The deviation relies on 2 legal basis: 1) Main legal basis: Unforeseen circumstances – F4E imposed as part of the Contract technical specifications to procure some valves from VAT in accordance with the strategic agreement [RD09] signed by the IO with VAT. Danieli tried to place the order as planned circa June 2021 but VAT did not answer the emails from Danieli until May 2022 (after IO took action on this). In May 2022, Danieli obtained a quote for VAT for “DN40 ISO KF serie 57 “flange” with a lead time of 12 to 18 months –refer to DANIELI TELEROBOT OFF 1365.pdf attached to amendment #192202. Taking into account these 18 months (most conservative delivery time), the conclusion was that the end date of the contract would be postponed by 13 months. The reasons for such a long delivery time of the valves – much longer than lead times in the Strategic Agreement – are the result of the current international market situation: * VAT inform F4E through IO that they have got orders from the semi-conductor industry to book the whole manufacturing production lines for their application. Therefore F4E's (small) order did not get priority and was delayed, such small orders cannot compete with this raising market and also there is no possibility to change supplier as they are the only ones in the world meeting ITER requirements. * VAT faced difficulties to get raw materials as in the market there is scarcity of stainless steel. This has delayed the delivery dates of the valves. Those circumstances could not have been foreseen by F4E acting in a diligent manner at the Contract signature in January 2021 – F4E relied on the availability of the valves in the IO-concluded Strategic Agreement, that F4E undertook to use under the relevant F4E-IO Procurement Arrangement. After consultation with IO, it was therefore confirmed by the IO that “flange”neck valve would be added to the Strategic Agreement IO/VAT and then used by Danieli as this would secure a shorter lead-time for deliveries of 3 months, in line with contractual schedule - as will be updated. – refer to DANIELI TELEROBOT OFF 1313.pdf attached to amendment #192202. In addition, it will bring a cost save of -418kEURO. 2) Additional: Non-substantial modification => no publication need – as to the other changes introduced in this amendment, namely due to unclear Technical Specifications requirements, the need to change from 1 to 3 CVGS configurations. In particular: a) The SDR does not introduce conditions, which, had they been part of the procurement procedure, would have allowed for more competition or would have changed the result of that procedure – the procedure allowed for negotiations anyway b) The SDR does not change the economic balance of the Contract in favour of the Contractor in a manner that would be not provided for in the initial Contract. c) The SDR, in respect of the change of CVGS configuration does not extend the scope of the Contract considerably (2 78 KEUR price impact and 2 months out of 13months schedule impact), d) Finally, no substitution of Contractor occurs.