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Notes: AIR CANADA PROPOSAL
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…00……00……00……00……00……10……0a……00……00……10……0c……10……01……0d……00……0d……02……0d……07……0a……0b……0a……0e……0a……01……0a……02……0a……06……09……0d……09……0e……09……0f……86…1 …02… …02… …02… …02…
CHAPTER 1
Page #
DOCUMENT I COMMERCIAL PROPOSAL Apr. 29, 1982
Rev. May 29, 1982
LIST OF CONTENTS Page
1. PRICE PROPOSAL 2
1.1 General 2
1.1.1 Funds 2
1.1.2 Taxes, Customs Duty 3
1.1.3 Transportation Charges 4
1.1.4 Validity 4
1.1.5 Financial Plans 4
1.1.6 Payment Terms and Financial Considerations 4
1.1.7 Proposal Canadian Content 5
1.1.8 Rate Changes 5
1.1.9 Life of System 5
1.2 Charges Framework 6
1.2.1 Cash Flow Summary 7
1.2.2 System Summary 8
1.2.3 Equipment Charges 9
1.2.4 Software Charges 23
1.2.5 Maintenance Charges 24
1.2.5.1 Equipment 24
1.2.5.2 Software 25
1.2.6 Documentation Charges 26
1.2.7 Training 27
1.2.8 Implementation Charges 28
1.2.9 Transportation and Insurance 30
1.2.10 Development Charges 32
1.2.10.1 Equipment 32
1.2.10.2 Software 33
1.2.11 Other Charges 35
1.2.12 Supplier Resources 37
1.2.13 Air Canada Resources 37
1.2.14 Options
1.3 Financing Plans 38
1.3.1 General 38
1.3.2 Danish Export Finance Corporation 39
1.3.3 Financial Lease 40
1.3.4 Buyer's Credit 41
Attachment 1 Letter from Copenhagen Handelsbank
Attachment 2 Letter from Creditanstalt-Bankverein
1. P̲R̲I̲C̲E̲ ̲P̲R̲O̲P̲O̲S̲A̲L̲
This chapter contains the prices related to the Air
Canada Data Network as described in Document III Technical
Proposal. The prices cover turn key delivery of a
baseline backbone network which meets the 1985 requirements
as requested by the RFP.
The priced backbone network consists of 3 Nodes, geographical
backed up NCC's, 1 NMH and 1 EMH.
Section 1.1 below describes some general assumptions
related to the pricing.
Section 1.2 contains the prices structured in a framework
as requested by the RFP, Part 2 Chapter 3. Please
note that instead of using the suggested forms we have
used printout from our computer configuration and cost
breakdown system. These printouts have been adapted
to provide the information, requested by Air Canada.
In case Air Canada requires further cost details,
we are prepared to deliver these promptly.
Section 1.3 presents alternative financing plans.
1.1 G̲e̲n̲e̲r̲a̲l̲
This section contains general assumptions related to
the pricing.
1.1.1 F̲u̲n̲d̲s̲
The prices given in the proposal are all shown in Canadian
Dollars. However, all services and supplies furnished
by Christian Rovsing are based on an exchange rate
between Canadian Dollars and Danish Kroner of 100 CAN
$ = 665.00 Danish Kroner, and will be adjusted according
to fluctuations in the exchangerate prevailing on the
date of payment(s).
Services and supplies furnished by Christian Rovsing
have been quoted in accordance with standard rates
as per Oct. 8, 1981 adjusted by six per cent (Oct.
8, 1981 to Apr. 29, 1982) for all applicable skill
categories.
Services and supplies furnished by CNCP are quoted
in Canadian Dollars.
1.1.2 T̲a̲x̲e̲s̲,̲ ̲C̲u̲s̲t̲o̲m̲s̲ ̲D̲u̲t̲y̲
Federal Sales Tax in the amount of 9% of the Sales
Price is included in the quotation.
Customs Duty has been included in the quotation by
applying the following rates to the F.O.B. value of
all hardware:
1982: 6.3%
1983: 5.0%
1984: 3.8%
1985: 2.5%
1986: 1.3%
1987-91: free
These rates apply to 41417-1 "electronic data processing
equipment and apparatus"; most favoured nation.
1.1.3 T̲r̲a̲n̲s̲p̲o̲r̲t̲a̲t̲i̲o̲n̲ ̲C̲h̲a̲r̲g̲e̲s̲
The quotation given includes all insurance and transpotation
charges, i.e. the prices shown reflects the total cost
to Air Canada for delivery on site.
1.1.4 V̲a̲l̲i̲d̲i̲t̲y̲
The prices given in this quotation have been based
on the assumption that the implementation will commence
not later than by the end of the validity period for
this proposal, i.e. on the 1st day following the 300
days period starting on April 29, 1982.
1.1.5 F̲i̲n̲a̲n̲c̲i̲a̲l̲ ̲P̲l̲a̲n̲s̲
Section 1.3 of this chapter provides the details of
the proposed financial plans.
1.1.6 P̲a̲y̲m̲e̲n̲t̲ ̲T̲e̲r̲m̲s̲ ̲a̲n̲d̲ ̲F̲i̲n̲a̲n̲c̲i̲a̲l̲ ̲C̲o̲n̲s̲i̲d̲e̲r̲a̲t̲i̲o̲n̲s̲
In its response to Air Canada's Request for Proposal
Christian Rovsing has endeavoured to follow the Business
Guidelines of the RFP, thus allowing Air Canada to
fully analyze the Proposal, cfr. section 1.2 below.
The possible lack of any information found useful by
Air Canada in its evaluation effort will be promptly
covered upon any request for clarification and supplementary
data.
The detailed payment terms and associated issues should
be subject to negotiations aiming at establishing a
balanced cash-flow.
1.1.7 P̲r̲o̲p̲o̲s̲a̲l̲ ̲C̲a̲n̲a̲d̲i̲a̲n̲ ̲C̲o̲n̲t̲e̲n̲t̲
CNCP will work as a subcontractor to Christian Rovsing
performing installation and maintenance services for
the period until end of 1986 at a total value of
…01…CAN $ 1,045,881
with a projected value for each of the subsequent years
of
…01…CAN $ 204,491
or a total projected value of
…01…CAN $ 2,070,837
all at April, 1982 price level.
1.1.8 R̲a̲t̲e̲ ̲C̲h̲a̲n̲g̲e̲s̲
The prices in this proposal are based on price level
of April, 1982. For calculation of payments in current
price level in the cash flow summary below, a rate
change of 12% p.a. has been assumed.
1.1.9 L̲i̲f̲e̲ ̲o̲f̲ ̲S̲y̲s̲t̲e̲m̲
The life of the proposed system is evaluated to be
in excess of 15 years.
I.e. only after 15 years of operation will more modern
systems have overtaken the present CR80 design, including
predicted enhancements of the CR80 architecture during
the same 15 years period.
1.2 C̲h̲a̲r̲g̲e̲s̲ ̲F̲r̲a̲m̲e̲w̲o̲r̲k̲
The cost categories from the RFP FORM 2 System Summary
have been used in the cost breakdown.
The table below shows a price summary covering delivery
of the baseline system and maintenance for the initial
52 months (end 1986) excluding projected growth. The
prices are at price level April 1982 in Canadian $.
In the sections below the prices are further specified.
1.2.1 C̲a̲s̲h̲ ̲F̲l̲o̲w̲ ̲S̲u̲m̲m̲a̲r̲y̲
On Form 1 below is included a Cash Flow Summary based
on delivery of Toronto node end of 1983, Montreal node
medio 1984 and Winnipeg node end of 1984.
The Cash Flow Summary for the years 86-91 has been
based on a continuous adaptation of the proposed baseline
equipment reflecting a capability to handle the projected
traffic growth rate presented in the RFP.
Form 1: Cash Flow Summary
TBD…86…1 …02… …02… …02… …02…
1.2.2 S̲y̲s̲t̲e̲m̲ ̲S̲u̲m̲m̲a̲r̲y̲
The System Summary below is a specification of the
Cash Flow Summary according to the format of the RFP
Form 2.
TBD…86…1 …02… …02… …02… …02…
1.2.3 E̲q̲u̲i̲p̲m̲e̲n̲t̲ ̲C̲h̲a̲r̲g̲e̲s̲
A summary of the baseline equipment charges is shown
below, specified per location and per system. The
amounts are at price level April, 1982:
̲ ̲ ̲D̲k̲r̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲C̲A̲N̲ ̲$̲ ̲ ̲ ̲
̲ ̲
…06…1 …02… …02… …02… …02… …02… …02…
Toronto Node 12,755,154 1,918,068
Electronic Mail Host
3,425,930
515,177
Montreal Node 10,672,440 1,604,878
̲ W̲i̲n̲n̲i̲p̲e̲g̲ ̲N̲o̲d̲e̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲0̲,̲0̲4̲2̲,̲5̲2̲5̲ ̲ ̲ ̲ ̲ ̲1̲,̲5̲1̲0̲,̲1̲5̲4̲
Equipment Subtotal 36,896,049 5,548,278
I̲n̲t̲e̲g̲r̲a̲t̲i̲o̲n̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲3̲,̲6̲8̲9̲,̲6̲0̲5̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲5̲5̲4̲,̲8̲2̲8̲
Equipment Total 40,585,654 6,103,106
Included in the equipment offered is all CR80 equipment
and peripherals required to meet the end 1985 requirements.
Excluded are
- Automatic Test Equipment
- modems and similar equipment
which are part of the common carrier responsibility.
A detailed baseline equipment list for each of the
4 systems is included below. The baseline configurations
are equipped to handle the projected traffic volumes
end of 85.
The attached computer printouts correspond to the RFP
Form 5.
Please notice that the prices on the computer printouts
are in Danish Kroner (DKr).
Projected expansion elements
Toronto Montreal
Winnipeg
A B C A B C A
B C
̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
1̲9̲8̲6̲ ̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲
̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
1̲9̲8̲7̲ ̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲
̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
1̲9̲8̲8̲ ̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲
̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
1̲9̲8̲9̲ ̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲
̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
1̲9̲9̲0̲ ̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲
̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
1̲9̲9̲1̲ ̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲0̲
̲ ̲ ̲ ̲ ̲0̲ ̲ ̲ ̲ ̲ ̲1̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
A - Rack Expansion Element
B - NSP " "
C - NCU " "
The projected expansion for the EMH is reflected in
the associated equipment matrix.
Below the projected equipment costs in accordance with
the projected expansion:
Ye̲a̲r̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲6̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲7̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲8̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲9̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲0̲ ̲
̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲1̲ ̲ ̲ ̲
Projec-
tion 2,299,133 2,150,586 2,866,682 1,482,903 1,841,671
3,324,574
Subtotal ................................. DKr 54.551,203
Can $
8,203,188
cvb
TORONTO NODE/PRICE
cvb
TORONTO NODE/CONFIG.
cvb
MONTREAL NODE/PRICE
cvb
MONTREAL NODE/CONFIG.…86…1 …02… …02… …02… …02…
cvb
WINNIPEG NODE/PRICE…86…1 …02… …02… …02… …02…
cvb
WINNIPEG/CONFIG.…86…1 …02… …02… …02… …02…
cvb
EMH…86…1 …02… …02… …02… …02…
RACK
cb
RACK
NCP
cvb
NCP
NSP
cvb
NSP…86…1 …02… …02… …02… …02…
NCU
cvb
NCU
1.2.4 S̲o̲f̲t̲w̲a̲r̲e̲ ̲C̲h̲a̲r̲g̲e̲s̲
This section contains a specification of the One-time
Installation fee for the Standard Software packages
included in the proposal. Prices are at April, 1982
level:
WBS4
1.2.5 M̲a̲i̲n̲t̲e̲n̲a̲n̲c̲e̲ ̲C̲h̲a̲r̲g̲e̲s̲
1.2.5.1 E̲q̲u̲i̲p̲m̲e̲n̲t̲ ̲M̲a̲i̲n̲t̲e̲n̲a̲n̲c̲e̲
The table below corresponds to Form 5 and relates to
the cost category 2 on Form 2
…01…WBS 2
This work package covers the equipment and comsumeable
required for the initial depot and subsequent add-ons
required due to the system growth into the baseline
configuration.
Included is as well CNCP site support in operating
the system as described in the Technical Proposal.
This covers a yearly baseline cost of Can $ 204,991
from 1985. The CNCP support for 83 through 85 includes
Can $ 368,209.
Below the projected costs baseline configuration until
1991.
Y̲e̲a̲r̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲6̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲7̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲8̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲9̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲0̲
̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲1̲ ̲ ̲ ̲
Projec-
tion 1,671,918 1,664,491 1,834,605 1,765,416 1,850,509
1,991,808
Subtotal ................................... DKr
16,262,039
Can $
2,445,419
1.2.5.2 S̲o̲f̲t̲w̲a̲r̲e̲ ̲M̲a̲i̲n̲t̲e̲n̲a̲n̲c̲e̲
The table below corresponds to Form 5 and relates to
the cost category 5 on Form 2.
…01…WBE 5
This work package covers on-site resident software
engineers, required to support Air Canada after site
acceptance.
1.2.6 D̲o̲c̲u̲m̲e̲n̲t̲a̲t̲i̲o̲n̲ ̲C̲h̲a̲r̲g̲e̲s̲
As requested by Air Canada one complete set of all
the manuals with the exception of Maintenance Manuals
and S/W listings is supplied to the System Management
Staff and to each site.
Two complete sets of Maintenance Manuals is delivered
to each site.
One set of the S/W listings is delivered to the System
Management Staff.
The documentation is delivered F.O.B. destination
The table below corresponds to Form 5 and relates to
the cost category 7 on Form 2.
1.2.7 T̲r̲a̲i̲n̲i̲n̲g̲
The table below corresponds top Form 5 and relates
to the cost category 8 on Form 2.
…01…WBS 8
For specification of the proposed courses please refer
to Document III Section 9.3.
1.2.8 I̲m̲p̲l̲e̲m̲e̲n̲t̲a̲t̲i̲o̲n̲ ̲C̲h̲a̲r̲g̲e̲s̲
The table below corresponds to Form 5 and relates to
the cost category 9 on Form 2
…01…WBS 9
Item 1 covers Factory Acceptance Test to be performed
at the Christian Rovsing facilities, Ballerup. Item
2 of the work package covers site installation performed
by CNCP for a total of Can $ 472,681, while the remaining
items are provided by Christian Rovsing in Canada.
Y̲e̲a̲r̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲6̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲7̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲8̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲9̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲0̲
̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲1̲ ̲ ̲ ̲
Projec-
tion 650,054 0 650,054 216,685 216,685
433,369
Subtotal .................................... DKr
9,644,407
Can $
1,450,287
1.2.8.1 S̲u̲p̲p̲o̲r̲t̲ ̲t̲o̲ ̲C̲N̲C̲P̲
1.2.8.1.1 M̲a̲n̲a̲g̲e̲m̲e̲n̲t̲ ̲a̲n̲d̲ ̲P̲l̲a̲n̲n̲i̲n̲g̲
2 travels concerning site preparation and installation
are foreseen and included.
1.2.8.1.2 S̲i̲t̲e̲ ̲P̲r̲e̲p̲a̲r̲a̲t̲i̲o̲n̲ ̲R̲e̲q̲u̲i̲r̲e̲m̲e̲n̲t̲s̲ ̲(̲S̲P̲R̲)̲:̲
Christian Rovsing will prepare SPR's for each site
based on a site survey by CNCP. The SPR Is described
in III subsection 9.4.2.3. The SPR's will be submitted
to AIR CANADA for approval 3 months prior to installation.
1.2.8.1.3 E̲q̲u̲i̲p̲m̲e̲n̲t̲ ̲I̲n̲s̲t̲a̲l̲l̲a̲t̲i̲o̲n̲ ̲D̲r̲a̲w̲i̲n̲g̲s̲ ̲(̲E̲T̲D̲)̲
Christian Rovsing will prepare EID's for each site
based on the SPR and the proposed equipment characteristics.
The EID's are described in III subsection 9.4.2.4 and
will be submitted to AIR CANADA at least 1 months prior
to installation.
Updated drawing will be submitted after completion
of site acceptance
1.2.8.1.4 I̲n̲s̲t̲a̲l̲l̲a̲t̲i̲o̲n̲ ̲P̲r̲o̲c̲e̲d̲u̲r̲e̲s̲
Christian Rovsing will prepare installation procedures
to be used on site by CNCP's installation team for
hardware integration and checkout.
1.2.8.1.5 I̲n̲s̲t̲a̲l̲l̲a̲t̲i̲o̲n̲ ̲S̲u̲p̲p̲o̲r̲t̲
Support to CNCP during installation are envisaged.
2 support travels are included.
1.2.9 T̲r̲a̲n̲s̲p̲o̲r̲t̲a̲t̲i̲o̲n̲ ̲a̲n̲d̲ ̲I̲n̲s̲u̲r̲a̲n̲c̲e̲
The table below corresponds to Form 5 and relates to
the cost category 10 on Form 2.
…01…WBS 10…86…1 …02… …02… …02… …02…
Y̲e̲a̲r̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲6̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲7̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲8̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲9̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲0̲
̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲1̲ ̲ ̲ ̲
Projec-
tion 49,111 26,556 54,787 26,494 30,082
53,976
Subtotal .................................... DKr
895,508
Can $
134,663
1.2.9.1 M̲a̲n̲a̲g̲e̲m̲e̲n̲t̲ ̲a̲n̲d̲ ̲P̲l̲a̲n̲n̲i̲n̲g̲
A transportation plan will be submitted 2 months after
completion of the site surveys. (refer to III subsection
9.4.2.2).
1.2.9.2 T̲r̲a̲n̲s̲p̲o̲r̲t̲a̲t̲i̲o̲n̲ ̲a̲n̲d̲ ̲I̲n̲s̲u̲r̲a̲n̲c̲e̲
The equipment will be insured to the contract value
and shipped by air.
Delivery will be at site, where CNCP will be present
for receival, unpacking and moval of equipment to the
installation site.
1.2.9.3 P̲a̲c̲k̲a̲g̲i̲n̲g̲
The equipment will be disassembled and packed after
completion of factory acceptance test.
Packaging and marking will be as specified in III subsection
9.4.3.1.
1.2.10 D̲e̲v̲e̲l̲o̲p̲m̲e̲n̲t̲ ̲C̲h̲a̲r̲g̲e̲s̲
1.2.10.1 E̲q̲u̲i̲p̲m̲e̲n̲t̲ ̲D̲e̲v̲e̲l̲o̲p̲m̲e̲n̲t̲
The table below corresponds to Form 5 and relates to
cost category 3 on Form 2:
…01…SBW 3
1.2.10.2 S̲o̲f̲t̲w̲a̲r̲e̲ ̲D̲e̲v̲e̲l̲o̲p̲m̲e̲n̲t̲
The table below corresponds to Form 4 and relates to
cost category 6 on Form 2:
…01…WBS 6
Below the detailed break-down of the various packages
which constitute the software development proposed.
This information is presented to provide the Air Canada's
Technical Management additional visibility on these
major work packages. They also serve as background
for evaluating the tasks involved in implementing the
various requirements of the RPF, Part 6.
1.2.11 O̲t̲h̲e̲r̲ ̲C̲h̲a̲r̲g̲e̲s̲
The table below relates to the charges transferred
to Form 2, cost category 13:
…01…WBS 13
A further break-down of the major work packages which
constitute this category is provided below. The additional
information presented is intended to increase Air Canada's
understanding of the cost items covered.
̲Y̲e̲a̲r̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲6̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲7̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲8̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲8̲9̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲0̲
̲ ̲ ̲ ̲ ̲ ̲ ̲1̲9̲9̲1̲ ̲ ̲ ̲
Projec-
tion 857,696 900,707 958,041 987,699 1,024,533
1,091,024
Subtotal .................................... Dkr
35,312,522
Can $
5,310,154
1.2.12 S̲u̲p̲p̲l̲i̲e̲r̲ ̲R̲e̲s̲o̲u̲r̲c̲e̲s̲
The supplier resources are included in the proposal.
1.2.13 A̲i̲r̲ ̲C̲a̲n̲a̲d̲a̲ ̲R̲e̲s̲o̲u̲r̲c̲e̲s̲
This section is a narrative as reply to the RFP Form
7
1.2.13.1 P̲e̲o̲p̲l̲e̲ ̲P̲o̲w̲e̲r̲
a) Based on previous experience and the network in
question Christian Rovsing suggests the following
manpower for operation and administration of ACDN.
Planning and administration 2
Supervisory personnel 3
Network monitors 10
b) Christian Rovsings proposal presupposes that CNCP
Telecommunications perform all maintenance on the
network. As an alternative Air Canada could undertake
this task. This would require a minimum of 7 full
time computer technicians in Toronto and 2 at the
other sites.
1.2.13.2 F̲a̲c̲i̲l̲i̲t̲y̲
a) Christian Rovsing requests Air Canada to provide
a limited amount of office space and temporary
storage area during the installation periods.
Regarding space requirements for equipment please
refer to Technical Proposal III subsection 9.4.3.3
for a typical layout.
b) If during a future contract negotiation the parties
should agree to have a resident office established,
Christian Rovsing may ask Air Canada to make office
space available.
1.2.13.3 O̲t̲h̲e̲r̲
The proposal submitted assumes that all scheduled and
unscheduled project meetings take place at Christian
Rovsing facility in Ballerup. Air Canada should therefore
budget accordingly.
1.2.14 O̲p̲t̲i̲o̲n̲s̲
Christian Rovsing have offered a number of options
as part of the ACDN proposal.
We are fully prepared to submit quotations on these
either in the context of the ACDN network or as separate
items, should Air Canada so desire.
A Honeywell Host connection to the ACDN as a participant
system has not been included as part of the proposed
system. This option, described in the Technical Proposal
is offered in the context of the proposed ACDN network
as follows:
2̲1̲.̲0̲ H̲O̲N̲E̲Y̲W̲E̲L̲L̲ ̲P̲A̲R̲T̲I̲C̲I̲P̲A̲N̲T̲ ̲I̲F̲
TOTAL
ITEM DESCRIPTION PRICE
----------------------------------------(CAN DOL)
1 HARDWARE INTERFACE 113,772
2 HONEYWELL HAS SOFTWARE 790,617
̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲
WBS TOTAL 904,389
Above quotation is in CAN $, April 1982 price level.
1.3 F̲i̲n̲a̲n̲c̲i̲n̲g̲ ̲P̲l̲a̲n̲s̲
1.3.1 G̲e̲n̲e̲r̲a̲l̲
Christian Rovsing has investigated the possibilities
for arranging an attractive financing scheme for the
ACDN. The results of this investigation are presented
below.
In preparing these proposals we have consulted the
Copenhagen Handelsbank (our prime bank), Creditanstalt-Bankverein
of Austria, London Branch (our prime international
bank), the Danish Export Finance Corporation (Dansk
Eksportfinansieringsfond), and Roylease (the leasing
company subsidiary of Royal Bank of Canada).
Copenhagen Handelsbank has provided a brief outline
of the principles in a normal buyer's credit arrangement.
This description has been included in the proposal
as Attachment 1 to this section.
Creditanstalt-Bankverein has investigated the financial
lease possibilities together with Roylease and has
consulted the Danish Export Finance Corporation in
establishing the basic assumption for Roylease's proposal
for a financial leasing arrangement.
Creditanstalt-Bankverein's conclusions from this investigation
are included as Attachment 2 to this section.
Furthermore, Creditanstalt-Bankverein has evaluated
and committed in principle to the terms on which Air
Canada may obtain buyer's credit financing scheme.
The possiblities presented below are:
- leasing supported by a Danish Export Financing
Corporation subsidised loan.
- leasing at market rates
- buyer's credit supported by a Danish Export Financing
Corporation subsidised loan.
- buyer's credit at market rates.
1.3.2 D̲a̲n̲i̲s̲h̲ ̲E̲x̲p̲o̲r̲t̲ ̲F̲i̲n̲a̲n̲c̲e̲ ̲C̲o̲r̲p̲o̲r̲a̲t̲i̲o̲n̲
The Danish Export Finance Corporation (DEF) has a normal
practise of providing financing up to five years' maturity.
However, this project sees a Danish exporter bidding
for a prestige contract.
As a result, DEF has indicated in principle that it
can offer eight year finance.
DEF does not provide finance for advance and progress
payments.
DEF has indicated its capability to provide funding
in Canadian Dollars at the "OECD consensus" rate of
11% per annum fixed for the loan period. DEF's loan
will amortise semi-annually.
In the period from date of contract signature until
actual financing, DEF will require Christian Rovsing
to pay a commitment fee of 1/4% per annum, and there
will be an arrangement fee of 1/4% VAT.
1.3.3 F̲i̲n̲a̲n̲c̲i̲a̲l̲ ̲L̲e̲a̲s̲e̲
Based on the assumptions of an 8 years DEF financing,
Roylease has quoted the following rates which apply
for a one million Canadian dollars value being 70%
financed by a DEF loan, as might be the realistic figure
for the hardware deliveries.
Bonds 1 - 24 Canadian Dollars 19187 per month
" 25 - 48 " " 18062 " "
" 49 - 72 " " 15837 " "
" 73 - 96 " " 13837 " "
" 97 - 117 " " 5512 " "
The above figures make an option for Air Canada to
buy the lease equipment at the end of month 96 at Canadian
Dollars 100,000 i.e. 10% of the lease value.
Of the amounts quoted above, Canadian Dollars 5512
is quoted at present market rates and will be finally
fixed immediately prior to the start of the leasing
period.
This fixing will take into account the actual interest
level of that point of time. The remainder part of
the lease cost is based upon the eight year/11% fixed
rate loan provided by DEF.
In comparison to the above a financial lease at present
market rate would imply a monthly lease cost during
the first 96 months of the leasing period of Canadian
dollar 18373 for 1 million Canadian Dollar lease value.
1.3.4 B̲u̲y̲e̲r̲'̲s̲ ̲C̲r̲e̲d̲i̲t̲
A buyer's credit scheme with DEF subsidised loans has
been set up in principle in Attachment 1.
Further to the above, Christian Rovsing has received
a commitment in principle from Creditanstalt-Bankverein
to take for its own group the following rate loan to
Air Canada for the purpose of meeting advance and progress
payments:
term: 5 years
wage period: 2 1/2 years
repayment: 5 equal semi-annual repayments
interest : LIBOR + 5/8% per annum
governing law: laws of England
We understand that a 10-year loan instead of 5 year
would be negotiated.
Finally, the buyer's credit at market rates has been
considered.
A syndicated buyer's credit loan could be arranged
as follows:
A syndicate would contain banks approved by Air Canada
with a majority of Canadian Banks.
Creditanstalt-Bankverein has indicated in principle
an interest in arranging and participating in such
a loan which would be in Euro-Canadian Dollars with
pricing LIBOR + 5/8 LIBOR + 3/4% with some fees.
