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Contract award notice – utilities
Results of the procurement procedure
Section I: Contracting entity
Section II: Object
EU project 731996 — SMART.MET
The aim of this Pre–Commercial Procurement (PCP) is the procurement of R&D (research and development) services involving risk-benefit sharing under market conditions and competitive development in phases, for the development of a new remote reader system for water meters, which ensures effectiveness, efficiency and interoperability and which is based on open standards.
This contract notice invites interested operators to submit tenders to a procurement.
This procurement is for R&D services to develop solutions to tackle the following common challenge: This contract is aimed to finding a new, efficient, interoperable economic system based on open standard (drinking) Water Smart Metering System.
This PCP procurement is a joint procurement by different procurers across Europe that ar all facing the same common challenge and are thus looking for similar solution (so called "buyes group").
At least51 %of the R&D services procured shall be performed within the EU Member States, or a country that is associated to H2020.
The procurement will take the form of a pre-commercial procurement (PCP) under which R&D service contracts will be awarded to a number of R&D providers in parallel in a phased approach. This will make it possible to compare competing alternative solutions.
Each selected operator will be awarded a framework agreement that covers 3 R&D phases.
The 3 phases are:
— R&D up to solution design,
— R&D up to a prototype,
— R&D up to original development, validation and testing of a limited set of first products or services.
After each phase, intermediate evaluations will be carried out to progressively select the best of the competing solutions. The contractors with the best-value-for-money solutions will be offered a specific contract for the next phase.
Testing is expected to take place in 5 different site locations, indicated to the bidders by the Lead Procurers, each one in a different of the following country: France, Italy, Spain, Hungary, Belgium, to ensure that a comparison of the performance between sites and solutions is possible, in particular test locations of the procurers and other additional test locations]. This testing may also serve as a first customer test reference for the contractors. The procurement is expected to start in 20.6.2018 and end in 30.6.2021.
The selected operators will retain ownership of the intellectual property rights (IPRs) that they generate during the PCP and will be able to use them to exploit the full market potential of the developed solutions i.e. beyond the procurers.
Participation in the open market consultation that was held as part of the preparation for this procurement is not a prerequisite for submitting a tender.
This procurement is exempted from the WTO Government Procurement Agreement (GPA), the EU public procurement directives and the national laws that implement them. The procurement will follow the procedure described in the tender documentation.
Section IV: Procedure
Section V: Award of contract
EU project 731996 - SMART.MET
Section VI: Complementary information
Ownership of the results (foreground), pre-existing rights (background) and side-ground (including intellectual and industrial property rights).
All Pre-existing rights (Background IPR) and sideground IPR remain the property of the Party introducing the same (the Lead Procurer, SMART.MET Procurers or any third party supplier that owns it) and nothing contained in the Framework Agreement or any license contract pertaining or pursuant to the Project shall affect the ownership rights of either party (or any third party) in its Pre-existing rights.
The Contractor shall within  weeks of the signing of the Framework Agreement provide the Lead Procurer with
(i) full information in writing about what relevant and significant Intellectual Property Rights it (and/or any of its subcontractors) holds or is using or has access to (e.g., via its sub-contractors) at the date of the Framework Agreement that pertains or may pertain to the SMART.MET PCP Project or any part thereof; and
(ii) a list of the software necessary for the operation of the prototype and first test series products that will be developed during the PCP, specifying which software is closed source software. An updated list (to the extent necessary) must be provided with each proposal for the next Phase. The Contractor must duly inform the Lead Procurer about the generation of/changes in pre-existing rights and Side-ground within  days from the generation /change.
The Contractor shall, upon request of the Lead Procurer or any of the SMART.MET Procurers, provide the latter non-exclusive license to use the relevant and significant Pre-existing (Background) IPR rights that are needed for using the Results and for the purpose of executing the Project as well as for non-commercial research purposes, including (clinical) trials set up to test the validity of the Results. Such licensing shall be done on fair, reasonable and non-discriminatory (FRAND) terms.
The Results and Intellectual Property Rights generated by the Contractor in the course of this agreement (Foreground IPR) shall belong to the Contractor. The Contractor will provide each of the SMART.MET Procurers an irrevocable, indefinite, worldwide, royalty-free, non-exclusive license to use, non-commercially and at no additional cost, all Project Results, including Project Intellectual Property Rights of what has been achieved with regard to the implementation of the solution design (Phase I), the prototype development (Phase II) and the original development of a limited volume of first products (Phase III). In case of Results that constitute software, the non-commercial research license will extend to all updates and upgrades thereof during the trials set up to test the validity of the Results.
If the Contractor (or any of its subcontractors) generates Project Intellectual Property Rights, whether the Contractor (or subcontractors) intends to file for protection of it or not, the Contractor shall, within 30 days from such generation, inform the Lead Procurer about the contents of such Project Intellectual Property Rights.
The Project Intellectual Property Rights shall remain vested within the Contractor. Subject to next point 7 “Commercial exploitation of results”, the Lead Procurer or any of the SMART.MET Procurers shall enjoy the right to require the Contractor, upon express request from the Lead Procurer, to transfer the ownership of the Results to the Lead Procurer free of costs or to grant non-exclusive licenses to third parties on the Results and Foreground IPR developed in the Project, at fair and reasonable market conditions. The Contractor and these third parties are responsible for establishing the fair market conditions.
The procurement is exempted from the EU public procurement directives (including the EU procurement remedies directives 89/665/EEC and 92/13/EEC — see above) and the national laws that implement them.
Publication of this notice in the Official Journal is not to be understood as a waiver of this exemption by the contracting authority.