Analysis of the Optimal Sharing of Construction Risk in Public Procurement Contracts

This paper discusses a model based on the agency theory to analyze the optimal transfer of construction risk in public works contracts. The base assumption is that of a contract between a principal (public authority) and an agent (firm), where the payment mechanism is linear and contains an incentive mechanism to enhance the effort of the agent to reduce construction costs. A theoretical model is proposed starting from a cost function with a random component and assuming that both the public authority and the firm are risk averse. The main outcome of the paper is that the optimal transfer of construction risk will be lower when the variance of errors in cost forecast, the risk aversion of the firm and the marginal cost of public funds are larger, while the optimal transfer of construction risk will grow when the variance of errors in cost monitoring and the risk aversion of the public authority are larger

Sistema de e-procurement entre un almacén y sus tiendas asociadas con mensajería SOAP

El propósito de este proyecto es el desarrollo de un sistema de aprovisionamiento electrónico para gestionar los pedidos de las tiendas al almacén mediante mensajería SOAP. El sistema consiste en dos aplicaciones Web, la primera instalada en el almacén y otra instalada en las tiendas asociadas a dicho almacén. Ambas aplicaciones se desarrollarán en Java y JSP utilizando el Framework Spring e Hibernate para la persistencia en base de datos. La mensajería entre las aplicaciones se realizará con mensajes SOAP enviados a servicios Web publicados en ambas aplicaciones. En la primera parte del trabajo se realizará una explicación del Framework de Spring e Hibernate focalizando sobre todo en los módulos utilizados en el trabajo. También se realizará una explicación acerca de la mensajería SOAP y los servicios Web. En la segunda parte se realizarán las dos aplicaciones del sistema. La aplicación de gestión de la tienda permitirá a los usuarios realizar pedidos al almacén, recibir las mercancías y consultar el histórico de pedidos realizados. Además tendrá publicados dos servicios web para recibir las expediciones de los pedidos y los productos nuevos o modificados en el almacén. La aplicación de gestión del almacén permitirá a los usuarios crear / modificar productos, expedir los pedidos recibidos de las tiendas y consultar el histórico de pedidos recibidos. Además tendrá publicados dos servicios web para recibir los pedidos y las recepciones de mercancías desde las tiendas. En esta aplicación también se implementará una tarea programada que se ejecutará cada tres minutos y que sincronizará con las tiendas los productos nuevos o modificados en el almacén mediante mensajes SOAP. SUMMARY The aim of this project is the development of an e-procurement system to manage orders from shops to the storehouse using SOAP messaging. The system consists of two Web applications, the first one is installed in the storehouse and the other is installed in the shops associated to that storehouse. Both applications will be developed in Java and JSP using the Spring Framework and Hibernate for database persistence. The messaging between applications is performed with SOAP messages sent to Web services published in both applications. In the first part of the project an explanation of the Spring Framework and Hibernate will be performed, especially focusing on modules used in the project. An explanation about SOAP messaging and Web services will be carried out too. In the second part of the project the two system applications will be performed. The store management application will allow the users to make purchase orders to the storehouse, receive items and consult the order history carried out. In addition it will have two Web Services published in order to receive the shipping orders and the new or modified products in the storehouse. The management application of the storehouse will allow the users to create and modify products, send the orders received from stores and consult the orders history received. Besides, it will have two Web Services published to receive the orders and receipts from stores. A scheduled task run every three minutes will also be performed in this application. It will synchronize the new or modified products with stores using SOAP messaging.

Optimization of water procurement decisions in an irrigation district: the role of option contracts

Water supply instability is one of the main risks faced by irrigation districts and farmers. Water procurement decision optimisation is essential in order to increase supply reliability and reduce costs. Water markets, such as spot purchases or water supply option contracts, can make this decision process more flexible. We analyse the potential interest in an option contract for an irrigation district that has access to several water sources. We apply a stochastic recursive mathematical programming model to simulate the water procurement decisions of an irrigation district?s board operating in a context of water supply uncertainty in south-eastern Spain. We analyse what role different option contracts could play in securing its water supply. Results suggest that the irrigation district would be willing to accept the proposed option contract in most cases subject to realistic values of the option contract financial terms. Of nine different water sources, desalination and the option contract are the main substitutes, where the use of either depends on the contract parameters. The contract premium and optioned volume are the variables that have a greater impact on the irrigation district?s decisions. Key words: Segura Basin, stochastic recursive programming, water markets, water supply option contract, water supply risk.

On the specification and testing of inverters for stand-alone PV systems

Inverter features are reviewed from a PV systems perspective, with a view to contributing to possible codes, procurement specifications and testing procedures, in order to assure the technical quality of these systems. A laboratory testing campaign has been carried out on a representative set of sixteen currently available inverters and a set of the most common AC appliances. The results of the tests are discussed with the aim of divulging the particular features of operating AC appliances in PV systems and the provisions to be taken into account in PV system design. The development of testing procedures has followed the motto ?keep it as simple as possible?, in order to make their application easier in conventional laboratories in developing countries.

Prototype of EN 301 549 Decision tree

The new European Standard EN 301 549 “Accessibility requirements suitable for public procurement of ICT products and services in Europe” is the response by CEN, CENELEC and ETSI to the European Commission’s Mandate 376. Today, ICT products and services are converging, and the boundaries between product categories are being constantly blurred. For that reason EN 301 549 has been drafted using a feature-based approach, instead of being based on product categories. The result is a standard that can be applied to any ICT product and service, by identifying applicable requirements depending on the features of the ICT. This demonstration presents ongoing work at the research group CETTICO of the Technical University of Madrid. CETTICO is developing a workgroup-based support tool where teams of people can annotate the result of performing a conformity assessment of a given ICT product or service according to the requirements of the EN. One of the functions of the tool is creating evaluation projects. During that task the user defines the features of the corresponding ICT product or service by answering questions presented by the tool. As a result of this process, the tool will create a list of applicable requirements and recommendations.

Analysis of alternative tendering mechanisms for transportation Public-Private Partnerships

This paper describes a theoretical model based primarily on transaction costs, for comparing the various tendering mechanisms used for transportation Public-Private Partnership (PPP) projects. In particular, the model contrasts negotiated procedures with the open procedure, as defined by the current European Union legislation on public tendering. The model includes both ex ante transaction costs (borne during the tendering stage) and ex post transaction costs (such as enforcement costs, re-negotiation costs, and costs arising from litigation between partners), explaining the trade-off between them. Generally speaking, it is assumed that the open procedure implies lower transaction costs ex ante, while the negotiated procedure reduces the probability of the appearance of new contingencies not foreseen in the contract, hence diminishing the expected value of transaction costs ex post. Therefore, the balance between ex ante and ex post transaction costs is the main criterion for deciding whether the open or negotiated procedure would be optimal. Notwithstanding, empirical evidence currently exists only on ex ante transaction costs in transportation infrastructure projects. This evidence has shown a relevant difference between the two procedures as far as ex ante costs are concerned, favouring the open procedure. The model developed in this paper also demonstrates that a larger degree of complexity in a contract does not unequivocally favour the use of a negotiated procedure. Only in those cases dealing with very innovative projects, where important dimensions of the quality of the asset or service are not verifiable, may we observe an advantage in favour of the negotiated procedure. The bottom line is that we find it difficult to justify the employment of negotiated procedures in most transportation PPP contracts, especially in the field of roads. Nevertheless, the field remains open for future empirical work and research on the levels of transaction costs borne ex post in PPP contracts, as well as on the probabilities of such costs appearing under any of the procurement procedures.

Water option contracts for reducing water supply risks: an application to the Tagus-Segura Transfer

El agua es un recurso cada vez más escaso y valioso. Por ello, los recursos hídricos disponibles deben asignarse de una forma eficiente entre los diferentes usos. El cambio climático aumentará la frecuencia y severidad de los eventos extremos, y podría incrementar la demanda de agua de los cultivos. El empleo de mecanismos flexibles de asignación de agua puede ser imprescindible para hacer frente a este aumento en la variabilidad del balance hídrico y para asegurar que los riesgos de suministro, y no solo los recursos, son compartidos de manera eficiente entre los usuarios. Los mercados de agua permiten la reasignación de los recursos hídricos, favoreciendo su transferencia desde los usos de menor a los de mayor valor. Diferentes tipos de mercados de agua se han establecido en diferentes partes del mundo, ayudando a los participantes a afrontar los problemas de escasez de agua en esas zonas. En España, los intercambios de agua están permitidos desde 1999, aunque la participación de los usuarios en el mercado ha sido limitada. Hay varios aspectos de los mercados de agua en España que deben mejorarse. Esta tesis, además de proponer una serie de cambios en el marco regulatorio, propone la introducción de contratos de opción de agua como una posible mejora. La principal ventaja de este tipo de contratos es la estabilidad legal e institucional que éstos proporcionan tanto a compradores como vendedores. Para apoyar esta propuesta, se han llevado a cabo diferentes análisis que muestran el potencial de los contratos de opción como herramienta de reducción del riesgo asociado a una oferta de agua inestable. La Cuenca del Segura (Sureste de España), la Cuenca del Tajo y el Acueducto Tajo- Segura han sido seleccionados como casos de estudio. Tres análisis distintos aplicados a dicha región se presentan en esta tesis: a) una evaluación de los contratos de opción como mecanismo para reducir los riesgos de disponibilidad de agua sufridos por los regantes en la Cuenca del Segura; b) un marco teórico para analizar las preferencias de los regantes por diferentes mecanismos de gestión del riesgo de disponibilidad de agua, su disposición a pagar por ellos y los precios aproximados de estos instrumentos (seguro de sequía y contratos de opción de agua); y c) una evaluación del papel de los contratos de opción en las decisiones de aprovisionamiento de agua de una comunidad de regantes ante una oferta de agua incierta. Los resultados muestran el potencial de reducción del riesgo de los contratos de opción para regantes en España, pero pueden ser extrapolados a otros sectores o regiones. Las principales conclusiones de esta tesis son: a) la agricultura será uno de los sectores más afectados por el cambio climático. Si los precios del agua aumentan, la rentabilidad de los cultivos puede caer hasta niveles negativos, lo que podría dar lugar al abandono de cultivos de regadío en algunas zonas de España. Las políticas de cambio climático y de agua deben estar estrechamente coordinadas para asegurar un uso de agua eficiente y la rentabilidad de la agricultura; b) aunque los mercados de agua han ayudado a algunos usuarios a afrontar problemas de disponibilidad del recurso en momentos de escasez, hay varios aspectos que deben mejorarse; c) es necesario desarrollar mercados de agua más flexibles y estables para garantizar una asignación eficiente de los recursos entre los usuarios de agua; d) los resultados muestran los beneficios derivados del establecimiento de un contrato de opción entre usuarios de agua del Tajo y del Segura para reducir el riesgo de disponibilidad de agua en la cuenca receptora; e) la disposición a pagar de los regantes por un contrato de opción de agua o un seguro de sequía hidrológica, que representa el valor que tienen estos mecanismos para aquellos usuarios de agua que se enfrentan a riesgos relacionados con la disponibilidad del recurso, es consistente con los resultados obtenidos en estudios previos y superior al precio de mercado de estos instrumentos, lo que favorece la viabilidad de estos mecanismos de gestión del riesgo ; y f) los contratos de opción podrían ayudar a optimizar las decisiones de aprovisionamiento de agua bajo incertidumbre, proporcionando más estabilidad y flexibilidad que los mercados temporales de agua. ABSTRACT Water is becoming increasingly scarce and valuable. Thus, existing water resources need to be efficiently allocated among users. Climate change is expected to increase the frequency and severity of extreme events, and it may also increase irrigated crops' water demand. The implementation of flexible allocation mechanisms could be essential to cope with this increased variability of the water balance and ensure that supply risks, and not only water resources, are also efficiently shared and managed. Water markets allow for the reallocation of water resources from low to high value uses. Different water trading mechanisms have been created in different parts of the world and have helped users to alleviate water scarcity problems in those areas. In Spain, water trading is allowed since 1999, although market activity has been limited. There are several issues in the Spanish water market that should be improved. This thesis, besides proposing several changes in the legislative framework, proposes the introduction of water option contracts as a potential improvement. The main advantage for both buyer and seller derived from an option contract is the institutional and legal stability it provides. To support this proposal, different analyses have been carried out that show the potential of option contracts as a risk reduction tool to manage water supply instability. The Segura Basin (Southeast Spain), the Tagus Basin and the Tagus-Segura inter-basin Transfer have been selected as the case study. Three different analyses applied to this region are presented in this thesis: a) an evaluation of option contracts as a mechanisms to reduce water supply availability risks in the Segura Basin; b) a theoretical framework for analyzing farmer’s preferences for different water supply risk management tools and farmers’ willingness to pay for them, together with the assessment of the prices of these mechanisms (drought insurance and water option contracts); and c) an evaluation of the role of option contracts in water procurement decisions under uncertainty. Results show the risk-reduction potential of option contracts for the agricultural sector in Spain, but these results can be extrapolated to other sectors or regions. The main conclusions of the thesis are: a) agriculture would be one of the most affected sectors by climate change. With higher water tariffs, crop’s profitability can drop to negative levels, which may result in the abandoning of the crop in many areas. Climate change and water policies must be closely coordinated to ensure efficient water use and crops’ profitability; b) although Spanish water markets have alleviated water availability problems for some users during water scarcity periods, there are several issues that should be improved; c) more flexible and stable water market mechanisms are needed to allocate water resources and water supply risks among competing users; d) results show the benefits derived from the establishment of an inter-basin option contract between water users in the Tagus and the Segura basins for reducing water supply availability risks in the recipient area; e) irrigators’ willingness to pay for option contracts or drought insurance, that represent the value that this kind of trading mechanisms has for water users facing water supply reliability problems, are consistent with results obtained in previous works and higher than the prices of this risk management tools, which shows the feasibility of these mechanisms; and f) option contracts would help to optimize water procurement decisions under uncertainty, providing more flexibility and stability than the spot market.

Bankable procedures for the technical quality assurance of large scale PV plants

Strict technical quality assurance procedures are essential for PV plant bankability. When large-scale PV plants are concerned, this is typically accomplished in three consecutive phases: an energy yield forecast, that is performed at the beginning of the project and is typically accomplished by means of a simulation exercise performed with dedicated software; a reception test campaign, that is performed at the end of the commissioning and consists of a set of tests for determining the efficiency and the reliability of the PV plant devices; and a performance analysis of the first years of operation, that consists in comparing the real energy production with the one calculated from the recorded operating conditions and taking into account the maintenance records. In the last six years, IES-UPM has offered both indoor and on-site quality control campaigns for more than 60 PV plants, with an accumulated power of more than 300 MW, in close contact with Engineering, Procurement and Construction Contractors and financial entities. This paper presents the lessons learned from such experience.

Herramienta EN 301 549: cliente web

En el año 2014 se publicó, bajo mandato de la Comisión Europea, la Norma Europea EN 301 549, titulada “Requisitos de accesibilidad de productos y servicios TIC aplicables a la contratación pública en Europa”. El objetivo de dicha norma es que los productos o servicios TIC (Tecnologías de la Información y la Comunicación) adquiridos por cualquier administración pública europea puedan ser utilizados por personas con diversas características y capacidades, incluyendo a personas con discapacidad. La norma EN 301 549 es compleja, ya que contiene más de 200 requisitos y recomendaciones, que se aplican o no a un producto o servicio TIC en función de las características de dicho producto o servicio. Por ello se ha planteado, desde el Grupo de Investigación en Tecnología Informática y de las Comunicaciones (CETTICO), el desarrollo de una herramienta de soporte a la evaluación del cumplimiento de la norma. La herramienta permitirá a grupos de trabajo anotar los resultados de la evaluación de accesibilidad de un producto o servicio TIC siguiendo los requisitos de la norma Europea EN 301 549. Este trabajo de Fin de Grado se centra en el diseño y codificación del cliente web de la herramienta. Se parte de los resultados de un TFG y un practicum anteriores. En el TFG realizado por Laura Elorrieta [Elorrieta, 2014], se diseñó la interacción del sistema y se evaluó su grado de usabilidad. En el practicum [Montero, 2015], posterior al TFG de Laura Elorrieta, se eligieron las tecnologías web que se iban a utilizar y se realizó el diseño y la implementación mediante prototipos iterativos de la gestión de proyectos de evaluación. El trabajo que se ha realizado en el TFG ha consistido en el diseño de la interfaz de usuario analizando los cambios a realizar en el diseño, debido a los errores de usabilidad conocidos, y la implementación del prototipo funcional de la herramienta. Junto con la parte servidor del TFG de mi compañero Rubén Ortiz Burgos y la interfaz de usuario de este TFG se ha obtenido una aplicación web para realizar evaluaciones de accesibilidad de productos o servicios TIC siguiendo los requisitos de la norma EN 301 549. El prototipo funcional contiene diez páginas web que recogen las diferentes acciones y tareas que pueden realizar los usuarios en función del rol que desempeñen. EL diseño y la implementación se han llevado a cabo empleando las tecnologías web HTML5, CSS3, JavaScript, jQuery y las librerías de Foundation frontend framework.---ABSTRACT---In 2014, under the European Commission mandate, the European standard EN 301 549 has been published under the title “Accessibility requirements applicable to ICT products and procurement services in Europe”. The goal of this standard is that the products or services ICT (Information Communication Technology) acquires by every European public administration can be used by every person with different characteristics and capacities, including those with disability. The rule EN 301549 is very complex, since it has more than 200 requirements and recommendations that can be or not applied to an ICT product or service based on its characteristics of the given product or service. That’s why a development of a support tool has been proposed to the rating of the compliance of the rule, by the Research Group of Informatics Technology and Communication. This tool will allow working groups to record the results of the compliance of accessibility of a product or service following the requirements of the European Standard EN 301549. This Final Degree Work focuses in the design and the coding of the web customer of this tool. The results of a TFG and previous practicums have been used for this. The TFG performed by Laura Elorrieta [Elorrieta, 2014], the interaction of the system was designed and degree of usability was evaluated. In the practicum [Montero, 2015], after the TFG Laura Elorrieta, web technologies used were chosen and the design and implementation were performed using iterative prototyping project management evaluation. The work done on the TFG was to design the users interface to perform analyzing changes in design due to errors known usability and working prototype implementation of the tool. Together with the server part of the TFG my partner Rubén Ortiz Burgos and the user interface done of this TFG it has obtained a web application for the conduct of evaluations accessibility of products or services ICT following the requirements of the EN 301 549. The functional prototype contains ten web sites that collect the various activities and tasks that users can perform based on the role they perform. The design and implementation have been carried out using the technologies web HTML5, CSS3, Java Script, jQuery and the libraries of Foundation fronted framework.