SG May 2015 - Total M&O Cat. A budget and detailed expenditure in 2014 - M&O Cat. A budgets for the coming years - Currencies Exchange Rates Issue: possible

SG May 2015

- Total M&O Cat. A budget and detailed expenditure in 2014

- M&O Cat. A budgets for the coming years

- Currencies Exchange Rates Issue: possible mitigations

- LHCb Farm

- Approved budget for 2015 and projected for 2016

- M&O Cat. B

- Conclusions

The LHCb Upgrade

- Addendum 1 to the Construction MoU

- Addendum 2 to the Construction MoU

- Risk Table

19/05/2015 SG 1C. D'Ambrosio, CERN

CERN-SG-2015-045

Basic principle of LHCb M&O Cat. A policy

- Keep budget as constant as possible:- foresee what is foreseeable and budget for it;- provide a mechanism to compensate between “collision years” and “shutdown

years”; - smooth as much as possible Online CPU replacement needs (“just-in-time”

principle) and, in any case, smear their cost over a few years;- as LHCb is running to optimize physics throughput, effects on the related

expenditures have to be carefully studied and taken into account for the coming years budgets.

2014 Budget Expenditures* Difference

2,580 2,608 - 28

The strategy of asking to keep small surpluses as buffers for shutdown years has paid.

*In kCHF


2013 Budget Expenditures* Difference

2,580 2,847 - 267

M&O Cat.A Contributions (end of 2014)

2014 Budget Contributions* Difference

2,580 2,461 - 119


In spite of an overspent exploitation result and missing contributions, the account is still positive, thanks to the previously buffered funds. Taking this in account, this has been sufficient to ensure no cash flow issues.

Between end of 2014 and beginning of 2015, essentially all pluri-annual missing contributions up to 2014 included have come in (except part of Brasil and Ukraine). We warmly thank the efforts shown by our FAs.

*Pluri-annual, in kCHF

Budget 2014 main lines (without Power)

In general, we expect ~5 – 10 % cost increase in M&O cat. A, from a shutdown year with

respect to a collision year. In 2013, the main deviations are on detector related and general

services lines. To be noted, the 300 kCHF moved in the online account (RRB-2011-088).

4

2014 Budget Used Difference

detector related 920 972 -52

secretariat 185 219 -34

communication 10 5 5

core comp 170 180 -10

on line (see text) 890 555 + 300 35

test beams 35 27 8

laboratory 50 41 9

general services 320 309 11

Totals 2,580 2608 -28

Online account 300


Online Replacement StrategyONLINE replacements

In 2014, we have reached a total sum of 1600 kCHF on the special “Online Account”*. These

transfers constitute the base of our CPU replacement strategy. The acquisition of the farm bulk was

finalized in end 2014. We needed ~2 MCHF to satisfy an order for ~1.7 MEuro. With the recent

exchange rate shake, we need “only” ~1.8 MCHF. ~200 kCHF will be there to cover for likely 2015

missing funds.

Foreseen timeline for fund transfers to the special Online account and for purchasing replacements.

*Set following our proposal in CERN-RRB-2009-117 and subsequently accepted by SG and RRB


Year <2011 2011 2012 2013 2014 2015 2016Online Comp. Repl. Funds 300 370 370 370 370 370

Actual Accruals 400 300 300 300 300 300 200

Cost/Comm. 1790

Cash Balance 400 700 1,000 1,300 1,600 110 310

Construction Common Funds


As already pointed out in previous RRBs, we also make use of funds left in our Construction Common Accounts, which we kindly asked RRB to leave active (CERN-RRB-2010-040).

This alleviated the expenditure load on M&O Cat.A during LS1 and allowed some further consolidation.

Infrastructure159 kCHF

Consolidations

LHCb M&O Category A at Book Closing end 2014 (all in kCHF)

- Det. Related: small anticipated overspending; further infrastructure consolidation funds have been taken from Construction Common Funds.- Secretarial aid: small overspending mostly due to secretarial rotation (due indemnities).- Core computing: relative overspending. This line is been increased to 190 kCHF from 2015.- Online Sys. Man.: planned underspending by strategically delaying a position. This allowed a small overspending in hardware.

Thanks to buffered funds from previous years, we expect no cash flow issues.


2014 Budget Used Difference

detector related 920 972 -52secretariat 185 219 -34communication 10 5 5core comp 170 180 -10on line 890 555+300 35test beams 35 27 8laboratory 50 41 9general services 320 309 11 Totals 2,580 2608 -28Online account 300

Detector related costs Magnet 71 Gas 271 Cooling 87 Safety 38 Tech. support 236 Beam pipe 84Secretariat Secretarial aid 211 Communication 5 On-line computing System Manag. 222 Hardware 333 Test beams, calibration Operation 27 Laboratory operations Operation 41 General services Cool., vent. etc 164

Transport and cranes 96

Survey 0

2015 Category A M&O Budget


2015PhD eq.total/fundingauth.

M&O A VELO PowerkCHF kCHF kCHF

2,530 0 300 Total

% CHF CHF CHF CHFBRAZIL 20 4.4 111,947 0 13,274 125,221COLOMBIA 2 0.4 11,195 0 1,327 12,522FRANCE 42 9.3 235,088 0 0 235,088BMBF GERMANY 25 5.5 139,934 0 0 139,934MPI, MPG, GERMANY 6 1.3 33,584 0 0 33,584IRELAND 1 0.2 5,597 0 664 6,261INFN ITALY 81 17.9 453,385 0 0 453,385NETHERLANDS 15 3.3 83,960 0 0 83,960P. R. CHINA 4 0.9 22,389 0 2,655 25,044POLAND 13 2.9 72,765 0 0 72,765HHNIPNE ROMANIA 5 1.1 27,987 0 0 27,987RUSSIA 32 7.1 179,115 0 8,999 188,114SPAIN 16 3.5 89,558 0 0 89,558SWITZERLAND 27 6.0 151,128 0 0 151,128TURKEY 1 0.2 5,597 0 0 5,597UKRAINE 3 0.7 16,792 0 1,991 18,783UK 81 17.9 453,385 0 0 453,385USA 15 3.3 83,960 0 9,428 93,388CERN 63 13.9 352,633 0 0 352,633

TOTAL 452 100.0 2,530,000 0 38,339 2,568,339

Footnote to previous slide

Trend in PhD equivalent number together with the M&O Cat.A cost for 1 PhD equivent*. Also

shown the essentially constant M&O Cat.A budget in kCHF.

*end of August numbers for 2016


~5600 CHF per PhD equiv.

19/05/2015 SG C. D'Ambrosio, CERN 10

Forecast for 2016 and successive M&O Category A budgets

The estimated budget for 2016 and following years will be examined together with the Scrutiny Group in the coming months. In principle, there are no main changes from 2015 to 2016 and successive years, which reflect the discussions from last year, agreed upon with the SG, and which are described in CERN-RRB-2014-037 and CERN-RRB-2014-96 and in line with the principle of keeping the budget as constant as possible over the years.

However, also in view of the recent financial instabilities between important currencies, we shall try to re-optimize our budget and re-orient expenditures, to better include effects of currency fluctuations. To this end and with the help of the SG and the RRB, we expect that a solution will be found. We shall report on it in October.

Is it possible to find a solution for all LHC experiments?


Currencies Exchange Rates Issue: possible mitigations (specific LHCb)

No easy solution

In general: - No changes to the approved year budget should be carried out during the exploitation year (ex. change the budget of 2015 during 2015!!). - No special “discounts” to specific FAs…

Mechanisms of “mitigation” can be thought:1. as for budget underspending larger than 10%, rebate in year N+2 what effectively has been

saved in year N; (constant budget, with rebates on contributions)2. foresee during year N a most probable scenario and decrease of a suitable % the provisional

budget for year N+1; (variable budget)3. more??

In all cases, any type of “discount” will be on the whole budget and therefore will not offset the real extra-funds provided by the affected FAs.

Of these two options, the first is by far the more efficient, as does not touch the constant budget principle, it just allows the underspending to be recycled as a rebate for FAs. It works also if the Euro appreciates on the CHF. Only it takes 2 years to show up … unless …

Example for the present situation will follow.


Currencies Exchange Rates Issue: possible mitigations (specific LHCb)

For a ~20% of direct expenditures in euros 20% * 15% = 3%

budget (kCHF) % of total2014 2015

cern services 17 17salaries and subsistencies 24 30euro exp. (in kCHF)* 19 17CHF exp. (in kCHF)** 40 36

100 100

* orders executed in euros and converted in CHF (1.2 rate)**orders in CHF, mainly, gas, electronic pool,magaz, atelier, IT hardware and software, etc.

Disclaimer: numbers are rough approx.; expenditures are all converted in CHF

Not easy to foresee how

this fractions will change

Preliminary 2016 Category A M&O Budget


2016PhD eq.total/fundingauth.

M&O A -2% M&O A PowerkCHF kCHF kCHF

2,530 2,480 600 Total

% CHF CHF CHF CHFBRAZIL 20 4.4 111,947 109,735 26,549 136,283COLOMBIA 2 0.4 11,195 10,973 2,655 13,628FRANCE 42 9.3 235,088 230,442 0 230,442BMBF GERMANY 25 5.5 139,934 137,168 0 137,168MPI, MPG, GERMANY 6 1.3 33,584 32,920 0 32,920IRELAND 1 0.2 5,597 5,487 1,327 6,814INFN ITALY 81 17.9 453,385 444,425 0 444,425NETHERLANDS 15 3.3 83,960 82,301 0 82,301P. R. CHINA 4 0.9 22,389 21,947 5,310 27,257POLAND 13 2.9 72,765 71,327 0 71,327HHNIPNE ROMANIA 5 1.1 27,987 27,434 0 27,434RUSSIA 32 7.1 179,115 175,575 17,998 193,573SPAIN 16 3.5 89,558 87,788 0 87,788SWITZERLAND 27 6.0 151,128 148,142 0 148,142TURKEY 1 0.2 5,597 5,487 1,327 6,814UKRAINE 3 0.7 16,792 16,460 3,982 20,442UK 81 17.9 453,385 444,425 0 444,425USA 15 3.3 83,960 82,301 18,856 101,157CERN 63 13.9 352,633 345,664 0 345,664

TOTAL 452 100.0 2,530,000 2,480,000 78,005 2,558,005

M&O A forecast (without VELO and Power) in kCHF:


Year 2012 2013 2014 2015 2016 2017 2018 2019

Detector related costs 880 920 920 880 880 880 880 880

Secretariat 185 185 185 185 180 180 180 180

Communications 50 10 10 10 10 10 10 10

Core Computing 150 170 170 190 190 190 190 190

Online Computing 900 890 890 890 860 860 860 860

Test beams, cal. facilities 30 35 35 25 20 20 20 20

Laboratory operations 50 50 50 40 40 40 40 40

General services 330 320 320 310 300 300 300 300

Total 2575 2580 2580 2530 2480 2480 2480 2480

Budget kept constant, except for a small difference between running and shutdown years.Overall budget has been decreased of 2% due to recent exchange rate variations. Most of it is attributed to Online.

Online Replacement StrategyONLINE replacements

The acquisition of the farm bulk was finalized in end 2014. We needed ~2 MCHF to satisfy an order

for ~1.7 MEuro. With the recent exchange rate shake, we need ~1.8 MCHF. ~200 kCHF will be

there to cover for likely 2015 missing funds.

Foreseen timeline for fund transfers to the special Online account and for purchasing replacements.

*LS2


Year 2013 2014 2015 2016 2017 2018* 2019*Online Comp. Repl. Funds 370 370 370 340 340 340 340

Actual Accruals 300 300 300 200 100 100 100

Cost/Comm. 1790

Cash Balance 1,300 1,600 110 310 410 510 610

1) Values expected to decrease due to CHF/Other Currencies fluctuations (larger than 5%).


Cat. B M&O budget for 2014 in kCHF and per FA (>10 kCHF)

Category B M&O status

Cat. B M&O 2014 budget is given in the Table. The total is ~1130 kCHF including in-kind contributions, a bit less than half of the M&O Cat.A total. Category B M&O spent funds show to be constant over time inside ~10% *.

*Fluctuating exchange rates increase the approximation for these figures

CALO (CERN, ES, FR, RO, RU) 240

Level_0 (FR, IT) 60

Muons (CERN, IT, RU) 151

On Line (CERN) 80

Outer Tracker (GE, NL, PL, PRC) 120

RICH (CERN, IT, UK) 131

Silicon Trackers (CH, ES, GE, UKR) 80

VELO (CERN, CH, EI, NL, RU, UK, USA) 220

CERN (CA, MU, ON, RI, VE) 184

CH (STs, VE) 81

ES (CA, STs) 351)

FR (CA, L0) 1401)

GE (OT, STs) 931)

IT (L0, MU, RI) 1341)

NL (OT, VE) 901)

RU (CA, MU, VE) 1051)

UK (RI, VE) 2001)

M&O Cat. B 2010 - 2014 and projected preliminary 2015 - 2019


M&O Cat. B REQUESTS 2010 - 14 and PROJECTED 2015 - 19 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mechanics 111 65 65 65 110 65 65 65 65 65

Gas-system 10 10 10 10 10 10 10 10 10 10

Cryo-system 0 0 0 0 0 0 0 0 0 0

Cooling system 15 15 15 15 15 15 15 15 15 15

FE electronics 124 125 125 125 125 125 125 125 125 125Standard electronics, PS (LV, HV), Crates, RO Modules 229 224 224 225 240 224 224 224 224 224Controls, (DCS, DSS) 68 70 71 70 70 60 60 60 60 60

Sub-Detector Spares 200 200 170 200 180 190 170 170 170 170Maintenance of clean rooms, active and passive storage (including rentals), workshops 45 45 45 45 45 45 45 45 45 45Communications (Piquet tools (ACB, GSM, etc...)) 31 37 36 30 30 30 30 30 30 30Store Items (Materials (screws, washers, tools, etc…)) 25 25 25 25 25 25 25 25 25 25Hired Manpower @ CERN (in CHF (Industrial Support)) 0 0 0 0 0 0 0 0 0 0Technical Manpower @CERN (in FTE (Technicians from Collaboration Institutes)) 290 295 280 280 280 280 280 280 280 280

Totals (CHF) 1148 1111 1066 1090 1130 1069 1049 1049 1049 1049

All numbers in CHF (1 to ~1.25 EURO/CHF). Actual funds may be managed by each institute (or project) in different currencies. Expect between 10% and 15% average decrease, when re-extracted in CHF (with present exchange rates).

Conclusions

On the second year of LS1, a small overspending appears in our budget lines. Some consolidation work was budgeted on the Construction Common Funds. A Online position was strategically delayed. We are using the funds, buffered from previous years with the approval of RRB, to replenish the small deficit.

Detector Related line show an overspending of ~6%. Core computing an overspending of ~6%.

The farm has been entirely re-furbished with some non-anticipated returns due to the fluctuation CHF/EURO.

A possible mechanism to mitigate exchange rate effects has been proposed.

Cat.B funds and resources are healthy and they seem to have taken well the increased LS1 activities, thanks to well planned/anticipated expenditures (Calo, Muons and Outer Tracker). We register some delayed payments for some detectors (see RICH HPD refurbishing) which will be soon fulfilled. As Cat. B funds are mostly managed by the specific projects (largely euro-funded), we expect a decrease in their budgeted value as calculated in CHF. We will discuss all this with the SG and report at the October RRB.



The LHCb Upgrade

The LHCb Upgrade builds legally and technically on the framework offered by the MoU for LHCb construction (CERN-LHCb-RRB-D-2000-24 rev.).

As a direct consequence, the MoU for M&O Cat.A will still provide the (technical and financial) framework for the M&O Cat.A Expenditures, unless non renewed and declared finished by the RRB and CERN. Addenda will complete and fulfil the already present structure in this case too .

Addenda to this MoU are being written, submitted to and approved by the RRB, in order to complete/overwrite sections of the MoU.

In such scenario we consider the LHCb Upgrade as a major consolidation of the present detector. Thus, on a first approximation only, we would continue with the same M&O Cat.A budget lines and levels as at present. A detailed and complete picture will not be ready before ~1.5 years from now.




From Guy at the RRB


LS2 First Schedule


25C. D'Ambrosio, CERN

Needs U

pdate


Needs U

pdate


Needs U

pdate


Addendum nr. 2


What we need from YOULHCb Upgrade: from each Upgrade Project* (as detailed in the Add. Nr. 1 and 2)

A table like this:

Main Lines

Time Profile (with expected and real expenditures)

JUST AN EXAMPLE ...RICH Upgrade

2015 and before 2016 2017 2018 2019 2020

Main Lines Value(kCHF) PlannedSpent

PlannedSpent

PlannedSpent

PlannedSpent

PlannedSpent

PlannedSpent

RICH 1 Mechanics 868

Gas Enclosure

Optical System

Photodetector Boxes

Services

RICH 2 Mechanics 180

Photodetector Boxes

Services

RICH Photodetectors 5433

Photodetectors 1

Photodetector 2

QA Testbenches

RICH Electronics 2649

Elementary Cell

CLARO Chip

Digital Board

PCI40

Computing

Total RICH 9185

Main Milestones Planned Achieved

CLARO EDR Oct-14 Oct-14

Elementary Cell EDR Oct-14 Oct-14

…

…

…

Main Milestones

*Includes Common Projects


2014 2015 2016 2017 2018 2019 2020 20210

1000

2000

3000

4000

5000

6000

7000

8000

9000

Chart Title

Series1 Series3 Series5

Planned BudgetActual Cost

Earned Value(from completed milestones)

Documents

SG May 2015 - Total M&O Cat. A budget and detailed expenditure in 2014 - M&O Cat. A budgets for the coming years - Currencies Exchange Rates Issue: possible