PROPOSAL FOR AN ARGOS INTERNATIONAL JOINT PROGRAM (AIJP)
WITHIN THE
ARGOS JOINT TARIFF AGREEMENT

THE CURRENT PROPOSAL IS SENT BY CLS AND SERVICE ARGOS INC.
IN RESPONSE TO THE DOCUMENT:
"A PROGRAM TARIFF AGREEMENT FOR THE GLOBAL DRIFTER PROGRAM"
SIGNED P. NIILER AND DATED WEDNESDAY 21 AUGUST, 1996.

       


1. PRINCIPLES AND FRAMEWORK

1.1. LARGE ARGOS PROGRAMS

In recognition that there are certain economies of scale achieved by large programs consisting of uniform platforms (PTTs) that:

- transmit full time,
- use relatively short messages,
- have an identical format,
- require the same type of processing and distribution,

proposed herein is a mechanism to more fairly allocate the costs of operating the Argos system.

1.2. FIVE-YEAR FUNDING COMMITMENT

The AIJP is based on a five-year commitment of funding to the JTA in exchange for a high level of Argos system usage.

1.3. REVENUE NEUTRALITY

The Argos Operations Committee has indicated that any changes in tariff structure must be revenue neutral at the level of the JTA and does not lead to increased cost to any other science user. Thus, any additional revenue from the AIJP would correspondingly lower JTA tariffs.

1.4. MAINTAIN SIMPLICITY OF IMPLEMENTATION WITHIN JTA

Another guideline of the JTA is to minimize the complexity of calculating JTA tariffs.

1.5. USE EXISTING JTA TARIFF STRUCTURE AND RULES

AIJP commitments from its members will be calculated in accordance with existing JTA rules. In each year of the AIJP, resulting revenue will be applied to the JTA tariff structure.

    

2. PROPOSAL

2.1. CREATION OF AN ARGOS INTERNATIONAL JOINT PROGRAM (AIJP) FOR THE GLOBAL DRIFTER PROGRAM

It is proposed to create such an Agreement within the JTA which would follow the principles stated below.

2.2. MEMBERS OF THE AIJP

Membership is open to any program eligible to participate in the JTA and agreeable to the principles stated below.

2.3. ORGANIZATION

An AIJP should be organized and operate within the JTA. AIJP Members will designate a Program Coordinator (PC) to represent them in the JTA for:

- coordination of the AIJP contract (similar to JTA contract but on five years)
- communication of the membership and definition of the subprograms to CLS and ROCs.

2.4. AIJP PAYMENT

2.4.1. ANNUAL TARIFF (summary)

The annual tariff is computed along existing JTA principles by combining the "AIJP PTT.yr contribution" with that of the other JTA members. The "AIJP PTT.yr contribution" is established for 5 years at the beginning of the Agreement and computed from the mechanism described in Section 3 below.

2.4.2. PAYMENT

The AIJP tariff applicable to each nation will paid directly to CLS through the existing JTA contracts and ROCs in accordance with JTA policy.

2.4.3. PTT.yr ACCOUNTING

All PTTs in a AIJP program must be established in "Standard Location and Data Collection Service". The PTT.yr continues to be the unit to account for system usage.

2.5. AIJP AGREEMENT

An agreement for a five year period, in the spirit of a JTA agreement, will be signed between the AIJP Members and CLS, and include a description of the Services required from CLS and conditions of the payment.

2.6. TECHNICAL PRINCIPLES

2.6.1. DATA TRANSMISSION

Transmission of all AIJP program and sub-program data will use a common format. The message length will be equal to or less than 64 bits. PTT's will transmit on a 100% duty cycle. The PTT repetition period will be equal to or higher than 90 seconds.

2.6.2. DATA PROCESSING

The AIJP will be registered as a single Argos program comprised of several subprograms. Data processing will be done according to a fixed type of standard process. All PTTs are to be identically declared in the Argos system.

2.6.3. DATA DISTRIBUTION

After processing, AIJP data will be:

- distributed onto the GTS
- made available to subprogram managers according to existing rules of the JTA


3. JTA AND AIJP TARIFF CALCULATION MECHANISM

3.1. OBJECTIVE

The AIJP tariff is designed to encourage increased use and maximum efficiency in the use of Argos. In return:

- AIJP members receive a significantly discounted tariff, and
- other JTA members benefit from the increased AIJP contribution to the JTA, which effectively reduces the JTA tariff or mitigates against future increases.

3.2. INITIALIZATION

Assuming the AIJP begins in year Y1. The AIJP Program Coordinator provides at the JTA meeting (in October Y0 the year before):

- a list of the programs which will be part of the AIJP, and
- the AIJP predicted evolution by year (T1, T2, T3, T4, T5) from Y1 to Y5

On January 15th Y1, CLS calculates T0 the total consumption during Y0, in PTT.yr., of the programs which were designated as part of AIJP.

3.3. ANNUAL AIJP PTT.yr CONTRIBUTION

The annual increase in PTT.yr compared to T0 (base year) is each year:

DTi = Ti - T0

The total of increases in PTT.yr during the period of the agreement is:

DT = DT1 + DT2 + DT3 + DT4 + DT5

The discount coefficient, D, is established for a period of five years. It is a function of DT.

Annual AIJP equivalence in PTT.yr is calculated as follows:

Ai = DT0 + DTi ´ D

3.4 ANNUAL JTA TARIFF

Oi is the total in PTT.yr contracted each year by other participants to the JTA.

The JTA total in PTT.yr each year is:

Ji = Oi + Ai

Ci are the Argos operating costs (in French Francs) presented each year at the JTA meeting. Assuming that in Y1, the remaining cumulative losses for JTA is equal to 0, the annual JTA tariff Xi (in French Francs) is computed as follow:

Xi = Ci / Ji

3.5 ANNUAL JTA AMOUNT

The annual JTA amount is: Yi = Xi ´ Ji

The annual AIJP amount is: Zi = Xi ´ Ai

The annual amount for JTA programs other than AIJP is: Wi = Xi ´ Oi

If Oi increases during the 5 year period, Xi will decrease and AIJP will take advantage.

The introduction of additional platforms via the AIJP contributes to lowering the JTA tariff Xi. This initially provides a buffer against future increases which could result from the transfer of PTTs from existing JTA programs into the AIJP (after the base year). However, this buffer is limited. A methodology for the management of AIJP by the Program Coordinator is to be developed to inhibit such transfers in keeping with the spirit and intent of this agreement.


4. SIMULATION

4.1 HYPOTHESIS

- Year 0 (1996) ..... 400 PTT.yrs
- The AIJP agrees to the following level of usage (in PTT.yrs.):

Year 1 ..... 550
Year 2 ..... 788
Year 3 ..... 1025
Year 4 ..... 1262
Year 5 ..... 1500

Based on the implementation schedule above, the discount percentage is 70 %

- Inflation Rate = 2.1% per year

4.2 SCENARIO A

AIJP implementation plan with "other JTA" usage increasing by 5% annually leads to:

- JTA tariff (per PTT.yr) varies from 25750 FF in 1996 to 20398 FF in 2001 ( 33% decrease in constant French Francs).
- AIJP tariff for the actual number of PTT.yrs processed varies from 25750 FF in 1996 to 10231 FF in 2002 ( 94% decrease in constant French Francs).
- AIJP total commitment for five years would be: 66.72 MF.

Under the same calculation conditions if AIJP stayed stable at 400 PTT.yrs the AIJP total commitment for five years would be: 51.00 MF.

4.3 SCENARIO B

AIJP implementation plan with constant "other JTA" usage leads to:

- JTA tariff (per PTT.yr) varies from 25750 FF in 1996 to 24905 FF in 2001 (14% decrease in constant French Francs).
- AIJP tariff for the actual number of the PTT.yrs processed varies from 25750 FF in 1996 to 12492 FF in 2002 ( 77% decrease in constant French Francs).
- AIJP total commitment for five years would be: 76.21 MF.

Under the same calculation conditions if AIJP stayed stable at 400 PTT.yrs the AIJP total commitment for five years would be: 59.01 MF.

4.4 SUMMARY

Both scenarios show that for a cost increase of approximately 30% on the five year contract, the PTT.yrs processed can range up to four times the current level - from 400 PTT.yrs (roughly 900 platforms duty cycled) to 1500 PTT.yrs (1500 platforms in full service). They also show the influence "other JTA" usage has on the value of the AIJP contract during its term.

Posted April 9, 1997