Www.nspa.nato.int PREPARED FOR PRESENTED BY @nspa.nato.int The NATO Support Agency Workshop: How to do business with NATO 21 January 2014 Ankara Robbert

www.nspa.nato.int

PREPARED FOR

PRESENTED BY

@nspa.nato.int

The NATO Support Agency

Workshop: How to do business with NATO

21 January 2014

Ankara

Robbert Smit

Deputy Director of Procurement and Competition Advocate

Robbert.smit

NSPA at a glance

North Atlantic Council

NSPOAgency

Supervisory Board

NSPA

Governance

Established

1 July 2012

Former Agencies:

NATO Maintenance and Supply Agency (NAMSA)

Central Europe Pipeline Management Agency (CEPMA)

NATO Airlift Management Agency (NAMA)

Financing:

Fully customer funded,

no profit – no loss basis

Membership:

All 28 NATO Nations

1,200 staff members

21 January 201421 January 2014 22Procurement DirectorateProcurement Directorate

Provide responsive, effective and cost-efficient …

… logistics, operational and systems support and services …

to the Allies, NATO Military Authorities and partner nations,

individually and collectively,

in time of peace, crisis and war.

21 January 2014

Reference: NSPO Charter June 2012

NSPA Mission

3Procurement Directorate

NATO Support Vision

NATO's premier logistics and services provider team

with an integrated network of logistics capabilities

for NATO, and its Nations and partners.

21 January 2014 4Procurement Directorate

Main Geographical Locations

FRA

LUX HUN

21 January 2014

Logistics OperationsLogistics Operations

NATO Support Agency (NSPA) Headquarters

NATO Support Agency (NSPA) Headquarters

Southern Operational Centre (SOC)

Southern Operational Centre (SOC)

ITA

Central Europe Pipeline System(CEPS)

Central Europe Pipeline System(CEPS)

5

ISAF OfficesISAF Offices

Procurement Directorate

NATO Airlift Management (NAM)

NATO Airlift Management (NAM)

NSPA business

Current projects

41 countries

21 January 201421 January 2014 66Procurement DirectorateProcurement Directorate


PROCUREMENT

INFORMATION TECHNOLOGY

HUMAN RESOURCES

FINANCE

CORPORATESUPPORT

SUPPORT FUNCTIONS

VISIONNATO’s premier integrated logistics and services provider team, with an integrated network of logistics capabilities for NATO, and its Nations and partners.

NATO AIRLIFT MANAGEMENT

(NAM)

NSPA GENERAL MANAGER

STAFF

BUSINESS UNITS

Organizational Design

LOGISTICS OPERATIONS

CENTRAL EUROPE PIPELINE SYSTEM

(CEPS)

Business UnitCentral Europe Pipeline System (CEPS)

• Integrated, cross-border pipeline and storage system

• Transport diesel, gasoline, domestic fuel and naphtha

• Largest pipeline system in NATO: ~5.600 km

• Military/Commercial business model

• Aviation fuel banking system (JET A-1), storage,Product Quality Control

• Non-military co-use with Military Priority Clause

• Smart CEPS: rightsizing system

• 6 Nations:


Business UnitNATO Airlift Management (NAM)

• Support to Strategic Airlift Capability (SAC)

• Support of three C-17s

• operated by the Heavy Airlift Wing (HAW)

• Nations use hours for national, NATO, EU and UN commitment

• pre-agreed allocation of flying hours• 12 Nations:


• Cooperative logistics services provider

• Capability areas

Weapon System Support

Support to Operations

Transportation

Fuel Operations

Project Management (PfP Trust Fund)

• Support Partnerships, Projects, Sales Agreements and other legal frameworks

Business UnitLogistics Operations (LogOps)


Funding Sources (2011)

29%

50%

21%

Support PartnershipsIn-service Support

AMMUNITIONCOMMITSALISPATRIOTLAND COMBAT VEHICLESFIXED WING AIRCRAFTHELICOPTERNAVAL LOGISTICS SUPPORTMLRSSTINGERLAND COMBAT MISSILESHAWKGBDAMRAAMWARDAM II AIR SURFACE MISSILESMIDSGPSMK-46 TORPEDOESShip-shore-Ship BufferUnmanned Aerial SystemsOperational Logistics Planning

National/Multinational (Sales Agreements/LSAs)

KANDAHAR REAL LIFE SUPPORTAFGHANISTAN REAL LIFE SUPPORTNATIONALLY FUNDED INFRASTRUCTUREPFP TRUST FUND DEMILITARIZATIONTRANSPORTATIONKFOR FUELOCCAR (COBRA/TIGER)NAHEMANAPMAAWACS (OUTSIDE 13 NATIONS)Logistics Services for Missiles, UAVs, PlatformsRandom Brokerage

Common Funded

NSIP PROJECTS (INFRASTRUCTURE)CAPABILITY PACKAGES (NRF Camps)APOD SERVICESNAEW&CAIR DEFENSE (GROUND)NRF PLANNINGKFOR BALKANS ENGINEERINGAIR DEFENSE (GROUND) MPR-SRONATO CALIBRATION

Support Agency almost 80% customer funded...

Common funded for key NATO capabilities

1121 January 2014 Procurement Directorate

Conclusion

New Agency on 1 July 2012

Leverages/expands capabilities of NAMSA, NAMA and CEPMA

Provides integrated logistics and support solutions

Delivers best value support

Focused on customer

Vision of Smart Support

21 January 201421 January 2014 Procurement DirectorateProcurement Directorate 1212

http://www.ncsa.nato.int/multimedia/photo/2007/connecting-nato-in-afgh.html


How to do business with NSPA

Overview

1. WHAT does NSPA buy? Evolution and Typology of activities Activities with Turkey

2. HOW does NSPA buy Goods and Services? NSPA Procurement Regulations and Policy NSPA e-procurement

3. HOW to be invited to NSPA Requests For Proposals?

4. Future Business Opportunities

5. Frequently Asked Questions


Activities 2012


Services63.7%

Supplies 31.9%

FMS 4.4%


Activities with Turkey

17

Development of Turkish Industrial Return

2009-2010 2010-2011 2011-2012 2012-2013 2013-20140.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00 1.76

1.32 1.26

0.570.50


R =

WELL PLACEDCOUNTRIES

LESS WELLPLACEDCOUNTRIES

POORLY PLACED COUNTRIES

NOTE: MBC+NSIP funded projects are excluded as from 2009 on

CONTRACTS IN TURKEY *

CONTRACTS IN NSPO NATIONS

SALES IN TURKEY *

SALES IN NSPO NATIONS

* Based on the contracts and sales of the 3 years preceeding the applicable year

Industrial Return Ratio 2013-2014


HUN ALB BGR LUX DEU BEL GBR LTU DNK ROU FRA NLD NOR ITA ESP TUR USA GRC EST CAN CZE PRT POL SVN LVA SVK HRV ISL0

2

4

6

8

10

12

14

16109.75

14.82

7.224.61

3.071.241.190.92

0.910.90 0.870.869

0.8650.810.67 0.50 0.470.38 0.36 0.300.220.17 0.15 0.07 0.02

0.001 0 0

R= >=0.8 Well placedR= >= 0.25 & < 0.8 Less well placedR= < 0.25 Poorly placed

R= >=0.8 Well placedR= >= 0.25 & < 0.8 Less well placedR= < 0.25 Poorly placed

R =NOTE: MBC+NSIP funded projects are excluded as from 2009 on

CONTRACTS IN TURKEY *

CONTRACTS IN NSPO NATIONS

SALES IN TURKEY *

SALES IN NSPO NATIONS

* Based on the contracts and sales of the 3 years preceeding the applicable year

TU

R

19

Industrial Return Value of Contracts Placed


DEU USA FRA GBR HUN ITA TUR NLD ESP BEL NOR LUX DNK GRC CAN LTU POL ALB BGR LVA PRT CZE ROU EST SVN SVK HRV ISL0%

5%

10%

15%

20%

25%

19.35%

18.61%

8.67%

8.30%

8.09%

4.13%

3.57%

2.29%

1.95%

1.77%

1.54%

1.50%

1.06%0.96%

0.79%

0.29%

0.20%0.16%

0.11%0.10%

0.07%

0.06%0.05%

0.04%0.03%

0.0002%

0%0%

TOTAL 2012 : MEUR 2,104.6TOTAL 2012 : MEUR 2,104.6

MEUR 75.14

1 EUR =2.3551 TRY as of 31/12/2012

20

Value of Contracts placed in Turkey


2009 2010 2011 2012 20130

50

100

150

200175.5

55.4

144.2

75.1

43.7

MEUR

TOTAL NSPA MEURTURKISH SHARE

1,75410.00%

2,1053.57%

2,0806.93%

1,5513.57%

1 EUR =2.96885 TRY as of 14/01/2014

2,1931.99% *

* Provisional total NSPA value for 2013 only

NSPA Customers 2012


USA FRA DEU ITA TUR GBR ESP GRC NOR NLD POL CAN BEL DNK PRT CZE SVK ROU LVA HUN LTU SVN LUX BGR EST HRV ISL ALB0%

10%

20%

30%

40%

TOTAL 2012 : MEUR 2,228.5TOTAL 2012 : MEUR 2,228.5

MEUR 109.54

1 EUR =2.3551 TRY as of 31/12/2012

22

Value of Purchases by Turkey through NSPA


MEUR

TOTAL NSPA MEURTURKISH SHARE

1,7375.64%

2,2284.92%

2,0876.45%

1,5293.44%

2008 2009 2010 2011 20120

50

100

150

52.6

98.0

65.3

134.6

109.5

MEUR

1,6144.05%

1 EUR =2.3551 TRY as of 31/12/2012

Values for the year 2013 are not yet available

23

Competitiveness of Turkish Industry for Supply


RATIO =TURKISH BIDS

AWARDS TO TURKISH FIRMS

2012 20130

1

2

3

1.431.21

2.03 2.07TURKEY

ALL NSPO COUNTRIES

24

Contacts Analysis of Turkish Industry


per line item SUPPLY JAN-DEC 2013

846

158

725

TOTAL NBR. OF CONTACTS :

1,729

NO REPLY(41.93%)

NEGATIVECONTACTS

POSITIVECONTACTS

(9.14%)

(48.93%)

25

Contacts Analysis of Turkish Industry


per line item SERVICES JAN-DEC 2013

214

151

3,274

TOTAL NBR. OF CONTACTS :

3,639

NO REPLY

(89.97%)

NEGATIVECONTACTS

POSITIVECONTACTS

(4.15%)

(5.88%)


NSPA Procurement

Regulations and Policy

21 January 201421 January 2014

Activities Flow

ALLIANCE ARMED FORCES / COMMANDS

LOGISTICS OPERATIONS/ NAM / CEPS

PROCUREMENT DIRECTORATE

INDUSTRY /

GOVERNMENT ENTITIES2727Procurement DirectorateProcurement Directorate

NSPA Regulations tailored to international

cooperation

•NSPO Charter

•NSPA Procurement Regulations n°4200

When required:

• Bi SC 60/70 (BC)

• AC/4-D2261 IC

• AC/4-D0009 IC in support of AOM

2828Procurement DirectorateProcurement Directorate21 January 201421 January 2014


NSPA Procurement Policy

QUALITY

TIMEFRAME

PRICE

CONSOLIDATION

COMPETITION

OBJECTIVES

PRINCIPLES

2929Procurement DirectorateProcurement Directorate

INDUSTRIAL BENEFITS REDISTRIBUTION

*

NSPA Procurement Policy

TWO PRINCIPLE FORMS OF CONTRACTING Supply Contracts: spare parts Service Contracts: MRO, engineering, demilitarization, etc.

• International Competitive Bidding (ICB)Normal procedure

• Foreign Military Sales (FMS)In some cases

• Single Source Under certain conditions : - urgency

- options - low value - security - commonality of Equipment


NSPA Procurement Policy: Limitations & Constraints

• NSPA nations: NATO

• Partner nations under certain circumstances (e.g. PfP Trust Funds, associate state to a Support Partnership , Troop Contributing Nation to an operation)

• Competition restricted by some Support Partnerships(e.g. PATRIOT, Ammunitions Support Partnership)

• Unavailability of Technical Data


NSPA : Procurement policy industry relations in 2012

•Activities monitored by International Board of Auditors

•More than 24.000 contractual instruments

•Total contracted value MEUR 2,104.6 Supply 670.8, Services 1,341.3, Foreign Military Sales (FMS) 92.5

•Workforce 1,224 people of whom 128 work directly in Procurement

•Relations with industry : 10,000 firms throughout NATO


NSPA LOG OPS – Tendering rules

3333Procurement DirectorateProcurement Directorate

• To participate firms must be registered in the NSPA supplier data base

• Selection from NSPA suppliers’ data base

• Solicitation of at least 3 sources for requirements below EUR 76.800

• Obligation to consult all the capable suppliers for requirements above EUR 76.800

• Request for Proposals (RFPs) constitutes basis for binding contract

• Fixed price preference



NSPA e-Procurement

www.nspa.nato.int

e-Procurement Homepage

Two main functions:

• Serve as an info hub (Procurement@NSPA)

Procurement rules, contract provisions, forms, practical

information to suppliers, awarded contract, etc

• Single point of entry to e-Procurement applications(Business@NSPA)

Objective : to facilitate the communication and integration

of business processes with our suppliers


Registration Process

21 January 201421 January 2014 Procurement DirectorateProcurement Directorate 3636

Procurement DirectorateProcurement Directorate

Registration Process

21 January 201421 January 2014 3737


Future Business Opportunities & Requests for Proposals



Future Business Opportunities

Future Business Opportunities (FBO) and, for NATO Infrastructure

projects, Notifications of Intent (NOI) provide advance information

to suppliers based in a NSPO nation about business opportunities for

which NSPA may issue Requests for Proposals in the near future. It

is recommended that your firm is electronically registered in the

NSPA Source file in order to receive Requests for Proposals

(RFP).



Future Business Opportunities

• D3 Partnership• Eastern Vehicles / Equipment Partnership• Firing Range use by other NATO Nations• Port Services Contracts• Environmental / Alternative Energy solutions• Deployable Camp assets (NRF CP1101 is authorized)• Mine / UXO clearings



Future Business Opportunities & Requests for Proposals



FREQUENTLY ASKED QUESTIONS

Q & A

QUESTIONS ANSWERS

How to be invited to NSPA Requests for Proposals?

Your company must be registered in NSPA Source File

How to be registered in NSPA Source File?

Register on line, free of charge…https://eportal.nspa.nato.int/registration/Register.aspx

How to be informed of the upcoming competitions?

Monitor the Future Business Opportunities of the Agencyhttps://eportal.nspa.nato.int/eProcurement/Content/AllBusinessContents.aspx?r=1

How to be sure that the capabilities of my company have been updated?

Contact Source File [email protected] Tel: +352 3063 6436

I have not been invited for a RFP for which my company has capabilities to make an offer why?

Most probably because the capabilities of your company are not properly registered.Revert to the solution above.

How can I have an idea of the prices offered in the past for goods and services offered by my company?

Consult the list of contracts awarded by the Agencyhttps://eportal.nspa.nato.int/eProcurement/default.aspx


https://eportal.nspa.nato.int/registration/Register.aspx

https://eportal.nspa.nato.int/eProcurement/Content/AllBusinessContents.aspx?r=1

https://eportal.nspa.nato.int/eProcurement/Content/AllBusinessContents.aspx?r=1

mailto:[email protected]

mailto:[email protected]

https://eportal.nspa.nato.int/eProcurement/default.aspx

Documents

Www.nspa.nato.int PREPARED FOR PRESENTED BY @nspa.nato.int The NATO Support Agency Workshop: How to do business with NATO 21 January 2014 Ankara Robbert