NAMSA’s and NSIP Projects: Opportunities for Turkish Industry

1. NAMSA’s and NSIP Projects:Opportunities for Turkish Industry Presented by: Patrick FESQUET Director of Procurement NAMSA Presented to: Turkish Industry Representatives IDEF 2005 ANKARA

2. Outline • Opportunities: Scope of NAMSA Contracting 1.1 Contracts let in support of NAMSA programmes 1.2 Contracts let for the NATO Infrastructure Committee 1.3 Some statistics • Procurement Procedures 2.1 NAMSO Functional Directive No. 251 2.2 Procedure AC/4-D/2261 (1996 edition) • How to be invited to NAMSA competitions 3.1 NAMSA Request for Proposals 3.2 Projects funded by the Infrastructure Committee 4. Conclusion NAMSA Procurement Directorate

3. 1. Opportunities: Scope of NAMSA Contracting NAMSA Procurement Directorate

4. 1.1 Contracts let in support of NAMSA Programmes NAMSA Procurement Directorate

5. 1.1 Contracts let in support of NAMSA Programmes (Cont’d) NAMSA Procurement Directorate

6. 1.1 Contracts let in support of NAMSA Programmes (Cont’d) • Three sources of funding: • Military Budget Committee • Funding by nations grouped in Weapon System Partnerships or Support Conferences, or by those with bilateral agreements • Trust Funds funded by contributions from donor nations • Three types of contract: • Supply contracts: spare parts (no SMEIs) • service contracts: MRO, engineering, demilitarization, etc. • civil engineering contracts: support of forces during operations • Contractor Logistics Support - a special case • first contracts let for the support of NATO communications systems (LR) • most recent CLS contracts: RAT 31 DL for GR, TU, HU, CZ • future: support for NH90 & TIGER helicopters. NAMSA Procurement Directorate

7. 1.1 Contracts let pursuant to a Sales Agreement • Random Brokerage activities • Sales Agreements: Bilateral Agreement with NATO Countries • Wide range of Supply, Services and Civil Engineering contracts. • High reactivity required NAMSA Procurement Directorate

8. 1.2 Contracts let for the NATO Infrastructure Committee • Key players and procedure: • Senior Resource Board • Infrastructure Committee, NATO Security Investment Programme (NSIP). • Scenarios: • 1st Scenario: NAMSA acts as procurement agent for Host Nation(s) for an Infrastructure Committee funded project • Intrusion Detection System: approx MEUR 41 • Medium power amplifiers and high gain antenna systems (MPA/HGA) : approx MUSD 25 • 2nd Scenario: NAMSA acts as host nation at the request of the Infrastructure Committee • War damage repair equipment (WARDAM II): approx. MEUR 65 • CFE Treaty-Limited Equipment: MUSD 22 • Combined Joint Task Force (CJTF) deployable headquarters equipment: approx. MEUR 110 NAMSA Procurement Directorate

9. 1.2 Contractslet for the NATO Infrastructure Committee (Cont’d) • Combined Joint Task Force (CJTF) HQ • Deployable Joint Task Force (DJTF) HQ • Deployable ACCS(*) Component • Deployable C2 Assets (*) Air Command and Control System NAMSA Procurement Directorate

10. 1.3 Figures for 2004 NAMSA Procurement Directorate

11. 2.Procurement Procedures NAMSA Procurement Directorate

12. 2.1 Functional Directive 251 2.1.1 General Principles • Free access to public tendering, equal treatment of bidders and transparency of procedures • The call for tenders forms the basis for the contract binding the parties involved • Preference given to firm prices • At least three sources solicited • Only contractors registered in the source file are consulted: short bid solicitation periods NAMSA Procurement Directorate

13. 2.1 Functional Directive 251 (Cont’d) 2.1.2 Restrictions allowed • NATO / NAMSO Member States • For certain WSPS: competition restricted to WSP Member States • Unavailability of Technical Data Packages (tdps) • Single Source: under certain conditions NAMSA Procurement Directorate

14. 2.1 Functional Directive 251 (Cont’d) 2.1.3 Balancing of production • NAMSO Charter, Art 5(a)iii: “While the principal objective of the Agency will be to obtain most favourable prices for goods and services, it will carry out planning, under the guidance of the Board of Directors, for the distribution of production balanced among states to the greatest practicable extent.” • Procurement Regulations (NR 251-01), Art. 1.3 and 5.7: • well-placed countries, less well-placed countries, poorly placed countries. • the country of the bidder is determined on the basis of the location of the bidder's production facilities • if the lowest bid comes from a well-placed country: • bidders from poorly placed countries whose bid is no more than 20% higher are invited to make a second bid that is equal to the lowest bid; • bidders from less well-placed countries whose bid is no more than 10% higher are invited to make a second bid that is equal to the lowest bid. NAMSA Procurement Directorate

15. 2.1 Functional Directive 251 (Cont’d) 2.1.3 Balancing of production (Cont’d) NAMSA Procurement Directorate

16. 2.2 NATO Infrastructure Committee Procedure AC/4-D/2261 (1996 Edition) • Procedure for procurement performed on behalf of the Infrastructure Committee • Basic principles: • use international calls for tenders to maximize participation by qualified contractors in the NATO Security Investment Programme (NSIP); • enable timely completion of NSIP projects • avoid discrimination against companies from states participating in NSIP projects NAMSA Procurement Directorate

17. 2.2 NATO Infrastructure Committee Procedure AC/4-D/2261 (1996 Edition) (Cont’d) KEY POINTS FOR INDUSTRY • The host nation for a project must: • seek bids meeting the minimum military requirement (MMR),as early as possible, at the lowest cost and limit the level of risk; • give priority to clarity of the Statement Of Work through an approach based on defining the required performance rather than on detailed technical specifications; • consider (under certain conditions) a call for tenders organized in 2 or 3 phases where alternative solutions are proposed by industry. NAMSA Procurement Directorate

18. 3. How to be invited to an International Competitive Bidding NAMSA Procurement Directorate

19. 3.1 For NAMSA’S Requests for Proposals • Monitor the Future Business Opportunities at: http://www.namsa.nato.int/suppliers/fut_opps_e.htm • If interested: • Register On Line at:http://www.namsa.nato.int/suppliers/apply_e.htm • Request communication of the RFP when released to:COMPETITION@namsa.nato.intMentioning the FBO number… NAMSA Procurement Directorate

20. 3.2 For Projects funded by the Infrastructure Committee • Contact the Permanent Mission of TURKEY to NATO Headquarters • Mr. Rustem OZARMAGAN Turkish Delegation to NATO B-1110 BRUSSELS • Tel.: +(32) 2 707 6817 • Fax: +(32) 2 707 6833 • e-mail: nato.dt@skynet.be (ATTN: Mr.OZARMAGAN) • Contact the NATO Infrastructure Department of the Ministry of National Defense NAMSA Procurement Directorate

21. 4. Conclusion NAMSA Procurement Directorate

22. 4. Conclusion • Two types of contract, two sets of rules. • Building a trade policy with NAMSA involves monitoring: • MBC activities • IC, NSIP, SRB, capability packages • changing requirements in member states and invited nations • on going or planned NATO operations. • Working more effectively with NAMSA involves: • proper registration, competitive pricing (MMR). • Making better use of “Juste retour” and redistribution of industrial benefits rules. NAMSA Procurement Directorate