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NAMSA as Procurement Agency of Supply and Services

NAMSA as Procurement Agency of Supply and Services . Prepared for: MASTER in Procurement Management Università Tor Vergata – Roma, Italy 27 April 2010. Presented by: G. SCAPPATICCI Programme Manager Rockets, Missiles, UAS, Combat Vehicles Programme gscappaticci@namsa.nato.int. Overview.

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NAMSA as Procurement Agency of Supply and Services

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  1. NAMSA as Procurement Agency of Supply and Services Prepared for: MASTER in Procurement Management Università Tor Vergata – Roma, Italy27 April 2010 Presented by: G. SCAPPATICCIProgramme Manager Rockets, Missiles, UAS, Combat Vehicles Programme gscappaticci@namsa.nato.int

  2. Overview • NAMSA Principles and Services • NAMSA Procurement Regulations and Policy • NSIP* Procedures for International Competitive Bidding • NAMSA e-Procurement • * NSIP: NATO Security Investment Programme G. SCAPPATICCI - LM Programme

  3. Mission ALLIANCE ARMED FORCES / SHAPE LOGISTICS PROGRAMMES & DIVISIONS PROCUREMENT DIRECTORATE INDUSTRY / GOVERNMENT ENTITIES G. SCAPPATICCI - LM Programme

  4. NAMSA’s Principles Economies of Scale No Profit, No Loss Meet Customers’ Needs • Consolidation of logistic requirements • Centralisation of logistic activities and resources • International competition among suppliers • Projects funded by participating states • Flexibility • Strict Control Quality G. SCAPPATICCI - LM Programme

  5. NAMSA’s Services (1) Mission: To Provide In-service Logistics Support • Spares Supply • Equipment Maintenance (DLM & OSM) • Procurement • Warehousing & Transportation • Engineering & Technical Support • Demilitarization • Contract Management G. SCAPPATICCI - LM Programme

  6. NAMSA’s Services (2) • Random Brokerage & Expedited Services • Electro-optics Workshop, Calibration • Port Services • Logistics Support Tools: • NLSE • ASD Spec 2000M • NMCRL • NADB • Real Life Support (RLS), Airport of Debarkation (APOD), Civil Engineering Projects, Asset Deployment,… G. SCAPPATICCI - LM Programme

  7. Multinational Contracting Model Nation NATO HQ I.C. MBC Strat. Com. Common requirements Legal arrangements • Industry • Services • Flexibility • Solutions • Reach back One stop shop Contractual arrangements • NAMSA • Consolidation of requirements • Integrated Logistics Nation Common Procurement Regulations International Competitive Bidding Nation G. SCAPPATICCI - LM Programme

  8. Logistic Support Arrangements • Weapon System • Partnerships • Hawk, Patriot, Stinger, AMRAAM, ARMS, Land Combat Missiles • Fixed Wing, Helicopters • Land Combat Vehicles • CL-289 Drone • MPRE/WARDAM II • MK-46 Torpedo • Ammunition • Ship-Shore-Ship Buffer • Ground-Based Defence Random Brokerage Individual Requirements • NATO MBC & • SHAPE funded • NATO AWACS • Communications • Air Defence • Support • Conferences • RAT-31 • Port Services • AN/FPS-117 • CRC/Systems Interface • RSRP • Other arrangements • COBRA radar • NH90 helicopter • Tiger helicopter • COMMIT Partnership • SALIS Partnership • PfP Trust Fund Red: Italian usage G. SCAPPATICCI - LM Programme

  9. Regulations tailored to international cooperation • NAMSO Charter • Functional Directive 251 approved by all NAMSO nations • NAMSA Procurement Regulations (NR 251-01) G. SCAPPATICCI - LM Programme

  10. Procurement Policy QUALITY OBJECTIVES TIMEFRAME PRICE CONSOLIDATION COMPETITION PRINCIPLES BALANCING G. SCAPPATICCI - LM Programme

  11. Procurement Policy • TWO PRINCIPLE AREAS OF CONTRACTING • Supply Contracts: spare parts • Service Contracts: Maintenance Repair Overhaul, Engineering, Demilitarization, etc. • International Competitive Bidding (ICB) • Normal procedure • Foreign Military Sales (FMS)In some cases • Single Source • Under certain conditions (urgency, low value, security, commonality of equipment) • LIMITATIONS AND CONSTRAINTS • NATO/NAMSO Countries • PfP and MD nations under certain circumstances • Competition restricted by some customer committees • Unavailability of Technical Data G. SCAPPATICCI - LM Programme

  12. Procurement policy & industryrelations – NAMSA in 2009 • Activities monitored by International Board of Auditors • 24,000 contractual releases • Total contracted value MEUR 1,754.2 Supply 399.0, Services 1,283.5, Foreign Military Sales (FMS) 71.7 • Workforce 1,145 people of whom 120 work directly inProcurement and more than 600 in Logistics • Relations with industry : 10,000 firms throughout NATO • Procurement Administrative Lead Time for Supplies:57 days G. SCAPPATICCI - LM Programme

  13. Tendering rules • To participate firms must be registered in the NAMSA supplier data base (source file) • Selection from NAMSA suppliers’ data base • Solicitation of at least 3 sources for requirements below EUR 75,200 • Obligation to consult all the capable suppliers for requirements above EUR 75,200 • Request for Proposals (RFPs) constitutes basis for binding contract • Fixed price preference G. SCAPPATICCI - LM Programme

  14. Contract award • Proposals received • Kept in safe until after closing date • Late proposals not taken into consideration • Selection of best proposal • Team of procurement and programme personnel • Award of contract (Award Committee) • Lowest fully responsive offer (technical compliance + lowest offer) • Unsuccessful bidders informed G. SCAPPATICCI - LM Programme

  15. NSIP – Procedures for International Competitive Bidding • NSIP = NATO Security Investment Programme • For NATO common funded requirements, 2 main funding sources: • For acquisition – NSIP • For in service support – Military Budget • Key players NSIP • Senior Resource Board • Infrastructure Committee • As Host Nation • NATO requirement and NATO Agency is best placed to execute the project, e.g. in support of NATO operations G. SCAPPATICCI - LM Programme

  16. NSIP – Procedures for International Competitive Bidding • Applicable document : AC/4-D/2261 (1996 edition) • Note: AC/4 – D(2007)0003, Non-Article 5 NATO Led Operations – NSIP Procurement Regulations are not addressed here. • Basic principles • International Competitive Bidding • Eligible bidders must be from participating states (for operations IC may allow local contractors) • Maximize participation by qualifed bidders • Avoid discrimination against bidders G. SCAPPATICCI - LM Programme

  17. NSIP – Procedures for International Competitive Bidding • Registration of potential bidders for NSIP • funded projects • Register at the national Delegation/Mission to NATO Headquarters Brussels • Register at the national Embassy in Luxembourg or Brussels(if no embassy in Luxembourg) • Register at NAMSA going to “Business Opportunities” on the NAMSA Website G. SCAPPATICCI - LM Programme

  18. G. SCAPPATICCI - LM Programme

  19. e-Procurement Modules (1) • e-Procurement Homepage • On-line supplier registration • Publication of Future Business Opportunities • Supplier can express interest on-line • Publication of Requests for Proposal • Public access • Restricted access • Secure upload of bids • File delivery notifications G. SCAPPATICCI - LM Programme

  20. e-Procurement Modules (2) • eBid allows registered firms to quote on-line in a secure environment • eCat 1 is a catalogue of NAMSA negotiated Outline Agreements which allows Armed Forces to place orders on-line with registered NAMSA suppliers G. SCAPPATICCI - LM Programme

  21. eBid (Electronic Bidding) Electronic bidding system : for codified, non-restricted items of supply • Simple, secure web-based • Available 24h/7 days • Need to register as vendor • Vendors can : • See available requests for tender • Make offers • See their offers • Modify their offer prior to closing date G. SCAPPATICCI - LM Programme

  22. eCat1 – Outline Agreement Armed Force Logistician Supplier Finance Officer Automatic Debit Amount + Fees Create Order Accept Order Monitoring Supplier Payment According to OP Ready for shipment Shipment of the Order Receive Order Close Order G. SCAPPATICCI - LM Programme

  23. Summary: e-Procurement The procurement process is now to a large extent electronic : • e-Transfer of RFP documents from SAP to the web • e-Registration to procurement applications • e-Download of RFP documents • e-Upload of bids from suppliers • e-Storage of bids at registry in a “virtual safe” until bid closing date • e-Transmittal of bids from registry to evaluation team • Actual contract still handled in the traditional way (paper) • e-Ordering (eCat1) G. SCAPPATICCI - LM Programme

  24. Value of Contracts placed 2005-2009 in Euros For participation, registration in the source file is required G. SCAPPATICCI - LM Programme

  25. Activities2009 FMS 4.1% Supplies 22.7% Services 73.2% G. SCAPPATICCI - LM Programme

  26. Programme Expertise – Workshop Operations G. SCAPPATICCI - LM Programme

  27. Conventional In Service Logistics Support G. SCAPPATICCI - LM Programme

  28. Support to NATO Initiatives: Capability Packages (DJTF/CJTF) G. SCAPPATICCI - LM Programme

  29. NATO Capability Packages • What does NAMSA procure ? • Office & Accommodation Buildings • Shelters • Containerized Facilities • Mobile Kitchens • Heating and Ventilation systems • Power Generation and Electrical Systems • Environmental Control Equipment • Water, Waste and Sewage Treatment Systems • Furniture and Associated Equipment • Force Protection Material • Mobile Hospitals • Vehicles G. SCAPPATICCI - LM Programme

  30. Support to NATO Initiatives: Strategic Airlift - SALIS G. SCAPPATICCI - LM Programme

  31. Support to NATO Initiatives: Memorandums of Understanding (MOU) • Albania • Austria • Azerbaijan • Belarus • Croatia • Finland • Georgia • Kazakhstan • Moldova • Serbia (*) • Sweden • Switzerland • Ukraine • Uzbekistan • (*) South East Europe Initiative (SEEI) G. SCAPPATICCI - LM Programme

  32. Support to NATO Initiatives: PfP Demilitarization Projects G. SCAPPATICCI - LM Programme

  33. Support to NATO Crisis Operations: The Genesis Balkans Afghanistan Iraq Pakistan Kuwait G. SCAPPATICCI - LM Programme

  34. The Genesis: The Learning Organization • SFOR Support: • All volunteer Ad Hoc contracting Team • The Mobile Support Team • KFOR Support: • Technical Assistance to KFOR THOC (establishedposts) • Contracting Agent (Sales Agreement) • Implementation of the MJLC Concept in ISAF • Contracting in Support of the NRF: • Steadfast Jaguar 2006 Cape Verde • Joint Logistics Support Group Concept G. SCAPPATICCI - LM Programme

  35. The Southern Operational CentreTARANTO G. SCAPPATICCI - LM Programme

  36. Support to NATO Crisis Response Operations Balkans: SFOR G. SCAPPATICCI - LM Programme

  37. Support to NATO Crisis Response Operations: The KFOR Experiment • Contracting Specialists in support of HQ KFOR THOC: • Valuable until stabilisation of the HQ structure • Activities close to those of a traditional J8 structure • Management of Bi-lateral Agreement for the benefit of National contingents • Time efficiency • Joint project management G. SCAPPATICCI - LM Programme

  38. Support to NATO Crisis Response Operations Iraq NTM-I Pakistan NDRT Balkans Pristina Airport FYROM* Roads EUFOR AGSR Cape Verde Steadfast Jaguar 06 Afghanistan Kabul Herat Bagram Mazar-e Sharif Kandahar Persano SteadfastJackpot 07 * Turkey recognises the Republic of Macedonia with its constitutional name G. SCAPPATICCI - LM Programme

  39. NAMSA Support to ISAF In-Theatre MeS:New Runway, Taxi-ways, Aprons, Aircraft & Maintenance Hangers, MWR Centre, Force Protection Infra, Food Services MEY:Food Services ISAF/KAIA: KAIA North Military Facility, RLS/APOD services, Role 2 Hospital, New HQ options Bagram:Air Operating Surfaces HERAT:Runway refurbishment, Aprons, Facility infra, BFI Protection KAF:APOD & RLS Services,BFIs, New Runway, Air Op Services, ATC Tower, New RC(S) HQ, Passenger & Freight Facilities, New Role 3 Hospital, New land for development, demining, O&M, G. SCAPPATICCI - LM Programme

  40. In-theatre support – ISAF (base support) Kandahar G. SCAPPATICCI - LM Programme

  41. Development of Italian Industrial Return VALUE OF CONTRACT PLACED IN ITALY VALUE OF PURCHASES THROUGH NAMSA BY ITALY R = WELL PLACED COUNTRIES LESS WELL PLACED COUNTRIES POORLY PLACED COUNTRIES G. SCAPPATICCI - LM Programme

  42. Summary • A turn key procurement solution: • With a flexible regulation adapted to the Alliance armed forces needs • Opened to new technologies • Particularly well adapted tool for the support of contingency operations G. SCAPPATICCI - LM Programme

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