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The NATO Support Agency

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. Governance. Provide responsive , effective and cost-efficient …

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The NATO Support Agency

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  1. The NATO Support Agency • Workshop: How to do business with NATO • 21 January 2014 • Ankara • Robbert Smit • DeputyDirector of Procurement and CompetitionAdvocate • Robbert.smit

  2. NSPA at a glance Governance Procurement Directorate

  3. 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. • NSPA Mission • Reference: NSPO Charter June 2012 Procurement Directorate

  4. 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. Procurement Directorate

  5. Main Geographical Locations Central Europe Pipeline System (CEPS) NATO Support Agency (NSPA) Headquarters Logistics Operations ISAF Offices NATO Airlift Management (NAM) LUX HUN FRA ITA Southern Operational Centre (SOC) Procurement Directorate

  6. NSPA business 41 countries Currentprojects Procurement Directorate

  7. VISION • NATO’s premier integrated logistics and services provider team, with an integrated network of logistics capabilities for NATO, and its Nations and partners. • Organizational Design NSPA GENERAL MANAGER STAFF CENTRAL EUROPE PIPELINE SYSTEM (CEPS) NATO AIRLIFT MANAGEMENT (NAM) LOGISTICS OPERATIONS CORPORATE SUPPORT PROCUREMENT FINANCE HUMAN RESOURCES INFORMATION TECHNOLOGY BUSINESS UNITS SUPPORT FUNCTIONS Procurement Directorate

  8. 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: Procurement Directorate

  9. 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: Procurement Directorate

  10. Business UnitLogistics Operations (LogOps) • 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 Procurement Directorate

  11. Funding Sources (2011) Support Agency almost 80% customer funded... Common funded for key NATO capabilities Procurement Directorate

  12. Conclusion Procurement Directorate

  13. How to do business with NSPA Procurement Directorate

  14. Overview • WHAT does NSPA buy? • Evolution and Typology of activities • ActivitieswithTurkey • HOW does NSPA buyGoods and Services? • NSPA ProcurementRegulations and Policy • NSPA e-procurement • HOW to beinvited to NSPA RequestsFor Proposals? • Future Business Opportunities • FrequentlyAsked Questions Procurement Directorate

  15. Activities 2012 FMS 4.4% Supplies 31.9% Services 63.7% Procurement Directorate

  16. Activities with Turkey Procurement Directorate

  17. Development of TurkishIndustrial Return CONTRACTS IN TURKEY * CONTRACTS IN NSPO NATIONS SALES IN TURKEY * SALES IN NSPO NATIONS R = NOTE: MBC+NSIP fundedprojects are excluded as from 2009 on WELL PLACED COUNTRIES LESS WELL PLACED COUNTRIES POORLY PLACED COUNTRIES * Based on the contracts and sales of the 3 yearspreceeding the applicable year Procurement Directorate

  18. Industrial Return Ratio 2013-2014 CONTRACTS IN TURKEY * CONTRACTS IN NSPO NATIONS SALES IN TURKEY * SALES IN NSPO NATIONS R = NOTE: MBC+NSIP fundedprojects are excluded as from 2009 on R= >=0.8 Wellplaced R= >= 0.25 & < 0.8 Lesswellplaced R= < 0.25 Poorlyplaced TUR * Based on the contracts and sales of the 3 yearspreceeding the applicable year Procurement Directorate

  19. Industrial Return Value of ContractsPlaced TOTAL 2012 : MEUR 2,104.6 MEUR 75.14 1 EUR =2.3551 TRY as of 31/12/2012 Procurement Directorate

  20. Value of Contractsplaced in Turkey 2,080 6.93% 2,105 3.57% 2,193 1.99% 1,754 10.00% 1,551 3.57% TOTAL NSPA MEUR TURKISH SHARE * * Provisional total NSPA value for 2013 only 1 EUR =2.96885 TRY as of 14/01/2014 Procurement Directorate

  21. NSPA Customers2012 TOTAL 2012 : MEUR 2,228.5 MEUR 109.54 1 EUR =2.3551 TRY as of 31/12/2012 Procurement Directorate

  22. Value of Purchases by Turkeythrough NSPA TOTAL NSPA MEUR TURKISH SHARE 1,737 5.64% 2,087 6.45% 2,228 4.92% 1,529 3.44% Values for the year2013 are not yetavailable 1,614 4.05% 1 EUR =2.3551 TRY as of 31/12/2012 Procurement Directorate

  23. Competitiveness of TurkishIndustry for Supply TURKISH BIDS AWARDS TO TURKISH FIRMS RATIO = Procurement Directorate

  24. Contacts Analysis of TurkishIndustry per line item SUPPLY JAN-DEC 2013 TOTAL NBR. OF CONTACTS : 1,729 NO REPLY POSITIVE CONTACTS (48.93%) (41.93%) NEGATIVE CONTACTS (9.14%) Procurement Directorate

  25. Contacts Analysis of TurkishIndustry per line item SERVICES JAN-DEC 2013 TOTAL NBR. OF CONTACTS : 3,639 POSITIVE CONTACTS NO REPLY (5.88%) (89.97%) (4.15%) NEGATIVE CONTACTS Procurement Directorate

  26. NSPA Procurement Regulations and Policy Procurement Directorate

  27. Activities Flow ALLIANCE ARMED FORCES / COMMANDS LOGISTICS OPERATIONS/ NAM / CEPS PROCUREMENT DIRECTORATE INDUSTRY / GOVERNMENT ENTITIES Procurement Directorate

  28. 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 Procurement Directorate

  29. NSPA ProcurementPolicy QUALITY OBJECTIVES TIMEFRAME PRICE CONSOLIDATION INDUSTRIAL BENEFITS REDISTRIBUTION PRINCIPLES COMPETITION * Procurement Directorate

  30. 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 Procurement Directorate

  31. NSPA nations: NATO Partner nations under certain circumstances (e.g. PfP Trust Funds, associate state to a Support Partnership , TroopContributing Nation to an operation) Competition restricted by some Support Partnerships(e.g. PATRIOT, Ammunitions Support Partnership) Unavailability of Technical Data NSPA Procurement Policy: Limitations & Constraints Procurement Directorate

  32. Activitiesmonitored 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, ForeignMilitary Sales (FMS) 92.5 Workforce1,224 people of whom 128 workdirectly in Procurement Relations withindustry : 10,000 firmsthroughout NATO NSPA : Procurementpolicyindustry relations in 2012 Procurement Directorate

  33. To participatefirmsmustberegistered in the NSPA supplier data base Selectionfrom NSPA suppliers’ data base Solicitation of at least 3 sources for requirementsbelowEUR 76.800 Obligation to consult all the capable suppliers for requirementsabove EUR 76.800 Request for Proposals (RFPs) constitutes basis for bindingcontract Fixedpricepreference NSPA LOG OPS – Tenderingrules Procurement Directorate

  34. NSPA e-Procurement www.nspa.nato.int Procurement Directorate

  35. 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 e-Procurement Homepage Procurement Directorate

  36. Registration Process Procurement Directorate

  37. Registration Process Procurement Directorate

  38. Future Business Opportunities& Requests for Proposals Procurement Directorate

  39. 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). Procurement Directorate

  40. Future Business Opportunities • D3 Partnership • EasternVehicles / Equipment Partnership • Firing Range use by other NATO Nations • Port Services Contracts • Environmental / Alternative Energy solutions • Deployable Camp assets (NRF CP1101 isauthorized) • Mine / UXO clearings Procurement Directorate

  41. Future Business Opportunities& Requests for Proposals Procurement Directorate

  42. FREQUENTLY ASKED QUESTIONS Procurement Directorate

  43. Q & A Procurement Directorate

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