Transcript NATO Consultation, Command and Control Agency

NATO
Consultation, Command and Control
Agency
How to Do Business with NATO
Mr. Tom Herway
Chief of Contracts
15 June 2006
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NC3A Acquisition Roles
 Host Nation for Assigned NATO Common
Funded Projects
 Procurement Agent for other NATO Bodies
 Procurement Agent for other NATO Nations
Third Party
Procurements
 Host Nation/Procurement Agent for NATO
projects with non-NATO nations
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NC3A Procurement Principles

Business has to be open to all NATO nations

Have to establish fair and reasonable prices

Ensure the integrity of the procurement process by:
 Following NATO and NC3A procurement procedures
 Documenting and reporting on work performed

Expect scrutiny of NATO Committees and IBAN
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NATO Procurement Procedures

Depend on funding - IC(NSIP) or MBC
 Infrastructure Committee (NATO Security
Investment Programme) funded  International Competitive Bidding Procedures,
AC/4-D/2261, are the standard (1996)
 Basic Ordering Agreement Procedures (2002)
 Best Value Procedures (Jan 2004)
 NC3A Procurement Directives (P.D. 1& 2)
 Military Budget Committee funded  NATO Financial Regulations - Method depends on
value of procurement
 NC3A implementing procedures - P.M 1-4
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Summary of Procurement Approaches
 Procurement Approaches
 International Competitive Bidding
(ICB)
 Basic Ordering Agreements (BOAs)
 Standing Ordering Agreements
 Selection Criteria
 Lowest Price Compliant Bid
 Best Value
 Sole Source
Match
Approach
to Project
Need
 Implementation Strategies
 Spiral Development
 Single package
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Evolution of NATO Procurement Practices
6 – 30 Months
Extensive
Procedures
Appeals
Best Value
and Spiral
Development
2 – 5 Months
Clarifications
Lowest Cost
Bidder
Bidder
Questions
Extensions
1-2 Month
Notice of Intent
International
Competitive
Bidding
1970-
Basic Ordering
Agreement
Competitions
1995-
Standing
Ordering
Agreements
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International Competitive Bidding(ICB)
(AC/4-D/2261)
 Nations responsible for finding, screening, certifying
and nominating companies
 Evaluation criteria - Lowest, compliant bid
 Evaluation process - NC3A procedures
 Organisation - PEB, CAB, SSA
 Documentation - SSP, Evaluators Workbook, CRs, PEB
and CAB Reports, SSA Decision
 Advantages and Disadvantages
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Basic Ordering Agreements (BOAs)





Quick and efficient method for procurement of
commercially available CIS products and services
Delegations nominate companies
NC3A negotiates standardised ordering agreements
with major suppliers
 Currently 397 vendors from 22 nations
 “Most Favoured Customer” (MFC) terms and prices
with suppliers = “Strategic Agreements”
Have flexibility to: (1) take advantage of MFC prices,
(2) compete between the BOAs
Access via www.boa.nc3a.nato.int. Free use by NATO
activities, nations. Prices password protected.
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Number of Basic Ordering
Agreements (May 2006)
BEL
BUL
CAN
CZE
DNK
FRA
DEU
GRC
HUN
ICE
ITA
LVA
LUX
NLD
NOR
POL
PRT
ROM
ESP
TUR
GBR
USA
50
1
9
5
5
23
32
7
7
Total: 397
1
16
1
3
48
9
23
3
3
7
4
84
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9
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NC3A Buyline
NC3A Buyline is the automated tool developed to efficiently
process and report on BOA procurements
Current Capability –
(1) Automated search tool. List of potential bidders
(2) Automated data storage and retrieval system
(3) Reporting system- IC requires Quarterly BOA Reports,
Contract Notifications on each action
(4) Procurement module for NC3A IMIS
(5) Deployment of Buyline (NC3A NL)
Expansion –
(1) Full E Procurement tool including Electronic Bulletin Board
(2) Deployment of Buyline NATO-wide, nations
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Standing Ordering Agreements (SOAs)
 Two options:
 Add new requirements to existing competitively
awarded contracts
 Include anticipated requirements in evaluation of bids.
Set up options in contracts for future orders not yet
authorised.
 Advantages
 Saves time – Don’t have to re-compete procurements
for similar requirements
 Saves money – Quantity discounts on prices. Less
internal processing costs.
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Best Value
 Needed an alternative to “lowest price, technically
compliant” ICB award criteria
 Emphasis on price meant couldn’t select best overall bid
 Best Value Definition - Award is made to bid offering best
overall value, taking all factors into consideration (project
management, technical, supportability, and price).
 NC3A had successful cases of Best Value on fairly large
projects (TMD (5), NAFS, KFOR Outsourcing, SSC)
 Three year trial period for NSIP projects started 1/1/04
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Spiral Development

Definition – The required capability is fielded in increments,
each building toward the final operational capability, instead
of a single package.

Process is summarised in NC3A procedures :
 Core Increment is first increment, where risk is lowest
 Higher risk requirements ( the evolution of the requirement)
are addressed through studies, prototypes
 Requirements for each follow-on increments based upon:
 user feedback
 technology updates
 results of studies and prototypes
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How to Do Business with NATO

Main Financial Committees:
 Infrastructure Committee (IC) – NATO Security Investment
Programme (NSIP)
 Military Budget Committee (MBC) – Admin., support

NATO works through these Committees
 NATO National Delegations staff Committees
 Committees make decisions, authorise projects
 Committees procure through Agencies (NC3A)
 NATO Delegations must nominate companies for them to be
eligible to bid
 ICBs – Case by case nomination
 BOAs – One blanket nomination
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How to Do Business with the NC3A
 Industry
 Contact National Delegation to be:
 Made aware of upcoming business opportunities
 Placed on Bidders Lists for ICBs
 Nominated for a BOA with NC3A
 Government
 Procurement point of contact: Agata Szydelko
 Phone: 32-02-707-8241
[email protected]
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