NATO Consultation Command Control Agency How to Do

NATO Consultation, Command Control Agency How to Do Business with NATO Mr. Tom Herway Chief of Contracts 15 June 2006 NATO UNCLASSIFIED

NC 3 A 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 NATO UNCLASSIFIED 2

NC 3 A 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 NC 3 A procurement procedures § Documenting and reporting on work performed § Expect scrutiny of NATO Committees and IBAN NATO UNCLASSIFIED 3

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) § NC 3 A Procurement Directives (P. D. 1& 2) § Military Budget Committee funded § NATO Financial Regulations - Method depends on value of procurement § NC 3 A implementing procedures - P. M 1 -4 NATO UNCLASSIFIED 4

Summary of 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 NATO UNCLASSIFIED 5

Evolution of NATO Procurement Practices ct a tr n ity a nd al u Q T e m i to 6 – 30 Months Co Extensive Procedures Appeals Best Value and Spiral Development 2 – 5 Months Clarifications Lowest Cost Bidder Questions Extensions 1 -2 Month Notice of Intent International Competitive Bidding 1970 - Basic Ordering Agreement Competitions 1995 - Standing Ordering Agreements 2005 NATO UNCLASSIFIED 6

International Competitive Bidding(ICB) (AC/4 -D/2261) § Nations responsible for finding, screening, certifying and nominating companies § Evaluation criteria - Lowest, compliant bid § Evaluation process - NC 3 A procedures § Organisation - PEB, CAB, SSA § Documentation - SSP, Evaluators Workbook, CRs, PEB and CAB Reports, SSA Decision § Advantages and Disadvantages NATO UNCLASSIFIED 7

Basic Ordering Agreements (BOAs) § Quick and efficient method for procurement of commercially available CIS products and services § Delegations nominate companies § NC 3 A 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. nc 3 a. nato. int. Free use by NATO activities, nations. Prices password protected. NATO UNCLASSIFIED 8

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 NATO UNCLASSIFIED 56 9

NATO UNCLASSIFIED

NATO UNCLASSIFIED 11

NC 3 A 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 NC 3 A IMIS (5) Deployment of Buyline (NC 3 A NL) Expansion – (1) Full E Procurement tool including Electronic Bulletin Board (2) Deployment of Buyline NATO-wide, nations NATO UNCLASSIFIED 12

Cr ea te Bi d de NATO UNCLASSIFIED rs lis 13 t

ex re d ad t or p es ss NATO UNCLASSIFIED 14

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. NATO UNCLASSIFIED 15

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). § NC 3 A 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 NATO UNCLASSIFIED 16

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 NC 3 A 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 NATO UNCLASSIFIED 17

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 (NC 3 A) § NATO Delegations must nominate companies for them to be eligible to bid § ICBs – Case by case nomination § BOAs – One blanket nomination NATO UNCLASSIFIED 18

How to Do Business with the NC 3 A § Industry § Contact National Delegation to be: § Made aware of upcoming business opportunities § Placed on Bidders Lists for ICBs § Nominated for a BOA with NC 3 A § Government § Procurement point of contact: Agata Szydelko § Phone: 32 -02 -707 -8241 agata. szydelko@nc 3 a. nato. int NATO UNCLASSIFIED 19