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

2. NATO UNCLASSIFIED2 NC3A Acquisition Roles  Host Nation for Assigned NATO Common Funded Projects Funded Projects  Procurement Agent for other NATO Bodies  Procurement Agent for other NATO Nations  Host Nation/Procurement Agent for NATO projects with non-NATO nations projects with non-NATO nations Third Party Procurements

3. NATO UNCLASSIFIED3 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

4. NATO UNCLASSIFIED4 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

5. NATO UNCLASSIFIED5 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  Implementation Strategies  Spiral Development  Single package Match Approach to Project Need

6. NATO UNCLASSIFIED6 Evolution of NATO Procurement Practices Quality and Time to Contract 2 – 5 Months Basic Ordering Agreement Competitions 1970-1995- 2005- International Competitive Bidding Notice of Intent Extensions Clarifications Appeals Lowest Cost Bidder Extensive Procedures 6 – 30 Months Bidder Questions 1-2 Month Standing Ordering Agreements Best Value and Spiral Development

7. NATO UNCLASSIFIED7 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

8. NATO UNCLASSIFIED8 Basic Ordering Agreements (BOAs) 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.

9. NATO UNCLASSIFIED9 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 84 56 50 1 9 5 5 23 32 7 7 1 16 1 3 48 9 23 3 3 7 4 Total: 397

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12. NATO UNCLASSIFIED12 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) (5) Deployment of Buyline (NC3A NL) Expansion – (1) Full E Procurement tool including Electronic Bulletin Board (2) Deployment of Buyline NATO-wide, nations

13. NATO UNCLASSIFIED13 Create Bidders list

14. NATO UNCLASSIFIED14 export addresses

15. NATO UNCLASSIFIED15 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.

16. NATO UNCLASSIFIED16 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

17. NATO UNCLASSIFIED17 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

18. NATO UNCLASSIFIED18 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

19. NATO UNCLASSIFIED19 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 agata.szydelko@nc3a.nato.int