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NAMSA's Role in NATO Logistics Support

This presentation discusses the mission and principles of the NATO Maintenance & Supply Agency (NAMSA) and its role as a contracting agency for logistics support to NATO armed forces. It also highlights NAMSA's current business, future perspectives, and partnerships with non-NATO countries, the European Union, and the United Nations.

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NAMSA's Role in NATO Logistics Support

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  1. DOING BUSINESS WITH NAMSA Prepared for: Slovak Industry Day 02-03 May 2012 Presented by: Robbert SMIT Deputy Director of Procurement and Competition Advocate rsmit@namsa.nato.int

  2. NATO Maintenance & Supply Agency Organization Main Locations Procurement Directorate

  3. NAMSA Mission and Principles Mission Principles ■ Provide full spectrum of logistics support to NATO/NAMSO Member states individually or collectively ■ Provide direct logistics support solutions in operational theaters ■ Maximize effectiveness of logistics support to NATO Armed Forces ■ Provide rapid response at lower cost ■ Consolidation ■ Centralization ■ Competition Procurement Directorate

  4. NAMSA’s Role • ■ A contracting agency - NOT a contractor • ■ Customer funded, ruled by the no profit, no loss principle - NOT a profit-making • organization • ■ Acts as an extension of national logistics support chains - NOT a competitor to • national procurement and logistics organizations Procurement Directorate

  5. Organisation Procurement Directorate

  6. Financial Evolution 1798MEUR 1518MEUR 1668 MEUR 1546 MEUR * - Provisional Figures Procurement Directorate 6

  7. Current business NAMSA Conventional In-service Logistics Support Support to NATO Initiatives NATO Crisis Response Operations ■Weapon System Partnerships ■ Support Conferences ■ NATO common- funded programmes ■ eLogistics ■ European Union ■ United Nations ■ PfP Trust Fund ■ Strategic Lift ■ ACT Support ■ Deployable NATO Assets In-theatre integrated logistics support: ■ ISAF ■ NATO Response Force - NRF ■ Humanitarian relief ■ Balkans Direct Support (In-theatre Level) General Support (Depot Level) Spectrum of Operations Leveraging Industry 2011 Value of services € 1.6 billion Procurement Directorate

  8. Future business and perspectives NAMSA Strategic Plan 2020 In-service Logistics Support Support to NATO Initiatives NATO Crisis Response Operations ■Environmental Solutions for OPS ■ Strategic Transport ■ Comprehensive Approach ■ Fuel ■Leopard MBT ■ Unmanned Aerial Systems ■ Night Vision Equipment ■ A400M ■ Dismantling of old Weapon Systems ■ Medical Support ■ MRAP Vehicles Spectrum of Operations Direct Support (In-theatre Level) General Support (Depot Level) Leveraging Industry Evolution of relationship with non-NATO countries, European Union, United Nations Procurement Directorate

  9. Current Business & Business Structures NATO Common Funded Weapon System Partnerships • NATO AWACS • Communications • Radars and Surveillance • Missiles: HAWK, PATRIOT, Stinger, AMRAAM, Air-to-Surface Missiles, Artillery Rocket & Missile Systems (ARMS), Land Combat Missiles (LCM) • Fixed-Wing Aircraft, Helicopters • Land Combat Vehicles • CL-289 Drone • MPRE/WARDAM II • Torpedoes • Ship-Shore-Ship Buffer (SSSB), MIDS • Ground-Based Defence (GBD) • Global Positioning System (GPS) Support Conferences • RAT 31 radar • AN/FPS-117 radar • ACCS LOC 1 • CRC/Systems Interface • RSRP Sales Agreements Equipment / Service Partnerships • NH90 Helicopter (NAHEMA) • Tiger Helicopter (OCCAR) • COBRA radar (OCCAR) • PfP Trust Fund projects • Sidewinder • Strategic Sealift • Log. Serv. For Missiles, UAVs, Platforms • Common Item Materiel Management (COMMIT) • Strategic Airlift Interim Solution (SALIS) • Ammunition Support • Naval Logistics Support (NLSP) • Operational Logistics Support (OLS) Random Brokerage • Individual Requirements Procurement Directorate 9

  10. Strategic Lift Strategic Airlift Partnership (SALIS) • 206 missions (4439 flying hours) in 2010 • Partnership extended to end 2012 • Contract review to increase flying hour efficiencies Strategic Sealift Sales Agreement • Managing Assured Access Contracts for the MSSC • Contract increased from 2 to 3 Ro-Ro ships • Potential for a 4th ship ISAF Strategic Rail Initiative AN-124 • Objective: develop, implement and administer Northern LOC rail transport contract • Letter of Intent from interested nations being staffed Ro-Ro Procurement Directorate

  11. Infrastructure APOD Garrison Ops surfaces Role 3 Aprons HQ Force Protection Infrastructure APOD Garrison ATC HQs Role 3 Accommodation PAX O&M Runway ACSA NAMSA Support to ISAF Infrastructure APOD Garrison Runway BFI Protection Aprons PAX Terminal Extensions Infrastructure APOD Garrison Run/Taxi-Ways MWR Centre Force Protection Blast Walls Food Services Infrastructure Accommodation Konduz Infrastructure Relocatable Buildings Meymaneh Bagram Food Services (KAIA) Integrated Logistics Support (ILS) APOD & Real Life Support (RLS) APOD RLS - CATO - Food /DFACs - A/C cross servicing - Utilities - Airfield equipment, - Water vehicle maintenance - Waste - Billeting - Contracts on demand - Supply services (KAF) Procurement Directorate

  12. APOD & Life Support Capabilities APOD Services Real Life Support (RLS) Services • ■ Air Traffic Management • ■ Medical crash crew • ■ Fire, crash rescue • ■ Movement Control & Air Terminal • ■ Aircraft cross servicing • ■ Airfield equipment & vehicle maintenance • ■ Transport, supply & billeting • ■ Food, Water • ■ Power • ■ Laundry, cleaning, ablution & wash rack • ■ Sewage, waste & hazard. waste disposal • ■ Pest (vector) control • ■ Pass & permits, Security vetting • ■ Mortuary services • ■ Demining, Equipment Demilitarization • ■ Morale, Welfare & Recreation • ■ Vehicle rental, Jingle Trucks • ■ Translation Procurement Directorate

  13. NAMSA Procurement Regulations and Policy Procurement Directorate

  14. Mission ALLIANCE ARMED FORCES / SHAPE LOGISTICS PROGRAMMES & DIVISIONS PROCUREMENT DIRECTORATE INDUSTRY / GOVERNMENT ENTITIES Procurement Directorate

  15. Regulations tailored to international cooperation • NAMSO Charter • Functional Directive 251 approved by all NAMSO nations • NAMSA Procurement Regulations (NR 251-01) Procurement Directorate

  16. Procurement policy QUALITY OBJECTIVES TIMEFRAME PRICE CONSOLIDATION PRINCIPLES COMPETITION BALANCING Procurement Directorate

  17. Procurement Policy • 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 Procurement Directorate

  18. Procurement Policy • LIMITATIONS AND CONSTRAINTS • NATO/NAMSO Countries • PfP and MD nations under certain circumstances (PfP Trust Fund) • Competition restricted by some customer committees(e.g. PATRIOT, HAWK) • Unavailability of Technical Data Procurement Directorate

  19. Procurement policy & industryrelations – NAMSA in 2011 • Activities monitored by International Board of Auditors • More than 24.000 contractual instruments • Total contracted value MEUR 2,080.5 Supply 688.7, Services 1,316, Foreign Military Sales (FMS) 75.8 • Workforce 1,150 people of whom 123 work directly inProcurement • Relations with industry : 10,000 firms throughout NATO Procurement Directorate

  20. Tendering rules • To participate firms must be registered in the NAMSA supplier data base • Selection from NAMSA suppliers’ data base • Solicitation of at least 3 sources for requirements below EUR 76.800 • Obligation to consult all the capable suppliers for requirements above EUR 76.800 • Request for Proposals (RFPs) constitutes basis for binding contract • Fixed price preference Procurement Directorate

  21. 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 Procurement Directorate

  22. e-Procurement Homepage • Two main functions: • Serve as an info hub (Procurement@NAMSA) • Procurement rules, contract provisions, forms, practical information to suppliers, awarded contract, etc • Single point of entry to eProcurement applications (Business@NAMSA) • Objective : to facilitate the communication and integration of business processes with our suppliers Procurement Directorate

  23. NAMSA e-Procurement Procurement Directorate

  24. e-Procurement Modules (1/2) • On-line supplier registration • Publication of Future Business Opportunities • Supplier can express interest on-line • A link to competition@namsa.nato.int is available to obtain additional information • Publication of Requests for Proposal • Secure upload of bids • File delivery notifications Procurement Directorate

  25. e-Procurement Modules (2/2) • eBid allows registered firms to quote on-line in a secure environment • eCat I is a catalogue of NAMSA negotiated Basic Outline Agreements which allows Armed Forces to place orders on-line with registered NAMSA suppliers Procurement Directorate

  26. 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 Procurement Directorate

  27. e-Procurement and e-Signature With the e-Procurement application the procurement process is : • e-Transfer of RFP documents from SAP to the web • e-Registration to procurement application • e-Download RFP documents • e-Upload of bids from suppliers • e-Storage of bids in “virtual safe” until bid closing date • e-Transmittal of bids from registry to evaluation team • PRINT OUT A PAPER, VERSION OF THE CONTRACT TO BE SIGNED BY HAND, SENT BY MAIL, COUNTERSIGNED AND RETURNED BY MAIL Procurement Directorate

  28. Summary Procurement solution: • With flexible regulations adapted to the Alliance armed forces needs • Opened to new technologies • Particularly well adapted tool for the support of contingency operations Procurement Directorate

  29. Development of Slovak Industrial Return VALUE OF CONTRACT PLACED IN SLOVAKIA VALUE OF PURCHASES THROUGH NAMSA BY SLOVAKIA R = NOTE: MBC+NSIP funded projects are excluded as from 2009 on R= >=0.8 Well placed R= >= 0.25 et < 0.8 Less well placed R= < 0.25 Poorly placed POORLY PLACED COUNTRIES No procurement activity registered during this period Procurement Directorate

  30. Industrial Return Ratio 2011-2012 VALUE OF CONTRACTS PLACED VALUE OF PURCHASES THROUGH NAMSA R = NOTE: MBC+NSIP funded projects are excluded as from 2009 on R= >=0.8 Well placed R= >= 0.25 & < 0.8 Less well placed R= < 0.25 Poorly placed SVK Procurement Directorate

  31. Industrial Return Value of Contracts Placed TOTAL 2011 : MEUR 2,080.5 MEUR 0.007 Procurement Directorate

  32. Value of Contracts placed in Slovakia No Contracts have been placed TOTAL NAMSA MEUR SLOVAK SHARE 1,011 0% 1,460 0% 2,080 0.0003% 1,754 0% 1,551 0% Procurement Directorate

  33. NAMSA Customers 2011 TOTAL 2011 : MEUR 2,086.5 MEUR 5.00 Procurement Directorate

  34. Value of Purchases by Slovenia through NAMSA TOTAL NAMSA MEUR SLOVAK SHARE 1,075 0.09% 1,737 0.09% 2,087 0.24% 1,529 0.21% 1,614 0.12% Procurement Directorate

  35. Competitiveness of Slovak Industry for Supply SLOVAK BIDS AWARDS TO SLOVAK FIRMS RATIO = Procurement Directorate

  36. Contacts Analysis of Slovak Industry per line item SUPPLY JAN-DEC 2011 TOTAL NBR. OF CONTACTS : 2 NONE NO REPLY POSITIVE CONTACTS (100%) NO NEGATIVE CONTACTS Procurement Directorate

  37. Contacts Analysis of Slovak Industry per line item SERVICES JAN-DEC 2011 TOTAL NBR. OF CONTACTS : 24 NO POSITIVE CONTACTS NO REPLY (100%) NO NEGATIVE CONTACTS NAMSA Procurement Directorate

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