3. procurement at the nspa fesquet - economie.fgov.be · (53) taranto, ita nspa: hq & logistics...

PREPARED FOR

PRESENTED BY

Procurement at the NSPA

NATO BENELUX Industry Day

23 March 2018

Patrick FESQUETDirector of Procurement

[email protected]

OutlineOutline

NATO UNCLASSIFIED Patrick FESQUET - Director of Procu rement 2

1. NSPA Overview

2. NSPA Procurement Processes

3. E-Procurement

4. Activities with BE-NE-LUX

3Patrick FESQUET - Director of Procurement

1. NSPA Overview

NATO UNCLASSIFIED

Agency DirectionAgency Direction

4

Reference: NSPO Charter 1 April 2015

NATO UNCLASSIFIED

Vision: ... NATO’s premier life cycle management (including acquisition) and services provider, effectively and efficiently delivering integrated capabilities for NATO, its Nations and Partners including support to operations and exercises.

Mission: … provide responsive, effective and cost-efficient a cquisition, including armaments procurement; logistics; operati onal and systems support and services to the Allies, NATO Military A uthorities and partner nations, individually and collectively, in time of peace, crisis and war, … maximize the ability and flexibility of their arme d forces, contingents,

and other relevant organisations, within the guidan ce provided by the NAC, to execute their core missions.

Patrick FESQUET - Director of Procurement

NSPA Capability PortfolioNSPA Capability Portfolio

5NATO UNCLASSIFIED Patrick FESQUET - Director of Procurement

NSPA Organizational DesignNSPA Organizational Design

6

PROCUREMENT

INFORMATION TECHNOLOGY

HUMAN RESOURCES

FINANCE

SUPPORT FUNCTIONS

NATO AIRLIFT MANAGEMENT

(NAM)

NSPA GENERAL MANAGER

SUPPORT TO OPERATIONS

EUROPE PIPELINE CENTRAL

EUROPE PIPELINE SYSTEM(CEPS)

� 1369.5 NATO International Civilians(Approved positions for 2018)

NATO NORTH ATLANTIC COUNCIL (NAC)

NSPO AGENCY SUPERVISORY BOARD

BUSINESS UNITS

NATO UNCLASSIFIED

LIFE CYCLE MANAGEMENT


Geographical LocationsGeographical Locations

7

Southern OperationalCentre (53) Taranto, ITA

NSPA: HQ & Logistics Operations (1143,5) Capellen, LUX

NATO AirliftManagement Programme(50) Pápa, HUN

Central Europe Pipeline System (37,5) Versailles, FRA

NSPA Embedded Staff (41)• NATO HQ• SHAPE, JFCs• AFGHANISTAN• SIGONELLA…

Country Liaison Officers• 20

NATO UNCLASSIFIED Patrick FESQUET - Director of Procu rement

Management of a NATO pipeline system :

• largest pipeline system in NATO (9 in NPS)• integrated, cross-border pipeline and storage system

• jet fuel (75%), diesel/gasoline/naphtha (25%)

• military / commercial business model• non-military co-use with Military Priority Clause

88

Central Europe Pipeline System (CEPS)Central Europe Pipeline System (CEPS)

NATO UNCLASSIFIEDNATO UNCLASSIFIED Patrick FESQUET - Director of ProcurementPatrick FESQUET - Director of Procurement

NATO Airlift Management (NAM)

Support to Strategic Airlift Capability (SAC)• three C-17s Boeing Globemaster aircraft• multi-national owned capability established in 2008 • NAM directly supports Heavy Airlift wing (HAW)

12 SAC Nations - use of hours • for national, NATO, EU & UN missions• pre-agreed allocation of annual flight hours• available for 3rd party use via SAC Nation sponsorship

99NATO UNCLASSIFIEDNATO UNCLASSIFIED Patrick FESQUET - Director of Procu rementPatrick FESQUET - Director of Procurement

Deterrence and Defence (D&D) – what we are doing

10NATO UNCLASSIFIED

Nations• Planning & exercise

support

• Enhanced Forward Presence and Very High Readiness Joint Task Force - Ex. fuel

• Permanent Infrastructure

• Deployable Infrastructure

• ….

NATO• Planning & exercise

support

• Rapidly Useable Enabling Contracts (RUEC) / contractual work

• Capability Packages

• ….Real-life support (food, water…)

Construction

Capabilities and

operational experience

Real life support

Infrastructure – construction and support

Planning

Fuel

Transport and

warehousing

Other• air traffic

control• hire cars

• translators• passes &

permits


Support to Operations

NATO UNCLASSIFIED

Deployed team:

50 NSPA staff /

1825 contractors

11

• Base Support Services

• Catering Services

• Airfield Services

• Engineering Services

• Fuel

• Construction

• Equipment Support

• Transport and storage

• Medical Services

Afghanistan

Kosovo

Iraq

Mali


Trust Funds – NSPA as executing agentTrust Funds – NSPA as executing agent

44 NATO Trust Fund projects* (€100M) since 1998 • Capacity building & training• De-militarization & de-mining • Ammo disposal & hazardous waste • GEO, UKR, EGY, MRT, MDA, IRQ, AFG, …

66 CSTC-A projects (USD$546M) tasked• Mi-17• Uniforms• Medical supplies• Infrastructure• Training

12

NATO UNCLASSIFIED

NATO UNCLASSIFIED Patrick FESQUET - Director of Procurement

Life Cycle Management

NATO UNCLASSIFIED 13

Cradle-to-Grave• Concept development

• AFSC

• Acquisition

• MRTT, APCs (POR), …

• In Service Support

• + 30 Spt Partnerships (SPs)

• Disposal

Patrick FESQUET- Director of Procurement

Finance and ComplianceFinance and Compliance


• No Profit - No Loss! • NSPO Charter requires application of NATO Financial Regulations• NSPO is annually audited by IBAN• GM/FINCON sign Financial Statements & Statement of Internal Control• Budget: NSPA operates two - Operational Budget & Administrative Budget

• Funding: Customers only pays for services requested• overhead portion of admin costs are allocated to all customers via fair allocation key

• IAW NSPO Financial Rules and Procedures


Operational Budgets Business Trend in KEUROperational Budgets Business Trend in KEUR


Source: Commitments raised each year

Log Ops – 2014 drop related to ISAF drawdown Include Support to OCCAR TIGER & A400M

NAM – peaks reflect multi-year commitments related t o sustainment/training through FMSLOGOPS - 2017 Purchase of 5 additional MRTTP 1,039 MEUR

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

5.000.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

LOGOPS CEPS NAMP


Business per Customer in 2017


*Business total: 4.7 BEUR+ Administrative support costs 2017 = 152 MEUR

*Figure includes OCCAR contracts totaling 362 MEUR (A4 00M, Cobra and Tiger)

93% Customer Funding

7% NATO Funding

National/multinational projects

NSIP and mil budget funded projects

Patrick FESQUET- Director of Procurement

Nations - % of NSPA Business - 2017

17NATO UNCLASSIFIED

Other Nations fund <2% each

Germany; 30

United States; 18Turkey; 11

Netherlands; 9

France; 6

Italy; 6Spain; 3

9% = 400 MEUR


Team DemographyTeam Demography

18NATO UNCLASSIFIED

March 2018 – 1154 staff



2. NSPA Procurement

NATO UNCLASSIFIED

NSPA Procurement PolicyNSPA Procurement Policy


1. QUALITY• AQAP-ISO

2. TIMEFRAME

3. PRICE• Lowest technically compliant• Best values

OBJECTIVES PRINCIPLES

1. CONSOLIDATION• Key Lever

2. INDUSTRIAL BENEFITS

REDISTRIBUTION• Requested by Nations

3. COMPETITION• Standard approach

NSPA Procurement PolicyNSPA Procurement Policy


Two principle forms of contracting

1. Supply Contracts : spare parts

2. Service Contracts : MRO, engineering, demilitarization, etc

International Competitive Bidding(ICB)1. Normal procedure

2. Firms MUST be registered in the NSPA

supplier data base

3. Solicitation of all sources over 80K*

Foreign Military Sales (FMS )In some cases

Single Source

Under certain conditions:

1. Urgency

2. Low Value

3. Security

4. Commonality of Equipment*these limits are under evaluation for increase

Procurement Policy: Limitations and ConstraintsProcurement Policy: Limitations and Constraints


NSPA Nations

NSPA NATIONS - NATO

Unavailability of Technical Data

Partner nations under certain circumstances (e.g. PfP Trust Funds, associate state to a Support Partnership , Troop Contributing Nation to an operation)

Partner Nations

.

Technical Data

Competition restricted by some Support Partnerships(e.g. PATRIOT, Ammunitions Support Partnership)

Competition

NSPA Contract AwardNSPA Contract Award

NATO UNCLASSIFIED Patrick FESQUET - Director of Procurement 23

1. Proposals received

• Kept in safe until afterclosing date

• Late proposals not taken into consideration

2. Selection of the best proposal

• Team of procurement and programme personnel

4. Award of Contract

• Lowest fully responsive offer (technical compliance + lowest offer)

3. Pre contractaward claim and dispute procedure

5. Unsuccessfulbidders informed

Article 11 of NSPO Procurement Regulations

Procurement Facts and FiguresProcurement Facts and Figures

NSPA in 2017

Activities monitored by International Board of Auditors

• Workforce 128 people work directly inProcurement

• Value of contracts placed: 4,35 BN €

• Industry in Source File : over 10 000 firms throughou tNATO

• Procurement Administrative Lead Time for Supplies: 60 days

• Number of Stand-Alone Contracts: 10 584• Number of Call-Offs: 20 955

Patrick FESQUET - Director of ProcurementNATO UNCLASSIFIED 24


3. E-Procurement

NATO UNCLASSIFIED

eProcurementeProcurement

Two main functions:

Procurement @ NSPA �� Serves as info hub

General Rules and Provisions, Forms, Competition Advocacy, Contracts Awarded, Bid

Openings, External links (NATO online library, information on exports)

Business @ NSPA �� Single point of entry to e-Procurement apps

To facilitate communications and integration of business processes with vendors/suppliers

How to do business with NSPA , Supplier registration , Future Business

Opportunities , Requests for Proposal , eCat1 Direct online Ordering


Homepage: https://eportal.nspa.nato.int


eProcurement (cont’d)eProcurement (cont’d)

e-Procurement functionalities:

e-Transfer of Request for Proposal (RFP) documents to the web

e-Registration to procurement application

e-Download RFP documents

e-Upload bids from bidders

e-Storage of bids in a “virtual safe” until the Bid Closing Date

e-Transmittal of bids from Registry to the Evaluation Team

NATO UNCLASSIFIED 27Patrick FESQUET - Director of Procurement



NSPA websitewww.nspa.nato.int




eProcurement

1

23



4. Activities with BE-NE-LUX

NATO UNCLASSIFIED

Value of Contracts placed in BelgiumValue of Contracts placed in Belgium


0

10

20

30

40

2013 2014 2015 2016 2017

24,1722,10

14,78 17,28 17,88

MEUR

TOTAL NSPA MEURBELGIAN SHARE

2,0691.07%

4,3590.41%

2,9550.58%

2,4950.59%

2,3831.01%


Value of Contracts placed in the NetherlandsValue of Contracts placed in the Netherlands


0

100

200

300

400

2013 2014 2015 2016 2017

118,5 130,4

315,5262,3

318,0

MEUR

TOTAL NSPA MEURNETHERLANDS SHARE

2,0696.30%

4,3587.30%

2,9558.88%

2,49512.65%

2,3834.97%


Value of Contracts placed in Luxembourg


0

10

20

30

2013 2014 2015 2016 2017

19,93 19,8621,60

19,0524,01

MEUR

TOTAL NSPA MEURLUXEMBOURG SHARE

2,0690.96%

4,3590.55%

2,9550.64%

2,4950.87%

2,3830.84%

Industrial Return Value of Contracts PlacedIndustrial Return Value of Contracts Placed


0%

5%

10%

15%

20%

25%

30%

ESP USADEU NLD ITA FRAGBRTURROUNOR CZE GRC LUX BGR BEL ALB LVA POL SVK PRT DNKHUNHRV SVN CAN EST LTU MNE ISL

TOTAL 2017 : MEUR 4,358.68

MEUR 24.01


MEUR 318.02

MEUR 17.88

Value of Purchases by Belgium throughNSPA

Value of Purchases by Belgium throughNSPA


0

10

20

30

40

50

2013 2014 2015 2016 2017

26,2518,41 21,19 20,35

40,87

MEUR

TOTAL NSPA MEURBELGIAN SHARE

1,9760.93%

4,2930.95%

2,9020.69%

2,3961.10%

2,4930.85%


Value of Purchases by the Netherlandsthrough NSPA

Value of Purchases by the Netherlandsthrough NSPA


0

100

200

300

400

500

600

2013 2014 2015 2016 2017

56,9 73,9 69,5

504,3

399,6

MEUR

TOTAL NSPA MEURNETHERLANDS SHARE

1,9763.74%

4,2939.31%

2,90217.2%

2,3962.38%

2,4932.79%

Value of Purchases by Luxembourg through NSPA

Value of Purchases by Luxembourg through NSPA


0

20

40

60

80

2013 2014 2015 2016 2017

5,48 2,23 3,99

54,32

71,73MEUR

TOTAL NSPA MEURLUXEMBOURG SHARE

1,9760.11%

4,2931.67%

2,9021.85%

2,3960.23%

2,4930.16%


NSPA Customers 2017NSPA Customers 2017


0%

5%

10%

15%

20%

25%

30%

DEU USA TUR NLD FRA ITA ESP GBR LTU LUX NORPOLGRC BEL CZE ROUDNK PRT CAN LVA HUN SVN SVK HRVBGR EST ISL ALB MNE

TOTAL 2017 : MEUR 4 292.79

MEUR 399.62

MEUR 71.73MEUR 40.87

Industrial Return Ratio 2017-2018Industrial Return Ratio 2017-2018


0

5

10

15

20

25

30

ALB BGRHUN CAN GBR ESP LVA NOR FRA SVK DEU PRT NLD DNK LUX BEL ITA USA ROU CZE EST LTU POL TUR GRC HRV SVN ISL

136,65

12,72

11,90

3,392,69

2,53 1,891,40 1,35 1,31 1,141,131,12 0,93 0,92 0,73 0,70 0,68 0,68 0,39 0,38 0,36 0,35 0,320,29 0,04 0,00 0

R= >=0.8 Well placedR= >= 0.25 & < 0.8 Less well placedR= < 0.25 Poorly placed

NOTE: MBC+NSIP funded projects are excluded as from 200 9 on

R = CONTRACTS IN NETHERLANDS *

CONTRACTS IN NSPO NATIONS

SALES IN NETHERLANDS *

SALES IN NSPO NATIONS

* Based on the contracts and sales of the 3 years preceeding the applicable year

Well placedWell placed

Less well placed

POCs

NSPA Procurement:

• Director of ProcurementMr Patrick FESQUET E-mail: [email protected]

tel: +352/3063 6565• Competition Advocate

Mrs Eleanor SUMMERS E-mail: [email protected]: +352/3063 6569

• Source FileMr Carlos FERRER- LOPEZ E-mail: [email protected]

tel: +352/3063 6563

Patrick FESQUET - Director of ProcurementNATO UNCLASSIFIED 40


THANK YOU!

3. procurement at the nspa fesquet - economie.fgov.be · (53) taranto, ita nspa: hq & logistics...

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