ASSISTANT DEPUTY MINISTER (MATERIEL) DIRECTOR GENERAL INTERNATIONAL AND INDUSTRY PROGRAMS NATO Procurement Opportunities Nicholas Marum Director, Industry Relations, Analysis and Policy Department of National Defence
Outline • Strategic Context • NATO Procurement Agencies • What Does NATO Procure • How NATO Procures • Challenges for Canadian Industry • Key Takeaways & Events • Points of Contact & Websites
Canada and NATO Transatlantic defence technological and industrial cooperation “A stronger defence industry across the Alliance, which includes small- and medium- sized enterprises, greater defence industrial and technological cooperation across the Atlantic and within Europe, and a robust industrial base in the whole of Europe and North America, remain essential for acquiring needed Alliance capabilities.” - Warsaw Summit Communiqué, 8 July 2016 Strong, Secure, Engaged The policy highlights NATO’s importance to Canada, and reaffirms Canada’s support for NATO’s principle of collective defence. SSE makes a number of human, financial, and material contributions to NATO’s efforts to adapt to the evolving global security landscape. 6
NATO Procurement Agencies NATO Support & Procurement Agency (NSPA) • NSPA is NATO’s principal logistics support management agency. • NSPA procures approximately C$7 billion of goods and services annually. NATO Communication & Information Agency (NCIA) • NCIA is NATO’s principal agency for the acquisition of advanced and state-of- the-art C4ISR capability. • NCIA procures approximately C$1 billion of goods and services annually. NATO Headquarters / Others • Represent less than 5% of NATO’s total procurement.
What Does NATO Procure? 4
What Does NATO Procure? NATO Support & Procurement Agency (NSPA) • Aviation life cycle, upgrade (e.g. A400M and NH-90/TIGER, A330 MRTT, NATO AWACS E-3A, etc.) • Air and Land Combat Systems acquisition and life cycle (e.g. combat vehicles, artillery systems, surface and launched missiles) • Communications, Air and Missile Defence acquisition and life cycle (e.g. Patriot, Hawk, NASAMS, Cobra, etc.) • UAVs life cycle – Global Hawk to be deployed south of Italy in 2018 for AGS • Ammunition procurement and disposal • Support to Operations and NATO Exercises (Real Life Support, Airfield Services, Engineering Services, Fuel Services, Infrastructure including deployable camps assets) • Naval Logistics Support (Port services, Provision of Naval Equipment) • Transportation (Strategic movement of persons and material, and general transportation services.
What Does NATO Procure? NATO Communication & Information Agency (NCIA) • Communications wireless, SATCOM (ground segment and bandwidth provision) • Air Command and Control (AirC2) Communication and Information Services (CIS) • Ballistic Missile Defense (BMD) • Enterprise Services life cycle support, H/W & S/W upgrade, portal, data management, security, IT infrastructure, information exchange, technology modernization • Deployable CIS SERMARCOM, extend in-life service, provide garrison facilities to DCIS • Cyber Defence and Security cyber range, crypto services • CIS Support to Exercises, Operations and Training simulation systems, CIS planning capability, interoperability, nuclear
How NATO Procures NATO Procurement Principles • Procurements are mostly restricted to industry from the 29 NATO member countries; • Adhere to NATO-approved international competitive bidding rules, a transparent procurement process; • Contracts are generally awarded on a “lowest cost compliant” basis, but “best value” is used on complex procurement; • No targets set for economic benefits in each of the member nations, irrespective of national contribution, however, NSPA attempts to balance national industrial return for Nations which buy more from NSPA than they sell to; • Use of simple dispute resolution mechanism
How NATO Procures NSPA Companies must register as an authorized supplier with the Agency to receive notices about ongoing and future procurements. Canadian Industry & NSPA • Approximately 33,000 contracts are awarded by NSPA annually, 75% of these are below C$15,000. • Annually, NSPA publishes approximately 800 RFPs for requirements greater than C$120,000. • In 2017, Canadian industries were awarded a total of 97 contracts valued at C$4.96 million. • There are 68,000 companies registered with NSPA, only 700 are Canadian (1%).
How NATO Procures NCIA Business opportunities with the Agency are found on the Agency’s Bulletin Board. Companies may also sign a Basic Ordering Agreement (BOA) with the Agency for Commercial Off-the-Shelf products or services. Canadian Industry & NCIA • In 2017, Canadian industries were awarded approximately C$15.4. • Approximately 50% of contracts are awarded on a sole source basis. • Approximately 850 companies are registered on Basic Ordering Agreements (BOAs) with NCIA, only 26 are Canadian companies (3%).
How NATO Procures NSPA Procurement Process http://www.nspa.nato.int/en/organization/procurement/procurement.htm
How NATO Procures NSPA Procurement Process
How ATO Procures NSPA Procurement Process 2 3 4 1
How NATO Procures NCIA Procurement Process https://www.ncia.nato.int/Pages/homepage.aspx 1 2 3
Challenges for Canadian Industry 1. Lack of awareness of NATO opportunities 2. Perception of a complicated and bias procurement process 3. Procurement process is not standard across the various NATO organizations and agencies 4. Canada’s geographic location (e.g. distance, shipping costs, time zones) 5. Real competition among NATO Member Nations
Takeaways & Events Key Takeaways 1. Monitor NSPA and NCIA Websites for business opportunities 2. Register with NSPA Source File as a potential supplier and be certain to extensively describe your core activities. 3. Register with NCIA for Basic Ordering Agreement (similar to PSPC’s Supply Arrangement 4. Establish your security accreditation 5. Reach out to Canadian points of contact for assistance
Takeaways & Events Key Events Alliance Future Surveillance and Control (AFSC) 2 nd Industry Day • On 5 November 2018, in Capellen, Luxembourg, the NSPA will hold the 2 nd AFSC Industry Day. The first industry day held in April 2018 brought together more than 80 companies from 20 different nations. Attendees received information on the AFSC project and NSPA’s plans for future industry involvement starting from 2019. NATO Industry Conference & TechNet International (NITEC) • Hosted by NCIA, NITEC offers insight into the Alliance’s emerging technological and cyber needs, and provides access to programme managers. • NITEC 2019 will be held in Olso, Norway, 20-22 May 2019
NATO Procurement Websites National Defence and the Canadian Armed Forces Portal http://www.forces.gc.ca/en/business-connecting-foreign-markets/international.page NATO Business Portal https://www.nato.int/cps/ua/natohq/62249.htm NATO Support and Procurement Agency (NSPA) http://www.nspa.nato.int/en/organization/procurement/procurement.htm • Requests for Proposals (RFPs) • Future Business Opportunities (FBOs) NATO Communication and Information Agency (NCIA) https://www.ncia.nato.int/Industry/Pages/Home.aspx • Current Opportunities • Basic Ordering Agreement (BOA) FAQ NATO Events Page http://www.forces.gc.ca/en/business-connecting-foreign-markets/nato-events.page
Points of Contact Nicholas Marum Director, Industry Relations, Analysis and Policy Nicholas.marum@forces.gc.ca LCol Martin Bedard Canadian Liaison Officer, NSPA calo@nspa.nato.int Joanna Glowacki National Technical Expert, NCIA Joanna.glowacki@ncia.nato.int
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