NAMSA: NATO MODERN LOGISTICSPRINCIPAL ELEMENT

Ltc Josef PROCHÁZKA, MSc. Jozef ŠMONDRK, Ph.D.

Abstract:NAMSA (NATO Maintenance and Supply Agency) is one of the most important

elements of cooperative logistics for both NATO and PfP nations. Its task is to provide logistic services in support of weapon and equipment systems common for NATO nations.

¬¬¬

NAMSA (see g. 1) established in 1958 is the executive body of NATO Mainte-nance and Supply Organization (NAMSO) (see g. 2).

Fig. 1: NAMSA’s locations and role within NATO organisation structure

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NAMSA’s central ofce is seated in Capellen, Luxembourg. Besides, it has got two detached centres, i.e. “Southern Operational Centre of NAMSA” in Taranto, south-ern Italy and specialized centre for providing logistic support on HAWK missiles in Rueil – Malmaison close to Paris, France.

NAMSA Southern Operational Centre allows NATO member countries thanks to its unique strategic location to advance and deploy necessary materiel for possible utilisation in the theatre of operation at the Mediterranean or Balkans, Middle East, Northern Africa, which substantially contributes to saving funds. The primary operation missions of the centre are materiel stocking and distribution. The cooperation and sup-port of Capellen personnel the Operation Centre can also meet requirements of neces-sary materiel acquisition.

Fig. 2: Structure of NATO Maintenance and Supply Agency

NAMSA is considerable contributor to logistic support of NATO armed forces deployed in Bosnia and Herzegovina (SFOR) or in Kosovo (KFOR).

NAMSA’s mission and primary task are providing for and control of logistic support for NATO member countries and, based on the undersigned “Memorandum of Understanding”, PfP (Partnership for Peace) countries. NAMSA concentrates on arrangement of specialized services (supply, maintenance, transport, contract manage-ment, quality control, etc.). Special attention is paid to providing logistic support in the weapon and equipment systems common for two or more NATO members.

NAMSA plays another signicant role in the relation to the NATO Codication System (NCS). It provides full scope administrative support for NATO AC/135 Com-mittee (Group of National Directors on Codication) who is responsible for the NATO Codication system.

General Manager

Projects & Development

Executive Manager & Staff

Director of Logistics

Director of Procurement

Director of Finance

Director of Resources

Division of Programmes

SOC

Division Division Divisions

HAWK Log Sup

Legend: SOC – Southern Operational Centre HAWK Log Sup – HAWK missile logistic support management

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NAMSA: NATO MODERN LOGISTICS PRINCIPAL ELEMENT

The following is the list of NAMSA principal activities:l Consolidation of member countries’ all logistic requirements,l Centralization of logistic actions,l Centralization of available sources of logistics implementation,l International competitive biddings in line with market economy principles,l Making contracts upon the international competitive bidding results.

The actions are to achieve the required better effectiveness of logistic operations and saving cost through common approach to weapon systems maintenance a repair, supply, procurement, transport, and other services.

Weapon Systems Logistic SupportLogistic support of weapon systems belongs to NAMSA key activities (see g. 3).

The logistic support aims now its main effort at:l Artillery weapon systems and track vehicles,l Aircraft, rockets and missiles,l Air defence weapon systems,l Navy weapon systems, l Communication and information systems.

NAMSA offers particular services to provide for the weapon systems operation rather than stores complete weapon systems in its installations. Weapon system logistic support is then represented by a contract on maintenance and repair services of specied scope including spare parts supply and personnel training, if required, both in peace and possible crisis time. NAMSA has established mobile engineering teams equipped with necessary instrumentation, tools and manned by highly professional personnel for that purpose.

NAMSA provides for logistic support on common funding basis from Alliance common funds (usually from the NATO military budget items) of other common pro-grammes, such as communication or AWACS technology.

Considerable effort is paid by NAMSA to enhance the number of partnerships in the weapon systems logistic support with the NATO new member countries and within PfP programme also with other countries particularly those from the Eastern Europe. Considerations are taken for common logistic support of such weapon system as T-72 tank, BMP-1 AIFV or Mi-24 helicopters. Another option of utilisation NAMSA serv-ices by those countries is accession to already existing partnerships for procurement of appropriate weapon systems within their armed forces modernization processes. The Czech Army logistic support should particularly consider rocket and missile technology spheres if procured from abroad.

An example of existing partnerships in the weapon system logistic support and countries participation is shown in g. 3.

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Source: NAMSA, Business Report 2003. Capellen, Luxembourg, 2003Legend: @.............. used services ? ............... project under developmentWSP ......... Weapon system Partnership SC............. Support Conference NMCRL ... NATO Master Cross Reference List NADB ..... NATO Ammunition Data Base NLSE ...... NATO Logistics Stock Exchange

Fig. 3: Weapon systems logistic support – users and potential users of NAMSA services (February 2003)

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140

BE CA CZ DA FR GE GR HU IT LU NL NO PL PO SP TU UK US NMA AU FI SW SZ Rakety HAWK WSP @ @ @ @ @ @ ? ? ? TOW WSP ? @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ ? MLRS WSP @ @ @ @ @ @ @ @ @ @ Patriot WSP @ ? ? @ @ Stinger WSP @ @ @ @ @ @ ? ? AMRAAM WSP ? @ @ @ @ ? @ @ ? @ HARM WSP @ ? @ ? ? Maverick WSP @ ? @ @ @ @ @ Letecká technika BE CA CZ DA FR GE GR HU IT LU NL NO PL PO SP TU UK US NMA AU FI SW SZ C-130/P3 Orion WSP @ @ ? @ @ @ @ @ @ @ NATO AWACS @ @ @ @ @ @ @ @ @ @ @ @ @ @ Helikoptéry WSP ? ? ? @ ? @ @ ? @ @ @ ? @ NH-90 @ @ @ @ ? @ @ @ F-16 ? ? ? ? ? ? ? ? ? F/A-18 ? ? ? ? ? ? Bojová pozemní technika BE CA CZ DA FR GE GR HU IT LU NL NO PL PO SP TU UK US NMA AU FI SW SZ M-113 WSP @ ? @ @ @ @ @ M-60/M-110 WSP @ @ @ @ M-109 WSP @ @ @ @ @ T-72, BVP, … ? ? ? ? ? ? Námořní technika BE CA CZ DA FR GE GR HU IT LU NL NO PL PO SP TU UK US NMA AU FI SW SZ MK-46 Torpedo WSP @ @ @ Port Services SC @ @ ? ? @ @ ? Komunikační technika 1) Radary a průzkum BE CA CZ DA FR GE GR HU IT LU NL NO PL PO SP TU UK US NMA AU FI SW SZ AADGE @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ RAT-31 SC @ @ @ @ @ @ AN/FPS-117 SC @ @ @ @ ? @ SSSB DPDS WSP @ @ @ COBRA @ @ @ ? ACCS LOC 1 ? ? ? ? ? ? ? ? ? Logistika BE CA CZ DA FR GE GR HU IT LU NL NO PL PO SP TU UK US NMA AU FI SW SZ NMCRL Fee @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ NLSE Fee @ @ ? @ @ @ @ ? @ ? @ @ ? @ @ @ @ @ @ @ @ @ NADB Fee @ @ ? @ @ @ @ @ @ ? @ @ @ @ @ @ @ @ @ Munice Fee @ ? @ @ @ @ @ ? @ ? @ @ ? @ @ @ @ @ Random Brokerage Fee ? @ @ @ @ ? @ @ @ @ @ @ Pipeline Repair Fee @ @ @ @ @ @ @ PfP Trust Fund Fee @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @

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Electronic logisticsNAMSA very exibly answers the communication and information technologies

development utilizing their capabilities in a more effective functioning of logistic sup-port of stock control (information exchange, supply system control and rationalization, supply items cataloguing, virtual stock control making, technical manuals or other addi-tional documentation digitising).

The electronic logistics takes full advantage of the NATO Logistics Stock Exchange project (NLSE) (see g. 4). NLSE interconnects electronically NAMSA, national armed forces and industries to exibly satisfy military material requirements. It could be taken as an “electronic forum” the participating subjects can use as a frame-work for communication, establishing necessary contacts or trading.

Fig. 4: NLSE – NATO Logistics Stock Exchange

Users logistic stock exchange (NLSE) is based on effective utilisation of other major projects such as:

l SHARE (Stock Holding & Asset Requirements Exchange),l COMMIT (Common Item Material Management System).

NAMSA: NATO MODERN LOGISTICS PRINCIPAL ELEMENT

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NAMSO (member countries)

(USERS)

Surplus assets to share

(SHARE) Third party logistic support services

database

Electronic sourcing

(eCat)

Virtual depots

(COMMIT)

Industry

Electronic requirements and offers

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SHARE and COMMIT projects make the NLSE baseline and essential parts to complete its mission.

SHARE project aims at monitoring stockholdings current status, re-supply and exchange requests. SHARE purpose is to make the stockpiles exchange easy among the users by offering an effective linkage of their specic requirements on one hand and particular item availability information on the other.

COMMIT project purpose is to provide for common supply item fund establish-ment based on the principle of applied virtual gathering of the supply items commonly used by member nations (both NATO member and PfP countries). Such an attitude allows substantial reduction of supplies and thus future surplus risk and concurrently improved level of services. It is a way to avoid duplicity, small scale or sporadic orders, to achieve better price upon aggregated order and associated purchase within unied supplies management.

Contract making NAMSA makes contracts to cover its own activity as well as the national needs

through material and service purchase of the consolidated requests by the nations. The idea is that purchase of higher amount of goods or services should imply reduced the end price and bring nancial effects for each nation.

NAMSA also exerts effort in the contract-making issues within multinational forces operation deployment in the crisis areas, particularly in building or restoring the vital infrastructure in the area of deployment, such as rebuilding bridges, roads, railways, airports and operational important facilities or headquarters. Another covered sphere is operating and maintaining communication systems. For instance, the contracts on that subject have reached 5,500 cases in Balkans in the recent 7 years for EUR 300 mil. The contracts have been nanced from NATO Security Investment Programme (NSIP) or NATO military budget funds.

NAMSA employs almost 70 personnel directly for making contract who make 17.5 thousand contractual relations a year in the total amount of EUR 428 mil. Majority of 10 thousand contracts are priced under EUR 2.5 thousand. Another 6 thousand con-tracts are under the total order price of EUR 125 thousand. Some four hundred contracts move above the amount of EUR 125 thousand.

NAMSA’s wide scope activity in the logistic support matters forms opportunities to engage national industries in the orders made within the agency contracts. Figure 5 shows a review of national industries engagement.

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Fig. 5 obviously shows that the largest NAMSA – provided services purchasers are Germany (29.4 % in 2002) and the United States (24.3 % in 2002). Also industry in the two countries participates in the largest number of orders for NAMSA.

Source: NAMSA, Business Report 2003. Capellen, Luxembourg, 2003

Fig. 5: NAMSA – review of services and contracts made in 2002

ConclusionNAMSA is an important element of international logistics particularly purposed

in providing services to the armed forces of NATO member countries, but PfP countries as well, that contribute to the multinational peace support or humanitarian operations.

NAMSA employee number nowadays closes one thousand. Its efciency has con-stantly grown since 1995 reaching almost twice the capacity of 1995, from EUR 263 mil. to EUR 499 mil. in 2002 (see. g. 6).

The trend indicates growing interest from the national side in the type of provided services primarily related to a higher pressure on more effective use of limited nance resources.

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Provided services and industrial contracts in 2002

1,22,2

1,49

1,6

2,91,5

0,4

3,17,5

0,61,8

3,2

15,33,2

1,2

5,626,2

0,1

3,624,3

0,059,2

0,08

0,08

29,4

0,8

1,81,6

0,1

2,7

1,1

4,70,6

1,6

30,1

0 5 10 15 20 25 30 35

Belgium

Canada

Czech Republic

Danmark

France

Germany

Greece

Hungary

Italy

Luxembourg

Netherlands

Norway

Poland

Portugal

Spain

Turkey

United Kingdom

United States

Austria

Other

in %

Agency Services Contracts made by the agency

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The Czech Republic has been quite reserved in NAMSA-provided services usage. So far, it has procured – and funded – services in the amount of one tenth per cent of NAMSA capacity ranking together with Hungary, Poland and Luxembourg the least cus-tomer out of NATO member countries. It is similar to usage of our industry capacity. Fig. 5 obviously shows out that no contract was made with Czech industry in 2002 on serv-ice or material supply to NAMSA. The Czech industry subjects who could offer their abilities to the agency may use the form available in NAMSA web pages and register in potential suppliers database counting over 10 thousand. For more information on this issue contact the liaison ofcer (e-mail: czlo@namsa.nato.int) who is to represent Czech interests in NAMSA.

Source: NAMSA, Business Report 2003. Capellen, Luxembourg, 2003

Fig. 6: NAMSA turnover development in 1992—2002

ReferencesŠILER , Petr. Kooperativní logistika NATO budoucnost logistiky AČR. [Sborník z odborné konference

“Logistika a její perspektivy v AČR”]. Vyškov: VVŠ PV ve Vyškově, RVOd VA ve Vyškově, 2001. pp. 32—36.

NAMSA Business Report 2001. Capellen (Luxembourg): NAMSA, 2001. 32 p. NM(2001)BOD/18.NAMSA Business Report 2003. Capellen (Luxembourg): NAMSA, 2003. 36 p. NM(2003)BOD/18.Internet: www.namsa.nato.int

NAMSA Point of contact:NATO Maintenance and Supply Agency L – 8302 Capellen, G.D. Luxembourg

Tel.: +352-30 631e-mail: contact@namsa.nato.int

387348

320263 293

335 332 362418

501 499

0

100

200

300

400

500

600

Mil.

EU

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

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