NATO Procurement OpportunitiesNicholas Marum

Director, Industry Relations, Analysis and PolicyDepartment of National Defence

DIRECTOR GENERAL INTERNATIONAL AND INDUSTRY PROGRAMS

ASSISTANT DEPUTY MINISTER (MATERIEL)

• Strategic Context

• NATO Procurement Agencies

• What Does NATO Procure

• How NATO Procures

• Challenges for Canadian Industry

• Key Takeaways & Events

• Points of Contact & Websites

Outline

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 theAtlantic and within Europe, and a robust industrial base in the whole of Europe andNorth America, remain essential for acquiring needed Alliance capabilities.”

-Warsaw Summit Communiqué, 8 July 2016

6

Canada and NATO

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.

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.

NATO Procurement Agencies

4

What Does NATO Procure?

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.

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

What Does NATO Procure?

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

NSPACompanies 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

NCIABusiness 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

How NATO ProcuresNSPA Procurement Process

http://www.nspa.nato.int/en/organization/procurement/procurement.htm

NSPA Procurement Process

How NATO Procures

NSPA Procurement Process

How ATO Procures

1

2

3

4

NCIA Procurement Processhttps://www.ncia.nato.int/Pages/homepage.aspx

How NATO Procures

1

2

3

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

Challenges for Canadian Industry

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) 2nd Industry Day• On 5 November 2018, in Capellen, Luxembourg, the NSPA will hold the 2nd

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

Takeaways & Events

National Defence and the Canadian Armed Forces Portalhttp://www.forces.gc.ca/en/business-connecting-foreign-markets/international.page

NATO Business Portalhttps://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 Pagehttp://www.forces.gc.ca/en/business-connecting-foreign-markets/nato-events.page

NATO Procurement Websites

Nicholas MarumDirector, Industry Relations, Analysis and Policy

Nicholas.marum@forces.gc.ca

LCol Martin BedardCanadian Liaison Officer, NSPA

calo@nspa.nato.int

Joanna GlowackiNational Technical Expert, NCIAJoanna.glowacki@ncia.nato.int

Points of Contact