How to do business with NSPA PREPARED FOR The institutional export - unused opportunities for Estonian companies 11 March 2015 PRESENTED BY Robbert SMIT Deputy Director of Procurement & Competition Advocate Robbert.smit@nspa.nato.int www.nspa.nato.int Overview 1. Procurement Processes 2. How to be invited to NSPA • NSPA e-Procurement 3. Future Business Opportunities (FBO) 4. Activities with Estonia 5. Frenquetly asked questions 11 March 2015 Procurement Directorate 2 1. Procurement Processes 11 March 2015 Procurement Directorate 3 Activities Flow 11 March 2015 Procurement Directorate 4 NSPA Regulations tailored to International Cooperation • NSPO Charter • NSPO Procurement Regulations n°4200 • For NATO Budget Committee funded : BiSC 60/70 • Investment Committee AC/4-D/2261 11 March 2015 Procurement Directorate 5 NSPA Procurement Policy QUALITY OBJECTIVES TIMEFRAME PRICE CONSOLIDATION INDUSTRIAL BENEFITS REDISTRIBUTION PRINCIPLES COMPETITION * 11 March 2015 Procurement Directorate 6 NSPA 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 : 11 March 2015 - urgency - low value - security - commonality of Equipment Procurement Directorate 7 NSPA Procurement Policy: Limitations & Constraints • NSPA nations: NATO • Partner nations under certain circumstances (e.g. PfP Trust Funds, associate state to a Support Partnership , Troop Contributing Nation to an operation) • Competition restricted by some Support Partnerships (e.g. PATRIOT, Ammunitions Support Partnership) • Unavailability of Technical Data 11 March 2015 Procurement Directorate 8 Procurement policy & industry relations – NSPA in 2014 • Activities monitored by International Board of Auditors • 30,294 contractual instruments • Total contracted value MEUR 2,368.8, Supply 959.1, Services 1,212.2, Foreign Military Sales (FMS) 197.5 • Workforce 1,167 people of whom 128 work directly in Procurement • Relations with industry : 10,000 firms throughout NATO • Procurement Administrative Lead Time for Supplies: 37 days 11 March 2015 NSPA Procurement Directorate 9 NSPA Tendering Rules • To participate firms must be registered in the NSPA supplier data base • Selection from NSPA suppliers’ data base • Solicitation of at least 3 sources for requirements below EUR 80.000 • Obligation to consult all the capable suppliers for requirements above EUR 80.000 • Request for Proposals (RFPs) constitutes basis for binding contract • Fixed price preference 11 March 2015 Procurement Directorate 10 NSPA Contract Award • Proposals received • • • Selection of best proposal • • Kept in safe until after closing date Late proposals not taken into consideration Team of procurement and programme personnel Award of contract (Award Committee) • Lowest fully responsive offer (technical compliance + lowest offer) • Pre contract award claim and dispute procedure • Unsuccessful bidders informed 11 March 2015 Procurement Directorate 11 2. How to be invited to NSPA NSPA e-Procurement www.nspa.nato.int 11 March 2015 Procurement Directorate 12 e-Procurement Homepage Two main functions: • Serve as an info hub (Procurement@NSPA) Procurement rules, contract provisions, forms, practical information to suppliers, awarded contract, etc • Single point of entry to e-Procurement applications (Business@NSPA) Objective : to facilitate the communication and integration of business processes with our suppliers 11 March 2015 Procurement Directorate 13 Registration Process 11 March 2015 Procurement Directorate 14 Registration Process 11 March 2015 Procurement Directorate 15 Registration Process 11 March 2015 Procurement Directorate 16 Registration Process 11 March 2015 Procurement Directorate 17 Registration Process 11 March 2015 Procurement Directorate 18 3. FUTURE BUSINESS OPPORTUNITIES 11 March 2015 Procurement Directorate 19 Future Business Opportunities Future Business Opportunities (FBO) and, for NATO Infrastructure projects, Notifications of Intent (NOI) provide advance information to suppliers based in a NSPO nation about business opportunities for which NSPA may issue Requests for Proposals in the near future. It is recommended that your firm is electronically registered in the NSPA Source file in order to receive Requests for Proposals (RFP). 11 March 2015 Procurement Directorate 20 Future Business Opportunities & Requests for Proposals 11 March 2015 Procurement Directorate 21 FBO Supply - Service 11 March 2015 Procurement Directorate 22 FBO example 11 March 2015 Procurement Directorate 23 Future Business Opportunities & Requests for Proposals 11 March 2015 Procurement Directorate 24 RFP example 11 March 2015 Procurement Directorate 25 POCs NSPA Procurement Director of Procurement: Mr Patrick FESQUET E-mail: patrick.fesquet@nspa.nato.int tel: +352/3063 6565 Competition Advocate Mr Robbert SMIT E-mail: robbert.smit@nspa.nato.int tel: +352/3063 6569 Mrs Eleanor SUMMERS E-mail: eleanor.summers@nspa.nato.in t (as of 01 April 2015) tel: +352/3063 6569 Source File Mr Guy LANGENBACH E-mail: guy.langenbach@nspa.nato.int tel: +352/3063 6840 11 March 2015 Procurement Directorate 26 4. Activities with Estonia 11 March 2015 Procurement Directorate 27 Development of Estonian Industrial Return R= WELL PLACED COUNTRIES CONTRACTS IN ESTONIA * SALES IN ESTONIA * CONTRACTS IN NSPO NATIONS SALES IN NSPO NATIONS NOTE: MBC+NSIP funded projects are excluded as from 2009 on 1.00 0.75 LESS WELL PLACED COUNTRIES 0.50 0.39 0.36 0.31 POORLY PLACED COUNTRIES No procurement activity 0.25 0.11 0 0.00 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 * Based on the contracts and sales of the 3 years preceeding the applicable year 11 March 2015 NSPA Procurement Directorate 28 Industrial Return Ratio 2014-2015 R= 56.47 CONTRACTS IN ESTONIA * SALES IN ESTONIA * CONTRACTS IN NSPO NATIONS SALES IN NSPO NATIONS NOTE: MBC+NSIP funded projects are excluded as from 2009 on 46.13 10 R= >=0.8 Well placed R= >= 0.25 & < 0.8 Less well placed R= < 0.25 Poorly placed 8.25 8 6 3.21 2.58 1.65 1.62 1.09 4 2 0 1.19 0.83 0.81 0.806 0.72 0.711 0.706 0.57 0.425 0.424 0.36 0.307 0.306 0.18 0.12 0.09 0.07 0.01 0 0 HUN ALB LUX BGR DEU NLD GBR BEL LTU NOR FRA ESP CAN DNK ITA USA ROU TUR CZE EST GRC SVK PRT POL SVN LVA HRV ISL * Based on the contracts and sales of the 3 years preceeding the applicable year 11 March 2015 NSPA Procurement Directorate 29 Industrial Return Value of Contracts Placed 25% TOTAL 2014 : MEUR 2,368.8 20% 15% MEUR 1.02 10% 5% 0% USA GBR DEU FRA ITA NLD HUN TUR ESP NOR DNK CAN BEL LUX GRC CZE POL ALB PRT SVK ROU BGR EST LTU HRV LVA SVN ISL 11 March 2015 NSPA Procurement Directorate 30 Value of Contracts placed in Estonia MEUR 1.85 2.0 1.5 1.02 0.74 1.0 0.5 No contracts have been placed 0 0.12 0.0 TOTAL NSPA MEUR ESTONIAN SHARE 11 March 2015 2010 2011 2012 2013 2014 1,551 0% 2,080 0.006% 2,105 0.04% 2,383 0.08% 2,369 0.04% NSPA Procurement Directorate 31 NSPA Customers 2014 30% TOTAL 2014 : MEUR 2,276.3 25% 20% 15% MEUR 3.48 10% 5% 0% USA DEU FRA ITA TUR GBR ESP NLD POL GRC NOR CZE BEL CAN ROU PRT DNK SVK HUN SVN LVA EST BGR LUX LTU HRV ISL ALB 11 March 2015 NSPA Procurement Directorate 32 Value of Purchases by Estonia through NSPA MEUR 7.68 8.0 6.0 3.48 4.0 2.06 2.0 0.66 0.49 0.0 TOTAL NSPA MEUR ESTONIAN SHARE 11 March 2015 2010 2011 2012 2013 2014 1,614 0.04% 2,087 0.02% 2,228 0.09% 2,396 0.32% 2,276 0.15% NSPA Procurement Directorate 33 Competitiveness of Estonian Industry for Supply RATIO = ESTONIAN BIDS AWARDS TO ESTONIAN FIRMS 4 3.86 3 ESTONIA ALL NSPO COUNTRIES 2 1.12 2.07 1.75 1 0 2013 11 March 2015 2014 NSPA Procurement Directorate 34 5. FREQUENTLY ASKED QUESTIONS 11 March 2015 Procurement Directorate 35 Q&A QUESTIONS ANSWERS How to be invited to NSPA Requests for Proposals? Your company must be registered in NSPA Source File How to be registered in NSPA Source File? Register on line, free of charge… How to be informed of the upcoming competitions? Monitor the Future Business Opportunities of the Agency https://eportal.nspa.nato.int/registration/Register.aspx https://eportal.nspa.nato.int/eProcurement/Content/AllB usinessContents.aspx?r=1 How to be sure that the capabilities of my company have been updated? Contact Source File I have not been invited for a RFP for which my company has capabilities to make an offer why? Most probably because the capabilities of your company are not properly registered. Revert to the solution above. How can I have an idea of the prices offered in the past for goods and services offered by my company? Consult the list of contracts awarded by the Agency 11 March 2015 sourcefile@nspa.nato.int Tel: +352 3063 6436 https://eportal.nspa.nato.int/eProcurement/default.aspx Procurement Directorate 36