How to do business with the NCI Agency Mr. Peter Scaruppe NCI Agency Director of Acquisition ROMANIAN INDUSTRY INFORMATION EVENT 14 JANUARY 2014 16/01/2014 NATO UNCLASSIFIED 1 Provision C4ISR capabilities is guided by Nations Strategic Concept Active Engagement Modern Defence Crisis Management Cooperative Security Collective Defence Critical Capabilities • • • • • • Political Guidance NATO Defence Planning Process Urgent Operational Needs Afghan Mission Network Missile Defence Cyber Defence AirC2 Bi-SC AIS Joint Intelligence, Surveillance & Reconnaissance International Security Assistance Force, Operation Unified Protector, Kosovo Force 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 2 1 As of 1 July 2012 VISION To strengthen the Alliance through connecting forces, by the end of 2014, the NCI Agency Team: NATO CIS Services Agency Optimises NATO mission success and be recognised as the trusted enabler of information superiority and enterprise excellence; NATO Consultation, Command and Control Agency Uses best practice to develop, deliver, connect and protect capabilities in partnership with other NATO entities, nations and industry; NATO Air Command and Control System Management Agency Earns customers confidence through agility, innovation and by delivering coherent and cost-effective solutions. Active Layered Theatre Ballistic Missile Defence Programme Office “Connecting Forces” HQ Information, Communication, Technology Management 16/01/2014 NATO UNCLASSIFIED 3 NCI Agency acquisition roles • 80% of our work is contracted to Industry. • Host Nation for NATO Security Investment Programme (NSIP) C4ISR projects. • Third Party procurements for: – NATO Bodies, – NATO Nations, – Multinational Smart Defence projects. • Reform benefit for Industry: – Standardization and consolidation of requirements, – One stop shop for C4ISR, – Life-cycle acquisition. 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 4 2 Pursuing Smart Defence and Connected Forces • Traditional customer base: – Allied Command Transformation, – Allied Command Operations, – NATO Nations. • Cooperation with Nations growing: – Capabilities that are ‘born interoperable’, – Multinational efforts, cost-sharing, – Tried and tested interoperability. • Customer Funding engenders... – – – – – Professional project management, Responsiveness to customers, Focus on quality, Efficiency, Innovation. 16/01/2014 NATO UNCLASSIFIED 5 Process for Delivering C4ISR capabilities in NATO • Capability definition: • NCI Agency supports Strategic Commands (SCs), • ACT (SC) defines Capability Packages. • Capability preparation: • Project definition/break out, • Feasibility analysis, • De-risking. • Capability implementation: • • • • • 16/01/2014 As Host Nation NCI Agency plans C4ISR capabilities, NATO Committees authorize funding, NCI Agency conducts source selection and awards contract, Industry executes projects - NCI Agency monitors and accepts, Life-cycle acquisition - NCI Agency responsible for acquisition and support (no hand over). NATO UNCLASSIFIED NATO UNCLASSIFIED 6 6 3 Acquisition – NCI Agency Interface with Industry • ACQ offices in Brussels, Mons, The Hague. • Consolidation and standardisation of NATO and nations’ C4ISR requirements: – More contracts like Support Services Contract: • Consolidation of Agency consultant requirements, • Competitively awarded on a 3 year rotational basis, • Standing Ordering Agreement (SOAs) – Vehicle of preference for all future requirements. • Life-cycle acquisition – cradle to grave. • More efficient standardized and consolidated acquisition procedures, practices, and points of contact for Industry. 16/01/2014 NATO UNCLASSIFIED 7 What this means for Industry • Contracts will increasingly include options for follow-on support and services (SOAs). • Bidders will have opportunity to identify ways to achieve lower Total Cost of Ownership. • Outsourcing will be increasingly considered as an alternative. • Add new requirements to existing competitively awarded contracts – Standing Ordering Agreements. • Simplify dealing with NATO. 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED NATO UNCLASSIFIED 8 4 How NATO operates • Main Financial Committees: – Investment Committee (IC) - NATO Security Investment Programme (NSIP), – Budget Committee (BC) - Admin, operations. Annual funds. • NATO works through these Committees: – – – – Committees make decisions, authorize projects, NATO National Delegations staff Committees, Committees procure through Agencies (NCI Agency), NATO Delegations must nominate companies for them to be eligible to bid: • International Competitive Bidding (ICB) - Case by case nomination, • Basic Ordering Agreement (BOA) – Every 2 years. 16/01/2014 NATO UNCLASSIFIED 9 NATO procurement procedures • Depends on Funding – Investment Committee (NSIP) funded: • International Competitive Bidding Procedures, AC/4-D/2261 are the standard (1996), • Basic Ordering Agreement procedures (2002), • Best Value procedures (trial Jan 2004 approved July 2009), • Allied Operations and Missions (AOM) procedures (July 2007), amended July 2011, • Agency Internal Procurement Directives – Acquisition Management Directive (AMD). – Budget Committee funded: • NATO financial regulations - method depends on value of procurement, • Budget Committee procurement procedures, • Acquisition Management Directive. 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 10 5 Types of bidding procedures International Competitive Bid Basic Ordering Agreement Allied Operations and Missions 16/01/2014 • • • Standard procedure. Governed by AC/4-D/2261. Bidders nominated by Nations. • Accelerated procedure. • Applicable to COTS supplies and services. • Bidders are limited to firms holding BOAs with the NCI Agency. • Accelerated procedure. • Applicable to contracts supporting deployed NATO Forces (ISAF/KFOR). • May be ICB, BOA or Combination (BOA+). NATO UNCLASSIFIED 11 International Competitive Bid (ICB) AC/4-2261 • Nations responsible for finding, screening, certifying and nominating companies. • Evaluation criteria - lowest, technically compliant bid. • Evaluation process - NCI Agency procedures: – Organization: Proposal Evaluation Board (PEB), Contract Award Board (CAB), Source Selection Authority (SSA), – Documentation: Source Selection Plan, Evaluators Workbook, Clarification Requests, PEB and CAB Reports, SSA Decision. • Advantages and disadvantages. 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 12 6 Best Value • Needed an alternative to ‘lowest price, technically compliant’ ICB award criteria: – Emphasis on price meant couldn’t select best overall bid. • Best Value definition: – “Award is made to bid offering best overall value, taking all factors into consideration (project management, technical, supportability, and price).” • NCI Agency has had many successful cases of Best Value on large, complex projects. • IC approved procedure (July 2009). 16/01/2014 NATO UNCLASSIFIED 13 Best Value source selection process • Top Level criteria and sub-criteria are pre-determined, default weighting of Top Level criteria is set at: Price 50% - Technical 50%. • Top and Second Level criteria published. • Lower sub-criteria listed in descending order of importance evaluation steps. • Evaluation process: – – – – – 16/01/2014 Determine administrative compliance, Perform technical evaluation, Perform price evaluation, Apply weighting factors, Determine Best Value scores. NATO UNCLASSIFIED NATO UNCLASSIFIED 14 7 Life-cycle acquisition • Nations are concerned about Total Cost of Ownership. • NATO Communications & Information Agency has full life-cycle responsibility. • Investment projects up front need to address what happens after installation. • Contracts will increasingly include options for follow-on support and services. • Solicitation, bid evaluation and contracts will cover all life-cycle requirements including maintenance phase. • NCI Agency has successfully performed life-cycle acquisition on large complex projects. • Typically NSIP acquisitions did not cover full life-cycle of projects: – Two sources of funding (NSIP and BC), – Required multi-Agency coordination. 16/01/2014 NATO UNCLASSIFIED 15 Basic Ordering Agreements (BOAs) • Quick and efficient method for procurement of commercially available CIS products and services. • NCI Agency negotiates standardized ordering agreements with major suppliers: – Currently 798 vendors from 28 nations, – ‘Most Favoured Customer’ (MFC) terms and prices with suppliers = ‘Strategic Agreements’. • Access via: https://industry.ncia.nato.int – Free use by NATO Agencies, for NATO Missions and by NATO Nations for authorized NATO projects. – Prices are password protected. • Have flexibility to: 1. take advantage of MFC prices, 2. compete between the BOAs, 3. shorten considerably the bidding time leading to contract award. 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 16 8 NCI Agency Industry website 16/01/2014 NATO UNCLASSIFIED 17 NCI Agency BOA website https://industry.ncia.nato.int or via http://www.ncia.nato.int 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 18 9 How do you do business with NATO? • Patiently – 28 nations involved. • Start small - think long-term. • Opportunities for teaming with others: – Subcontractor, – Support Services Contract. • Obtain a Basic Ordering Agreement. • Knowing your National Delegation team: – Getting on the Bidder’s List for ICBs. • Following the ‘Industry’ section on NCI Agency website. • Follow the NCI Agency on Twitter: NCIAAcquisition. 16/01/2014 NATO UNCLASSIFIED NATO UNCLASSIFIED 19 10