Overview of NSPA Activities 3 rd PREPARED FOR

Overview of NSPA Activities 3 rd PREPARED FOR Armaments Conference 13 September 2018 PRESENTED BY Mr Patrick FESQUET Director of Procurement

NATO – where agencies fit in National Authorities Permanent Representatives Ambassadors to NATO North Atlantic Council (NAC) Military Representatives to NATO Nuclear Planning Group (NPC) Military Committee Subordinate Committees Secretary General International Military Staff International Staff Strategic Commands ACT ACO NCIA NAHEMA NSPA NATO Agencies NATO UNCLASSIFIED … JFCB JFCN Operations Mr Patrick FESQUET - Director of Procurement … JWC JFTC NSO Exercises 2

Agency Direction Vision: . . . NATO’s premier life cycle management (including acquisition) and services provider, effectively and efficiently delivering integrated capabilities for NATO, its Nations and Partners including support to operations and exercises. Mission: … provide responsive, effective and cost-efficient acquisition, including armaments procurement; logistics; operational and systems support and services to the Allies, NATO Military Authorities and partner nations, individually and collectively, in time of peace, crisis and war, … maximize the ability and flexibility of their armed forces, contingents, and other relevant organisations, within the guidance provided by the NAC, to execute their core missions. NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 3

NSPA Capability Portfolio NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 4

NSPA Organizational Design NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 5

Geographical Locations NSPA: HQ, Life Cycle Management, Support to Operations (1, 186) Capellen, LUX NSPA Embedded Staff (41) • NATO HQ • SHAPE, JFCs • Afghanistan • Sigonella … Central Europe Pipeline System (36, 5) Versailles, FRA NATO Airlift Management Programme (51) Pápa, HUN Country Liaison Officers • 22 Southern Operational Centre (55) Taranto, ITA NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 6

Central Europe Pipeline System (CEPS) Management of a NATO pipeline system: • largest pipeline system in NATO (9 in NPS) • integrated, cross-border pipeline and storage system • jet fuel (75%), diesel/gasoline/naphtha (25%) • military/commercial business model • non-military co-use with Military Priority Clause NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 7

NATO Airlift Management (NAM) Support to Strategic Airlift Capability (SAC) • three C-17 s Boeing Globemaster aircraft • multi-national owned capability established in 2008 • NAM directly supports Heavy Airlift Wing (HAW) 12 SAC Nations - use of hours • for national, NATO, EU & UN missions • pre-agreed allocation of annual flight hours • available for 3 rd party use via SAC Nation sponsorship NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 8

Support to Operations Deployed team: 50 NSPA staff / 2524 contractors • Base Support Services • Catering Services • Airfield Services • Engineering Services Afghanistan Kosovo • Fuel • Construction Iraq • Equipment Support Mali • Transport and storage • Medical Services NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 9

Deterrence and Defence (D&D) – what we are doing Nations • • • Planning & exercise support Enhanced Forward Presence and Very High Readiness Joint Task Force - Ex. fuel Permanent Infrastructure • Deployable Infrastructure • …. NATO Real life support Other • air traffic control • hire cars • translators • passes & permits Infrastructure – construction and support • Planning & exercise support • Rapidly Useable Enabling Contracts (RUEC) / contractual work • Capability Packages • …. Capabilities and operational experience Transport and warehousing Planning Fuel Construction NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 10

Services • NATO Logistics Stock Exchange • Random Brokerage Services • General Procurement & Shared Services • Engineering & Constructions NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 11

Trust Funds – NSPA as executing agent 44 NATO Trust Fund projects* (€ 100 M) since 1998 • • Capacity building & training De-militarization & de-mining Ammo disposal & hazardous waste GEO, UKR, EGY, MRT, MDA, IRQ, AFG, … 66 CSTC-A projects (US$546 M) tasked • • • Mi-17 Uniforms Medical supplies Infrastructure Training NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 12

Life Cycle Management Capability development & sustainment “Cradle-to-Grave” (Acquisition – In Service Support – Retirement) Multinational cooperation / consolidation platform Portfolio: >90 weapon systems and ~169 projects NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 13

30 Support Partnerships in place Aviation & Unmanned Aerial Systems • • • Missiles (Missile systems) & Ammunition Multinational Multi Role Tanker Transport (MRTT) Fixed-Wing Aircraft Helicopters Alliance Ground Surveillance (AGS) Unmanned Aerial Systems (UAS) • • Land Combat • • • Land Combat Vehicles (LCV) Night Vision & Optoelectronics (NVO) Artillery Rocket & Missile Systems (ARMS) Specialized Surveillance – Command & Control • • • PATRIOT STINGER HAWK SIDEWINDER AMRAAM Air-to-Surface Missiles Land Combat Missiles (LCM) Ammunition Support Alliance Future Surveillance and Control (AFSC) Air Command Control System Level of Initial Capability Ground-Based Defence (GBD) AN/FPS-117 Radar (national + MB) RAT 31 Radar (national + MB) RADAR (national + MB) • • Strategic Airlift Interim Solution (SALIS) Common Item Materiel Management (COMMIT) Naval Logistics Support (NLSP) Demilitarization, Dismantling & Disposal (D 3) Operations Logistics Support (OLSP) Global Positioning System (GPS) Multifunctional Information Distribution System (MIDS) Cryptographic, Communications and Electronic (CCE) Equipment AWACS Red - common funding NATO UNCLASSIFIED Tiger, A 400 M, Cobra, NH 90 Mr Patrick FESQUET - Director of Procurement 14

Ops Directorate Priorities • Current Operations • Resolute Support • KFOR • NATO Adaptation Programme • Enablement of SACEUR’S Area of Responsibility • Deterrence and Defence • Trust Funds • Exercise Support • Deployable Infrastructure NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 15

Current Operations • • • Afghanistan • Fuel • Airfield Services • APOD Support HKIA • HQ RS Bldg project • Trust Funds - CSTC-A projects KFOR • Medical R 2 • Film City refurbishment National projects • Irbil • Mali NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 16

Life Cycle Management - Business Portfolio Pre-Concept Development Production Utilisation & Support Retirement • Life Cycle Management (incl. Acquisition) • Ground Based Air Defense & Air C 2 • Fixed Wing, Helicopter & UAS • Land Combat Systems • Missiles & Ammunition • Transport and Logistic Hub • Automated Life Cycle Support • Integrated Services … NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 17

Life Cycle Management - What • System acquisition • Equipment and spare parts procurement • Supply & Services • Maintenance, repair and overhaul • NATO UNCLASSIFIED Engineering services, modifications, upgrades • On-site technical assistance • Disposal • Training and Documentation • Management and expertise • Transport and storage Land Air Ø Multinational Cooperation Ø 30 Support Partnership Maritime Missiles & Ammo GBAD & Air C 2 Deployable Camps … Mr Patrick FESQUET - Director of Procurement 18

Common funded support LCM OPS NSIP • Alliance Future Surveillance and Control • Alliance Ground Surveillance • Ballistic Missile Defence testing facility • Support to operations NSIP • Deployable non-CIS assets • Support to operations MB • NATO Air and Missile Defence, Air Defence (Ground), Air Command Control System • NATO Airborne Early Warning and Control • Alliance Ground Surveillance MB • Deployable non-CIS assets • Support to current operations (with LCM support) • Support to preparation for operations – planning/stand-by contracts NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 19

Life Cycle Management – “cradle to grave” Pre-Concept Development Utilisation & Support Production Retirement Current NSPA Major Involvement • Alliance Future Surveillance & Control (AFSC) • Deployable Camp studies (UK) • Armoured vehicles, • Simulators • Multirole Tanker Transport • Deployable camps • Radars • Alliance Ground Surveillance • Deployable camps • 90+ WS • e. g. AWACS • A 400 M • NH 90/Tiger • Maritime • Unmanned Aerial Syst. • Radar • ……. . • Land vehicles • Ammunition Acquisition areas • Radar (acquisition, upgrade, modernization) • Armoured Vehicles • Upgrades / modifications air assets (C 130, AGS, . . . ) and missiles • Unmanned Aerial Systems • Helicopter • Simulators • Deployable camps (common-funded, multinational and national projects) • ……. NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 20

Finance and Compliance • • No Profit - No Loss! – Business Model NSPO Charter requires application of NATO Financial Regulations NSPO is annually audited by IBAN General Manager and Financial Controller sign the Financial Statements and the Statement of Internal Control Budget: NSPA operates two: Operational and Administrative Budget Funding: Customers only pays for the services requested overhead portion of the admin costs are allocated to all customers via a fair allocation key iaw NSPO Financial Rules and Procedures NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 21

Operational Budgets Business Trend in KEUR Operational Business 2017 = 4. 7 BEURl Source: Commitments raised each year 5, 000 4, 500, 000 4, 000 3, 500, 000 3, 000 2, 500, 000 2, 000 1, 500, 000 1, 000 500, 000 0 2004 2005 2006 2007 2008 2009 2010 LOGOPS Log Ops – 2014 drop related to ISAF drawdown Include Support to OCCAR TIGER & A 400 M NATO UNCLASSIFIED CEPS 2011 2012 2013 2014 2015 2016 2017 NAMP NAM – peaks reflect multi-year commitments related to sustainment/training through FMS Log Ops - 2017 Purchase of 5 additional MRTT MEUR Mr Patrick FESQUET - Director of Procurement 22

Operational Business per Customer in 2017 NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 23

Operational Business with NATO in 2017 NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 24

Nations as % of NSPA Business NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 25

Team Demography July 2018 – 1188 staff NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement 26

POCs NSPA Procurement Mr Patrick FESQUET Director of Procurement Mrs Tammy JOURNET Deputy Director of Procurement E-mail: patrick. fesquet@nspa. nato. int tel: +352/3063 6565 E-mail: tammy. journet@nspa. nato. int tel: +352/3063 7589 Mr Carlos FERRER- LOPEZ Chief of Market Research and Competition Advocacy Section E-mail: carlos. ferrer-lopez@nspa. nato. int tel: +352/3063 6563 NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement Mr Enzo SILVESTRO Chief of Source Identification Section E-mail: enzo. silvestro@nspa. nato. int tel: +352/3063 6383 27