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Organisation for Joint Armament Co-operation
08/11/2019PMSD - C&P Section
OCCAR Contract ManagementASD-OCCAR Joint Seminar, 07 November 2019
Organisation for Joint Armament Co-operation
Contract Management ‐ Presentation Overview
08/11/2019PMSD - C&P Section P-2
1. General Principles2. OCCAR Contract Placement procedures – OMP 53. OCCAR Contract Terms and Conditions – OMP 6
Organisation for Joint Armament Co-operation
Contract Management – General Principles
08/11/2019PMSD - C&P Section
OCCAR’s Status within Europe - Legal Background
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As international organisation NOT bound by EU Regulations:EU Procurement Directive 2009/81/EC “This Directive should not apply to contracts managed by International organisations (paragraph 28 of introduction)”. and Art. 13 exempts OCCAR cooperative programmesfrom the scope of the Directive.
No formal legal impact by the EU regulations on OCCAR.
Organisation for Joint Armament Co-operation
Contract Management - General Principles
08/11/2019
PMSD - C&P Section
OCCAR’s Status within Europe – What does this mean?
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Spirit/principles of the mentioned EU Regulations:
Establish open and competitive processes Equal treatment of all economic operators Non-Discrimination of economic operators Competition as cornerstone of procurement
OCCAR policy complies with this spirit/principles
OMP 5 not fully compliant but similar approach to EU procedures, a recent review secured further harmonisation with EU- regulations.
Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Contract Management - General PrinciplesOCCAR Policy:
Main Objective:
to achieve best value for money (VfM):
the best acceptable level of functionality to meet the requirements;
at the lowest life cycle cost;
at an acceptable risk;
through the use of competition whenever appropriate;
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Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Contract Management - General Principles
OCCAR Policy:OCCAR-EA Staff must therefore:
Consider carefully the use of competition,
Exercise impartiality and consistency of treatment with potential Tenderers;
Respect Commercial confidentiality;
Uphold integrity of Contracts.
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Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Contract Management - General PrinciplesOCCAR Principles
Process of awarding contracts based on an approved ProcurementStrategy
Contract award through competition, unless deemed inappropriate bythe Programme Participating States - specific cases identified inOMP 5
Assessment of the best procurement option
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Organisation for Joint Armament Co-operation
Procedures
Directive 2014/24/EUPublic Procurement
Directive 2009/81/ECDefence Procurement
OCCAR OMP5
Open procedure Open procedure
Restricted procedure Restricted procedure Restricted procedure
Competitive procedure with negotiation
Negotiated procedure with publication of a contract
notice
Competitive negotiated procedure with publication of
a contract notice
Competitive Dialogue Competitive Dialogue Competitive Dialogue
Innovation partnership Innovation partnership
Negotiated procedure without prior publication
Negotiated procedure without publication of a
contract notice
Negotiated procedure without publication
of a contract notice
P-8PMSD - C&P Section
Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
OCCAR Principles
OCCAR places programme contracts in the name and on behalf of the Programme Participating States, so that:
the Programme Participating States and
the Programme Contractor
are the parties to the Contract
Note: The Standard Articles assume that the contracting parties will be Programme Participating States and Industry.
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Contract Management - General Principles
Organisation for Joint Armament Co-operation
Contract Management ‐ Presentation Overview
08/11/2019PMSD - C&P Section P-10
1. General Principles2. OCCAR Contract Placement procedures – OMP 53. OCCAR Contract Terms and Conditions – OMP 6
Organisation for Joint Armament Co-operation
Contract Management
08/11/2019
PMSD - C&P Section P-11
Establish a Procurement Strategy (ProcS) Purpose: to set up a comprehensive and robust strategy; Scope: Covers the whole scope of the PMA; Concentrates on the future
ProgD and main/prime procurement Contract; Content: assessment of all possible procurement options against relevant
Programme Management functions with a recommendation.
Background of programme /phase / project /study to be managed by OCCAR
Basis for first contract / Contract Route (CR)
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History Objectives Risks & Opportunities Programme Organisation
Procurement & support options Procurement Plan (suppliers) Contractor’s Characteristics (e.g. consortium) Contractual Aspects Recommendation
Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Contract Management – Contract Placement (OMP 5)
1. Establish Contract Route2. Possible Future Purchase3. Select Suppliers4. Prepare and issue the ITT (Invitation To Tender)5. Receive and Evaluate Tenders6. Issue TAP Report and Recommendation (TAP)7a. Award Contract 7b. Inform Unsuccessful Tenderers
Then Manage Contract Progress to Completion
ADVERTISE
OMP 5 - OCCAR basic competition process to Establish, Place and Manage Contracts
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Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Complaint Procedure (OMP 5 Annex B) Open to unsuccessful Economic Operator if considers disadvantaged in
procurement specific process, direct and individual concern required. Verification of correct application of regulations, no manifest errors of
assessment, misuse of powers.
• Procurement Review Procedure- Procurement Review Committee (PRC) empowered by Director- PRC reviews the procurement process, to give its opinion to the
concerned PC and make a recommendation to the OCCAR-EA Director- OCCAR Director to decide.
• Appeal Procedure- Procurement Appeals Board (PAB) empowered by BoS- PAB evaluates the Appeal, to give its opinion to the concerned PB and to
make a recommendation to the BoS via the OCCAR EA Director- Board of Supervisors (BoS) to decide.
No further appeal allowable.P-13
Contract Management - General Principles
Organisation for Joint Armament Co-operation
Contract Management ‐ Presentation Overview
08/11/2019PMSD - C&P Section P-14
1. General Principles2. OCCAR Contract Placement procedures – OMP 53. OCCAR Contract Terms and Conditions – OMP 6
Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Contract Management – Contract T’s & C’s (OMP 6) Applicability
OCCAR Standard Articles are applicable in their entirety unless otherwisedecided by the Approving Authority (Programme Committee or as may bedelegated)
Unanimous decision by the Participating States that are parties to theContract
Changes, supplements, divergences or additional details, not compliantwith other OCCAR regulations (Convention/OMPs) are subject to Board ofSupervisors approval.
OCCAR Standard Articles are in English language (BoS approved) Applicable Law, determined by Participating States.
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Organisation for Joint Armament Co-operation08/11/2019
PMSD - C&P Section
Contract Management – Contract T’s & C’s (OMP 6) Common challenges with industry during contract negotiations:
price audit/investigation; termination for default; dependency of failed Key milestone to other milestones; liquidated damages; penalties; Liability limitations; Intellectual property rights
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Organisation for Joint Armament Co-operation P-1708/11/2019
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Contract Management
Thank you for your attention!
Organisation for Joint Armament Co-operation
OCCAR-EAGodesberger Allee 15453175 Bonn • Germany
Address
Commercial and Legal Office Numbers:+49 (0) 228 5502 - 132 or 133 or 138 or 172 or 178Fax: +49 (0) 228 5502-100
Phone