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Page 1: TABLE OF CONTENTS - NATO Support and Procurement Agency · 2018-07-26 · NATO’s Agency Reform aimed at achieving efficiencies, improving effectiveness and finding savings where
Page 2: TABLE OF CONTENTS - NATO Support and Procurement Agency · 2018-07-26 · NATO’s Agency Reform aimed at achieving efficiencies, improving effectiveness and finding savings where
Page 3: TABLE OF CONTENTS - NATO Support and Procurement Agency · 2018-07-26 · NATO’s Agency Reform aimed at achieving efficiencies, improving effectiveness and finding savings where

Foreword by NATO Secretary General

Greetings from the Luxembourg Minister of Defence

Message from the Mayor of Mamer

Congratulations from the NSPO ASB Chairperson

Introduction from the General Manager

History of NSPA

NSPA today

Support to Operations and Exercises Operational Logistics Planning and Support Southern Operational Centre General and Cooperative Services

Life-Cycle Management Aviation Support Communications, Air, and Missile Defence Air and Land Combat Systems A400M, NH90 / TIGER Airborne Surveillance Systems Transportation and Warehousing

Central Europe Pipeline System

NATO Airlift Management

Services Procurement Human Resources Finance Information Technology

Future of NSPA

Anniversary Events

NSPA statistics

Users of NSPA Services

Chronology

Agency History

TABLE OF CONTENTS

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In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

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Foreword by the NATO Secretary General

NATO continues to be the most successful military alliance in history because of our ability to adapt and the readiness of our armed forces. The NATO

Support and Procurement Agency plays an essential part in this, providing an impressively wide range of services and logistics support for both NATO and nationally-owned military equipment.

The NSPA acquires, operates, and maintains everything from complete weapon systems and global fuel and port services for our navies, to airfield logistics, and base support services, including food and munitions for our troops stationed around the world.

While the NSPA’s top priority remains to support NATO operations and missions, Allies have expanded its role in recent years to include the acquisition of major armament procurements. These include a new multinational air-to-air refuelling fleet, management of the new Alliance Ground Surveillance platform and development of the Alliance Future Surveillance and Control Capability. The Agency also continues to expand its role in defence capacity building and serves as the executing agent for major Trust Funds in countries like Ukraine and Afghanistan.

Like NATO itself, the Agency has changed considerably over the past 60 years. Starting with just 12 members of staff in the late 1950s, the then NATO Maintenance and Supply Agency has evolved into today’s NSPA with more than 1350 staff. This year’s 60th anniversary also gives me a perfect opportunity to commemorate 50 years of the NSPA in Luxembourg.

On behalf of NATO, I pay tribute to the professionalism and dedication of all NSPA staff and to their enduring commitment to our common purpose and shared values. I wish you all continued success for the future.

Jens Stoltenberg

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

4 ⎮ FOREWORD

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Greetings from the Luxembourg Minister of Defence

Étienne Schneider

It gives me great pleasure to provide a congratulatory message to celebrate NSPA’s 60 years of NATO logistics excellence and highlight your robust presence in Luxembourg

for half a century. Marked by a steady and ever-growing business in a broad variety of logistics and acquisition domains, this large and multinational Agency is also well connected to Luxembourg’s modern business and technology industry and is strategically placed in the geographic heart of Europe.

NSPA was born on 1st July 2012 out of the merger of three Agencies, the former NAMSA in Capellen, the former pipeline Agency CEPMA in Versailles and the former C-17 Agency NAMA in Papa. This merger was the product of NATO’s Agency Reform aimed at achieving efficiencies, improving effectiveness and finding savings where and when appropriate. The new Agency, built upon the founding rock that was NAMSA, has significantly broadened the Agency’s role by adding NATO’s largest pipeline system and NATO’s modern strategic airlifting capability. And, after carefully weighing the options, NATO Allies decided to entrust NSPA with NATO’s acquisition role and thus further break new

ground. One such acquisition project is the Multi-Role Tanker Transport project - a model of NATO/EU cooperation - in which Luxembourg is proud to be one of the founding members. NSPA is therefore becoming the intermediary of choice for establishing new European programmes and I encourage it to continue along that route.

NSPA has never faltered in its lead role in NATO logistics over the last 60 years and although the geostrategic situation in both Europe and the world at large continuously evolves, the basic paradigms and missions of NATO have not and the Agency’s role remains as relevant as ever. NATO Allies have long relied on NSPA to support their exercises, operations and missions, both in Europe and worldwide, be it on land, at sea, in the air or in space.

The Agency’s growth and the increasing threat of terrorism and cyber-attacks have sparked major infrastructure programmes for NSPA. These include a new gate to better ensure security and business continuity, a new high-tech data centre in Betzdorf for cyber resilience and the projected construction/refurbishment of office infrastructure to ensure readiness for NSPA to host up to 1.500 staff in a few years’ time. These projects are also a testament to the excellent professional relationship between the Agency’s management and staff and the Luxembourg authorities and governmental entities. In this regard, Luxembourg is proud to welcome the families of the NATO international staff, who can live in a modern and peaceful environment with a broad choice of schools, hospitals and other facilities to support everyday life.

On behalf of the Luxembourg Government, I wish NSPA all the very best for the 60th Anniversary festivities – as your Host Nation, we look forward to supporting you and working with you for the next half century.

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

6 ⎮ GREETINGS

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Message from the Mayor of Mamer

This year, there will be 50 candles to blow out on NSPA’s birthday cake. Since its arrival in our commune in 1968, NATO’s logistics and procurement support

agency – then known as NAMSA – has become by far the largest employer in Mamer.

NSPA is the executive body of the NATO Support and Procurement Organisation (NSPO), that was founded on 1st April 2015 and of which all 29 NATO nations are members.Its Agency Supervisory Board directs and oversees NSPA’s activities. The fact that NSPA has now had its headquarters in Capellen for half a century is a source of great pride.

Numerous Luxembourg nationals from Mamer and the surrounding area have joined NSPA’s staff and have thus been able to bring their skills to bear in accomplishing the Agency’s mission. Many staff members from abroad have elected to stay in Luxembourg permanently, and the Commune of Mamer is keen to offer modern facilities and pleasant surroundings for families coming to live here.

With the changes introduced in 2015 the scope of the Agency’s capabilities has broadened. It is gratifying to see that NSPA is not only well rooted in Mamer, but also continues to develop and flourish here.

The entire Commune of Mamer, its aldermen and its inhabitants therefore congratulate NSPA and NSPO and all their staff on this round-number anniversary and wish them every success in meeting the challenges of the future!

Gilles Roth

7MESSAGE ⎮

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NATO SUPPORT AND PROCUREMENT ORGANISATION

On behalf of the NSPO ASB members, representing all of NATO’s 29 member nations, it is a pleasure and privilege to congratulate the NSPO governing bodies

and our executive Agency, NSPA, as we celebrate 60 years of delivering logistics services to the NATO nations and the Alliance. Additionally, in marking another milestone event in 2018, I also would like to express my heartfelt appreciation to our host nation, Luxembourg, that has provided 50 years of generous support that has served as a basis for the Agency’s steady growth and success.

The Agency’s achievements over the past 60 years has been underpinned by a spirit of being ready, willing and able to adapt to the changes in technologies, political and strategic conditions, as well as NATO’s evolving advancements in collective defence logistics. The development of the Agency has been possible thanks to its enduring principle of achieving economies of scale through the consolidation of logistics requirements that serve to complement and sustain national and multinational logistics chains. In doing so, the Agency has become a trusted partner for the Alliance, while being viewed as a de facto extension of national and multinational logistics and procurement capabilities.

In spite of these adaptations, NSPO’s fundamental mission, governance practices, and its place within the NATO’s strategic framework have not changed substantially over the past six decades. In fact, by striking a balance between satisfying national support requirements and promoting collective defence initiatives, this Organisation has continued to fulfil its mission by providing pragmatic support structures to promote bilateral and multinational cooperation between and among Allies, NATO Military Authorities and partner nations. In providing these institutional cooperative frameworks at various governance levels within NSPO, the Agency continues to be in a position to enhance the readiness of nations’ and NATO’s defence postures, which in turn has contributed to the solidarity and strength of the Alliance.

Finally, it is the people, past and present, who are responsible for the Agency’s success. Our Host Nations, the nations’ representatives to the Agency Supervisory Board, the Logistics and Finance, Administration & Audit Committees, the Support Partnership Committees, the Country Liaison personnel and, last but far from least, the Agency’s employees are to be applauded for this collective achievement.

In summary, I am pleased to congratulate each and every one, whose expertise and commitment over the past 60 years contributed to make this multifaceted Agency what it is today, and extend my very best wishes for its continued success for the years ahead.

Congratulations from the NSPO ASB Chairperson

Jennifer C. Hubbard

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

8 ⎮ CONGRATULATIONS

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As we celebrate NSPA’s 60th birthday it is a great pleasure for me to introduce our anniversary brochure. Since our establishment in 1958 the Agency has experienced

many changes. Starting from a small Agency with limited resources focusing on the support of three weapon systems it has developed into a key enabler not only in logistics, but also in the operational and services domain. Today, NSPA offers its services in 30 partnerships, which span more than 90 different major weapon systems. Also in support of operations, NSPA is delivering essential services to the operational commanders, enabling them to concentrate on their core business.

Taking note of the positive introductory remarks from the Secretary General, the Minister of Defence of Luxembourg, the Député Mayor of Mamer and our NSPO ASB Chairperson, I conclude that our efforts over the past years have not gone unnoticed and are appreciated.

We believe that our success stems from a number of strengths. First, NSPA offers a proven platform for multinational cooperation. This was one of the founding arguments for establishing this Agency in 1958 and over the last 60 years many multinational initiatives have been implemented and delivered to our customers successfully.

A further strength is our ‘Support Partnership’. This is NSPA’s most important governmental instrument for delivering

services. It puts the customer nations in ‘the driving seat’ with NSPA acting as the executing agent on their behalf. As a result, ‘coalitions of the willing and the able’ are created with effective governance and providing an environment for swift decision-making.

The Agency also has an outstanding team of motivated and engaged staff. They really make the difference and deserve the appreciation for the Agency’s achievements over the last 60 years. Success would also not have been possible without the continuous support of NATO and our customer nations and we are extremely grateful for that.

I am impressed by the evolutionary road this Agency has taken and I feel privileged to be the General Manager as the Agency enters its seventh decade of business operations. In addition to our ever increasing role in supporting NATO and the Nations’ operations and exercises, we proactively continue to explore new areas of support. In particular, with regard to NATO’s initiatives on Deterrence and Defence the Agency stands ready to support the NATO Command and Force Structures to deliver the contracted support as required by our customers. In the area of armaments and the implementation of new Capability Packages the Agency will also further develop its competences.

I will close this introduction by highlighting that the Agency’s success is underpinned by the strong support of our Host Nations, France, Hungary, Italy, and, in particular, The Grand Duchy of Luxembourg, where the majority of our Staff are located. As one of the founding Nations of this Agency, Luxembourg has proved itself a strong supporter, a key NATO ally and a wonderful Host Nation. We have enjoyed excellent support from both the Government and the military, and our staff are always warmly welcomed in the cities and communes where they reside. Our collaboration and cooperation with Luxembourg is great and we look forward to continuing this relationship for the next half century.

Finally, I invite you to peruse the pages of this brochure and gain an insight into NSPA’s history, our capabilities today and our ambitions for the future.

Introduction by the NSPA General Manager

Peter Dohmen

9INTRODUCTION ⎮

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History of the Agency

In 1958, the NATO North Atlantic Council formally approved the establishment of the NATO Maintenance Supply Services System, and its executive element, the NATO Maintenance

Supply Services Agency (NMSSA), in France. This Agency had meeting the logistics requirements of Alliance nations as its mission and especially achieving economies in supply and maintenance costs for common equipment. With a Board made up of representatives of the 11 initial participating nations and a small staff of 25, the work focussed initially on the support of three weapon systems.

Less than five years later, the NAC approved a new Charter with new names: the NMSSA became the NATO Maintenance and Supply Organisation (NAMSO) and NATO Maintenance and Supply Agency (NAMSA). Of note, it is with this new Charter that the Weapon System Partnership model was introduced. Today this model continues to serve as the backbone of the Agency offering a dynamic and flexible legal framework under which Agency business continues to flourish.

Then, 10 years later in February 1968, NAMSA officially opened its doors in The Grand Duchy of Luxembourg. This country extended a very warm welcome to Agency staff and thus began the cooperative, collaborative and mutually beneficial relationship that continues today.

The closure of Agency operations and departure from its original base in Châteauroux, France, and the move to Capellen really began in the last quarter of 1967 with the Agency Headquarters originally sited in Luxembourg City and operational facilities established in Capellen, a former Luxembourg Army garrison.

The ensuing decades passed all too swiftly and NAMSA, along with NATO, continued to grow. To enhance coordination and further streamline the increasing level of business activities the Headquarters was moved to Capellen to collocate with the operational business in 1986. In the 1990s the Agency’s scope of work became to increasingly support NATO and NATO nation operations. By the end of that decade, the business scope of then-NAMSA had increased to support 11 weapon and equipment systems.

In 2010, NATO implemented Agency Reform to increase business efficiencies and realize savings across all NATO Agencies. NATO Agency Reform brought significant changes again to the Agency. This time, three separate agencies – the NATO Airlift Management Agency (based in Pápa, Hungary) and the Central Europe Pipeline Agency (based in Versailles, France) were combined with then-NAMSA under a new charter to form the NATO Support Agency in 2012.

Within the planned five years, the new NATO Support Agency had fully achieved the Agency Reform objectives. During this period, it assumed overall responsibility for NATO procurement / large system acquisition. Again, the Agency received a new name with a new Charter in 2015 as the NATO Support and Procurement Agency.

Today the NATO Support and Procurement Agency is NATO’s premier Logistics and Procurement services Agency. In the pages of this brochure you can catch up on Agency programme activity which now encompasses 30 Support Partnerships spread across nine different programmes and four different business units currently serving 29 NATO Allied nations and dozens of partner nations.

Today the Host Nation Luxembourg also continues its active sponsorship for the welfare and evolution of the Agency and its staff. Luxembourg’s support has included the construction of a an ultra-modern conference centre, whose largest meeting room is named after the Grand Duke Jean, and also a modern office complex to accommodate the increasing number of Country Liaison Officers (currently 20) working at NSPA. Most recently, Luxembourg is supporting our endeavours to realize a complete review of the Capellen site to ensure the infrastructure is fit for purpose and the Agency has the flexibility to meet customer and NATO requirements in the future.

Over the last six decades the Agency has successfully and continuously adapted and re-invented itself to effectively and efficiently meet NATO nation and partner requirements. It has become a well reputed solution of choice as NATO’s premier logistics and procurement services provider.

You can see a complete Agency Chronology on pages 32 and 33.

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

10 ⎮ HISTORY

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NSPA Today

NSPA is a key logistics enabler for the support of both NATO and nationally owned military equipment as well as managing contractor support to operations on behalf of the NATO Commands, multinational groups and individual nations.

The Agency is headquartered in Luxembourg and has programmes based in France, Hungary and Italy with outstations in Afghanistan, Kosovo and other locations.

Today, NSPA’s establishment encompasses more than 1350 positions, with 60 of these personnel deployed on operations. NSPA business activity has grown nearly fivefold in the last decade and now includes the acquisition role. Business and workforce growth is predicted to continue with customer nations directly funding more than 90% of these activities; only 6.5% comes from NATO common funding.

As illustrated below and further detailed in the brochure, the Agency’s organizational structure has been optimized in 2018 and is now composed of four main business units:

► Support to Operations; ► Life Cycle Management; ► Central Europe Pipeline System; ► NATO Airlift Management.

These are underpinned by four key support functions: Procurement, Finance, Human Resources and Information Technology.

The strength and attractiveness of the Agency is largely due to the wide range of experience and capability within the business units and the electronic logistics solutions available, which are developed and exploited to the fullest extent possible. The Agency has a proven record of timely and cost effective delivery, high levels of customer satisfaction and creating economies of scale for customer nations, particularly in the very successful multinational support partnership mechanisms. The Agency also has the capability to access a broad supplier base using a range of innovative procurement mechanisms. It has a professional Agency workforce and attractive multinational legal frameworks, as well as an integrated suite of IT solutions

11NSPA TODAY ⎮

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and the ability to access transatlantic military logistics through the NATO structure.

The rapid growth of the Agency, political and operational developments, and the need to develop the acquisition role led to a comprehensive review and refresh of the Agency’s five year Strategic Direction in 2017. The new vision of the Agency is to be NATO’s premier life cycle management (including acquisition) and services provider, effectively and efficiently delivering a broad spectrum of integrated capabilities for NATO, its Nations and Partners including support to operations and exercises. In order to facilitate this the Agency’s capabilities have been regrouped under three areas:

► Support to Operations and Exercises; ► Life-Cycle Management; ► Services;

ensuring the Agency is optimally structured to provide the highest quality of service to its customers.

Support to Operations remains a top priority for the Agency. This operational support includes base support services, real life support services, infrastructure, airfield support, and other logistics services to troops. The Agency also manages contracts with almost global coverage for fuel, oil supplies and port services for naval shipping. Additionally, NSPA procures, manages, operates, and maintains deployable camp infrastructure and associated contracted services for NATO and nations.

The Agency has been closely engaged in planning for and supporting nations’ enhanced Forward Presence units, and Deterrence and Defence activities. The Agency’s expertise and success in the implementation of NATO Trust Fund projects is recognized with a wide-ranging portfolio of these important projecting stability initiatives.

NSPA’s core business continues to be the lifecycle management of equipment and weapon systems. Through the development of the acquisition role, the Agency now oversees activities in all phases of the system Life Cycle providing customers with ‘cradle-to-grave’ support. It currently manages 30 multinational Support Partnerships covering over 90 major weapon systems as well as supporting the NATO Heavy Airlift Wing C-17 aircraft in Hungary. From Versailles, France, NSPA manages the Central Europe Pipeline System which enables fuel transportation and storage across Western Europe.

Acquisition

In Service Support

DisposalDisposal

Real Life Support and APOD services

Fuel Storage and Transportation

Contingency Planning

C17 fleet management

InfraManagement of DeployableNATO assets

Corporate Support

GPSS

Random Brokerage

Stock Exchange

Support toOperations and

Exercices

Life CycleManagement

Services

CUSTOMERS

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

12 ⎮ NSPA TODAY

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CENTRALEUROPE PIPELINE

SYSTEM(CEPS)

NATO AIRLIFTMANAGEMENT

(NAM)

SUPPORT TOOPERATIONS

BUSINESS UNITS

1350 NATO International Civilians(Approved positions)

LIFE CYCLEMANAGEMENT

SUPPORTFUNCTIONS

PROCUREMENTFINANCEHUMAN RESOURCESINFORMATION TECHNOLOGY

NSPA GENERAL MANAGER

NSPO AGENCY SUPERVISOR BOARD

NATO NORTH ATLANTIC COUNCIL (NAC)

The Services area includes those items where limited technical logistics support may be required but where the Agency can facilitate purchase or redistribution, such as the NATO Logistics Stock Exchange (NLSE), General Procurement Shared Services (GPSS), Random Brokerage, or for project management of turnkey projects. This Services area is embedded in the Support to Operations Directorate.

Underpinning these direct services to the customer are four internal corporate support services (Procurement, Finance, Human Resources and Information Technology). These are essential to ensure the smooth running and management of the supporting processes. The strategic intent is to develop these services in order to enable NSPA to meet its mission and provide World class customer support. Properly resourced support functions will enable the organisation to react flexibly to increasing levels of business in a timely manner and have the capacity and resilience to meet future challenges. Particular areas of focus are

customer satisfaction, performance management, compliance, physical and cyber security, infrastructure planning, IT and financial management system development, and the recruitment and retention of the talents needed.

The Agency’s recent exponential business growth is a clear indicator of its success, building on the outstanding levels of services delivered and high rates of customer satisfaction. In 2017 there was a major uplift in business with 4.8 BEUR of support to operations and exercises, acquisition, life-cycle support and logistic services delivered to NATO, member nations and partners. Although roughly 1 BEUR of this relates solely to the acquisition of NATO Multinational Role Tanker Transport (MRTT) aircraft, the Agency’s portfolio continues to grow and this is forecast to continue. Although this growth is welcome, it comes with its own challenges in terms of span of control, resourcing and infrastructure, and it is important that it remains sustainable to ensure delivery and customer satisfaction.

13NSPA TODAY ⎮

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Operational Logistics Planning and Support

The Operational Logistics Planning and Support Programme’s mission is to provide responsive, effective and cost efficient logistics support services to NATO

and Partner Nations in Europe, the Middle East and Africa.

For more than 10 years, NSPA’s ‘Operations Programme’ has been supporting the NATO Command Structure and national forces, enabling contingency operations in austere and geographically remote locations lacking adequate infrastructure.Executing an operational turnover in excess 700 MEUR annually, this area of Agency work is organized into three main operational sectors: Engineering and Construction, Fuel Management, Real Life Support and Airfield Services.

Engineering and Construction Support spans from concept design to project management and facilities maintenance services. This list of services can be further expanded to support any other specific requirement from the nations.

Fuel Management covers the full range of fuel services, guaranteeing strategic provisioning, bulk-fuel installation management, quality surveillance and fuel monitoring. Completing this range of services is also retail and flight line refuelling.

Real Life Support and Airfield Services provide catering services, food and water supply, base support and airfield services. These services can be expanded as required to support the deployment of thousands of military and civilian personnel to operational theatres.

Ranging from the provision of a single item of supply to entire turnkey projects and highly tailored mission support requirements, the Operational Logistics Planning and Support Programme brings together technical expertise, contracting and financial mechanisms to deliver complex, multi-national and proven support solutions, ensuring the smooth running of multiple projects.

Our goal is to provide outstanding service delivery to Allies and Partner Nations in support of NATO operations.

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

14 ⎮ SUPPORT TO OPERATIONS AND EXERCISES

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Through effective and efficient execution of the mission to provide full lifecycle management of deployable assets, NSPA developed into the delivery agent of choice for

NATO nations seeking to acquire expeditionary camps - known as Capability Packages. NSPA’s Southern Operational Centre (SOC), is the centre of expertise for this business domain, and is responsible for managing the acquisition of and providing follow-on support for these camps. NSPA’s deployable camps are an all-inclusive package which includes deployable facilities, systems and vehicles. The SOC provides technical services and support during the pre-deployment, deployment and re-deployment phases.

The Acquisition and Contractual Support Branch, based in Capellen, Luxembourg, is responsible for the acquisition of several key Capability Packages aimed at providing NATO or Nations with additional rapidly deployable camps. The team includes civil, mechanical, electrical and environmental engineers, as well as technical and support staff, who work together to meet NATO nation requirements in this area.

The Operations and Logistic Support Branch in Taranto, Italy, is focused on the storage, maintenance and deployment of deployable camps. The team in Taranto, is dedicated to support

NATO Allied Command Operations and Nations in conducting major exercises involving the planning, camp deployment & assembly, deployed support, camp tear down/redeployment and training of potential users of the deployable camps. The SOC has supported major NATO exercises for a number of years.

Serving as NATO’s centre of expertise for deployable camps

Southern Operational Centre

15SUPPORT TO OPERATIONS AND EXERCISES ⎮

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General and Cooperative Services

The General and Cooperative Services Programme provides a wide spectrum of key business support including General Procurement Services, Brokerage,

focused Support Partnerships, NATO Trust Fund Projects and NATO Codification. The programme staff of less than 120 personnel are organised into five business branches efficiently turning over projects in excess 600 MEUR annually.

General Procurement Services enhance the way NATO acquires goods and services. NSPA Strategic Sourcing Contracts consolidate requirements to provide multiple customers with access to a larger support base. Wherever possible technology is leveraged to maximum effect, with applications like the eShopping Centre allowing users to make online support selections.

Brokerage Services provide any NATO Member or Partner Nation with Supply, Services and Project support that is not covered by an existing NSPA Partnership. Random Brokerage delivers non-recurring bespoke services and projects.

Support Partnerships (SP) managed within the Programme include:

► Ammunition SP providing a range of activities including ammunition, ammunition-related materials, mine clearance and explosive ordnance disposal operations;

► Demilitarization, Dismantling and Disposal (D3) SP providing D3 support for military equipment;

► Naval Logistics SP providing member nations with bespoke Naval Supply items and port services support at over 450 ports worldwide including food, bunker fuel, water and other services;

► Common Item Material Management System (COMMIT) SP governs the web based NATO Logistics Stock Exchange (NLSE) for users to exchange excess/surplus goods or services, and to procure a wide range of material in support of soldiers and military systems.

NATO Partnership for Peace Trust Fund Projects are politically important as they support NATO goals and particularly the Projecting Stability initiative. NSPA delivered 44 projects over the past 20 years supporting partner countries. Projects vary from training, and construction, to demilitarisation and disposal of vehicles, weapons, ammunition, chemicals and radioactive material. Trust Fund support continues to be a challenging line of NSPA support endeavours.

NATO Codification Services identify, classify and number supply items establishing a standard system for NATO integrated activities.

The framework of services offered by the General and Cooperative Services Programme provides the backbone for NATO operation support.

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

16 ⎮ SUPPORT TO OPERATIONS AND EXERCISES

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Aviation Support

The Aviation Support Programme provides a wide portfolio of Life Cycle Management services in the air domain. This spectrum covers project management,

supply chain management, maintenance, repair and Integrated Logistics Support (ILS) concept development.

Additionally, the portfolio also includes demanding and complex projects in the areas of:

► Fleet sustainment (upgrading and modification of aircraft fleets);

► Flight simulator upgrade and support for crew training;

► Leasing of firefighting aircraft; ► Acquisition projects for aircraft and simulators.

The programme has 13 NATO and NATO Partner Nations as current customers. Support is provided through three Support Partnerships:

► Fixed Wing Aircraft (FWA) Support Partnership; ► Helicopter Support Partnership; ► Multinational Multirole Tanker Transport (MRTT)

Fleet, (MMF) Partnership.

The MRTT project is an excellent example of European / NATO cooperation, representing a European Union initiative to close a capability gap and a programme realization by NATO. NSPA is the owner of the aircraft and will be responsible for the life-cycle management of the fleet. As a vital partner, the Organisation Conjointe de Coopération en matière d’Armement (OCCAR) acts as the NSPA’s Contract Executing Agent.

The Aviation Support Programme supports a high level of customer satisfaction by managing together with its customer nations the rapid business growth and by leveraging its experience in further portfolio developments.

17LYFE CYCLE MANAGEMENT ⎮

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Communications, Air and Missile Defence

The Communications, Air and Missile Defence Programme provides integrated through-l i fe management, acquisition and in-service support services for

communication systems, and air and missile defence systems. The programme focuses on air surveillance sensors, counter artillery radars and Ground Based Air and Missile Defence systems such as HAWK, NASAMS and PATRIOT.

The programme is also used by its customers as a centre of excellence in the production and maintenance of Interactive Electronic Technical Manuals (IETM) and Radar Testing and is the NATO Reference Laboratory for calibration.

After many years of supporting the NATO Communications Information System (CIS) Groups and Signal Battalions, the Programme now offers their expertise in support of national CIS requirements.

The Programme team of 200 engineers, logisticians and support staff serves a growing customer base comprising 20 NATO nations, several NATO Military Commands and NATO Partner Nations.

Over the years, in addition to routine support, the Programme has provided key services to NATO and nations, for example:

► Technology refresh of the NATO Integrated Air and Missile Defence System (NATINAMDS) Air Defence long range radar fleet;

► Logistic support of the NATO Integrated Air and Missile Defense early warning and air picture production capability;

► Special missile upgrades in the PATRIOT Missile Facility and supporting the deployment of PATRIOT batteries to Turkey;

► Converting paper and pdf manuals into Interactive Electronic Technical Manuals (IETMs) for numerous systems and users;

► Supporting HAWK system overhaul.

The programme’s future, especially in light of NSPA’s development as NATO’s Procurement Agency, will focus on the development of project and risk management capabilities that will support the delivery of larger projects. Recent projects entrusted to the programme team include the acquisition of short-range air defence systems, fire control systems, large radar upgrades, acquisition of Counter Improvised Explosive Device systems and others.

The programme will continue to support the nations and NATO in the total life cycle management of communications, air and missile defence systems with a flexible approach, allowing customers to tailor the support to their needs.

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18 ⎮ LYFE CYCLE MANAGEMENT

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Air and Land Combat Systems

The scope of the Air and Land Combat Systems Programme has expanded over the years. It now embraces the entire system life cycle, from the initial

acquisition support (including project definition and design), via production and in-service support (including supply, maintenance and engineering services) to the phase-out and demilitarization stages.

Today’s portfolio includes support to the following systems:

► Land combat systems: armoured vehicles and artillery systems (e.g. MLRS, BOXER, PzH2000, Protected Reconnaissance Vehicles, LEOPARD MBT, M60T);

► Tactical air and ground missile systems (e.g. TOW, SPIKE, STINGER, AMRAAM, SIDEWINDER, HARM, TAURUS);

► Tactical unmanned aerial systems (several types); ► Multiplatform observation systems (optical and

infrared systems); ► Multiplatform navigation systems (GPS).

More than 85 individual national entities and 20 different weapon systems are supported either through multinational Support Partnerships, or through bilateral agreements. The programme is made up of a highly motivated workforce of 170 staff members, consisting of engineers, technicians, logisticians, procurement staff

and finance experts who guarantee efficient and high quality service to customers.

Within a dynamic environment, the programme staff remain flexible to respond to emerging support requests and – together with its customers – is constantly exploiting new cost-effective business opportunities. This effort has led to a continuous expansion of the programme’s portfolio. The benefits of strong in-house engineering skills and the test equipment and infrastructure of the workshop, enable the Programme to take on new tasks and to develop solutions to meet future challenges.

19LYFE CYCLE MANAGEMENT ⎮

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A400M & NH90/Tiger

The A400M & NH90/Tiger Programme provides integrated, automated and electronic material support services. This innovative, state of the art capability currently supports the

NH90 and Tiger helicopter weapon systems, the A400M fleet and the Alliance Ground Surveillance (AGS) system. This support enables customers and contractors to manage their supply and repair life cycle in a fully automated manner, including ordering, order amendments up to delivery, invoicing and payment.

A number of customer and contractor web portals for the above-mentioned weapon systems have been developed and are in use.

Since 2001 the programme has processed an impressive number of logistic orders - more than 180,000! This has triggered more than 190,000 individual invoices representing a total value of roughly 3 BEUR.

Further, more than 30 logistic contracts have been established with European and transatlantic aviation industries that are connected and integrated into the programme network system.Support to nations is provided through Service Level Agreements (SLA) with defined scope and budget.

The programme capability to fully automate materiel support requirements offers vital benefits and opportunities (i.e. time gain, cost savings, less administration) for NSPA customers, especially in the area of newly developing weapon systems, which involve high numbers of parts.

The requirements for electronic business capabilities are expected to continue to increase during the years to come, and the programme is state of the art and well placed to offer and expand its services in this domain.

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20 ⎮ LYFE CYCLE MANAGEMENT

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NATO Airborne Surveillance Systems

The Airborne Surveillance Systems Programme provides its customers with relevant logistics support across the full spectrum of Life Cycle Management from “cradle-to-

grave” focused on three Airborne Surveillance Systems.

In support of the NATO Airborne Early Warning and Control Force (NAEW&C), the programme provides comprehensive aircraft depot maintenance, training and airfield services for the support of the E-3A AWACS aircraft. This is based upon three service pillars; procurement and supply, aircraft and mission system repair and maintenance, and United States Air Force Foreign Military Sales. In this domain and others, the Agency provides a specialized capability sourcing parts no longer available from the original equipment manufacturer.

The programme is also responsible for the Life Cycle Management of the Alliance Ground Surveillance (AGS) core system being delivered to the NATO AGS Force based in Sigonella, Italy. The NATO Alliance Ground Surveillance Management Agency (NAGSMA) is responsible for the development of the system with NSPA taking over lead responsibility once the system is delivered. The AGS Life Cycle Management concept includes the AGS System Management Group and NATO 29 nation governance, while providing for

system ownership responsibilities as well as the required airworthiness oversight with the Host Nation Italy. NATO AGS will be the first commonly operated system managed under the full umbrella of NSPA Life Cycle Management.

NSPA has been appointed as the Host Nation for the Alliance Future Surveillance & Control (AFSC) Concept Stage. This Acquisition project is managed by a dedicated AFSC project office, with the goal to develop advice on options and awareness for the delivery of a follow-on to the E-3A AWACS capability in anticipation of its retirement in 2035. The programme supports the AFSC project office with resources /skills to achieve “economy of scales” to the benefit of the NATO member nations.

The programme continues to provide efficient and effective Life Cycle Management and In-Service Logistics Support to NATO and National Airborne Surveillance Systems, while responding to their operational needs.

21LYFE CYCLE MANAGEMENT ⎮

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Transportation and Warehousing

The Transportation and Warehousing Division provides transportation and warehousing services to NATO bodies, NATO nations, Partner Nations and to the NSPA

programmes internally.

The Transportation Branch provides transportation solutions for passengers and material of any kind, including classified, crypto and dangerous goods, and is closely involved in supporting deployments and NATO exercises. It ensures worldwide coverage with all modes of transportation (air, sea, road and rail) through a series of modern contractual instruments that constitute the NSPA Transportation System. The branch ensures the management of 24/7 support providing door-to-door service, including customs, import and export licenses, and administrative coverage. Further, internet-based tracking is available to allow customers not only to follow their assets but also to have visibility on the financial flow from invoicing to billing.

Moreover, NSPA provides an in-house warehousing area that manages the storage facilities mainly for the benefit of the various NSPA Programmes. It comprises reception, inspection, preservation, storage, packaging, preparation for shipment and disposal of materiel.

Strategic Lift capability is provided to customers through assured access contracts in support of national and NATO/EU operations on short notice. This capability comprises the management of the Strategic Air Lift International Solution (SALIS) Support Partnership, which provides assured access to outsized cargo aircraft, and the management of an assured access contract for sea transport.

The programme future, especially in the light of NATO’s Deterrence and Defence developments, will focus on extended support in the strategic transportation domain, in offering vital multi-modal support in the scope of enabling the European theatre, as well as SACEUR’S area of responsibility. The programme has the potential to develop into a NATO center of expertise in strategic transport and warehouse / depot management.

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22 ⎮ LYFE CYCLE MANAGEMENT

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A key NATO logistics tool in Central Europe.

The Central Europe Pipeline System (CEPS) is the largest of the

NATO multi-product petroleum pipeline systems. Originally created in the early 1950s, CEPS was conceived for the transport, storage and distribution of different fuel types to supply the military forces of the Alliance in Central Europe.

There are 5,279 kilometres of pipeline that cross through the territories of Belgium, France, Germany, Luxembourg and The Netherlands. The United States participates to the programme as a ‘user nation’, and is the largest military client.

The CEPS’ meshed network with multiple entry and delivery points is a prime example of multinational cooperation and multinational funding. Nearly 850 civil and military personnel conduct CEPS operations running 24/7, 365 days per year. Since the 1960s, the CEPS also provides first-class logistical support in terms of transport, storage and delivery to non-military clients. Specialization in the realm of aviation fuel now enables the CEPS to deliver 35 percent of the jet fuel supplied to civilian airports in Central Europe. Point-to-point transport is available for diesel, gasoline, domestic fuel and naphtha and is concentrated mainly in France.

CEPS business activities were exceptionally successful in 2017:

Continuous use of the CEPS by serving the commercial market ensures readiness of personnel and rotation of stocks. Ongoing infrastructure investments keep the system in good working order and safe for the environment. Product quality control is maintained with systematic product analysis at each entry and delivery point, as well as samples taken during transport and storage.

CEPS, a strategic asset for the AlliancePolitical events can fundamentally affect the European security environment, and consequently, impact CEPS strategic decisions and future activity.

The evolution of Europe’s strategic environment has confirmed the relevance of the CEPS to NATO as a strategic military capability in support to missions. This has been validated by the recent decision to expand the parts of CEPS eligible for common NATO funding, confirming CEPS’ vital role as a support platform for NATO.

CEPS MILESTONE; 31-10-2011 CEPS Supports NATO’s Operation Unified Protector and delivers more than 65 000 m³ of fuel to Istres Airbase to support NATO operations in Lybia.

MILESTONE: 01-01-1988 CEPS fuel banking system established along with a standardization of military and non-military specifications for jet fuel.

Central Europe Pipeline System

108 MEUR Overall revenues surpassed the highest ever in CEPS history

12 400 000 m³ CEPS celebrated its second best year for transport volumes

900 000 m³ Storage volumes remained at consistently maximum levels

23CENTRAL EUROPE PIPELINE SYSTEM ⎮

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NATO Airlift Management

Strategic Airlift Capability (SAC)

The Strategic Airlift Capability (SAC) is a multinational initiative which provides participating nations assured access to three military C-17 long range cargo aircraft

to meet their strategic and tactical airlift requirements. Member nations each own a share of the available flight hours and use them to execute their national, NATO, UN and EU commitments.

The 12 SAC nations participate in the programme for (at least) 30 years under a fixed budgetary ceiling. Recent infrastructure improvements include: a new custom designed C-17 Hangar Complex with a new office building, warehouse and aircraft maintenance facilities which provides permanent infrastructure for the entire lifespan of the programme and, in late 2017, SAC nations agreed to acquire a C-17 Aircrew Training Simulator to be operational at Pápa Air Base, Hungary. This capability will provide the Heavy Airlift Wing (HAW) aircrews increased flexibility and proficiency training options over the next 20 years.

SAC Nations include 10 Allies: Bulgaria, Estonia, Hungary, Lithuania, the Netherlands, Norway, Poland, Romania, Slovenia, the United States and two partner nations: Finland and Sweden.

NATO Airlift Management Programme (NAMP)

The NAMP is a multinational programme established within NSPO to meet the requirements specified in the SAC Memorandum of Understanding (2008). While the

NAM owns, manages and supports the C-17, fleet the aircraft are registered and flagged in Hungary. NSPA’s staff at the NAMP provide financial, logistics, and administrative services in support of the Heavy Airlift Wing.

Heavy Airlift Wing (HAW)

The HAW based in Pápa, Hungary, is the operational arm of the SAC, responsible for mission execution in accordance with pre-agreed flying hours. HAW

multinational aircrews provide the full spectrum of C-17 air-land and airdrop missions to include air refueling, single-ship airdrop, assault landing, and all-weather operations, day or night into low-to-medium-threat environments.

More than 25,000 flying hours have been flown to date with a mission capability level of more than 90% and the HAW has delivered cargo and passengers to every continent around the world. Missions included:

► International Security Assistance Force (ISAF) in Afghanistan (2009 – to present);

► Earthquake relief in Haiti (2010); ► NATO operations in Libya (2011); ► UN approved training and peacekeeping operations

in Mali (2013); ► NATO exercise Trident Juncture (2015); ► Medical evacuation flight in support of Romania (2015); ► First Airlift Mission to Gao, Mali (2016); ► First SAC Mission to Timbuktu (2017); ► Exercise Saber Guardian (2017); ► Humanitarian relief – Hurricane Irma (2017).

The SAC is open to new members. All NATO Nations and partner countries are permitted to participate, under the terms of an Agreement with approval from the North Atlantic Council.

MILESTONE: 10-08-2016 NATO Airlift Management Programme – Heavy Airlift Wing - surpasses 25,000 flying hours with C-17 fleet.

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

HAW Flying Hours24 ⎮ NATO AIRLIFT MANAGEMENT

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New times, new missions, new challenges, new horizons.

Over the last decade there has been significant evolution in the procurement domain. This has included the development and successful implementation of

new procurement and support concepts under the pressure of demanding circumstances, as well as the fulfillment of ambitious objectives.

In particular, ten years ago, at its fiftieth anniversary, the NSPA asserted its ambition to become the NATO’s Centre of Excellence for e-procurement. This objective has been achieved. The posting of our future business opportunities on the Agency website, along with the possibility of applying for registration in the NSPA Source File online are now common practices. All companies located in NATO countries or, upon specific decision of the Nations taking part in an activity supported by NSPO, in partner countries, can register in our Source File and therefore be invited for our Requests for Proposals. Today, more than 67,000 firms are registered in the Agency Industry Database. On average, 10,000 of these companies are solicited annually within the framework of International Competitive Bidding.

Informing industry, particularly through the organisation of national “Industry Days” in Capellen or in the various countries of the Alliance, is one of the efforts deployed by the Agency to identify new potential industrial partners. Combining this with online access to the regulations and operating procedures ruling our procurement activities, and the publication of the results of its procurement activities, the Agency has given a new dimension to the principles of equality of access to public procurement and transparency.

The Agency’s procurement processes and principles are designed to be coherent with those of national and multinational Public Procurement Organisations, including fair and equal access to contract awards. Deviations to the rule of full and open competition are authorized under only four conditions: Urgency, Low Value, Commonality and Security. Almost 95% of the contractual turnover processed in 2017

was undertaken using full and open International Competitive Bidding procedures.

The vision of the armed forces of the Alliance ordering via a secure access directly from suppliers under contracts awarded by the Agency has materialized. In 2017, a total of 657 Million Euro has been awarded to NSPA industrial partners across the Alliance and in partner countries using these secure ordering processes through purchase orders directly issued by end users.

In the operational domain, the delivery of real life support in Afghanistan and other locations has offered extraordinary challenges and enabled the development of extraordinary expertise. The concept of contract integrator was tested for the first time in 2006 for the multinational support of the NATO bases in Kabul and Kandahar. It extrapolated in an international environment nationally developed concepts of outsourcing to industry the support of military operations to civilian contractors under Firm Fixed Price contracts. This approach combining predictability of costs, their strict control by stakeholders, equal access to industry of all NATO nations and reliability proved itself a success. Combined with the successful conduct of major infrastructure projects throughout the entire Afghan theater, these activities established NSPA as a reliable partner for the support of low to medium intensity military operations. These successes echo with current support to operations in Mali, Kosovo and Iraq.

Finally, with the decision of the North Atlantic Council to assign to NSPA the mission to conduct major acquisition programmes, the Agency’s procurement function has entered a new dimension. This has required the adaption of its procurement regulations to its new missions and its procedures to its new challenges. Reverse auctions and the possibility to conduct competitive dialogue with industry for complex procurement are now available for the conduct of new projects. In a pragmatic manner, it has developed a close cooperation with the European Defense Agency and OCCAR to conduct the most ambitious programme ever conducted by the Agency: the acquisition of a Multi-Role Transport Tanker Fleet.

NSPA Procurement

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26 ⎮ PROCUREMENT

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Human Resources

The People of NSPA

This anniversary is a great opportunity to look back over the past 60 years during which NSPA staff have been in the front seat to lead the evolution and transformation

of the Agency. The competencies, talent and efforts of every NSPA employee have driven and significantly contributed to our current success. The Agency could not have achieved what it has without the dedication, loyalty and hard work of its people and this will continue to be the focus for developing the NSPA workforce for the future. No matter where in the organisation, the quality of our people continues to be critical for the success of the Agency.

The Agency has experienced significant growth and faced many challenges throughout its history. At the same time the staff have been introduced to new services in the Human Resources domain. Through Employee and Manager Self Services, many processes in HR have been simplified and automated. These services include electronic applications for time management, performance management, resource requests and contract management. This investment in automated HR tools helps supervisors to carry out their personnel management duties more easily, thereby freeing up their time to focus more on the core business of supporting their customers.

Furthermore, to manage the continuing - and forecast - Agency growth, recruitment and onboarding processes have also been expanded to enhance our ability to meet the demanding requirements of Agency business and our customers. A continued focus on staff training will be critical to ensure the workforce remains abreast of the latest developments and technology relevant to their specific branches of business.

Today, while having 1350 posts NSPA employs more than 1100 NATO International Civilians from 27 different nations. The challenge for the future will be our ability to adequately resource the Agency in a timely way to meet the current and future pace of growth. In order to attract quality staff, extensive effort is required to ensure NSPA remains a great place to work. Toward this end, an Employee Performance Management System was launched to ensure a professionally managed and

monitored workforce. Instilling a culture of performance is a cornerstone of NSPA success. Employee goals are established to ensure we are meeting customer requirements, and progress in meeting these goals is closely monitored.

To support the incredible diversity of NSPA’s current business scope, employment opportunities are offered in many different areas such as logistics, procurement and finance – including very technically specific areas related to the business of the Agency. To meet these specialized requirements, the Agency is hiring its staff based on merit from among the NSPO Nations. As a multicultural organisation located in the heart of Europe, we are offering great opportunities to candidates who hold a combination of strong management skills, outstanding technical knowledge and a customer-oriented approach. To further develop an attractive and modern work environment we are looking at how we can offer more flexibility to our employees and managers alike. NSPA, like the rest of NATO, is encouraging gender diversity and therefore we are highlighting this in all our employment publications on our web page as well as through social media.

The people of NSPA remain paramount to the success of the Agency. In a dynamic world, both the Agency and its people must maintain the ability to adapt and change to face the future requirements of our customers and in support of the Alliance.

27HUMAN RESOURCES ⎮

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Finance

The growth of the Agency is borne out by its financial results; 10 years ago the Agency’s customers procured 1.1 BEUR from the Agency while in 2017 its turnover

has risen to 4.8 BEUR – a near fivefold increase in business volume.

In the last 10 years the Agency successfully faced the challenge of implementing International Public Sector Accounting Standards (IPSAS) which are based on private sector best practices in financial reporting and have the aim of providing management, our customers and other interested stakeholders with transparent financial information relevant to making business decisions. The creation of NSPA from the former

NATO Agencies of NAMSA, CEPMA and NAMA in July 2012 presented a fresh challenge when the Agency had to ensure that the three entities’ financial data could be consolidated into one overall financial statement with consistent accounting policies employed across the board. The Agency’s financial statement presentation was considered by NATO and the International Board of Auditors for NATO (IBAN) to establish best practice within NATO. Since 2015, in a move towards increased transparency, the financial statements are published on the NATO website. This transparency in financial operating results is further validated by independent reviews of Agency financial operations. These reviews include internal audits by the NSPA Auditor General and external reviews by the IBAN. This additional oversight gives customers assurance that NSPA is being a good steward of the funds entrusted to it.

There are other notable successes from the last 10 years. The Agency established a specialised payment cell based on the electronic recognition of invoice data by the Agency’s Enterprise Resource System (SAP); this has led to cost efficiencies which have benefited all customers. Another innovation allows customers the possibility to go online and get details of its financial situation with the Agency. Finance is also currently working with specialised tools to produce budget estimates and cost outturns which will provide customers with more timely and accurate financial data. These last two initiatives provide increased financial transparency to the Agency’s customers.

The biggest challenge currently facing Finance is implementing revised Financial Rules and Procedures which codify increased requirements for financial management based on enhanced risk management processes and the adoption of an internal control framework; these requirements, when implemented, will give customers even greater assurance that their funds are being appropriately managed.

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28 ⎮ FINANCE

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Information Systems

To provide agile and high quality service to customers, NSPA business areas and support

functions rely critically on the Agency’s Information Systems. These provide automated processes and information services when and where needed in step with dynamic business demand. At the same time, IT maintains a cyber-security posture appropriate to a NATO establishment in order to reduce the risk of threats.

Customer and supplier logistics systems are interconnected with the Agency’s logistics systems by a multi-protocol, standardized and highly protected Agency information exchange and validation system. The NSPA system handles protocol conversions such as between ASD Spec 2000M and the SAP document format, IDoc, for business transaction data transfers. In addition, customers have online direct access to inject and manage their requisitions using our business applications such as GPSS, NLSE and eCIS (electronic Customer Information System). More and more reports, such as financial status reports, are available online to authorized customer representatives.

IT support to operations and exercises receives focused, special attention – this includes the theatre-wide fuel management system in Afghanistan, the NATO Airlift Management Programme and Heavy Airlift Wing (HAW) support with 24/7 operations and the future NATO Response Force (NRF) Assets and Support, CP 9A01101, all of which necessitate high IT-system resilience. Satellite-enabled reach-back capabilities enable staff to work anytime, anywhere, connected through modern communication means including video-telecommunications.

In the area of IT resilience and satellite communications, the Agency’s Host Nation was particularly supportive providing the Agency with a fully equipped modern data centre in Betzdorf and dedicated satellite capacity on a specifically secured government launched satellite. These highly appreciated contributions from Luxembourg have enabled NSPA IT to handle increased requirements in support of operations.

NSPA now truly benefits from state-of-the-art, reliable, secure and dependable Information System resources, characterized by up-to-date, standardized platforms such as the SAP system and SharePoint running on a private cloud underpinned by a Tier IV datacenter and satellite communications.

NSPA will develop its IT services in-step with the strong business growth, both quantitatively and qualitatively. This will include support to advanced project management in multi-disciplinary distributed teams including customers, as well as pursuing further de-materialization of administrative and business processes to continually increase efficiency for the customer.

29INFORMATION SYSTEMS ⎮

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CEPS 120 MEUR 120 MEUR

NAM 120 MEUR 125 MEUR

Future of NSPA

In analysing the likely future of the Agency, each business unit reviewed the current and predicted change in business levels basing their analysis on levels of interest shown by customer

nations. The results of this analysis are highlighted below. Based on this broad analysis the Agency believes that, over the next two years, business will continue to grow rapidly in several areas.

The CEPS and NAM business levels are expected to remain relatively stable. The CEPS fuel transportation and storage is already used at very high capacity with some areas reaching saturation. The NAM programme has a planned and consistent level of annual flying hours to support for the Strategic Airlift Capability and there has been interest from other nations to take up the undeclared flying hours (approximately 10%). It is expected that these hours will be taken up in the next few years. There is also the possibility of supporting a potential flight simulator project in the future.

There may be some rebalancing in the support to operations area as and when the level and focus of NAC and national operations in Afghanistan, Kosovo, Mali and Iraq change. NATO nations have adopted a conditions-based approach to any drawdown in Afghanistan and are expected to remain through 2020 and beyond. Despite a reduction in troop numbers, the number of support contracts has increased with a more frequent requirement to re compete and manage these new contracts. There is also interest from nations for the Agency to support national operations.

In support of Projecting Stability, in addition to the ongoing operational commitments, the Agency has seen increased demand from the Combined Security Transition Command Afghanistan (CSTC-A) in developing trust fund projects for Afghan National Forces. This includes infrastructure and Mi 17 helicopter refurbishment and modernization. The Agency also acts as ‘host nation’ for Trust Funds in many other partner countries as outlined earlier. The expectations are that the activities in this area will further increase.

NSPA is already providing some assistance to Deterrence and Defence. Demand is expected to grow for support to eFP units, to the VJTF, to host nations and for the USA’s European Reassurance Initiative (ERI). Growing requirements for support to preparation for operations will include demands on the Contract Integrator team and the OSLP for planning input and participation in exercises. Further development of responsive and readily available contracted support is expected (including use of in-place Rapidly Useable Enabling Contracts (RUECs) and development of new ones).

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30 ⎮ FUTURE OF NSPA

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Supportrr to Operatrr ions andExercises

900 MEUR 1000 MEURInfrarr structurerr

CI/OLSP and Operatrr ionalPlanning

�c�uisition

����n EUR ����� �n EUR

�ir

LaLL nd

Mariti�e

Missiles

�00 MEUR �00 MEUR

Growth Prediction

Current Level of Business

Predicted Level of Business Value + 2 years- +

Life Cycle Management

Acquisition

2.2 Bn EUR 3-4 Bn EUR

Air

Land

Maritime

Missiles

Services 200 MEUR 300 MEUR

Overall, these changes are likely to be balanced across the Operations Support area rather than increase overall growth significantly. There are needs for improved Agency readiness as well as a higher degree of responsiveness to react to operational needs. This will also require increased senior-level engagement with NATO and national planners and decision-makers. The Agency must be able to react to these changes across the operational domain.

In the traditional Life Cycle Management business area the majority of the support partnerships are predicting growth. The aviation and land support areas are expecting rapid increase. Support in the maritime environment, while having a great deal of potential, has a steady growth forecast in the shorter term. Support for missiles shows a healthy forecast of growth and the services area is predicting a similar increase. The acquisition programmes are quite likely to expand in quantity, complexity and value quickly.

In summary, the largest increase is expected in the Life Cycle Management area. This could be a 60 to 70% growth in workload, thus leading to a financial increase in turnover of one to two Billion Euros per year. In the Support to Operations & Exercises domain, the Agency will continue its support to current and emerging operations and at the same time further develop its capabilities to support NATO and the Nations in Deterrence & Defence and Projecting Stability including the support to the implementation of Trust Funds. Workload increases are expected in almost all other capability areas of the Agency. As a consequence, the direct manning level of the Agency is expected to grow accordingly. This must be matched with a commensurate level of overhead staffing in order to meet customer’s expectations.

31FUTURE OF NSPA ⎮

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Anniversary Events

The NATO Support and Procurement Agency (NSPA) celebrated 60 years of existence and 50 years of presence in Luxembourg with an official Anniversary Ceremony held

on 25 June 2018 at its site in Capellen, Luxembourg.

The main event of the day was the Anniversary Ceremony attended by distinguished visitors from Luxembourg, NATO and nations, including: Their Royal Highnesses The Grand Duke and Grand Duchess of Luxembourg, the President of the Luxembourg Chamber of Deputies H.E. Mr. Mars Di Bartolomeo, the Prime Minister H.E. Mr. Xavier Bettel and members of his cabinet, the NATO Secretary General H.E. Mr. Jens Stoltenberg and the ambassadors representing their nation at NATO.

In addition, during the anniversary year 2018, more events were organized with high-ranking participation. The Conference of National Armaments Directors (CNAD) in April was followed

by the presence of the North Atlantic Council (NAC) informal meeting in June preceding the VIP event. At the end of the year, the Military Committee (MC) will be the guest of NSPA to further assess the Agency’s capabilities available in support to NATO’s objectives.

In this context, the Agency will further host an Innovation Symposium with guest speakers from NATO, Industry and academia to address this topic from different perspectives to NSPA’s senior staff.

On the afternoon of Thursday 28th June, NSPA staff members and their families participated in the Staff Recognition Event at NSPA Capellen. The General Manager officially opened the event, highlighting in particular the dedication and contribution that the staff have made to the success of NSPA and thanked all staff members for their continuous effort to meet customer satisfaction.

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32 ⎮ANNIVERSARY EVENTS

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172004

5 000 000

4 500 000

3 500 000

4 000 000

1 500 000

1 000 000

4 500 000

3 000 000

2 500 000

2 000 000

4 000 000

LOGOPS

CEPS

NAMP

ADMIN

0

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

400

600

800

1000

1200

1400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

900

1000

800

1100

1200 Staff Numbers

Workforce by Country

100

20 - 24

25 - 29

100 150 20050 0 50Number of Employee

Age

Ran

ge

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

55 - 59

60 - 65 698

44

48

34

17

67

67

59

167

181

148

111

82

54

16

4

Female Male

Population Pyramid

NSPA Statistics

Nations Financial Commitments (5-Year Average)

Business Turnover Historically

Number of Existing Outline Agreementswith Customers

Staff Numbers

33ANNEX I ⎮

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Users of NSPA Services

ALB

BEL

BGR

CAN

HRV

CZE

DNK

EST

FRA

DEU

GRC

HUN

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und

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veill

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d A

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)(28

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veill

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trol

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tinat

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ti-R

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port

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●●

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bat V

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20)

NS

PO

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●●

●●

●●

●●

●●

Nig

ht V

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n an

d O

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nics

(N

VO

)N

SP

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P●

●●

Logi

stic

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vice

s fo

r M

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and

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tform

s (L

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UP

)S

A●

●●

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Nat

iona

l Bro

kera

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rypt

o●

●●

NA

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rypt

o●

●●

●●

●●

●●

●●

●●

●●

●●

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NA

TO D

epot

& S

uppo

rt S

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m (

ND

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)(4)

●●

●●

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TO M

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Com

mun

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ions

●●

●●

●●

●●

●●

●●

●●

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●●

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●●

●●

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port

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IS●

●●

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●●

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●●

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●●

●●

●●

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●●

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c (C

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●●

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iona

l Sol

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●●

●●

●●

●●

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●●

●●

●●

●●

●●

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( A

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●●

●●

●●

●●

●●

●●

●●

●●

CE

PS

●●

●●

●●

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mun

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NS

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SP●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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on D

ata

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●●

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●●

●●

●●

●●

●●

●●

●●

●●

●●

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1)●

●●

●●

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●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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dom

Bro

kera

ge S

uppl

y/S

ervi

ces

and

Pro

ject

sS

A●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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mon

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Mat

eria

l Man

agem

ent S

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m (

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10)(

12)(

17)

NS

PO

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●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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aste

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talo

gue

of R

efer

ence

for

logi

stic

s (N

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●●

●●

●●

●●

●●

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●●

●●

●●

●●

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ITA

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LUX

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NOR

POL

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SVK

SVN

ESP

TUR

GBR

USA

AUT

FIN

SWE

CHE

UKR

KOR

CHILE

NMA

NATO FORACS

NAHEMA

NAGSMA

In Luxembourg since 1968NATO SUPPORT AND PROCUREMENT AGENCY

34 ⎮ANNEX II

Page 35: TABLE OF CONTENTS - NATO Support and Procurement Agency · 2018-07-26 · NATO’s Agency Reform aimed at achieving efficiencies, improving effectiveness and finding savings where

Leg

end

: ●-

NS

PA

ser

vice

s u

sed

NM

A -

NA

TO M

ilita

ry A

uth

orit

ies

ALB

BEL

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CAN

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DNK

EST

FRA

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HUN

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ITA

LVA

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LUX

MNE

NLD

NOR

POL

PRT

ROU

SVK

SVN

ESP

TUR

GBR

USA

AUT

FIN

SWE

CHE

UKR

KOR

CHILE

NMA

NATO FORACS

NAHEMA

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Operation Support

Airf

ield

Ser

vice

s, B

ase

Ser

vice

s (A

fgha

nist

an, K

osov

o)(5

)●

●●

●●

●●

●●

●●

●●

Food

Ser

vice

s (A

fgha

nist

an, K

osov

o, M

ali)(

5)●

●●

●●

●●

●●

●●

●●

●●

●●

Infra

stru

ctur

e P

roje

cts

/ Eng

inee

ring

(Afg

hani

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●●

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●●

●●

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trac

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tics

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ratio

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tics

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)(9)

(15)

(18)

(22)

(23)

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PO

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●●

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●●

●●

●●

●●

●●

●●

●●

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hani

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A●

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iona

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o●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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NA

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epot

& S

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rt S

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m (

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SS

)(4)

●●

●●

●●

●●

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●●

●●

●●

●●

●●

●●

●●

●●

●●

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mun

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ions

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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ratio

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IS●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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●●

●●

●●

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●●

●●

●●

●●

●●

●●

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●●

●●

●●

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bal P

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●●

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●●

●●

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NA

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●●

●●

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( A

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●●

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●●

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●●

●●

CE

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●●

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mun

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SP●

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●●

●●

●●

●●

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●●

●●

●●

●●

●●

●●

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on D

ata

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●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

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●●

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st F

und(

1)●

●●

●●

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●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

Ran

dom

Bro

kera

ge S

uppl

y/S

ervi

ces

and

Pro

ject

sS

A●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

Com

mon

Item

Mat

eria

l Man

agem

ent S

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m (

CO

MM

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10)(

12)(

17)

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PO

SP

●●

●●

●●

●●

●●

●●

●●

●●

●●

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aste

r ca

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gue

of R

efer

ence

for

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stic

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●●

●●

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●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

●●

NA

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apab

ility

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kage

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iona

l Cal

ibra

tion

●●

●●

●●

NA

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n●

●●

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man

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)N

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port

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●●

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BEL

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CAN

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CZE

DNK

EST

FRA

DEU

GRC

HUN

ISL

ITA

LVA

LTU

LUX

MNE

NLD

NOR

POL

PRT

ROU

SVK

SVN

ESP

TUR

GBR

USA

AUT

FIN

SWE

CHE

UKR

KOR

CHILE

NMA

NATO FORACS

NAHEMA

NAGSMA

35ANNEX II ⎮

Page 36: TABLE OF CONTENTS - NATO Support and Procurement Agency · 2018-07-26 · NATO’s Agency Reform aimed at achieving efficiencies, improving effectiveness and finding savings where

Chronology1958 MayThe North Atlantic Council (NAC) creates the NATO Maintenance Supply Services System (NMSSS) and its executive element, the NATO Maintenance Supply Services Agency (NMSSA) in Paris.

1961 JulyThe NMSSA takes over management of the NATO Supply Centre (NSC) in Chateauroux, France

1964 NovemberThe NATO Maintenance and Supply Organisation (NAMSO) and NATO Maintenance and Supply Agency (NAMSA) created, superseding the NMSSS and its Agency. The concept of the Weapon System Partnership (WSP) is defined in the NAMSO Charter.

1965The first Weapon System Partnership (WSP) is formed for the F-104 aircraft. NAMSA’s role expands to support nine weapon/equipment systems.

1968 FebruaryNAMSA moves to Luxembourg with its HQ in Luxembourg-City and operational facilities in Capellen. NAMSA now supports 11 weapon/equipment systems.

1972In addition to its Northern Depot in Capellen, NAMSA activates its Southern Depot in Taranto, Italy. NAMSA now supports 15 weapon/equipment systems.

1975 JanuaryNAMSO HAWK (Homing All the Way Killer) WSP created; converted to the NAMSO NSPO HAWK SP effective 5 October 2015.

1975 JulyNAMSO TOW WSP created; converted to the NAMSO Land Combat Missiles (LCM) WSP on 26 March 2004 with TOW project; SPIKE project added 1 January 2012.

1975Canada joins NAMSO. NAMSA assumes full responsibility for the support of the Hawk missile system in Europe. NAMSA now supports 18 weapon/equipment systems.

1984 DecemberNAMSO Multi Launch Rocket System (MLRS) WSP created; converted to the NAMSO Artillery Rocket and Missile Systems with MLRS Project (ARMS) on 31 July 2006.

1985 Spain joins NAMSO

1985 JuneNAMSO PATRIOT (Phased Array Tracking Radar to Intercept on Target) WSP created; converted to the NSPO PATRIOT SP on 23 March 2017.

1987NAMSA Headquarters moves to Capellen to collocate with the operational facilities.

1989 DecemberNAMSO STINGER WSP created.

1991 JuneNAMSO C-130/P3 WSP created; converted to the C-130/P3 WSP on 2 June 2003; C-130/P3 WSP converted to the NAMSO Fixed-Wing Aircraft (FWA) ‘family’ WSP on 1 July 2007 and to the NAMSO FWA WSP to the NSPO FWA SP on 9 April 2015.

1993 FebruaryNAMSO Ammunition Support Partnership created; converted to the NSPO Ammunition SP on 23 March 2017

1994 DecemberNAMSO AN/FPS-117 (radar) Support Conference created; converted to the NSPO AN/FPS-117 SP on 1 January 2013.

1995NAMSA publishes its first Business Plan. NAMSA now supports 30 weapon/equipment systems.

1996 JuneNAMSO Advanced Medium-Range Air-to-Air Missile (AMRAAM) WSP created.

1997 SeptemberThe Central Europe Operating Agency becomes the Central Europe Pipeline Management Agency (CEPMA).

1999The Czech Republic, Hungary and Poland join NAMSO.

1999 AprilNAMSO Common Item Materiel Management (COMMIT) Support Partnership created; converted to the NAMSO COMMIT System Partnership [definition of NATO Logistics Stock Exchange NLSE concept (2002)] - 25 June 2002; converted to the NSPO COMMIT SP - 7 November 2014.

1999 MayNAMSO Helicopter WSP created; converted to the NSPO Helicopter SP effective 1 January 2017.

2000 AugustNAMSO Ship-Shore-Ship Buffer (SSSB) WSP created.

2001 JanuaryNAMSO RAT 31 (radar) Support Conference created; converted to the NSPO RAT-31 SP on 1 January 2013.

2002 MayNAMSO MAVERICK WSP created; converted to the NAMSO Air-to-Surface Missiles (ASM) WSP established on 3 July 2008 with MAVERICK Project (the HARM Project added on 1 January 2012). NAMSO ASM WSP converted to the NSPO ASM SP effective 1 January 2017 (with establishment of TAURUS Project & disestablishment of MAVERICK Project).

2004Slovenia, Lithuania and Slovakia join NAMSO.

2004 JanuaryNAMSO Control and Reporting Centre (CRC) / Systems Interface (CSI) Support Conference created.

2004 JanuaryNAMSO Ground-Based Defence (GBD) WSP created.

2004 JanuaryNAMSO RADARS Southern Region and Portugal (RSRP) Support Conference created; converted to the NSPO RADAR SP established on 1 January 2013.

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Chronology2004 DecemberNAMSO Strategic Air Lift Interim Solution (SALIS) Partnership created; converted to the NSPO Strategic Air Lift International Solution SP on 1 January 2017.

2005Bulgaria, Estonia, Latvia and Romania join NAMSO.

2005 JanuaryNAMSO Land Combat Vehicles (LCV) WSP established; with the merging of the NAMSO M-60 WSP and NAMSO M-113 WSP with the addition of the:

► PzH 2000 Project; ► Tactical Land Systems Project; ► Night Vision & Optoelectronics (NVO)

Project, converted to the NSPO Land Combat Vehicles SP with the:

► addition of the Leopard Project; ► addition of the Boxer Project and

withdrawal of the M-60 and M-113 Projects;

► withdrawal of the Night Vision & Optoelectronics (NVO) project established as an NSPO NVO SP;

► addition of the Light Armoured Vehicles Project.

2007Iceland joins NAMSO.

2008 SeptemberNATO Airlift Management Organisation (NAMO) established in 2008 by the North Atlantic Council, through the activation of the NAMO Charter. The NATO Airlift Management Agency (NAMA) was created with NATO member nations and two PfP nations establish the Strategic Airlift Capability.

2008 JanuaryNAMSO Multifunctional Information Distribution System (MIDS) WSP created;converted to the NSPO MIDS SP on 1 January 2015.

2009 JulyNAMSO Operational Logistics Support Partnership (OLSP) created; converted to the NSPO OLSP on 1 January 2015.

2009 JulyNAMSO Air Command and Control System Level of Operational Capability 1 (ACCS LOC1) Support Conference created on 1 July 2009; converted to the ACCS LOC1 SP on 1 January 2013.

2009 NovemberNAMSO Random Brokerage Services established; converted to NSPO Random Brokerage services on 1 January 2017.

2010 JanuaryNAMSO Global Positioning System Partnership created.

2010 January

► NAMSO Naval Logistics Support Partnership (NLSP) created;

► NAMSO Torpedo WSP established (taking over from the NAMSO MK 46 Torpedo WSP);

► NAMSO NLSP and NAMSO Torpedo WSP converted to the NSPO NLSP on 3 November 2015.

2011 JanuaryNAMSA Routing Hub Support Conference created.

2012 JanuaryNAMSO Unmanned Aerial Systems (UAS) Partnership established; converted to the NSPO UAS SP on 1 Jan 2015.

2012 JulyThe NATO Support Organisation (NSPO) created, bringing together the NATO Maintenance and Supply Organisation, the NATO Airlift Management Organisation and the Central Europe Pipeline Management Organisation and their Agencies.

2013 DecemberNSPO SIDEWINDER SP created.

2013 January NSPO Demilitarization, Dismantling & Disposal (D3) SP created.

2014 JulyNSPO Multinational Multi Role Tanker Transport (MRTT) Fleet (MMF) SP created.

2015 JanuaryNSPO Night Vision and Optronics (NVO) SP established on 1 Jan 2015, taking over from NVO Project previously created in the context of the NSPO LCV SP.

2015 AprilOn 1 April 2015 the NATO Support Organisation (NSPO) becomes the NATO Support and Procurement Organisation marking the expansion of Organisation capabilities to include major systems acquisition.

2016 JanuaryNSPO Alliance Ground Surveillance (AGS) SP created on 1 January 2016.

2017Montenegro joins NATO, thus NSPO.

2017 JanuaryCryptographic, Communications and Electronic (CCE) Equipment - NSPO CCE Equipment SP created on 1 January 2017.

2017 OctoberNATO General Procurement Shared Services (GPSS) governance framework promulgated to facilitate and foster collaborative procurement in the execution of the NATO GPSS User Entity requirements for goods and services of general nature.

2017 DecemberNSPO Alliance Future Surveillance and Control (AFSC) SP created.

2018Today, NSPA supports two NSPO Programmes, 24 NSPO Support Partnerships, seven NAMSO Partnerships and two NAMSO Support Conferences a growing number of NATO Bodies or Agencies, NATO and Partner Nations and European Union bodies.

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Previous Chairpersons of the Agency Supervisory Board

Col J.K. CHRISTIE21.04.1958 - 05.03.1959

Mr Muzaffer AKYILDIRIM1 .07.2015 - 31.12.2015

Brig Gen Wolfgang DOERING01.01.1995 - 31.12.1997

Mr Sigitas DZEKUNSKAS01.01.2010 - 30.06.2012

Maj Gen Hugo CLOECKAERT16.03.1986 - 15.03.1988

Col Philip Y. BROWNING01.04.1965 - 31.07.1978

Lt Gen. F. VAN DUN06.03.1959 - 17.04.1961

Ms Marilyn MORSE (Acting)

01.01.2016 - 30.06.2016

Maj Gen Dimitrios KATELOUZOS

01.01.1998 - 31.12.2000

Mr Dave WRIGHT01.07 2012 - 03.07.2012

Mr Per CHRISTENSEN03.07.2012 - 30.06.2015

Maj Gen Roderick M. BERGIN

16.03.1988 - 15.08.1989

Brig Gen Raffaele CARIGLIA01.01.2001 - 31.12.2003

Gen Marc-Antoine CAUCHIE (Acting)

01.08.1978 - 14.01.1980

Lt Col. F.O. HERTEL 18.04.1961 - 31.03.1963

Maj Gen Richard D. LEECH28.09.1989 - 30.06.1990

Mr György KAPUSY01.01.2004 - 31.12.2006

Lt Gen Giorgio SULPRIZIO15.01.1980 - 28.02.1983

Dr Alfred RENNERT 01.04.1963 - 31.03.1965

ICA Nicolas de CHEZELLES01.07.1990 - 31.12.1994

Mrs Inga PUIKEVICA-PUIKEVSKA

01.01.2007 - 31.12.2009

Mr Wolfgang M. J. A. RUSSEL

01.03.1983 - 15.03.1986

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Previous General Managers of the Agency

Brig Gen Charles A. HEIM01.07.1958 - 30.06.1962

Brig Gen Helge OMRENG16.03.1980 - 30.04.1984

Air Vice MarshalPeter D. MARKEY

27.04.1999 - 31.07.2004

Brig Gen Benjamin F. MODISETT01.07.1962 - 30.06.1964

Gen Marc-Antoine CAUCHIE 28.05.1984 - 31.12.1989

Maj Gen Karl-Heinz MÜNZNER01.08.2004 - 31.07.2009

Maj Gen Robert BUREAU 01.09.1964 - 30.08.1971

Maj Gen HartmutSCHMIDT-PETRI

02.01.1990 - 31.12.1994

Maj Gen Antonios CHATZIDAKIS

01.08.2009 - 30.06.2012

Maj Gen Horst GENTSCH 01.09.1971 - 30.06.1978

Robert W. A. ZWEERTS 01.01.1995 - 08.03.1999

Rear Admiral Michael J. LYDEN

01.07.2012 - 04.07.2016

Brig Gen Christopher J. ROSE (Acting)

05.07.2016 - 01.09.2016

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11 rue de la Gare, L-8325 Capellen - LuxembourgTel. + 352 3063-1 | www.nspa.nato.int |

NATO Support and Procurement AgencyAgence OTAN de soutien et d’acquisition