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

NATO – where agencies fit in N a t i o n a l A u t h o r i t i e s Permanent Representatives Ambassadors to NATO Military Representatives to NATO North Atlantic Council (NAC) Nuclear Planning Group (NPC) Military Committee Subordinate Committees Secretary General International Military Staff International Staff Strategic Commands ACO ACT NCIA NAHEMA NSPA … JFCB JFCN … JWC JFTC NSO NATO Agencies Operations Exercises NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

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

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

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

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

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

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

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

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

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

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

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

Mr Patrick FESQUET - Director of Procurement 30 Support Partnerships in place Aviation & Unmanned Aerial Systems Multinational Multi Role Tanker Transport (MRTT) Fixed-Wing Aircraft Helicopters Alliance Ground Surveillance (AGS) Unmanned Aerial Systems (UAS) Missiles (Missile systems) & Ammunition PATRIOT STINGER HAWK SIDEWINDER AMRAAM Air-to-Surface Missiles Land Combat Missiles (LCM) Ammunition Support Land Combat Land Combat Vehicles (LCV) Night Vision & Optoelectronics (NVO) Artillery Rocket & Missile Systems (ARMS) Specialized Strategic Airlift Interim Solution (SALIS) Common Item Materiel Management (COMMIT) Naval Logistics Support (NLSP) Demilitarization, Dismantling & Disposal (D3) Operations Logistics Support (OLSP) Global Positioning System (GPS) Multifunctional Information Distribution System (MIDS) Cryptographic, Communications and Electronic (CCE) Equipment Surveillance – Command & Control Alliance Future Surveillance and Control (AFSC) Air Command and Control System Level of Initial Capability Ground-Based Defence (GBD) AN/FPS-117 Radar (national + MB) RAT 31 Radar (national + MB) RADAR (national + MB) AWACS Tiger, A400M, Cobra, NH90 Red - common funding NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

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

Mr Patrick FESQUET - Director of Procurement Current Operations Afghanistan Fuel Airfield Services APOD Support HKIA HQ RS Bldg project Trust Funds - CSTC-A projects KFOR Medical R2 Film City refurbishment National projects Irbil Mali NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

Mr Patrick FESQUET - Director of Procurement Life Cycle Management - Business Portfolio Pre-Concept Concept Development Production Utilisation & Support Retirement Life Cycle Management (incl. Acquisition) Ground Based Air Defense & Air C2 Fixed Wing, Helicopter & UAS Land Combat Systems Missiles & Ammunition Transport and Logistic Hub Automated Life Cycle Support Integrated Services … NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

Mr Patrick FESQUET - Director of Procurement Life Cycle Management - What System acquisition Equipment and spare parts procurement Supply & Services Maintenance, repair and overhaul Engineering services, modifications, upgrades On-site technical assistance Disposal Training and Documentation Management and expertise Transport and storage Multinational Cooperation 30 Support Partnerships Land Air Maritime Missiles & Ammo GBAD & Air C2 Deployable Camps … NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

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

Life Cycle Management – “cradle to grave” Pre-Concept Concept Development Production Utilisation & Support Retirement Current NSPA Major Involvement Alliance Future Surveillance & Control (AFSC) Deployable Camp studies (UK) Armoured vehicles, Simulators Deployable camps Radars Multirole Tanker Transport Alliance Ground Surveillance 90+ WS e.g. AWACS A 400 M NH 90/Tiger Unmanned Aerial Syst. Radar …….. Maritime Land vehicles Ammunition Acquisition areas Radar (acquisition, upgrade, modernization) Armoured Vehicles Upgrades / modifications air assets (C 130, AGS, ...) and missiles Unmanned Aerial Systems Helicopter Simulators Deployable camps (common-funded, multinational and national projects) ……. Moving on to a snapshot of current main systems procurement and lifecycle management work Shown along the top are the NATO lifecycle stages which provide the framework for our activities. In this work we are linked to the Allied Committee on Lifecycle Management and follow NATOs policy and approach Highlighted below is a snapshot of the Agencies major current involvement and activities at the various stages of their lifecycle The AFSC and AGS projects will be addressed separately in a moment Note also that the bulk of our work is currently in the utilization and support area with more than 90 weapons systems supported. Finally you can see the areas listed where we expect to have further growth with emerging acquisition projects NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

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

Operational Budgets Business Trend in KEUR Operational Business 2017 = 4.7 BEURl Source: Commitments raised each year NAM – peaks reflect multi-year commitments related to sustainment/training through FMS Log Ops - 2017 Purchase of 5 additional MRTT MEUR Log Ops – 2014 drop related to ISAF drawdown Include Support to OCCAR TIGER & A400M NATO UNCLASSIFIED Mr Patrick FESQUET - Director of Procurement

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

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

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

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

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