How does NSPA Work?

The NATO Support and Procurement Agency (NSPA) is NATO’s principal logistics support agency. NSPA’s main tasks are to assist NATO nations by conducting common procurement and supply of spare parts, issuing maintenance and repair services necessary for the support of various weapon systems, and providing technical support. In recent years, NSPA has become increasingly involved in providing contracted logistic support for Alliance Operations and Missions such as the Kosovo Forces (KFOR) and regional exercises. So just how does NSPA work and how can your company do business with this NATO Agency?

NSPA’s customers are NATO Headquarters, the 31 Member Nations plus Partner Nations. These customers provide 100% of NSPA’s annual funding using a “no profit-no loss” business model with almost every Euro marked for specific projects and capabilities. The Agency employs over 1,500 people and it is based in the Grand Duchy of Luxembourg, with main operational centers in France, Hungary, The Netherlands, and Italy. NSPA customers frequently pool their resources and tasks with NSPA under formal Partnership agreements. There are over 32 Support Partnerships, organized around all manner of military requirements including 5 that are Aviation specific, 12 Land Combat, Missile, and Ammo related, 6 with a C4I focus, and over 9 “Specialized Partnerships”.

Cover to cover, the procurement regulation used by NSPA is a concise 119 pages and any changes must be approved by all NATO member states. NSPA’s procurement rules are based on three principles: transparency, equal opportunity, and equal treatment. Requests for Proposals (RFPs) are usually open to all registered suppliers with more than 10,000 active suppliers already registered in the NSPA source file. Eligibility to register is based on legal country of residence, present capabilities, financial standing, and past performance. In certain cases, competition may be restricted to suppliers resident in countries of the sponsoring Support Partnership or Troop Contributing Nations to an operation. Contracts are awarded based on strict technical compliance with the requirements published in the tender and are generally made to the lowest-cost bidder. NSPA published updated procurement regulations (NSPA OI 4200-01) in September 2023.

When procuring NATO Common Funded projects, NSPA may be directed to utilize an alternate set of regulations that provides an additional layer of governance in the procurement process. This is commonly seen when the NSPA manages construction projects, where the NSPA will follow the NATO Security Investment Program (NSIP) procedures for International Competitive Bidding (ICB). Here NSPA is defined as the Host Nation, working for the NATO Investment Committee, which establishes the military requirement, sets project timelines, and issues price approval before award. ICB is the default procurement method for all NSIP-funded projects and for many other common-funded projects within NATO. Any request to deviate from ICB procurement must be agreed upon by the Investment Committee at the time of project authorization.

NSPA, as a subsidiary body of NATO is, by application of the Ottawa Agreement, dated 20 September 1951, exempt from all taxes and duties. All contracts are written in one of the two official NATO languages – English and French. It is common practice that all Support to Operations contracts and related business activities are conducted in English. However, unless noted otherwise in the contract, that contract (and all NSPA contracts) shall be governed, interpreted, and construed by French law and such law shall govern in the event of arbitration.

For 2024, NSPA announced a move to a mandatory electronic process for all bidding-related activities from publishing Future Business Opportunities through final bid submission. To submit a bid, a firm must be registered. Registration on the NSPA Source File is free of charge. Upon receipt of the application, NSPA will validate the company’s status with the competent authorities of its country of residence. To learn more about how to do business with NSPA, contact Jim Shields at Precision Talent Solutions (jim@pts.careers). As a former senior official at NSPA, Jim is well-positioned to help your company succeed in the NATO market.