STRATEgIC TRANSPORT ANd STORAgE

36 Pages·2017·10.72 MB·English

NATO SUPPORT AND PROCUREMENT AGENCY
Annual
Report
2016

TABLE OF CONTENTS
IntroductIon by the nSPo chaIrPerSon................................................. 4
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ForeWord by the GeneraL ManaGer....................................................... 5
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corPorate GoVernance............................................................................ 6
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aGency reLeVance to nato GoaLS, obJectIVeS and PrIorItIeS....... 8
caPabILIty area achIeVeMentS................................................................... 10-21
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SuPPort to oPeratIonS and eXercISeS.................................................................. 12-13
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SySteMS ProcureMent and LIFe-cycLe ManaGeMent........................................ 14-15
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FueL ManaGeMent...................................................................................................... 16-17 BI
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StrateGIc tranSPort and StoraGe........................................................................ 18-19 A
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LoGIStIcS SerVIceS and ProJect ManaGeMent.................................................. 20-21
cuStoMer and StaKehoLder outreach................................................... 22-23
SuPPort and ManaGeMent deVeLoPMent achIeVeMentS................... 24
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ProcureMent rePort.................................................................................... 25 N
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FInancIaL oVerVIeW...................................................................................... 26-29
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PerForMance MeaSureMent....................................................................... 30 F
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rISK ManaGeMent - QuaLIty......................................................................... 31
LonGer terM outLooK – chaLLenGeS and oPPortunItIeS.................. 32
concLuSIon.................................................................................................... 33
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acronyMS........................................................................................................ 34-35 I
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IntroductIon by the nSPo chaIrPerSon
A looks forward to approving the NSPO Financial Rules
s the recently
and Procedures, as well as the Agency’s proposal
s e l e c t e d
to realign the Logistic Operations Business Unit
Chairperson of
to support the Agency’s new and evolving mission
the NATO Support
areas.
and Procurement Organisation (NSPO) Agency
Supervisory Board (ASB), I am pleased to recognise
With respect to new initiatives, the ASB established
our collective success in supporting the Alliance
the Alliance Ground Surveillance (AGS) Support
during the course of 2016. With sound governance
Partnership, which will oversee the transition effort
processes in place, along with transparent, accurate,
to field and operate this system. Additionally, with
relevant and efficient flow of information, the ASB
the Council’s recent approval of the Organisational
and its subordinate governing bodies have indeed
Structure for the Alliance Future Surveillance and
demonstrated effective oversight of the Agency’s
Control (AFSC) Concept Stage, a Support Partnership
activities. My observations have confirmed that good
will be established within NSPO, leveraging the
governance is achieved through open dialogue,
expertise of four NATO entities to execute, support
mutual understanding and informed decision-making.
and oversee the AFSC Concept Stage.
In all 2016 has been a productive year for NSPO, and
While there is no doubt that the Organisation has
one that has also focused on future developments
fulfilled its Mission and the Agency achieved its
and opportunities. Last spring, the ASB established
objectives of efficient support and resource savings for
a Strategic Role Review Working Group to conduct a
the nations, we should not overlook or underestimate
formal assessment of the ASB’s methods, procedures
the enhanced cohesiveness that results from
and responsibilities, with a view to enhance the
nations joining together within cooperative support
oversight of the activities and performance of the
frameworks. Such institutional cooperation is central
NATO Support and Procurement Agency (NSPA).
in making material contributions not only to the
I am encouraged by the timely proposal, which
readiness of nations’ armed forces and the NATO
challenges our governing bodies to look at practical
Command Structure, but also to the solidarity of the
ways to enhance the Board’s role at a strategic level,
Alliance.
which in turn support the governance aspects of
NATO’s Institutional Adaptation initiative.
In summary, I am pleased to congratulate the ASB,
our subordinate Committees and the Agency on yet
The ASB noted the Agency’s Completion Report
another successful year of commendable progress
on NATO Agencies Reform and its fulfilment of the
toward achieving mutual objectives. With that in
principal objectives set out at the Lisbon Summit.
mind, this Annual Report should help the reader to
The Report provided the ASB with a summary of
judge the Organisation’s latest achievement and its
the measurable and noteworthy achievements
prospects for the years ahead.
made over the past four years. These led to
greater efficiency, effectiveness and savings.
Notwithstanding the Agency’s success in meeting
Jennifer Claire Hubbard
the stated Reform objectives, this Report identified
Chairperson,
several specific areas for continued focus in order to
NSPO Agency Supervisory Board
maintain the Agency’s momentum and increase its
value to NATO. During the spring of 2017, the ASB
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ForeWord by the GeneraL ManaGer
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A With regard to acquisition, there were major successes
s NATO’s T
with contracts signed in partnership with OCCAR N
logistics service
for the new NATO Multinational Multi-Role Tanker I
provider, last year
Transport (MRTT) Fleet on behalf of the Netherlands
NSPA delivered
and Luxembourg. Our role as the host nation for the
more than 3.5 Bn EUR of support to operations and
Concept Phase of the AFSC, which is intended to
exercises, acquisition, lifecycle management and
replace the current Airborne Early Warning fleet, has
services to NATO, its member nations and partners.
been highlighted by the Chairperson.
In 2016 the Agency continued to support missions
Following acquisition, life cycle management for nations’
in Afghanistan, Kosovo, Mali and Iraq, managing
military equipment is provided through 28 multinational
a significant contractor force providing fuel, food,
support partnerships, providing engineering and
basecamp and engineering services. Of particular note
logistics services to more than 90 weapon systems. A
is support delivered to almost all airfields in Afghanistan,
particular focus is the transition of the AGS system to
including the manning of air control towers, firefighting
full life cycle management in cooperation with ACO and
and other related services. During the last decade this
the NATO AGS Management Agency.
support has not only enabled our operational customers
to focus on their missions but at the same time it has
In summary, in addition to our increasing operational
allowed the Agency to further develop its operational
relevance, there was sustained workload growth in
know-how and experience.
the majority of partnerships. Several nations have
approached the Agency to support them in acquisition
Following the Warsaw Summit initiatives and the
initiatives and some of these projects are expected to
increased focus on Deterrence and Defence, NSPA
mature in 2017. Based on this, the future looks bright
is using those capabilities to support ACO as well as
with continued growth expected. However, this growth
nations across the European theatre. The Agency is
should not distract us from keeping our focus on
currently supporting the Very High Readiness Joint
customer satisfaction.
Task Force (VJTF) and Enhanced Forward Presence
units. This includes transportation, fuel, construction
Finally, I would like to thank the Agency’s customers for
and base support. Regarding the Transatlantic Bond
their continued confidence and our Governance Board
the Agency is assisting the US European Reassurance
for their guidance. Special thanks are also due to all
Initiative (ERI) with the refurbishment and construction
NSPA’s host nations for their constant support. A new
of airfield and base facilities in Eastern and Northern
security gate project and data centre in Luxembourg,
Europe. Two Rapidly Useable Enabling Contracts for
new hangar and office space in Hungary, and storage
bulk fuel and real life support have been awarded.
and training facilities in Italy deserve special mention.
Other tasking is under development.
These facilities greatly improve the effectiveness and
efficiency of the Agency’s day to day operations.
Also of importance is the agency’s engagement in the
implementation of Trust Funds. This includes support
I trust that as you review this annual report, you will gain
to partner nations for Defence Capacity Building and
a better understanding of our achievements in 2016.
Projecting Stability. Additionally in Afghanistan, the
Combined Security Transition Command Afghanistan
(CSTC-A) has tasked the Agency to deliver many
Peter Dohmen
projects to support the local authorities.
General Manager,
NATO Support and Procurement Agency
5
corPorate GoVernance
GeneraL aIrLIFt ManaGeMent
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he NSPO ASB oversees the operation and T
he NAM Programme Board (PB) is the governing body
performance of its executive body, NSPA. As the
within NSPO responsible for the guidance and oversight
supreme decision making body of NSPO, the ASB is
of NAM Programme activities in support of the Strategic
responsible to define the policy to be followed by the
Airlift Capability (SAC) Program. During 2016, the NAM
Agency, to approve the annual budgets and personnel
PB inaugurated a new infrastructure complex at Papa
establishments, as well as to control the Agency’s
Air Base, Hungary, comprising of a multi-functional
performance. The ASB reports directly to the NAC and
C-17 SAC hangar with back-shops and office space
is composed of representatives of all NATO nations,
for the civilian and military personnel supporting the
with each nation having decision-making authority. Its
programme. Studies were also carried out regarding the
meetings are also attended, in an advisory capacity,
future C-17 simulator arrangements, which, if approved
by a representative of the NATO Secretary General
in 2017, would increase aircrew availability and further
and a representative of the NATO Military Authorities.
enhance SAC mission readiness. Notwithstanding
The ASB is assisted by two standing Committees, the
that the management of airlift operations fall under the
Logistics Committee and the Finance, Administration
authority of the multinational SAC Program, the NAM
and Audit Committee, which give technical advice for the
PB noted that negotiations between individual SAC
Board’s consideration. There are currently two NSPO
participating nations and SHAPE were underway for the
Multinational Programmes (NATO Airlift Management
bilateral provision of nationally-owned C-17 flight hours
(NAM) and Central Europe Pipeline System (CEPS))
to SHAPE.
and 29 Support Partnership Committees (SPCs), all of
which constitute an integral part of NSPO and share in
centraL euroPe PIPeLIne SySteM
the juridical personality of NATO.
(cePS) ProGraMMe
The ASB was pleased to note, over the course of last
year, the progress made by the FAA Committee to The CEPS PB is the governing body within NSPO that
develop new NSPO Financial Rules and Procedures is responsible for the guidance and oversight of the
that align to the NATO Financial Regulations. The Board CEPS Programme, established to operate and manage
also took steps to strengthen its strategic role and its the CEPS pipeline network as one integrated system.
oversight of NSPA’s activities and performance with the During 2016, in addition to exercising governance over
establishment of an ad hoc Working Group tasked to the running of the Programme, the CEPS PB presided
complete its work by spring 2017. over the process that will lead to the full accounting of
Logistic Operations the pipeline system infrastructure in the 2016 NSPO
Financial Statements. It also agreed on procedures
LoGIStIcS oPeratIonS and operating conditions specific to the military use of
the CEPS by NATO’s non-CEPS nations and NATO
D entities in support of NATO operations and exercises
uring the course of 2016, 36 new members decided to
in SACEUR’s AOR. Finally, it considered a number of
join several NSPO SPCs in order to benefit from those
strategic matters with an impact on the future of the
cooperative frameworks already in place. In addition, the
System, most notably the approval of the main lines
AGS Support Partnership was established under NSPO
of action for an improved approach to the CEPS non-
as of 1 January 2016, and work started to establish the
military activity and the identification of the key elements
AFSC Capability Support Partnership. The General
of a Business Continuity Plan to mitigate operational
Procurement Shared Services (GPSS) governance
risks to the System.
documents were also developed during 2016 and are
in the final stages of staffing. Turning to support to
operations, the ASB approved the Agency’s request to
deliver support to an NSPO member nation on a non-
NAC mission in MALI. The ASB further approved a
number of requests to deliver support to Partner nations
on NAC-approved operations as well as to various Trust
Fund projects in Partner nations.
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Agency Supervisory Board 2016
Agency Executive Management Board 2016
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aGency reLeVance to nato GoaLS,
obJectIVeS and PrIorItIeS
F The Operational Logistics Support Partnership
ollowing the Warsaw Summit, the NSPA continues
(OLSP) continued to provide support to the
to support the NATO Strategic Concept1, which
Readiness Action Plan (RAP) and the delivery of
outlines three core tasks: collective defence, crisis
Rapidly Useable Enabling contracts (RUEC) to
management and cooperative security, however,
support exercises and operations. Work is also
renewed emphasis is placed upon deterrence and
ongoing in support of the VJTF with the United
defence while continuing to develop capabilities and
Kingdom and Host nations, although the full scope
remaining actively engaged in projecting stability. The
of possible engagement of the Agency in this new
NSPA provides a contribution to all these initiatives.
NATO objective is yet to be confirmed.
deterrence and deFence NSPA continues to assist the USA’s European
Reassurance Initiative (ERI) infrastructure
A requirements with engagement in a high number of
ll of the actions that NATO has taken after the
infrastructure projects. In addition, two Host Nations
Warsaw Summit in July 2016 to strengthen its
have asked the Agency to plan for delivery of field
deterrence and defence posture require appropriate
camps in 2017.
investment in capabilities and the development of
highly-capable and deployable forces.
MARITIME OPERATIONAL SUPPORT
The discussions about logistics support for the
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Readiness Action Plan (RAP), the delivering of n the maritime domain, the Agency provides port
Rapidly Useable Enabling contracts (RUEC) and the services globally in over 600 locations through
proposals made for the Very High Readiness Joint the Naval Logistics Support Partnership (NLSP)
Task Force (VJTF) with the United Kingdom and the ensuring fuel and food availability at agreed cost.
Host nations are very promising and confirm the total These services have been expanded to include a
implication of the Agency in this new NATO objective. broader range of fuels to meet the developing needs
of member nations.
ENhANCEd FORwARd PRESENCE
IMProVInG caPabILItIeS
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t the Warsaw Summit NATO nations agreed to the
concept of Deterrence and Defence, which included W
ork continues in many support partnership
an enhanced Forward Presence (eFP). This will
areas to develop multinational interoperability and
see the permanent stationing of NATO forces on a
build capability. As well as the logistics support and
rotational basis in the Baltic States and Poland from
configuration management functions, the NATO
2017. The NSPA has engaged with nations offering
codification process is a key enabler in ensuring
assistance both with their eFP logistic requirements
common logistics for weapon systems. Almost all the
and more broadly with the increased logistics
Agency partnerships have experienced increased
challenges posed by NATO’s renewed emphasis on
work throughout the year to expand both volume and
Deterrence and Defence. Services offered include
scope of services provided. Fixed Wing, Helicopter,
but are not limited to areas such as supply of fuel,
GPS and Land Combat Systems partnerships in
transport, real life support, supply of engineer
particular have seen pronounced growth in 2016.
materials. Almost 50 attendees from nations and
NATO HQs came to Capellen to a NATO Logistics
In the NATO Smart Defence projects related to
Committee sponsored conference to discuss eFP
Precision Guided Munitions (PGM), NSPA has
logistic support. Also attending were the NATO Force
supported the Lead Nation, Denmark, in their
Integration Units who have an important part to play
technical and administrative development. A
in the reception and onward movement of troops
Memorandum of Understanding on PGM support
flowing into those host nations.
was signed by nine nations naming NSPA as the
8 ¹ Strategic Concept for the Defence and Security of the Members of the North Atlantic Treaty Organization,
November 2010.
Executing Agent. As a result, the NSPA established As well as these current operations, the Agency support
an agreement with the US Government, which capabilities have been activated a number of times
provides greater flexibility and visibility for NATO for exercises and stand ready for future operations. N
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nations wishing to pool and share PGM resources The deployable headquarters capability packages,
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collectively. The Agency also provides considerable managed through the Southern Operational Centre, T
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support to nations on bilateral PGM cases which are continue to develop and improve capability and are
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managed under direct commercial sales. active in support of NATO and national exercise
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deployments. The service provided includes delivery, O
Emphasis has also been placed within the USA to management, transport, and subsequent recovery R
highlight the Agency capability and preparation work and refurbishment of small, medium and large T
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has been undertaken with the aspiration that the headquarters deployable camps. In addition, the
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USA will join a number of existing partnerships in the Agency is supporting the development of eight 300
near future. man deployable headquarters for the NRF under
Capability Package 1101 and procurement action is
In Afghanistan, the partnership with the USA has under way.
developed further with NSPA staff embedded into
the CSTC-A organisation to assist with Trust Fund The Agency continues to work closely with Partner
developments. Successes include the setting up of nations through its host nation responsibility for
refurbishment contracts for helicopters, as well as a many Partnership for Peace (PfP) Trust Fund
number of equipment and support capabilities for the projects. These are discussed in more detail within
Afghan National Army. A total of 555 MUSD value of the Logistics Services section of this report but
work was tasked to the Agency. It is expected that include projects in Tajikistan, Jordan and Egypt.
the volume of work in support of this organisation will These projects range from safe disposal of ordnance,
expand considerably in 2017. through to professional development of former
servicewomen in the security sector.
With the Agency Procurement capability developing
rapidly and the growing focus on full Life Cycle NATO also leverages Agency expertise in the
Management support the Agency is forging links with development of regional Capability Packages
the NATO Defence Investment team to ensure that to enhance security in specific regions including
new initiatives can be supported immediately. Ukraine, Afghanistan and Iraq. NSPA serves as
Executing Agent for two NATO Ukraine Trust Funds:
standardization of the Ukraine logistics system, and
ProJectInG StabILIty
medical rehabilitation for Ukraine service members.
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roviding logistics support to operations continued
Taking account of the current political climate,
to be the number one priority for the Agency in
the NSPA successfully renegotiated the Strategic
2016. The Resolute Support Mission is more stable
Airlift Interim Solution (SALIS) contract to provide
now that plans exist beyond 2020. The Agency
a number of dedicated flying hours for outsized air
continues to provide infrastructure development and
cargo. By separating this into two separate contracts
management, real life support, Airport of Debarkation
a satisfactory solution was achieved for all member
(APOD), fuel and other services in Kabul and HKIA
nations. At the same time, the contract for assured
and airfield services in KAF after the transfer of
access to three RORO ferries was renegotiated for
real life services in KAF to USA Logistics Civilian
member nations.
Augmentation Program (LOGCAP). In Kosovo, the
Agency provides real life support, fuel and other
services at Camp NOVO SELO. The NSPA is also
supporting national operations in Mali and Iraq2.
2 NSPA Operations in Mali are providing real life support for the Netherlands armed forces detachment 9
and in Iraq NSPA provides infrastructure and facility management in support of Germany.
caPabILIty area achIeVeMentS
The NSPO approved a new Strategic Direction 2016-2020 in September 2015 to update the Agency direction and
intent to keep it in full alignment with its stakeholders and their evolving ambitions and requirements.
A key element of the Strategic Direction is our Capability Portfolio framework. It organizes the products and services
provided by the Agency into Capability Areas. The figure below reflects the current Capability Portfolio.
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ey refinements to the Capability Portfolio include:
 SySTemS PROCURemeNT aND LIfe CyCLe maNagemeNT:
Expands the previous weapon system support capability area to include system procurement and full life cycle
management.
 SUPPORT TO OPeRaTIONS aND exeRCISeS:
Reflects the importance of support to the increased emphasis on exercises and training in the Connected Forces
Initiative and RAP.
 LOgISTICS SeRvICeS aND PROjeCT maNagemeNT:
Captures the broad array of logistics services provided by NSPA including e-Procurement and turn-key project
management.
 STRaTegIC TRaNSPORT aND STORage:
Adds the increasing need for close integration of strategic storage with the full range of transport options.
 fUeL maNagemeNT:
Continues as a growing area managing fuel across the Central Europe Pipeline System, fuel provision in
Afghanistan and Kosovo and almost globally for naval shipping.
Using these capabilities as the basis, the following text will describe the key successes and growth areas in each
of these elements and any new or emerging projects.
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