In the commercial world, we’re always searching for ways we can break into new business and gain different types of buyers. This is done in the government world too, but contractors often think they are limited to U.S. agencies. This isn’t necessarily true. International organizations, such as the North Atlantic Treaty Organization (NATO), are actively releasing opportunities to U.S. contractors. Especially now that NATO is ramping up military spending, we can see an increase in opportunities related to defense. Read on to learn about contracting with NATO and how you can diversify your govcon business.
What is NATO?
First let’s do a brief recap of NATO and their role in international procurement. Formally known as the North Atlantic Treaty Organization, NATO is a political and military alliance made up of 32 countries across Europe and North America. NATO purchases from contractors all over the world to acquire critical goods and services for its members, allies, and partners.
So where do you fit in as a contractor? Let’s dive in below.
The NATO Procurement Process
If you know very little about the NATO procurement process, you are not alone. It’s not typically the same processes we’re used to under the Federal Acquisition Regulation (FAR), but it’s not incredibly impossible or complicated either.
U.S. firms can bid on NATO business opportunities by participating in International Competitive Bidding (ICB) and by registering as a supplier with NATO agencies. They can also sell to NATO through the GSA Multiple Award Schedule (MAS) Program (more on that below).
International Competitive Bidding (ICB)
If NATO needs support on infrastructure projects (i.e. satellite telecommunications, information technology, and building construction), NATO agencies will implement International Competitive Bidding (ICB).
In this process, NATO requires that firms are nominated to the ICB bidders list by their government. If you want to participate in an ICB project as a U.S. firm, you’ll need to first be approved by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). You can submit an application to be considered, and BIS will begin the pre-approval process.
Once you are approved, you will need to notify BIS every time you want to go after a NATO ICB solicitation so they can add you to the bidders list.
Another way you can sell your solutions to NATO is through self-registration as a supplier, which we’ll cover next.
Self-Registration as a NATO Supplier
If you’re interested in becoming a NATO vendor, it’s a good idea to join a supplier base. NATO agencies will use these supplier base databases to create bidder lists and send Requests for Proposals (RFPs). These agencies offer self-registration:
- NATO Support and Procurement Agency (NSPA): The NSPA is the main logistics and support agency under NATO. The NSPA acquires supplies, repair and maintenance services, demilitarization equipment, security items, road repair materials, and engineering/technical support.
- NATO Communications and Information Agency (NCIA): The NCIA is the main agency for research/development, procurement, and implementation of Consultant, Command, and Control (C3) within NATO. The NCIA establishes Basic Ordering Agreements (BOAs) to acquire Commercial-Off-the-Shelf (COTS) IT goods and services, and uses ICB procedures for major complex systems.
- Supreme Headquarters Allied Powers Europe (SHAPE): SHAPE is a major contracting agency for NATO Crisis Response Operations.
- Supreme Allied Commander Transformation (SACT): SACT deals with the transformation of NATO forces and capabilities.
The NSPA and the NCIA are the primary agencies for major procurements. You’ll see NSPA more often when it comes to services, such as support of weapon systems, fuel delivery, airfield logistics, and medical/base support services. The NCIA is the primary provider of information, communications, and other cyber defense systems.
Other NATO Procurement Methods
There are other types of procurement NATO agencies that may overlap with the methods above. These are:
- Basic Ordering Agreements (BOAs)
- Sole Source/Limited Competitions
- National Competitive Bidding (NCB)
BOAs are used to procure Commercial-Off-the-Shelf (COTS) products and services. BOAs consist of a framework agreed upon between NATO and a potential contractor and a BOA competition for a specific solution. As mentioned above, the NCIA mainly uses BOAs to procure COTS.
Sole source/limited competitions and National Competitive Bidding (NCB) methods are used for smaller and more urgent procurement needs.
NATO and the GSA MAS Program
If you are a GSA Multiple Award Schedule contractor, you are also able to sell non-military products and services to NATO. Under Section 607 of the Foreign Assistance Act (FAA), GSA allows several international organizations to purchase from GSA Schedules. Some examples of products and services NATO agencies may buy from the MAS program include:
- IT and Cybersecurity services
- Communication equipment
- Medical equipment and supplies
- Professional, administrative, and management support services
- Training and simulation solutions
NATO commonly uses BOAs to purchase through GSA.
Expanding Your Government Contracting Opportunities
Now that you know more about NATO procurement, it’s time to start looking for potential opportunities. You can use sites such as the System for Award Management (SAM.gov), NATO-specific supplier bases, and GSA Schedule sites (if you’re an MAS contractor) such as GSA eBuy.
If you want to learn more about finding government contracting opportunities and how to respond, check out our blogs:
- A Guide to Requests for Proposals (RFPs)
- 10 Tips to Win Your Next Federal Proposal
- Strategies for Successful GSA Schedule Proposal Writing
- Top 10 Things Federal Contractors Should Do During a New Presidential Administration
If you have questions about your government contract, or need help preparing your company for future opportunities, reach out to one of our experts today.
