Nato unclassified north atlantic treaty organisation

GOVERNING PRINCIPLES, ROLES & RESPONSIBILITIES

1. Governing Principles. In order to properly support the NATO mission, and in view of the significant changes in the commercial contracting methods, more contemporary procurement practices must be adopted. Therefore, selected contracting principles are underscored so as to develop a professional procurement framework, better serve our customers and safeguard ACO/ACT HQs interests. The following pillars of procurement should not be viewed as “all-inclusive” but rather as a good starting point:

1. 
   Integrity. Throughout all phases of the procurement process, the highest standards of integrity will be maintained. As contracting involves the expenditure of NATO funds, personnel executing related processes must maintain the highest degree of honesty, trust and an impeccable standard of conduct. The general rule must be to avoid even the appearance of a conflict of interest when promoting NATO-contractor relationships. Procurement must be conducted with the utmost professionalism and be in complete accord with current regulations.
   

2. 
   Competition. NATO procurement requirements shall be met by maximizing competition amongst eligible/capable sources. When properly conducted, competition secures most favourable sourcing and pricing. Therefore, it is a Contracting Officer’s responsibility to ensure statements of work or specifications are not biased toward a specific product, manufacturer, or service provider. The Contracting Officer has full authority to approve the language of the specifications or performance objectives or capability shortfalls that will be described and advertised to the bidders. All efforts should focus on contracting processes that put a premium on seeking/achieving value for money, and avoid awarding exclusive rights to contractors, unless clearly justified.
   

3. 
   Transparency. The procurement system must employ procedures that are openly advertised to prospective bidders in advance of, and during, solicitation processes. Providing contractors with timely, accessible, and accurate information within the bounds of commercial confidentiality are proven means of ensuring transparency.
   

4. 
   “Value For Money”/“Best Value”. Contracting Officers shall ensure that they obtain “value for money” by procuring goods and services from the most economical governmental or commercial sources that are eligible and compliant. When applicable and authorised by the appropriate authority (see Chapter 2), “best value” contracting practices may be adopted to establish a more balanced award decision i.e., one that accounts for risks and recognises trade-offs between costs, past performance, experience, and other non-cost factors.
   

5. 
   Fair Treatment and Positive Business Partnering. Bidders and contractors should be treated objectively and without discrimination, including protection of commercial confidentiality where required. Also, Contracting Officers should not impose unnecessary burdens or constraints on suppliers. It is incumbent upon Contracting Officers to cultivate positive business partnerships during all phases of contracting. Such relationships will encourage improvement and open-up avenues to resolve conflicts, while safeguarding ACO/ACT HQs and contractor’s proprietary interests.
   

6. 
   Professional Proficiency. Purchasing & Contracting (P&C) Branch Staff must be qualified to perform their assigned functions and remain abreast of ever-evolving commercial practices. Contracting Officers shall use their professional judgment, and common sense in executing contracting activities. Further, Organisational Management through Financial Controllers shall ensure that P&C Branch Staff initially possess requisite contracting education/experience, and then provide opportunities for continued professional development.
   

7. 
   Accountability. Contracting Officers/Specialists shall effectively discharge their personal procurement responsibilities by ensuring that effective contractual mechanisms are in-place for all procurement activities. All actions must be clear and auditable and must always consider ways to defend against or mitigate likely contractual risks.
   

8. 
   Uniformity. The ACO/ACT Head of Contracts shall ensure that the acquisition approaches across their respective Commands are standardized. Where applicable, the ACO/ACT Head of Contracts shall provide additional procurement guidance through the issue of policy letters. Conceptually, this will promote greater efficiency by standardizing procurements policies, and procedures across the NATO Military Command Structure. Through consistency, P&C Branches will enable suppliers to better understand NATO contracting and encourage them to respond more efficiently to NATO demands.
   

9. 
   Responsiveness. Contracting Officers/Specialists shall serve as business advisors and must be as pro-active as possible in satisfying the needs of the mission. The employment of appropriate procurement processes that satisfy customer expectations in terms of price, quality, and timeliness will help to achieve this. At the same time, processes shall be streamlined so as to minimize administrative operating costs and maximize value for money. In order to achieve these goals, P&C Branches should be provided with proper tools and resources to perform their function.
   

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