OCCAR Contract Management OCCAR_ASD j… · Organisation for Joint Armament Co-operation Contract...

Organisation for Joint Armament Co-operation

08/11/2019PMSD - C&P Section

OCCAR Contract ManagementASD-OCCAR Joint Seminar, 07 November 2019


Contract Management ‐ Presentation Overview

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1. General Principles2. OCCAR Contract Placement procedures – OMP 53. OCCAR Contract Terms and Conditions – OMP 6


Contract Management – General Principles

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OCCAR’s Status within Europe - Legal Background

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As international organisation NOT bound by EU Regulations:EU Procurement Directive 2009/81/EC “This Directive should not apply to contracts managed by International organisations (paragraph 28 of introduction)”. and Art. 13 exempts OCCAR cooperative programmesfrom the scope of the Directive.

No formal legal impact by the EU regulations on OCCAR.


Contract Management - General Principles

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PMSD - C&P Section

OCCAR’s Status within Europe – What does this mean?

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Spirit/principles of the mentioned EU Regulations:

Establish open and competitive processes Equal treatment of all economic operators Non-Discrimination of economic operators Competition as cornerstone of procurement

OCCAR policy complies with this spirit/principles

OMP 5 not fully compliant but similar approach to EU procedures, a recent review secured further harmonisation with EU- regulations.

Organisation for Joint Armament Co-operation08/11/2019

PMSD - C&P Section

Contract Management - General PrinciplesOCCAR Policy:

Main Objective:

to achieve best value for money (VfM):

the best acceptable level of functionality to meet the requirements;

at the lowest life cycle cost;

at an acceptable risk;

through the use of competition whenever appropriate;

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PMSD - C&P Section


OCCAR Policy:OCCAR-EA Staff must therefore:

Consider carefully the use of competition,

Exercise impartiality and consistency of treatment with potential Tenderers;

Respect Commercial confidentiality;

Uphold integrity of Contracts.

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PMSD - C&P Section

Contract Management - General PrinciplesOCCAR Principles

Process of awarding contracts based on an approved ProcurementStrategy

Contract award through competition, unless deemed inappropriate bythe Programme Participating States - specific cases identified inOMP 5

Assessment of the best procurement option

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Procedures

Directive 2014/24/EUPublic Procurement

Directive 2009/81/ECDefence Procurement

OCCAR OMP5

Open procedure Open procedure

Restricted procedure Restricted procedure Restricted procedure

Competitive procedure with negotiation

Negotiated procedure with publication of a contract

notice

Competitive negotiated procedure with publication of

a contract notice

Competitive Dialogue Competitive Dialogue Competitive Dialogue

Innovation partnership Innovation partnership

Negotiated procedure without prior publication

Negotiated procedure without publication of a

contract notice

Negotiated procedure without publication

of a contract notice

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PMSD - C&P Section

OCCAR Principles

OCCAR places programme contracts in the name and on behalf of the Programme Participating States, so that:

the Programme Participating States and

the Programme Contractor

are the parties to the Contract

Note: The Standard Articles assume that the contracting parties will be Programme Participating States and Industry.

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Contract Management

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Establish a Procurement Strategy (ProcS) Purpose: to set up a comprehensive and robust strategy; Scope: Covers the whole scope of the PMA; Concentrates on the future

ProgD and main/prime procurement Contract; Content: assessment of all possible procurement options against relevant

Programme Management functions with a recommendation.

Background of programme /phase / project /study to be managed by OCCAR

Basis for first contract / Contract Route (CR)

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History Objectives Risks & Opportunities Programme Organisation

Procurement & support options Procurement Plan (suppliers) Contractor’s Characteristics (e.g. consortium) Contractual Aspects Recommendation


PMSD - C&P Section

Contract Management – Contract Placement (OMP 5)

1. Establish Contract Route2. Possible Future Purchase3. Select Suppliers4. Prepare and issue the ITT (Invitation To Tender)5. Receive and Evaluate Tenders6. Issue TAP Report and Recommendation (TAP)7a. Award Contract 7b. Inform Unsuccessful Tenderers

Then Manage Contract Progress to Completion

ADVERTISE

OMP 5 - OCCAR basic competition process to Establish, Place and Manage Contracts

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PMSD - C&P Section

Complaint Procedure (OMP 5 Annex B) Open to unsuccessful Economic Operator if considers disadvantaged in

procurement specific process, direct and individual concern required. Verification of correct application of regulations, no manifest errors of

assessment, misuse of powers.

• Procurement Review Procedure- Procurement Review Committee (PRC) empowered by Director- PRC reviews the procurement process, to give its opinion to the

concerned PC and make a recommendation to the OCCAR-EA Director- OCCAR Director to decide.

• Appeal Procedure- Procurement Appeals Board (PAB) empowered by BoS- PAB evaluates the Appeal, to give its opinion to the concerned PB and to

make a recommendation to the BoS via the OCCAR EA Director- Board of Supervisors (BoS) to decide.

No further appeal allowable.P-13



PMSD - C&P Section

Contract Management – Contract T’s & C’s (OMP 6) Applicability

OCCAR Standard Articles are applicable in their entirety unless otherwisedecided by the Approving Authority (Programme Committee or as may bedelegated)

Unanimous decision by the Participating States that are parties to theContract

Changes, supplements, divergences or additional details, not compliantwith other OCCAR regulations (Convention/OMPs) are subject to Board ofSupervisors approval.

OCCAR Standard Articles are in English language (BoS approved) Applicable Law, determined by Participating States.

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PMSD - C&P Section

Contract Management – Contract T’s & C’s (OMP 6) Common challenges with industry during contract negotiations:

price audit/investigation; termination for default; dependency of failed Key milestone to other milestones; liquidated damages; penalties; Liability limitations; Intellectual property rights

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Organisation for Joint Armament Co-operation P-1708/11/2019

PMSD - C&P Section

Contract Management

Thank you for your attention!


OCCAR-EAGodesberger Allee 15453175 Bonn • Germany

Address

Commercial and Legal Office Numbers:+49 (0) 228 5502 - 132 or 133 or 138 or 172 or 178Fax: +49 (0) 228 5502-100

Phone

[email protected]

OCCAR Contract Management OCCAR_ASD j… · Organisation for Joint Armament Co-operation Contract...

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