NATO procurement explained

NATO procurement is run mainly by two agencies, NSPA for logistics, support and weapons systems and NCIA for communications and information systems, and is open only to companies from NATO member nations that their national authorities have declared eligible. Most NATO money is still spent by national ministries of defence, so a complete NATO strategy covers both the agencies and the member nations.

Who buys for NATO

The NATO Support and Procurement Agency (NSPA), based in Luxembourg, buys and supports equipment, fuel, spare parts, maintenance and services for NATO and for groups of nations that pool their requirements. Its customers include multinational programmes such as helicopter, missile and aircraft support partnerships.

The NATO Communications and Information Agency (NCIA), with main sites in The Hague, Brussels and Mons, buys communication networks, cyber defence, software, satellite services and command and control systems for the Alliance.

Other bodies buy for specific programmes, and the NATO Security Investment Programme funds infrastructure such as airfields, fuel depots and communication sites that host nations build through international competitive bidding.

Eligibility comes first

A company cannot simply answer a NATO tender. It needs a Declaration of Eligibility issued by its own country's delegation or ministry of defence, confirming that the company is technically, financially and professionally able to do the work and that it is from a participating nation. For many competitions only companies from nations that fund the requirement can take part.

For NSPA, suppliers register in the agency's source file by product and service codes, and the agency invites registered companies when a requirement in their codes comes up. For NCIA, companies sign a Basic Ordering Agreement, a framework that lets the agency issue requests for quotation quickly without negotiating terms each time.

How a NATO competition runs

1. Notification of intent. The host nation or agency announces an upcoming competition so nations can nominate eligible companies.
2. Declarations of eligibility. National delegations submit the companies they declare eligible, usually within a fixed window.
3. Invitation for bid. Eligible companies receive the bidding documents. Many competitions are awarded to the lowest compliant bid, others on best value.
4. Award and contract. The agency awards and publishes the result. Larger awards often lead to subcontracts in many member nations.

The early stages are where SMEs lose most opportunities: by the time the invitation for bid is issued, the list of eligible companies is already closed.

Where NATO tenders are published

NSPA and NCIA publish forecasts, notifications of intent and bidders lists on their own procurement pages. National ministries of defence of European NATO members publish their own defence tenders on TED, the EU public procurement journal, under the defence and security directive, and on national portals. In the United States, DoD notices go to SAM.gov. Our NATO tenders page combines agency notices with open notices from the ministries of defence of European NATO members.

Practical advice for a first NATO bid

• Contact your national delegation's industrial liaison office early and ask how declarations of eligibility are handled in your country.
• Register in the NSPA source file with every relevant product code, and apply for an NCIA basic ordering agreement if you sell IT, communications or cyber services.
• Follow the bidders lists of competitions in your field. They show which primes will bid, and therefore who might need you as a subcontractor.
• Watch for notifications of intent, not only invitations for bid, so you can ask for a declaration in time.

Where to go next

Read how defence procurement works in each market, see the EU defence tenders page for ministries buying through TED, or enter your capabilities on the home page to see which NATO and European notices match your company today.