Advance Review and Consent of Department of National Defence Procurement of Goods Directly from NATO Maintenance and Supply Agency (NAMSA)

Introduction

The purpose of Policy Notification (PN) 90 is to provide instructions for the advance review and consent of Department of National Defence (DND) proposed transactions to buy or otherwise acquire goods directly from the North Atlantic Treaty Organization (NATO) Maintenance and Supply Agency (NAMSA).

Background

On October 26, 2011, the Minister of Public Works and Government Services Canada (PWGSC) requested and authorized the Minister of National Defence to buy or otherwise acquire defence supplies via NAMSA in the following circumstances:

1. the supplies support a weapons system used by Canada and one or more NATO members and the cumulative amount payable on each transaction and its amendments or each order and its amendments does not exceed $100,000; or
2. the supplies support a weapons system used by Canada and one or more NATO members and DND has received consent in the appropriate form executed by the appropriate PWGSC official, in accordance with a process approved by the Assistant Deputy Minister, PWGSC, provided that the transaction or order complies with conditions contained in such consent.

Policy

As a condition of the request and authorization from our Minister to the Minister of National Defence, the Department of National Defence (DND) must obtain advance review and consent from PWGSC for proposed transactions or orders via NAMSA for:

Supplies in support of a weapons system used by Canada and one or more NATO members when the cumulative amount payable for each proposed transaction or order exceeds $100,000.

The purpose of the advance review and consent process for proposed NAMSA procurements of goods above $100,000 is to contribute to the management of the risk of the proposed procurement by ensuring consideration of possible alternative procurement strategies in support of the government's procurement contracting requirements. This process is to ensure procurement is managed in a manner that is fair, open and transparent, and supports the achievement of value for money and sound stewardship of public funds.

Procedures

Following are the procedures for the advance review and consent process:

DND will submit to PWGSC a written request for advance review and consent with subject title "Request for Advance Review and Consent of NAMSA Transaction", to email address: DGAPrioritesdedefense.ACQBDefencePriorities@tpsgc-pwgsc.gc.ca

PWGSC will allocate the request to the Acquisitions Branch (AB) sector/division responsible for the procurement of the good or for the applicable defence project.

1. DND will include the following elements in their request:
   1. item description (including NATO Stock Number, if applicable);
   2. quantity to be procured;
   3. estimated dollar value of the proposed transaction and its amendments;
   4. required delivery date;
   5. proposed procurement method from NAMSA (e.g. DND membership in a NATO Multiple Country arrangement, DND-specific contract issued by NAMSA as a procurement agent, etc.);
   6. rationale for proposed procurement directly from NAMSA;
   7. DND contact name, telephone number and email address.
2. The PWGSC Contracting Officer will review the request and consider if there are any applicable alternate procurement strategies that should be considered for the requested item. Factors to be assessed and evaluated include:
   1. DND's rationale for procuring the item directly from NAMSA;
   2. item characteristics that support sole source procurement strategy from NAMSA (e.g. is it a unique item solely applicable to the NATO supported weapons system or is it a common, commercially available item);
   3. existing PWGSC methods of supply or pre-competed procurement instruments where the item is also available (e.g. existing optimized weapons systems support contracts, repair and overhaul (R&O) contracts or standing offers etc.);
   4. PWGSC's planned or anticipated procurements or methods of supply for the item;
   5. PWGSC's procurement timeframe to meet the required delivery date;
   6. industry factors such as sources of supply, small and medium enterprises, Canadian industrial and socio-economic considerations, or competition.
3. The PWGSC Contracting Officer may proceed with any of these three alternative courses of action following the review and analysis of the request:
   1. obtain additional information or clarification from DND to assist with the recommendation;
   2. recommend consent of DND's request to procure from NAMSA;
   3. not recommend consent of DND's request to procure from NAMSA due to the applicability of an alternative procurement strategy.
4. The PWGSC Contracting Officer will propose a course of action and obtain approval based on the estimated dollar value of DND's proposed transaction and its amendments, and in accordance with non-competitive contract entry approval authorities for goods, using the NAMSA Advance Review and Consent form (PDF 19 KB) - (Help on File Formats).
5. Following consent and signature by the PWGSC approval authority, the Contracting Officer will advise the DND requestor by providing DND a copy of the signed NAMSA Advance Review and Consent form.
6. The PWGSC Contracting Officer will send a copy of the completed and signed NAMSA Advance Review and Consent form to Acquisition Policy and Process Directorate (APPD) - NAMSA Acquisition Policy by email at: NAMSADPPA.NAMSAAPPD@tpsgc-pwgsc.gc.ca.

Revisions to the Supply Manual

These procedures will be incorporated into the Supply Manual.

Contacts

For inquiries about the advance review and consent process for DND's proposed transactions directly with NAMSA, please contact NAMSA Acquisition Policy, Acquisition Policy and Process Directorate, at 819-956-0272, or via e-mail at: NAMSADPPA.NAMSAAPPD@tpsgc-pwgsc.gc.ca.