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OCCAR-EA Presentation

AFCEA Workshop

05 September 2012

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OCCAR is an international organisation for the management of collaborative defence equipment

programmes

OCCAR was created through a Convention, equivalent to an international treaty.

Current Member States are:

OCCAR-EA is the executive administration of OCCAR

OCCAR

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Cost-effectiveness

Harmonisation (of requirements, methods, technology)

Competitive industrial base

Renunciation of "Juste Retour” (global balance)

Open to other European countries

OCCAR Principles

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The OCCAR Convention aims at:

Improving efficiency and reduce costs of armaments cooperation;

Developing new programme management methods;

Making procedures for the granting of contracts more effective;

Encouraging the creation of transnational and integrated industrial prime contractors;

Co-ordinating long term requirements, as well as a common technology investment programme, based on the principles of complementarity, reciprocity and balance;

Improving competitiveness of the European defence technological and industrial base;

Contributing to a European security and defence identity.

OCCAR Convention

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Our mission

To facilitate and manage collaborative European armament Programmes through their life cycle and Technology Demonstrator Programmes to the satisfaction of our customers.

Our vision

To be a centre of excellence, and first choice in Europe, in the field of the collaborative acquisition of defence equipment.

Our values

Belief in Europe’s future Professionalism, teamwork, positive attitude towards change Cultural diversity Integrity

OCCAR-EA Mission, Vision and Values

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OCCAR Organisation

Current staff: 239

Future Tasks & Policy

Committee

Finance Committee

Security Committee

Board of Supervisors

Human Resources Division

Corporate Support Division

Finance Division

OCCAR-EA Director

Business Development Strategy, Planning &

Reporting Office

Information Manager

OCCAR-EA Deputy Director

Centr

al O

ffic

e

OCCAR E

xecu

tive A

dm

inis

tration

Bonn

Programme Committees

A400M Programme Toulouse

BOXER Programme Bonn

COBRA Programme Bonn

FSAF Programme Paris

TIGER Programme Bonn

Programme Boards

FREMM Programme

Paris Rome

ESSOR Programme Bonn

ISS Committee

Legal Advisor

MUSIS Programme Bonn

Programme Management Support Division

7

Current Programme status

PD Strength [FTE]

Total programme cost [MEUR]

3839

16

912

4

25

3435

-

51

Ops Budget 12 [MEUR]

658

393

18

18

1.081

Development, Production, Initial In-Service Support

Development Production

In-Service Support (2003 – 2012)

Development & Production

Development (since Int), Production, In-Service Support (2007-2015)

Development, Production, Initial In-Service Support

176 79

3.6

793

3.220

20.878

1.467

186

106

10.573

2.319 550

4

5.120

41203

Development & Production

BO

XER

CO

BRA

FSAF

PAAM

S

MU

SIS

A400M

FREM

M

ESSO

R

TIG

ER

Development

Overhead 1.25 %

Turnover

13,5 MEUR per employee

OCCAR-NSPO MoU signed

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EDA

Capability development process

National or common logistic

organisations

Industry

Other agencies No duplication No exclusivity

EDA-OCCAR Interface informally defined.

EDA-OCCAR Adm Arrangement Signed on 27 July 2012

OCCAR-EA’s place in the European defence framework

Recognition at European Level

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European Parliament resolution of 14 December 2011 on the impact of the financial crisis on the defence sector in the EU Member States

(2011/2177(INI))

Believes that collaborative armaments programmes, such as those initiated by the EDA and managed by the Organisation for Joint Armament Cooperation (OCCAR), represent a vital tool for reducing development costs, supporting industry consolidation, fostering standardisation and interoperability, and

boosting global competitiveness;

noting the adverse effects of the principle of ‘juste retour’ in terms of inefficient work distribution, leading to slower implementation and higher costs; calls for the ‘juste retour’ principle to be replaced with a much more

flexible concept of ‘global balance’

Invites the Member States to make use of OCCAR’s management experience for the implementation of joint programmes,…

recalls that any EU Member State may join OCCAR if it is its will and if it fulfils the membership criteria;

European Directive on Security & Defence Procurement

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Preambule

Member States often conduct cooperative programmes to develop new defence equipment together.

Some of these programmes are managed by international organisations, namely the

Organisation conjointe de coopération en matière d’armement (OCCAR) …..

This Directive should not apply to such contracts.

Article 12: Contracts awarded pursuant to international rules

This Directive shall not apply to contracts governed by:

specific procedural rules pursuant to an international agreement or arrangement concluded between one or more Member States and one or more third countries;

Ref: Directive 2009/81/EC of the European parliament and of the council of 13 July 2009

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Contract Placement – OCCAR Legal Status

• Spirit/principles of the mentioned EU Regulations:

– Establish an open and competitive EDEM

– Equal treatment of all economic operators

– Non-Discrimination of all economic operators

• OCCAR policy complies with this spirit/principles:

– Competition as cornerstone of OCCAR procurement policy

– Impartiality and Consistency of treatment in their dealings with potential suppliers

Contract Documentation

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www.occar-ea.org

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Contract Placement – General Principles

• Awarding contracts based on a Procurement Strategy, approved before contact placement

• Contract award through competition, unless deemed inappropriate

• Prime contractor for whole systems, with transfer of responsibility for delivery;

• Sub-contract competition encouraged to obtain value for money.

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Contract Placement – Procurement Options • Competitive:

– Open Competition (wherever possible);

– Limited Competition;

– Competitive Dialogue.

• Non Competitive: – Single or Sole Source;

– Competition considered inappropriate.

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Contract Placement – Limited Competition

• Security Aspects;

Adequate Security Clearance

• Enhance EDTIB;

Jurisdiction under Participant States

• Security of Supply;

Specific requirement for supply chain

• Extraordinary technical experience / capability;

Compliant companies

• Urgency of Requirement; Excluding constraints caused by OCCAR-EA or PS(s)

• Authorised by BoS;

Justification PStgy / Contract Route

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Contract Placement – Single Source

• Unobtainable from other source [Sole Source];

• Spares from OEM;

• Follow-on Production contract after Definition contract

placed in competition;

• Additional orders; within 12 months limited quantity price reduced or maintained

• Precluded by mandatory criteria in PStgy / Contract Route;

• Urgency of Requirement [armed conflict; war; crisis situation].

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Contract Placement – Competitive Dialogue

Competitive Dialogue Complex requirements where no possibility • to identify and define, at the outset, the technical means to satisfy

complex requirements, or • of assessing what the market can offer in the way of technical

solutions and/or financial/legal solutions.

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Contract Placement – Procedures OMP5

OCCAR Process to Establish, place and manage contracts

Establish Contract Route Select Suppliers Set up the TAP Prepare and issue the ITT Receive Tenders Tender Evaluation Issue TAP Report and Recommendation Award Contract Inform Unsuccessful Tenderers

A D V E R T I S E

OCCAR web site - http://www.occar-ea.org/13

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Business Opportunities

• In Service Support service contracts

• ESSOR Phase 2

• Maritime Mine Counter Measures (MMCM)

• Directed Infra Red Counter Measures (DIRCM)

• Multinational Space based Imaging System (MUSIS)

• Biological Identification Reconnaissance and Detection system demonstrator (BIRD)

• MALE UAVs – UCAVs

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End of Presentation

Questions and (hopefully) answers