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SPraaS Terms and Conditions for NCIA Customer Orders


1.   Definitions.

       a.  Agreement: A SPraaS Price Proposal the Customer accepted, as described in paragraph 3.

       b.  Background Information: Information not generated in the performance of this Agreement. 

       c.  Common Funds: Funds the Customer will use to pay NCIA pursuant to the Agreement that originate from a NATO financial committee such as the Military Budget Committee, the Civilian Budget Committee, the Investment Committee, or the Resource Policy and Planning Board.  Customers using Common Funds are sometimes referred to as ‘Internal Customers’.

       d.  Customer: The entity accepting, as described in paragraph 3, the Price Proposal.

       e.  Foreground Information: Information NCIA generates in the performance of this Agreement.

       f.   Information: Any information, regardless of form or type, including, but not limited to, that of a scientific, technical, business, or financial nature, and also including photographs, reports, manuals, threat data, experimental data, test data, designs, specifications, processes, techniques, inventions, drawings, technical writings, sound recordings, pictorial representations, and other graphical presentations, whether in computer software or any other form and whether or not subject to copyright, patent, or other legal protection.

       g.  Intellectual Property: Ownership in Information.

       h.  NCIA: NATO Communications and Information Agency.

       i.   Non-common Funds: Funds that are not Common Funds.  Customers using Non-common Funds are sometimes referred to as ‘External Customers’. 

       j.   Parties: Both NCIA and the Customer together.

       l.   Party: Either NCIA or the Customer separately.

       m. Price Proposal: Written offer from NCIA to the Customer.

       n.  Standard Products as a Service (SPraaS): A delivery model whereby a product is provided to the customer bundled  with associated operational, maintenance, and support services.  SPraaS orders are indicated on Price Proposals.


2.   General Information.

       a.  The terms and conditions for SPraaS (hereinafter “SPraaS Terms”) in this document apply to, and are an integral part of, all price proposals including SPraaS.

       b.  Any deviations from these SPraaS Terms will be stated in the Agreement.  Absent a deviation stated in the Agreement, these SPraaS Terms control. 


3.   Acceptance.

       a.  Customer accepts the Price Proposal by either:

             i.    Signing and returning the Price Proposal as described therein, or

             ii.  If a NATO body, submitting a purchase order as described in the Price Proposal and NCIA counter-signing the purchase order.

       b.  Once accepted by the Customer, the Price Proposal, including documented referenced therein, become the legal Agreement between the Parties for the matters described in that Price Proposal.

       c.  The Parties may only modify an Agreement through a jointly written and signed amendment. 


4.   Invoicing.

       a.  Invoicing.  NCIA will invoice the Customer 100% of the price upon the Customer’s acceptance of the Price Proposal.


5.   Currency and Payment.

       a.  Customer will pay NCIA invoices no later than thirty (30) days following the invoice issuance date.

       b.  NCIA issues all Price Proposals and invoices in Euros.

       c.  Customer, or another paying the Customer’s invoice, will pay all NCIA invoices in Euros.  If any invoice is paid in currencies other than Euros, NCIA will convert the currency into Euros pursuant to NCIA’s internal procedures and deduct first any fees prior to crediting the invoice.  If the convert payment is insufficient to pay the invoice, NCIA shall notify the Customer.  Customer agrees to pay the remaining amount immediately.

       d.  All payments to the Parties will be made to the bank accounts indicated on the Annex with the NCIA Points of Contact, Acceptance Form or Invoice.


6.   Taxes.  NCIA will endeavour to ensure that no identifiable duties or taxes are levied for which exemption is provided under Article IX of the Agreement on the Status of the North Atlantic Treaty Organization, National Representatives and International Staff, signed in Ottawa on 20th of September 1951. The Customer remains fully liable for the payment and reimbursement to the NCIA of any duties or taxes levied with regard to any procured products or services, should the exemption not be applied or is denied by the taxing authority.


7.   Audit.  NCIA financial records are subject to audit by the International Board of Auditors for NATO. These records will be made available to the Customer audit institution(s), if requested and subject to applicable approvals.


8.   Access to Premise.  When necessary to perform the Agreement, the Customer will provide NCIA with reasonable access at reasonable times to premises used by the Customer.  NCIA will endeavor to provide Customer adequate notice of the need for access.  Customer will endeavor to facilitate NCIA’s access, including when the Customer is tenant or otherwise not in control of the premise.  


9.   Security.  Parties will follow the Security Within the North Atlantic Treaty Organization (C-M(2002)0049-REV1, dated 20 November 2020, as amended and supplemented.  Any additional security requirements will be documented in the Agreement.

 

10.      Intellectual Property.  Both Parties recognize that successful collaboration depends on full and prompt exchange of information necessary for carrying out this Agreement.

       a.  Foreground Information.

             i.    The ownership of the intellectual property rights for all Foreground Information produced by the NCIA under this Agreement is assigned to the Party that funded the work concerned.

             ii.  NCIA may further use or have used on its behalf all Foreground Information without charge for the purpose and scope of this Agreement only.

       b.  Background Information.

             i.    The Parties may, upon request, disclose to each other any relevant Background information provided:

                   (1) Such Background Information is necessary to the work to be carried out under this Agreement, with the disclosing Party determining whether it is necessary to the work to be carried out under this Agreement;

                   (2) Such Background Information may be made available without incurring liability to holders of proprietary rights; and

                   (3) Disclosure is consistent with the disclosure policies and regulations of the Party.

             ii.  The Party receiving the other Party’s disclosed Background Information shall not disclose, transfer, loan or provide any other type of access to Background Information to another without the prior written consent of the disclosing.

             iii. That disclosing Party may impose restrictions with respect to the use of the said Background Information.  Such restrictions also apply to Foreground Information developed on the basis of that Background Information, unless otherwise arranged with the disclosing Party.

             iv. In the absence of such restrictions, Background Information disclosed by a Party may be used without charge by or for the other Party for using the Foreground Information, in so far as the Background Information is integral to and necessary for the use of the Foreground Information.

             v.   Background Information disclosed by the Customer may be used without charge by the NCIA for the purpose of carrying out work under this Agreement.

             vi. Before release, all proprietary technical information subject to restrictive rights of further disclosure and use is identified and appropriately marked.

             vii. All proprietary technical information is handled as specified in the NATO Agreement on the Communication of Technical Information for Defence Purposes, done at Brussels on 19 October 1970, and the Implementing Procedures for the NATO Agreement on the Communication of Technical Information for Defence Purposes, approved by the North Atlantic Council on 1 January 1971”.


11.      Nationally Imposed Export Control or Similar Use Restrictions.

       a.  Certain products or services provided under the Agreement may be subject to export control laws and regulations, or similar restrictions imposed by one or more jurisdictions. NCIA does not control such restrictions and may be prohibited from performing obligations under this Agreement absent required governmental authorisations.

       b.  NCIA shall use reasonable endeavours to identify applicable restrictions in the Price Proposal. However, as the scope, specification, or intended use of the relevant products or services may not be fully known at that stage, certain restrictions may only become identifiable, arise, or change after execution of the Agreement. The Parties agree that failure by NCIA to identify applicable restrictions shall not relieve either Party of its obligation to comply with such restrictions or constitute grounds for termination of the Agreement, withholding payment, or otherwise not perform a responsibility under the Agreement.

       c.  When a product or service is subject to export control or similar restrictions, the Parties agree to mutually cooperate in executing their respective duties within those nationally imposed requirements.  This may involve collecting and sharing Information, including with national authorities; executing relevant export control documents; and, establishing compliance programs. While responsibilities may change based on the specific nationally imposed requirements, the Parties acknowledge that:

             i.    NCIA is not typically the (ultimate) end-user of products or services and may therefore be unable to undertake obligations imposed on an “end-user”. In such circumstances, the Customer shall assume and fulfil all applicable end-user obligations.

             ii.  Where NCIA is the end-user of a restricted product or service, the Customer shall fully cooperate with NCIA in satisfying its obligations under applicable export control laws. Failure by the Customer to provide such cooperation shall constitute grounds for NCIA to terminate the Agreement and require the Customer to take such actions as NCIA deems reasonably necessary to ensure compliance with applicable export control laws or similar restrictions.


12.      Software Licenses.

       a.  Unless specifically stated in the Agreement, NCIA will not provide the Customer any NATO software.  If the Agreement includes NCIA providing the Customer NATO software, the Customer agrees to execute a license agreement provided by NCIA, which is separate and apart from this Agreement.

       b.  If NCIA, in performance of the agreement, delivers the Customer non-NATO software the Customer agrees to sign any respective licensing agreements necessary for the Customer to use that software.  The Customer may request NCIA provide copy of the respective licensing agreement, to include before accepting the Price Proposal.


13.      Warranty.

       a.  NCIA provides no warranty, express or implied, including but not limited to those of merchantability and fitness for a particular purpose, and accepts no liability whatsoever for, or in connection with the use of products or services delivered under the Agreement.  NCIA provides all products and services "as is".  Any and all Customer use of NCIA provided products or services is at the exclusive risk, responsibility, and liability of the Customer.

       b.  While NCIA provides no warranty, NCIA does endeavour to provide quality products and services that meet Customer expectations as described in the Agreement.  In doing so, NCIA may:

             i.    Utilize warranties provided to NCIA by vendors or contractors NCIA retains to deliver products and services.  The Customer agrees to assist NCIA in utilizing any such warranty to satisfy the Customer’s expectations.

             ii.  When possible and requested by the Customer, transfer or assign a warranty from NCIA to the Customer.  Customer agrees NCIA is not responsible for any failure to assign such a warranty to the Customer or any challenges the Customer may have in utilizing or enforcing that warranty.


14.      In-year Service Support.  Should the Agreement include in-year delivery of service support (i.e. operations and maintenance), that support will be in accordance with the relevant service level agreement NCIA has with the Customer.


15.      Cancellation during Subscription Periods.  If the Customer terminates this Agreement or otherwise cancels any subscription-based services described in the Agreement, the Customer is financially responsible for any costs NCIA incurs as a result of the Customer’s decision.


16.      Resolution of Disputes.  Parties will resolve any dispute regarding the interpretation, implementation, or application of the Agreement through consultation.  Neither Party will refer any matter to any national tribunal, international tribunal, or other entity.  Parties will approach any dispute as a mutual problem requiring effort from both Parties to resolve.  Parties will seek to resolve disputes at the lowest level possible, with the ultimate forum being the NCIA Agency Supervisory Board.  Once resolved, the Parties will memorialize the resolution of the dispute in a jointly agreed to writing.


17.      Liability. 

       a.  Parties agree that in the event of damage, or other liabilities or losses caused by a contractor or any other entity working under an arrangement of any kind with the NCIA or by a wilful act or gross negligence by an NCIA staff member, related to the Agreement, the NCIA shall arrange to have those responsible refund any amounts due in accordance with existing laws and regulations, as follows:

             i.    Regarding NCIA contractors: NCIA will ensure contract clauses hold contractors accountable in accordance with the law applicable for the given contract with respect to damages and other liabilities due to fault and negligence.

             ii.  Regarding NCIA’s civilian staff: NATO Civilian Personnel Regulations (NCPRs) provide the rules and procedures in the event an NCIA’s civilian staff member causes damage or other liabilities through wilful act or gross negligence.

             iii. Regarding NCIA’s military staff: The respective national regulations govern damage or other liabilities as a result of wilful act or gross negligence caused by NCIA military staff.

       b.  If a remedy cannot be found in this manner, the Parties will refer the matter to the NCIA Agency Supervisor Board for resolution.


18.      Force Majeure.  The Parties shall not be liable for obligations in the performance of the Agreement if the failure or delay in performance arises out of causes beyond the control of either of the Parties. Such causes may include, but are not restricted to, acts of God, or of the public enemy, fires, floods, strikes, freight embargoes, epidemics, natural disasters or other force majeure events. However, such unforeseen causes or force majeure will not absolve a Party from its financial obligations under this Agreement which have been incurred up to the moment such causes or event occurred.


19.      Termination

       a.  The Parties may mutually decide, in writing, to terminate this Agreement. 

       b.  One Party may unilaterally terminate this Agreement in writing.  The terminating Party agrees to reimburse the other Party for costs directly arising from the terminating Party’s decision to terminate the Agreement.  The Parties will mutually cooperate to minimize those costs, with special recognition of the financial policies governing NCIA as established by the Allies.


20.      Language.  The Parties agree to conduct business in the English language.


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