Home  /  Business  /  Procurement  /  Procurement Types and Methods

Procurement Types and Methods

The NCI Agency's procurement opportunities can be categorized into two types: simplified and formal procurements.

Each procurement type also has a corresponding set of procurement methods and frameworks that allow the procurement process to be tailored to specific requirements as necessary.

The method we use for a given competition is primarily determined by the:

  1. NATO funding source (i.e., NATO Common Funding, Military Funding, or Third-Party Funding); and
  2. Established Financial Thresholds (EFLs).

Separate from our procurement types and their corresponding methods, is market research. Market research is the process by which we gather information about industry capabilities and overall market supply.

We procure solutions at the NCI Agency—they can be as simple as office supplies or as complex as advanced communications systems. This complexity is why we have flexible procurement methods at our disposal to ensure the procurement process is tailored to requirements.

Tiziana P.,
Principal Contracting Officer

Procurement Type:
Simplified

Procurement Value
< 160,000 EUR (IC Funded)
< 800,000 EUR (BC Funded)

All procurements valued under 160,000 EUR  (Investment Committee Funded) and 800,000 EUR (Budget Committee Funded) are competed using a simplified tender procedure. Frameworks such as the Basic Ordering Agreement (BOA) and Not-for-Profit Framework (NFPF) can be applied to simplified procurement methods.

Methods:

1

Single-Tender

We solicit an offer from a single company for a product or service. This method is available for procurements valued at less than 20,000 EUR (Investment Committee Funded) and 40,000 EUR (Budget Committee Funded).

3

3-Tender

We solicit offers from at least three companies for a product or service. This method is available for procurements valued between 20,000 EUR and 40,000 EUR (Investment Committee Funded) and between 40,000 EUR and 80,000 EUR (Budget Committee Funded).

5

5-Tender

We solicit offers from at least five companies for a product or service. This method is available for procurements valued between 40,000 EUR and 160,000 EUR (Investment Committee Funded) and between 80,000 EUR and 800,000 EUR (Budget Committee Funded).

Frameworks:

Basic Ordering Agreement (BOA)

A framework that allows the accelerated procurement of commercial-off-the-shelf (COTS) products. Only companies with BOAs can participate in these competitions.

Not-for-Profit Framework (NFPF)

A framework that allows us to procure goods and services from non-profit organizations (e.g., academic and scientific research institutions and national defence labs). Only companies with an NFPF agreement can participate in these competitions.

Procurement Type:
Formal

Procurement Value
≥ 160,000 EUR (IC Funded)
≥ 800,000 EUR (BC Funded)

All procurements valued at 160,000 EUR and greater (Investment Committee Funded) or 800,000 EUR and greater (Budget Committee Funded) are competed using our international competitive bidding procedure. Formal procurements can leverage different frameworks as necessary to tailor the procurement process to the goods or services being sourced.

Method:

International Competitive Bidding (ICB)

Our principal procurement method for international competitions. Companies require a Declaration of Eligibility (DoE) per competition to receive the solicitations and participate. Companies from NATO countries are invited to participate in these competitions, unless otherwise indicated.

Frameworks:

Basic Ordering Agreement (BOA)

A framework that allows the accelerated procurement of commercial-off-the-shelf (COTS) products. Only companies with BOAs can participate in these competitions.

Basic Ordering Agreement Plus (BOA+)

A framework that combines some of the accelerated features of the BOA with the expanded invitation of the ICB method. Companies with and without BOAs can participate in these competitions.

Not-for-Profit Framework (NFPF)

A framework that allows us to procure goods and services from non-profit organizations (e.g., academic and scientific research institutions and national defence labs). Only companies with an NFPF agreement can participate in these competitions.

Information Gathering:
Market Research

Procurement Value
Not Applicable

We use market research to assess the available industry solutions that could satisfy our requirements. This research can be used to inform subsequent competitions and help us to refine our solicitations.

Methods:

Request for Information (RFI)

Companies may be asked to respond to a market survey about a requirement. This is the most common type of market research conducted by the NCI Agency. 

Request for Bidders' View

Companies may be asked to review solicitation documents and assess the feasibility of the proposed solution under consideration.

?

Still have questions?

Please consult the Documents and Resources section, which contains help articles and other information that may provide you with answers.

You can also submit your questions to us via a contact form on the Stay Connected page.

✕

Established Financial Thresholds (EFLs)

Our procurement process uses several methods to source goods and services from industry. These methods are primarily determined by:

  1. the NATO funding source (i.e., NATO Common Funding, Military Funding, or Third-Party Funding); and
  2. the Established Financial Thresholds (EFLs).
Threshold (BC Funded) Threshold (IC Funded) Type Method Frameworks
< 40,000 < 20,000 Simplified Single-Tender BOA, NFPF
< 80,000 < 40,000 3-Tender
< 800,000 < 160,000 5-Tender
≥ 800,000 ≥ 160,000 Formal International Competitive Bidding (ICB) BOA, BOA+, NFPF
Information Gathering
N/A Market Research Request for Information N/A
Request for Bidders' View