foto: Saab, Public domain/NSPA ordered i.e. the Carl-Gustaf rifles from Saab
As NATO demand for interoperable, rapidly deliverable defence solutions grows, the NATO Support and Procurement Agency (NSPA) offers Allied nations an alternative procurement channel. Magnus Larsson, NSPA expert at Saab, explains how framework agreements work, what they mean for Allied nations, and why Saab is ready to deliver.
Could you describe the typical process for establishing a framework agreement via NSPA and explain who usually drives the initiative?
One or more Allied member states approach the NSPA with a requirement and task the Agency to procure on their behalf. The NSPA then engages with industry to place a contract. The number one selected model for this is a competition; if there is only one suitable suppler that meets the requirements, single or sole source procurement can be used.
The NSPA Interacts with industry, Saab for instance, to negotiate either a one-off delivery contract or, more commonly, a framework agreement. The key point is that it is not the industry that is initiating this process. It always starts with a nation or a group of nations expressing a requirement and the NSPA then looks at different offers on the market. Once a framework agreement is in place, its real value lies in its openness: any Allied nation can access the same negotiated terms, prices, and conditions without having to run a separate procurement process from scratch.
Given NSPA’s strong emphasis on competitive tendering, does this approach restrict choices for countries that already have a preferred system in mind?
The NSPA states their mandate is to use competitive procurement across the full market as a fundamental principle of the Agency. If a nation has a specific requirement for a particular system and they cannot justify a single-source acquisition, they may consider that the NSPA may not be the right procurement vehicle for that case. However, where nations can substantiate a single-source justification, for example, because they already operate a platform and need spare parts, upgrades, or follow-on capability the NSPA says they can accommodate that.
What key advantages lead an Allied nation to select an NSPA framework agreement over negotiating a direct bilateral purchase with the supplier?
There are several compelling benefits. From a supplier’s perspective, an existing framework can facilitate a quicker procurement as everyone is working through an established mechanism. For some nations, the NSPA can act on in lieu of a domestic agency if that is the preference. Finally, a framework agreement allows us as a supplier to offer pre-agreed prices for different quantities thereby giving nations clarity.
One important aspect to understand is asset ownership: even when procured through the NSPA, all equipment is owned by the purchasing nation, not by the NSPA itself.
Which Saab products or service categories are particularly well aligned with the NSPA framework agreement model?
In principle, any product with a clearly definable standard configuration and an established price baseline is well-suited. The framework agreement model works best when you can set a reference price for a standard delivery, additional customer-specific modifications can always be negotiated separately. This applies equally to hardware and to services such as maintenance and sustainment support.
What is the current status of Saab’s engagement with NSPA, and what message do you have for NATO member nations considering this procurement route?
Saab is building its prolife with the NSPA. Sweden's accession to NATO has opened full access to the Alliance’s procurement mechanisms for all of our products, and we are actively working to establish framework agreements across our portfolio. To be listed in the NSPA catalogue, you first need to have delivered through an NSPA contract, so establishing initial agreements is a current priority for us.
The message to Allied nations is clear: Saab welcomes and actively supports procurement through NSPA. We are committed to delivering how our customers want to buy. Whether a nation prefers a bilateral agreement, a national procurement authority, or an NSPA framework, we are prepared to engage on all fronts. If there is a requirement and a group of nations are willing to lead it, they can be confident that Saab is well equipped and has the necessary experience to supply them through the NSPA.
Tagy