dated 12th January 1996
1. Please add the attached Appendix to Annex III to the above document to your copy of the English version.
2. In the French version, could you please replace the Appendix to Annex III with the attached version.
This document includes: 1 Annex
NATO, 1110 Brussels
STEP 0 Concept Formulation Stage
- Need Document and Outline
- NATO Staff Target
-Include in CP
|Prepare and validate NATO Staff Target||Prepare and validate NATO Staff Requirement||Update and revalidate NATO Staff Requirement|
-Provide advice and affordability estimates
- Propose procedure
-Issue RFBV (A-level performance specifications)
- Assess response to RFBV
-Select 2/3 firms
-Prepare initial TBCE on the basis of performance space/functional baseline requirements
PD work statement
-Let PD contracts
-Assess PD outcome
-Update TBCE on the basis of updated performance spec/functional baseline requirements
-Prepare Caller des Charges
|Issue Caller des Charges on basis of final TBCE whereby each contractor is bound to its own technical specifications|
Senior Resource Board
-Screen and endorse CP
- Release planning funds if required
-Agree on procedure
Note initial TBCE
Authorize funds for PD
Authorize project funds
|Industry||Carry out A.E. studies if required||Respond to RFBV with brochures and work/cost plan for PD||
-Carry out PD studies
-Prepare detailed work plan
-Prepare B-level system and technical specifications
-Formal reply to IFB
- Negotiate contract
- Accept and start work
|Military Requirement Baseline||MND, ONST||NST||NSR||Updated NSR|
|Industrial Baseline||Notification of Intent||A-level specifications||A-level specifications||B-level specifications|
(b) the above regulation will not apply to contracts for civil engineering works and associated services whatever the value. However, it will apply to contracts or parts of contracts for equipment, supplies and the provision of services (other than for civil works).
(c) the Infrastructure Committee, when granting an authorization to commit funds or when noting a pre-financing statement, shall record which, if any, nations (or the International Staff) wish to receive the list of eligible firms which have expressed their interest in bidding (see also paragraph 3).
(a) Whenever ICB is applied for civil engineering projects where the part for steel supply is estimated at IAU 300,000 or more, the host country has the choice between the following options:
EITHER(i) in order to provide for timely availability to nations of the names of potential bidders on common funded projects immediately after the final date by which firms must have expressed a desire to tender, the host nation must forward only to those delegations and embassies of participating countries which have duly notified the Infrastructure Committee of their wish to receive this information (and, if applicable, to the International Staff) (see paragraph 2(b) hereunder) the list of eligible firms which have expressed their interest in bidding. This list is intended to provide information for the benefit of potential sub-contractors who themselves would be eligible to participate in the project;OR(ii) issue a separate invitation to tender for the steel construction works under normal or accelerated (if agreed) ICB procedures;
(iii) solicit from participating countries the names of interested steel sub-contractors; these names will then be furnished to the potential prime contractors, at the same time as the distribution of the “cahier des charges”, who will take into consideration any offer made by an eligible sub-contractor.
(b) The Infrastructure Committee shall determine at the budgetary control or prefinancing stage whether the procedure in paragraphs 2 (a) (i), 2 (a) (ii) or 2 (a) (iii) is applicable or necessary and the host nation shall state at that stage which of the three options it intends to select.
(c) Should the host nation intend to select option 2 (a) (i) the Infrastructure Committee, when granting authorization to commit funds or when noting a prefinancing statement, shall record which, if any, nations (or the International Staff) wish to receive the list of eligible firms which have expressed their interest in bidding (see also paragraph 3).
To: Host Nation Delegation to NATO
SUBJECT: EXPRESSIONS OF INTEREST IN ICB
REF. NO. XYZ
1. With reference to the above quoted ICB exercise, the following (nationality of origin) firms have expressed an interest in receiving the bidding comments:
(a) ‘A’ Co. Ltd.,
Contact: Mr. A. N. Othe
(b) ‘B’ Co. Ltd.,
etc.(c) C’ Co. Ltd.,
2. I certify that these firms have the necessary financial, technical and professional competence to be admitted by the Government of (country of origin) as bidders were it responsible for awarding a contract of this nature. All the firms listed above are security cleared to the level required for this project.
(Signed) (Country of Origin)
1. Price Variation
a. The price of this contract is subject to adjustment or revision within the limits defined herein.
b. If during the performance of this contract a variation occurs in the cost of wages and/or materials forming part of the basic contract price, that price shall vary in accordance with the movement of that price factor whose variation will determine the extent of the revision of the basic contract price in accordance with the following General Principles:
2. General Principles
P = Po (a + b M + c L
100 Mo Lo)
P = Final invoice price of variation. Po = Basic contract price of deliverable items at the effective date of contract. a = Invariable portion of the basic contract price stated in the cahier des charges. b = [Fixed] material portion of the basic contract price. c = [Fixed] labor portion of the basic contract price. M = Mathematical average of the index of raw materials during the periods extending from the effective date of contract to … months after contract award. Mo = Basic index of the same raw materials at the effective date of contract. L = Mathematical average of the index of wages and salaries (inclusive of recognized social charges) during the periods extending … months after contract award to the last day of the month prior to the month of delivery in accordance with the Delivery Schedule. Lo = Basic Index for the same wages and salaries at the effective date of contract.
a.b.c. represent the percentage of the basic price attributed to each price factor (a+b+c = 100).
For the purposes of calculating the adjustment in price subsequent to the effective date of contract, the following indices shall be used:
(Index at EDC = )
(Index at EDC = )
4. Maximum Variation
The increase to the basic total contract price shall not exceed ...% per annum, within an overall maximum of …% for the whole duration of the contract or any agreed extension thereof, and shall be calculated to the nearest whole month on the basic prices of those items agreed to be subject to variation in accordance with this condition. Calculation and payments shall be made in the same currencies attributable to each deliverable and all the prices may be varied in accordance with this provision unless specifically excluded in the schedule or elsewhere in this contract.
5. Payment of Price Variation
(a) Calculations of price increases shall be made as soon as possible after publication of the last index figure relating to the approved period of application of the variable.
(b) Where any index figure published is stated to be a provisional figure, the contractor may opt
to use that provisional figure in his calculation and present an appropriate invoice;or:
to delay presentation of his invoice until a definitive index figure is published.No further adjustment will be allowed, up or down, following revision of any index figure if an invoice is presented using provisional indices.
(c) Payment of price variation increases will be made on simple presentation and verification of an invoice, supported by details of the calculation (s), in accordance with the invoicing instructions of this contract.
Please find hereunder the list of official sources from which the exchange rates defined in the footnote to paragraph 13 (i) may be obtained:
Banque Nationale de Belgique
Boulevard Berlaimont, 5
The “Bank of Canada”
234 Wellington Street,
Ottawa, Ontario, KIA OG9
Publishes daily, at noon Ottawa time, a list of currency exchange rates determined by inter-bank transactions on the Toronto and Montreal Foreign Exchange markets.
Danmarks National Bank,
1058 Coppenhagen K.
Telephone (+45) 33141411
Telefax (+45) 33145902
Banque de France,
Direction generale des services etrangers,
39 rue Croix des Petits Champs
Bank of Greece,
Eleutheriou Venizelou 21,
The Italian Treasury publishes daily the official commercial exchange rates in the “Oficial Gazette of the Italian Republic”.
Banques Nationale de Belgique,
Boulevard de Berlaimont, 5
De Nederlandse Bank N.V.
Westeinde 1, Amsterdam
Tel: (20) 235332
Bankplassen 4,OSLO 1.
Banco de Portugal,
Rua do Comercio 148,
Banco de Espana,
Alcala 50, 28014 Madrid
Turkiye Cumhuriyet Merkez Bankasi,
Ataturk Bulvari, Ulus-Ankara.
The Bank of England,
Gold and Foreign Exchange Office,
LONDON EC2R 8AH.
Office, Fiscal Assistant Secretary,
Washington, DC 20220
1. When host nations do not permit contracts to be expressed in foreign currencies the procedure as below will be followed in order to prevent losses or gains by contractors due to the effects of official devaluation, revaluation or other changes in the value of the currencies of the host nation or other NATO countries in which a contractor has expenses.
2. In their bid submission bidders will be required to specify the extent to which they and/or their sub-contractors will have expenses in currencies other than that of the host nations. The host nation will record those amounts in the contract, together with the rate of exchange of those currencies in relation to its own currency, taking the average of the official commercial buying and selling rates quoted at the close of business of the working day previous to the bid closing day by the specified source in the host nation (see Annex VII), This will establish an overall contract price consisting of fixed amounts of host nations currency (to cover costs incurred in that currency) and variable amounts of host nation currency (to cover costs incurred in other currencies). On dates of payment, the host nation will appropriately adjust the variable amounts in its own currency to compensate for fluctuations that may have occurred in the parties established in the contract for the currencies of other NATO countries to the extent that the contractor in fact has expenses in those stipulated currencies and to the limits specified in the contract.
Dependent on the terms of the contract and/or its own practice in such matters, the host nation will make payments of the adjusted amount either in those other currencies (in the amounts stipulated in the currency) or in its own currency. Thus, in the latter case, the host nation will adjust the amounts of its own country’s currency paid so as to ensure that the contractor can, at rates of exchange in effect on the respective dates of payments, convert the host nation’s currency into the required number of units of other currencies up to the limit specified in the contract.
3. When bidding for a contract hosted by a NATO agency, bidders in their bid submission will be required to specify the extent to which they and/or their sub-contractors will have expenses in currencies other than that of the bidder’s country. NATO agencies will permit contracts to be either fully expressed in the currency of the contractor’s country or in the currencies of both the contractor’s country and those other NATO countries in which the contractor will have expenses. For accounting purposes, the total contract amount will be expressed in the currency of the contractor’s country. For the determination of the amounts requested to be paid in other currencies, the average of the official commercial buying and selling rates between the contractor’s currency and that of the other countries quoted at the close of business of the working day previous to the bid closing day by the specified source in the country where the NATO agency is established, will be utilized (see Annex VII). The NATO agency will record these amounts and rates of exchange in the contract. This will establish an overall contract price consisting of fixed amounts of currency of the contractor’s country (to cover cost incurred in that currency) and variable amounts of currency of the contractor’s country (to cover costs incurred in other currencies). On dates of payment, the NATO agency will appropriately adjust the variable amounts in the currency of the contractor’s country to compensate for fluctuations that may have occurred in the parties established in the contract for the currencies of other NATO countries to the contract to the extent that the contractor in fact has expenses in those stipulated currencies and to the limits specified in the contract.
4. The NATO agency will make payments in those currencies in the amounts stipulated in the contract.
AC/4-D/2030 (Final) paragraph A/>3/ (b), as amended by
Addendum to AC/4-D/2834, AC/4-R/1322, R/1327
1. Host Nation:2. Project:3. Slice: Serial:4. Authorized by: AC/4 (PP) D/ AC/4-DS/
5. Method of procurement:
ICB NCB Sole Source Other ( ) ( ) ( ) ( )
6. (a) Date of contract signature:(b) Estimated Project Completion Date:7. Value of contract: IAU Nat. Currency:
Contract: ( ) (a) covers entire project authorized ( ) (b) covers only part of authorized project: (_____% or otherwise (specify) : ( ) (c) for the remainder of the project extension is being requested until:
9. The expenditure profile for the years of construction is as follows:
Year Estimated Expenditure
IAU National currency11. Contract awarded to bidder No.
10. Where that project has been open to ICB:
(Name of firm)
Bid priceIAU - Nat. Currency 1. 2. 3.
12. Where no ICB took place for the project:Name of contractor Nationality
13. If applicable, major sub-contractors of the contractor
Name Nationality Value of sub-contractIAU Nat. Currency