"DoD Directive 2010.05, The North Atlantic Treaty Organization Security Investment Program, November 9, 2022"

DOD DIRECTIVE 2010.05

HE NORTH ATLANTIC TREATY ORGANIZATION SECURITY

INVESTMENT PROGRAM

Originating Component: Office of the Under Secretary of Defense for Acquisition and Sustainment

Effective: November 9, 2022

Releasability: Cleared for public release. Available on the Directives Division Website

at https://www.esd.whs.mil/DD/.

Reissues and Cancels: DoD Directive 2010.05, “The North Atlantic Treaty Organization (NATO)

Security Investment Program,” December 13, 2004, as amended

Incorporates and Cancels: Deputy Secretary of Defense Memorandum, “Designation of United States

Host Nation Program and Financial Management Responsibilities under

the North Atlantic Treaty Organization Security Investment Program,”

December 5, 2017

Approved by: Kathleen H. Hicks, Deputy Secretary of Defense

Purpose: This issuance:

• Establishes policies governing DoD participation in the North Atlantic Treaty Organization (NATO)

NATO Security Investment Program (NSIP).

• Assigns responsibilities for DoD participation in the NSIP.

• Assigns U.S. host nation program and financial management responsibility under the NSIP.

DoDD 2010.05, November 9, 2022

TABLE OF CONTENTS 2

TABLE OF CONTENTS

SECTION 1: GENERAL ISSUANCE INFORMATION .............................................................................. 3

1.1. Applicability. .................................................................................................................... 3

1.2. Policy. ............................................................................................................................... 3

SECTION 2: RESPONSIBILITIES ......................................................................................................... 5

2.1. Under Secretary of Defense for Acquisition and Sustainment (USD(A&S))................... 5

2.2. USD(P). ............................................................................................................................. 5

2.3. USD(C)/CFO. ................................................................................................................... 6

2.4. DoD Component heads. .................................................................................................... 6

2.5. The Secretaries of the Military Departments. ................................................................... 6

2.6. Secretary of the Army. ...................................................................................................... 7

2.7. Chairman of the Joint Chiefs of Staff. .............................................................................. 8

2.8. Combatant Commanders. .................................................................................................. 8

2.9. Commander, USEUCOM. ................................................................................................ 9

2.10. DEFAD for the U.S. Mission to NATO. ...................................................................... 10

SECTION 3: APPROPRIATED FUNDS ............................................................................................... 12

GLOSSARY ..................................................................................................................................... 14

G.1. Acronyms. ...................................................................................................................... 14

G.2. Definitions. ..................................................................................................................... 14

REFERENCES .................................................................................................................................. 20

DoDD 2010.05, November 9, 2022

SECTION 1: GENERAL ISSUANCE INFORMATION 3

SECTION 1: GENERAL ISSUANCE INFORMATION

1.1. APPLICABILITY.

This issuance applies to:

a. OSD, the Military Departments, the Office of the Chairman of the Joint Chiefs of Staff

and the Joint Staff, the Combatant Commands, the Office of Inspector General of the Department

of Defense, the Defense Agencies, the DoD Field Activities, and all other organizational entities

within the DoD (referred to collectively in this issuance as the “DoD Components”).

b. Military construction; equipment procurement; consultation, command and control and

communication information systems capabilities procurement; and other projects eligible for

funding through the NSIP, to include restoration as defined by NATO.

c. The use of appropriated funds available to the DoD for projects that may become eligible

for NSIP funding.

d. NSIP direct funded projects for which the U.S. is designated by NATO as the user nation

or as the host nation.

1.2. POLICY.

It is DoD policy that:

a. NSIP-eligible projects required for U.S. support to NATO will be funded, when possible,

through the NSIP. All U.S. supported NATO operational requirements should be considered

“over and above” those requirements that can reasonably be expected to be made available from

U.S. national resources (i.e., meeting the NATO over and above principle for NSIP eligibility).

b. U.S. operational requirements will be based on the Joint Strategic Campaign Plan. Per

Chairman of the Joint Chiefs of Staff Instruction (CJCSI) 3100.01E, requirements supporting

NATO operations are identified in United States European Command’s (USEUCOM’s)

Combatant Commander’s Campaign Plan (Annex A, “Theater Posture Plan,” and Annex D,

“Theater Distribution Plan”).

(1) In accordance with DoD Instruction (DoDI) 3000.12, these requirements will be

identified by DoD Components to the Commander, USEUCOM, to ensure coherence of U.S.

operational planning with NATO operational planning and that U.S. operational requirements

supporting Combatant Commander’s campaign plans are incorporated into NATO operational

requirements statements.

(2) U.S. requirements supporting NATO crisis response operations potentially eligible

for the NSIP will also be identified in NATO planning processes by the appropriate Combatant

Command with geographic areas of responsibility, and submitted to the Commander,

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SECTION 1: GENERAL ISSUANCE INFORMATION 4

USEUCOM, for NSIP eligibility determination by the U.S. prior to submittal to NATO in

conformance with NATO policies.

c. To the extent allowed by law and international agreements, DoD will undertake U.S. host

nation NSIP projects, after designation by NATO as the host nation, as military construction in

accordance with DoD Directive 4270.5, including the use of DoD criteria and specifications.

d. The design and construction of potentially NSIP-eligible project requirements to be

procured by or for the U.S. in NATO countries will conform to established NATO criteria and

standards. U.S. operational, safety, environmental, and energy conservation requirements that

exceed the NATO standard normally are not eligible for NATO common funding, and if

authorized, are funded conjunctively by DoD Components subject to the availability of funds.

e. U.S. appropriated funds may only be expended in support of, or in connection with, an

NSIP project when authorized by law using funding properly available for such purposes.

f. U.S. appropriated funds (i.e., pre-financing) will not be expended on a project, or part of a

project, likely to be eligible for NSIP funds except as outlined in Section 3.

g. When advantageous to U.S. interests, capability requirements for operational needs not

covered by NATO will be identified and pursued by the DoD Components with NATO.

h. For requirements and projects approved by NATO in capability packages (CPs), U.S.

participation in the NSIP will conform with the NSIP Manual, NATO Bi-Strategic Command

Directive 85-1, and implementation policies issued by the Commander, USEUCOM.

i. For requirements submitted and projects in capability program plans (CPPs), U.S.

participation in the NSIP will conform with NATO Document PO(2018)0259, applicable NATO

directives, and USEUCOM implementation policies.

DoDD 2010.05, November 9, 2022

SECTION 2: RESPONSIBILITIES 5

SECTION 2: RESPONSIBILITIES

2.1. UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT

(USD(A&S)).

The USD(A&S):

a. Conducts all long-range planning and review of the NSIP in relation to U.S. posture

planning and the U.S. military construction program.

b. Coordinates with the Under Secretary of Defense for Policy (USD(P)) on all policy

matters for U.S. participation in the NSIP.

c. In coordination with the USD(P), the Under Secretary of Defense (Comptroller)/Chief

Financial Officer, Department of Defense (USD(C)/CFO), and the Defense Advisor (DEFAD)

for the U.S. Mission to NATO:

(1) Determines the level of annual and future year funding required to meet U.S.

obligations to the NSIP.

(2) Prepares and submits the annual U.S. NSIP budget request and associated

justification material to the USD(C)/CFO.

(3) Supports and advocates for annual NSIP funding requests before Congress.

d. In cooperation with the DEFAD for the U.S. Mission to NATO and the Secretary of

Commerce, promotes increased participation by U.S. companies in procurements under the

NSIP.

e. Establishes guidance on international competitive bidding for DoD Components.

f. Designates the DoD construction agent (DCA) for NSIP projects where the U.S. accepts a

host nation designation by NATO. This authority may be delegated in writing.

2.2. USD(P).

The USD(P):

a. Develops all policy guidance on U.S. participation in the NSIP.

b. Acts as the principal point of contact with the Department of State for all NSIP-related

matters.

c. In coordination with the USD(A&S), the USD(C)/CFO, and the DEFAD for the U.S.

Mission to NATO, assists in the determination of the level of annual and future year funding

required to meet U.S. obligations to the NSIP.

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SECTION 2: RESPONSIBILITIES 6

2.3. USD(C)/CFO.

The USD(C)/CFO:

a. Establishes the fiscal guidance and procedures that govern U.S. participation in the NSIP.

b. In coordination with the USD(A&S), the USD(P), and the DEFAD for the U.S. Mission to

NATO, assists in the determination of annual and future U.S. NSIP funding requirements,

reviews U.S. NSIP budget requests, and submits associated budget justification material to the

Office of Management and Budget and U.S. Congress as required.

c. Acts as the principal point of contact on all NATO financial-related matters with the

Office of Management and Budget.

2.4. DOD COMPONENT HEADS.

The DoD Component heads, prior to programming a U.S. appropriated funds military

construction project that supports NATO operational requirements, will coordinate with the

Commander, USEUCOM, to evaluate NSIP eligibility of the project.

2.5. THE SECRETARIES OF THE MILITARY DEPARTMENTS.

In addition to the responsibilities in Paragraph 2.4., the Secretaries of the Military Departments:

a. Submit a NATO User Nation—Identified Facilities and Condition Report, of those

facilities required to support U.S. operational plans supporting NATO to the Commander,

USEUCOM, and the DEFAD for the U.S. Mission to NATO.

b. Coordinate U.S. NSIP requirements with design, construction, and equipment

procurement planning to support NATO operational and crisis response plans. Submits

requirements to the Commander, USEUCOM, for inclusion in the NSIP.

c. Coordinate with the host nation to ensure all U.S. requirements are considered for

inclusion to a project when the U.S. will be the user nation.

d. Pursue maximum direct NATO funding of U.S. construction projects eligible under the

NSIP, rather than through U.S. military appropriated funds construction programs (pre-

financing) in accordance with DoD Directive 4270.5. If the decision is made that pre-financing

is required:

(1) Coordinate approval with the Commander, USEUCOM, prior to project submission

for U.S. funding to include planning action(s) to be taken to expedite future NATO processing

through the NSIP.

(2) Pursue the recoupment of U.S. pre-financing expenditures when NATO funds are

authorized.

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SECTION 2: RESPONSIBILITIES 7

e. Plan, program, budget, and seeks authorization, when necessary, for U.S. requirements

and authorized incidental expenses not eligible for NSIP funding under NATO rules. Such

efforts may be accomplished through the submission of programmatic DD Form 1391, “FY___

Military Construction Project Data” sheets, located on the DoD Website, “DoD Issuances,”

https://www.esd.whs.mil/DD/, for line item authorization under National Defense Authorization

Acts, and corresponding military construction appropriations.

f. Serve as the DCA pursuant to DoD Directive 4270.5 for NSIP projects where the United

States accepts a NATO host nation designation. When a host nation, responsibilities as a DCA

include:

(1) Design, construct, and schedule joint formal acceptance inspections; corrects

deficiencies; and schedules and participates in NATO audits.

(2) Report the progress and financial status of NATO-funded projects from project

initiation through audit and issuance of a certificate of final financial acceptance.

(3) Ensure that records of all project solicitation documents, invoices, and as-built

drawings are maintained by the DCA until financial close-out by the International Board of

Auditors for NATO (IBAN).

g. In instances where the U.S. accepts host nation designation for execution of a NSIP

project, and NATO does not agree to contribute funding for all costs necessary for the DCA to

carry out the project, determines whether completion of the project is in the national interest of

the United States; and, if so, identifies appropriate funding for and authorizes execution of such

conjunctively funded requirements pursuant to Section 2350q(e) of Title 10, United States Code

(U.S.C.).

h. After project acceptance in the NATO inventory:

(1) When a host nation, track, maintain, restore, and dispose of NATO inventory as

required in accordance with the NATO definition of maintenance as clarified in the Glossary.

(2) When a user nation, identify all NATO inventory required to support U.S.

operational plans supporting NATO, track facility condition, and report the status to the

Commander, USEUCOM, annually for inclusion in the NATO Joint Force Command Operation

and Maintenance Inspection Program.

2.6. SECRETARY OF THE ARMY.

In addition to the responsibilities in Paragraphs 2.4. and 2.5., the Secretary of the Army:

a. Through the Commander, USEUCOM, manages DoD host nation program and financial

responsibilities when the U.S. acts as the host nation. Exercises responsibility for resourcing and

manning the administrative and program management support requirements, as determined by

and in direct support to the Commander, USEUCOM.

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SECTION 2: RESPONSIBILITIES 8

b. Provides financial management support for the U.S. contributions to the NSIP and

supports the Commander, USEUCOM, with a monthly status of NSIP funds report.

c. Supports Commander, USEUCOM, with production of the annual NSIP pre-financing and

recoupment status report.

2.7. CHAIRMAN OF THE JOINT CHIEFS OF STAFF.

In addition to the responsibilities in Paragraph 2.4., and in coordination with the U.S. Military

Representative to the NATO Military Committee (MC), the U.S. National Military

Representative at Supreme Headquarters Allied Powers Europe, and the U.S. National Liaison

Representative at Allied Command Transformation, the Chairman of the Joint Chiefs of Staff:

a. Provides recommendations on NSIP operational requirements and related matters to the

Secretary of Defense.

b. Represents U.S interests on the NATO MC, recommends U.S. positions, and helps the

exchange of information between NATO and the U.S.

c. Provides guidance on NATO operational and contingency requirements to the U.S.

Delegation to the NATO MC, and the Commander, USEUCOM.

d. Prepares U.S. operational, posture, and capability requirements to support NATO

planning, as identified in the Joint Strategic Planning System, in accordance with CJCSI

3100.01E. Ensures that these requirements are synchronized with the Commander, USEUCOM,

in U.S. responses, policy positions, and inputs to operational requirements statements (ORSs),

capability requirements briefs, and CPPs within the NATO Strategic Domain. Oversees

alignment of USEUCOM strategic plans with the NATO strategic plans.

2.8. COMBATANT COMMANDERS.

In addition to the responsibilities in Paragraph 2.4., the Combatant Commanders:

a. Provide NATO operational requirements to the Commander, USEUCOM, in accordance

with CJCSI 3100.01E, and Combatant Commander’s Campaign Plan in Annex A, “Theater

Posture Plan” requirements, in accordance with DoDI 3000.12, to merge into NATO ORSs.

b. Submit NATO crisis response operations requirements to the Commander, USEUCOM,

for NSIP eligibility determination by the U.S. prior to submittal to NATO in conformance with

NATO policies to maximize NSIP funding for contingency requirements.

c. Participate, as needed, in the Commander, USEUCOM, NSIP quarterly program

management reviews.

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SECTION 2: RESPONSIBILITIES 9

2.9. COMMANDER, USEUCOM.

In addition to the responsibilities in Paragraphs 2.4., the Commander, USEUCOM:

a. Confirms DoD Components have planned for any necessary conjunctive funding for an

NSIP project prior to submission of a project to the NATO Investment Committee (IC) for

authorization and oversees synchronization between the NSIP and the DoD military construction

program.

b. Manages and directs operational requirements development, CPP, project execution, and

implementation of U.S. projects (host nation and user nation) funded by the NSIP based on

policy in Paragraph 1.2., to appropriate Combatant Commands, theater Component commands,

and the other DoD Components. In the case of projects where the United States will be the user

nation, USEUCOM ensures coordination occurs between its Military Service Component

Commands and the host nation for full consideration of U.S. requirements.

c. Maintains direct liaison with the NATO military commanders and host nations on all

NSIP-related matters.

d. Directs Combatant Commands strategic requirements, as identified in the Joint Strategic

Campaign Plan in accordance with CJCSI 3100.01E, supporting NATO operations are included

in USEUCOM’s Combatant Commander’s Campaign Plan in Annex A, “Theater Posture Plan,”

and Annex D, “Theater Distribution Plan,” in accordance with DoDI 3000.12. Ensures these

strategic requirements are provided to NATO to inform the NATO Defense Operational and

Crisis Response Operational Plans. Coordinates DoD Components’ engagement with NATO

strategic commands to combine U.S. priority requirements into ORSs, capability requirements

briefs, and CPPs.

e. Reviews and approves all DoD Component requests for NSIP pre-financing projects to

ensure synchronization with the U.S. military construction program. Each project proposal from

the DoD Components will also identify when the project(s) will be submitted for NSIP

programming. Carries out an effective program to recoup funds.

f. Coordinates with DoD Components and recommends designation of U.S. as the host

nation for the execution of NSIP projects to the Allied Command Transformation, territorial host

nation, U.S. Military Representative, and the DEFAD for the U.S. Mission to NATO. Confirms

DoD Component requirements for conjunctive funding are aligned for planning, programming,

and budgeting by a DoD Component prior to submission of a project for NATO approval.

Accepts host nation designation from NATO for execution of a NSIP project pursuant to

Subsection (a) of Section 2350q of Title 10, U.S.C., and oversees project coordination with the

DCA. Monitors lifecycle program execution, acceptance, facility condition, and disposal of U.S.

host nation and user nation projects.

g. Organizes and conducts quarterly NSIP program management reviews for all DoD

Components.

h. Provides training on NSIP planning, programming, and project implementation for U.S.

personnel.

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SECTION 2: RESPONSIBILITIES 10

i. Submits a monthly status of NSIP funds report to the USD(A&S), the USD(C)/CFO, and

the DEFAD for the U.S. Mission to NATO.

j. Submits an annual NSIP pre-financing and recoupment status report to the USD(A&S), the

USD(P), the USD(C)/CFO, and the DEFAD for the U.S. Mission to NATO.

k. In coordination with the DEFAD for the U.S. Mission to NATO, represents the DoD as

the U.S. Requirements Stakeholder at internal conferences and meetings on the NSIP.

l. Establishes implementation guidance for execution of NSIP direct funded projects and

procedures for international competitive bidding contracting, when required by NATO for DoD

Components.

2.10. DEFAD FOR THE U.S. MISSION TO NATO.

The DEFAD for the U.S. Mission to NATO:

a. In coordination with the USD(A&S) and the USD(C)/CFO, assists in the determination of

annual and future U.S. NSIP funding requirements.

b. Provides information and assistance to U.S. companies on NSIP project bidding and

contracting.

c. Recommends U.S. position on discussion items and decisions.

d. Provides U.S. representation on NATO committees (Resource Policy and Planning Board

(RPPB), IC, Budget Committee (BC)) to:

(1) Set NSIP policy.

(2) Approve CPs and CPPs supporting NATO capabilities.

(3) Establish NSIP procedures.

(4) Oversee the management of the NSIP.

(5) Designate host nation for projects.

(6) Authorize NSIP projects.

(7) Establish level of NSIP funding as captured in the Medium Term Resource Plan.

e. Reports on projects to NATO boards and committees for which NATO has designated the

U.S. as the host nation.

f. Coordinates the exchange of NSIP information between NATO and Federal agencies of

the U.S. Government.

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SECTION 2: RESPONSIBILITIES 11

g. Represents the United States as the principal delegate at all international conferences and

meetings on the NSIP.

h. Supports presentation of and advocates for annual funding requirements before Congress

in coordination with the USD(A&S), USD(P), and the USD(C)/CFO.

DoDD 2010.05, November 9, 2022

SECTION 3: APPROPRIATED FUNDS 12

SECTION 3: APPROPRIATED FUNDS

U.S. appropriated funds (i.e., pre-financing) will not be expended on a project, or part of a

project likely to be eligible for NSIP funds, except:

a. For a project already approved by NATO, for example, in an approved CP or CPP:

(1) The use of appropriated funds for the design or construction of NSIP-eligible

elements within the project will be limited to those elements that are of a high operational

priority, and may not be completed or acquired through the NSIP in the time frame required as

determined by the Commander, USEUCOM.

(2) Procurement procedures will follow the NATO IC authorization decision. NATO

international competitive bidding will be used in accordance with NATO documents AC/4-

D/2261, AC/4-D/2261-ADD2 (Annex X), and AC/4-D(2008)0002-REV2, unless a waiver is

sought and obtained from the IC. When the U.S. acts as the host nation, the Federal Acquisition

Regulation and Defense Federal Acquisition Regulation Supplement will be used as the

authorities to award contracts.

(3) When the U.S. acts as the host nation, records of all project solicitation documents,

invoices, and as-built drawings will be maintained by the DCA (or as applicable by other DoD

Components) until no earlier than financial close-out by the IBAN. This retention is required

despite any conflicting provisions in records management and disposition schedules.

b. For a project not yet approved by NATO:

(1) The use of appropriated funds for the design or construction of potentially NSIP-

eligible elements within the project will be limited to those elements that are of a high

operational priority, and may not be completed or acquired through the NSIP in the necessary

time frame as determined by the Commander, USEUCOM.

(2) Pre-financing statements will be prepared and coordinated with host nations by the

DoD Components, and be submitted through the Commander, USEUCOM, to the DEFAD for

the U.S. Mission to NATO for submission to the NATO IC for all projects that are likely to

become eligible for future NSIP funding. DoD Component’s submissions must also outline

actions to be taken to hasten future NATO programming and funding of these requirements.

(3) The Commander, USEUCOM, will notify the NATO IC through the DEFAD for the

U.S. Mission to NATO of the United States’ intent to pre-finance, including the planned method

of procurement, before contract solicitation. Any exceptions to NATO bidding and contracting

procedures under NATO Documents AC/4-D/2261, AC/4-D/2261-ADD2 (Annex X), and AC/4-

D(2008)0002-REV2 must be requested and noted by the IC before contract solicitation. Any

national concerns raised in the IC regarding alternative procurement methods must be addressed.

(4) If only partial pre-financing (i.e., NSIP funds become available during project

implementation), DoD asset accounts will be adjusted as appropriate. NSIP funds authorized by

DoDD 2010.05, November 9, 2022

SECTION 3: APPROPRIATED FUNDS 13

the IC will be used instead of national funds and un-invoiced U.S. funds allocated to a project

will be promptly de-obligated.

(5) Recoupment of all pre-financed projects will be pursued. If NATO approves the

project (e.g., by including the project or partial project in a CP or CPP), then documentation for

the recoupment of a pre-financed project will be submitted for authorization by the Commander,

USEUCOM, through the U.S. IC representative at the DEFAD for the U.S. Mission to NATO.

Alternatively, if the U.S. provided pre-financing but was not designated the host nation, the U.S.

will require that the host nation submit the required documentation for recoupment and transfer

NATO funds to the United States once authorized.

(6) When the U.S. acts as the host nation, records of all project solicitation documents,

invoices, and as-built drawings will be maintained by the DCA (or as applicable by other DoD

Components executing the NSIP project) until financial close-out by the IBAN.

c. DoD records management requirements.

(1) Records created and received by DoD Components per this issuance that lack NATO

classification markings will be maintained pursuant to DoDI 5015.02, records disposition

schedules, and authorized retentions.

(2) Records created and received by DoD Components with NATO classification

markings will be maintained pursuant to administrative and security requirements defined in

NATO Document C-M(2002)49-REV1, and DoD security policies cited in United States

Security Authority for NATO Affairs Instruction 1-07.

DoDD 2010.05, November 9, 2022

GLOSSARY 14

GLOSSARY

G.1. ACRONYMS.

CRONYM

EANING

budget committee

CFCD

CJCSI

common funded capability delivery

Chairman of the Joint Chiefs of Staff instruction

CPP

capability package

capability program plan

DCA

DEFAD

DoD Construction Agent

defense advisor

DoDI

DoD instruction

IBAN

International Board of Auditors for North Atlantic Treaty

Organization

investment committee

military committee

NAC

North Atlantic Council

NATO

NSIP

North Atlantic Treaty Organization

North Atlantic Treaty Organization Security Investment Program

ORS

operational requirements statement

RPPB

Resource Policy and Planning Board

U.S.C.

United States Code

USD(A&S)

USD(C)/CFO

USD(P)

USEUCOM

Under Secretary of Defense for Acquistion and Sustainment

Under Secretary of Defense (Comptroller)/Chief Financial Officer,

Department of Defense

Under Secretary of Defense for Policy

United States European Command

G.2. DEFINITIONS.

Unless otherwise noted, these terms and their definitions are for the purpose of this issuance.

DoDD 2010.05, November 9, 2022

GLOSSARY 15

ERM

EFINITION

capability requirements

brief

A step in NATO requirements development that includes

doctrine, organization, training, materiel, leadership, personnel,

facilities, and interoperability line of development; rough order

of magnitude cost (investment, operations and maintenance, and

manpower, as applicable); scope; schedule; performance and

risk.

certificate of final

financial acceptance

Issued by the IBAN on completion of an audit of an NSIP-

funded project.

common funding

The formal arrangements that have been put in place by which

nations, collectively, provide funds to NATO for the provision

of requirements which are over and above those which could

reasonably be expected to be made available from national

resources.

conjunctive funding

The use of U.S. appropriated funds for qualifying project

expenses not eligible for NATO funding. These expenses

include additive U.S. requirements that exceed NSIP-eligible

criteria and expenses such as land acquisition necessary for a

complete and usable facility when not provided for within a

NATO authorization, but for which authorization exists under

U.S. law. The term also refers to funding of additional

overhead and design costs not provided by NATO.

A combination of national (military and civilian) and NATO

funded infrastructure; operations, maintenance; manpower; and

associated costs that, with the military forces and other essential

requirements, enable a NATO commander to achieve a specific

military required capability.

CPP

A step in NATO requirements development that includes

doctrine, organization, training, materiel, leadership, personnel,

facilities, and interoperability capability components; refined

assessment of through-life cost (investment, operations and

maintenance, and manpower, as applicable); scope; schedule;

performance; risk; proposed tolerances at program level;

options analysis (including acquisition strategy); and planning

for phasing-out systems or services no longer required.

criteria and standards

Common NATO standards that ensure that facilities constructed

for NATO use, although designed and built according to host

nations national codes and standards, will favor interoperability

and multi-national operations.

DoDD 2010.05, November 9, 2022

GLOSSARY 16

ERM

EFINITION

direct funding

Process through which NSIP funds are provided quarterly to

pay invoices based on a forecast of anticipated project costs.

Where the U.S. is the host nation, DCAs incur obligations for

direct funded projects in advance of receipt of direct funding

based on NATO project authorization amounts, pursuant to

Section 2350q of Title 10, U.S.C.

eligibility

Categories and types of projects that the NATO allies have

agreed will be funded through the NSIP. Currently, the nine

categories of requirements eligible for NSIP funding are:

Alliance operations and missions.

Readiness capabilities.

Deployable assets.

Capabilities supporting deploying forces.

Command, control, and consultation capabilities.

Air command and control capabilities.

Training, exercise, and education.

NATO command structure.

Nuclear deterrent posture.

governance

All actions and decisions taken by consensus by NATO allies.

Conducted through the North Atlantic Council (NAC), RPPB,

MC, IC, and BC.

host nation

The entity which implements a NSIP project on behalf of

NATO. The host nation may be the territorial host nation, a

NATO agency, a user nation, or a strategic command.

NATO’s resource committee responsible for the oversight of

the implementation of the NSIP, as endorsed by the RPPB and

approved by the NAC. For common funded capability delivery

(CFCD), authorized project cost, scope, schedule, technical

approach, procurement method, and project tolerances.

DoDD 2010.05, November 9, 2022

GLOSSARY 17

ERM

EFINITION

infrastructure

Buildings, pavements, piers, and other fixed facilities or

structures to include certain mobile projects (e.g., radars and

mobile operational war headquarters) and equipment essential

to NATO operations and war plans (e.g., communications and

information technology systems).

international competitive

bidding

The default procedure for the contracting of NSIP projects.

Only firms of NATO countries participating in the financing of

projects may be invited to bid.

maintenance

Work required to sustain existing facilities or equipment.

Examples of maintenance work are replacement of expendable

items, minor repair, painting, grading, and repair of road

shoulders or ditches. Routine maintenance is a user nation’s

responsibility and is not eligible for common funding.

However, some work classified as maintenance under U.S.

programming procedures may be programmed as restoration in

NATO infrastructure, and therefore be eligible for common

funding. NATO conducts periodic operations and maintenance

inspections to confirm proper maintenance of NATO facilities

by the peacetime user nations. The frequency of the inspections

depends on the status and operational role of the infrastructure.

For facilities in a caretaker status during peacetime,

maintenance is the responsibility of the wartime user nation.

NATO committee primarily responsible for approving

operational requirements, capability requirements, and analysis

across the full capability lines of effort and military priorities.

For CFCD, the MC approves operational requirements,

capability requirements brief, endorses CPP and tolerances

(with RPPB), approves capability acceptance report (with

RPPB), and approves retirement (disposal with RPPB).

military construction

Defined in Section 2801 of Title 10, U.S.C.

ORS

A statement of established need justifying the timely allocation

of resources to achieve a capability to accomplish approved

military objectives, operations, missions, or actions.

over and above principle

NATO common funding eligibility will focus on the provision

of requirements which are over and above those which could

reasonably be expected to be made available from national

resources.

DoDD 2010.05, November 9, 2022

GLOSSARY 18

ERM

EFINITION

pre-financing statement

The declaration of a host nation to NATO that it has the

intention to fund from national resources a project which may

later qualify for NSIP funding. It is the document which is

noted by the IC and contains the scope of work, costs, and

proposed procurement strategy.

project proposal

The document under the CFCD governance model which

includes updated assessments of through-life-cost (investment,

operations and maintenance, and manpower, as applicable),

schedule, performance and risk, finalized scope, proposed

tolerances at project level, and implementation strategy or

procurement method.

recoupment

NATO reimbursement of U.S. funds previously used to pre-

finance an NSIP-eligible project.

restoration

Actions required, beyond normal maintenance, to bring NATO

facilities up to the criteria in force when originally built.

RPPB

Senior advisory body to the NAC on the level and management

of all NATO resources. Responsible for the overall

management of NATO’s civil and military budgets, as well as

the NSIP and manpower. The RPPB is responsible for resource

policy, including eligibility and affordability, and is tasked with

planning and performance assessment. The RPPB receives

strategic guidance from the NAC and provides coherence and

guidance to the work of the IC and BC. For CFCD, the RPPB

confirms eligibility, approves capability requirements briefs,

designates host nation, approves acquisition strategy, authorizes

advanced planning funds, endorses CPP and tolerances,

approves capability acceptance reports, and approves retirement

or disposal.

strategic command

The highest level of the NATO command structure. There are

two strategic commands: allied command operations; and allied

command transformation.

territorial host nation

The country on whose territory an NSIP project is to be

implemented.

U.S. Mission

The U.S. diplomatic mission to NATO located at NATO

Headquarters, Brussels, Belgium. The DEFAD for the U.S.

Mission to NATO provides representation of the U.S. on all

NATO resource committees including RPPB, IC, and BC. The

DoDD 2010.05, November 9, 2022

GLOSSARY 19

ERM

EFINITION

mission is led by the U.S. Permanent Representative to the

NAC.

user or user nation

A nation, NATO command, or agency that will occupy, operate

or maintain a facility acquired or constructed as an NSIP

project.

DoDD 2010.05, November 9, 2022

REFERENCES 20

REFERENCES

Chairman of the Joint Chiefs of Staff Instruction 3100.01E, “Joint Strategic Planning System”,

May 21, 2021

Defense Federal Acquisition Regulation Supplement, current edition

DoD Directive 4270.5, “Military Construction,” February 12, 2005, as amended

DoD Instruction 3000.12, “Management of U.S. Global Defense Posture (GDP),” May 6, 2016,

as amended

DoD Instruction 5015.02, “DoD Records Management Program,” February 24, 2015, as

amended

Federal Acquisition Regulation, current edition

North Atlantic Treaty Organization Bi-Strategic Command Directive 85-1, “Capability Package

(Edition 5),” April 7, 2017

North Atlantic Treaty Organization Directive for the Management Aspects of the NATO

Common Funded Capability Delivery Governance Model, November 19, 2019

North Atlantic Treaty Organization Document C-M(2002)49-REV1, “Security Within the North

Atlantic Treaty Organization (NATO),” November 20, 2020

North Atlantic Treaty Organization Document PO(2018)0259, “The Common Funded Capability

Delivery Governance Model,” June 6, 2018

North Atlantic Treaty Organization Investment Committee Document AC/4-D/2261 (1996

Edition), “Procedures for International Competitive Bidding,” January 12, 1996

North Atlantic Treaty Organization Investment Committee AC/4-D/2261-ADD2 (Annex X),

“Policy for Conducting International Competitive Bidding Using Best Value Evaluation

Methodology,” July 24, 2009

North Atlantic Treaty Organization Investment Committee AC/4-D(2008)0002-REV2,

“Procedures and Practices for Conducting NSIP International Competitive Bidding Using

Best Value Evaluation Methodology,” July 15, 2015

North Atlantic Treaty Organization - Medium Term Resource Plan, various

North Atlantic Treaty Organization Security Investment Programme Manual, Version 2011, July

12, 2012

North Atlantic Treaty Organization User Nation – Identified Facilities and Condition Report,

various

The North Atlantic Treaty, Article 5, April 4, 1949

United States Code, Title 10

United States European Command, “Combatant Commanders Campaign Plan”, current edition

United States Security Authority for NATO Affairs (USSAN) Instruction 1-07, “Implementation

of NATO Security Requirements,” April 5, 2007

Copies may be obtained from HQ USEUCOM ECJ4, Attn: NATO Infrastructure Support

Program Office, Geb. 2304 Room 231, Patch Barracks, 70569 Stuttgart-Vaihingen, Germany

USEUCOM SIPR Portal at https://hq.eucom.smil.mil/CMDGRP/SitePages/StrategyDocs.apsx