by Ginny Ward Trade Development
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Leveling the Playing Field
American Science AND Engineering (AS&E),
Billerica, Massachusetts
AS&E submitted its cargo security system bid to Portnet
in response to a public tender. Portnet, a South African government-funded
organization responsible for port operations, made the preliminary
technical selection. AS&E contacted the U.S. Commerce Department’s
Advocacy Center and the Commercial Service office in Johannesburg,
South Africa, for assistance to counter pressure and influence
generated by competitors from Germany, France, and the United
Kingdom. Transnet, the parent company of Portnet that works
under a South African government ministry, approved Portnet’s
selection for the initial part of a very lucrative contract.
Mr. C.A. von Stackelberg, vice president of
international business development at AS&E, appreciated
the Commerce Department’s assistance: “For a small
business exporting, it is often very hard to keep the playing
field level. The Advocacy Center was very proactive, and the
Commercial Service in Johannesburg supported our proposal by
helping ensure that we received a fair review.”
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Describe your role as the director of the Advocacy Center.
My job is to make sure there is a level playing field for American
businesses competing for exporting contracts abroad. Government regulations
in other countries can often be confusing and complex. My office assists
U.S. businesses that are having difficulty by coordinating the resources
and authority of other U.S. government agencies, so that companies
have even more of a competitive edge and can better secure government
contracts overseas.
What are some examples of how the Advocacy Center supports U.S.
businesses?
The assistance we provide varies depending on the needs of a company.
Sometimes we will facilitate a meeting between a U.S. government official
and a company whose contract is up for bid. Or, we may write letters
from high-ranking U.S. government officials. We also work with the
hundreds of Commercial Service officers in the United States and abroad
on behalf of U.S. companies. We’ve found these methods to be
very effective; and the companies are grateful, because we help them
to be successful. In fact, the Advocacy Center successfully completed
over $7 billion worth of transactions in fiscal year 2002.
What prompted the creation of the Advocacy Center?
The Advocacy Center was created in 1993 in response to a report to
Congress, which indicated that U.S. businesses were losing project
competitions overseas. It was clear that there was no coordinated
effort to help our companies combat the aggressive and at times questionable
practices employed by other governments and companies to win project
contracts. Before the Advocacy Center was created, there was no central
office that was a repository of data or that had the capacity to mobilize
resources. There was no specific unit to oversee and sustain an effort
to provide high-level advocacy.
The competition for major contracts by other countries is fierce.
The Advocacy Center was formed to help companies confront international
trade concerns, such as lack of transparency, competitive financing,
market restrictions, bribery, tied aid, rule of law, other governments’
policies and procedures, and their competitors’ advocacy endeavors.
The potential loss of international business by American firms translates
into lost American jobs. The Advocacy Center ensures that there is
a concerted effort within our government that works on behalf of U.S.
firms and their employees.
Can you give an example of a company that your office has helped?
Since the Advocacy Center was established, we’ve helped hundreds
of U.S. companies in various industry sectors win thousands of government
contracts around the globe. A good example is an aerospace company,
Air Tractor. Air Tractor, based in Olney, Texas, is a small manufacturer
of aircraft used in agricultural and fire-fighting applications. In
2000, the Croatian Ministry of Interior selected this company to supply
two fire-fighting airplanes to assist in fire patrols and fire-fighting
missions during Croatia’s annual coastal fire season. Air Tractor
faced stiff foreign competition, so it contacted our office. The U.S.
ambassador at the time sent a letter to the Croatian government. The
assistant secretary of trade development also advocated on the company’s
behalf, and the help of the Commerce staff housed at the nearby U.S.
embassy was enlisted. As a result, Air Tractor won the contract that
ultimately was valued at approximately $2.5 million.
How do you select projects that receive advocacy?
If a company comes to our office requesting advocacy, it first must
complete a questionnaire. Once the questionnaire is submitted, it
is reviewed by the Advocacy Center as well as commercial officers
overseas and other staff to determine if advocacy support is in our
national interest. We also look at criteria such as other U.S. competitors,
foreign competitors and the support of their respective governments,
decision dates, and environmental impact.
We also consider both the legitimate and questionable tactics of foreign
competition. Part of the questionnaire process includes filling out
an anti-bribery agreement. This is to certify that a company has not
engaged in any bribery of foreign officials. This is because we want
to make sure that our advocacy guidelines promote equitable competitive
conditions for U.S. companies, so that the U.S. government is not
in any manner involved in transnational bribery.
What do you do in cases when multiple U.S. companies are competing
for the same contract, but only one has asked for your help?
We treat each request for advocacy as a confidential business communication.
However, we check to see if other firms are bidding for the same project.
If more than one bidder seems to offer the same benefits to the U.S.
economy, then we support all of them equally.
Are the services that your office provides accessible to smaller
firms as well as large?
As a matter of fact, the Advocacy Center is dedicated to serving small
and medium-sized companies, since they usually face more significant
trade barriers than large firms. For example, American Science &
Engineering, Inc., a small Massachusetts company, was awarded the
first phase of a multimillion-dollar contract with Portnet, a division
of Transnet, a registered South African company that answers to the
Ministry of Public Enterprises, for a cargo container inspection system
in Durban, South Africa. The U.S. company installed an X-ray scanning
system for the South African port. The company also provided spares,
operational training, shipping, and warranty service in conjunction
with its local representative, Partners International.
How do companies in need of the services provided by your office
find the right contact person?
Clients can reach the Advocacy Center by calling (202) 482-3896, or
by visiting the Web site at www.trade.gov/td/advocacy.
It includes our staff directory, success stories, and our advocacy
guidelines. We also have a list of frequently asked questions for
potential clients to determine if our services will ultimately be
beneficial to them.
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