Another problem which our members have encountered results when published AID bulletins give too brief a description of the merchandise required for members to be able to bid without securing further data. The member is informed that he should apply to the Embassy of the county of destination in Washington for further details, or at other times our member must apply overseas to a Ministry in the county of destination. The end result is that frequently by the time a reply is received insufficient time remains to calculate and submit a bid. We would like for you and your committee to know, Congressman Evins, that small businessmen will greatly appreciate efforts by those who administer the AID program and by your committee to improve their chances of securing a fair share of the business which they need perhaps more badly than the large corporations who can afford experienced export departments and staffs. Our members in the large majority of cases do not have an export manager or department and must depend on independent exporters for representation. Thank you very much for your consideration of these points which represent the personal opinions and observations of the writer in behalf of my membership. Sincerely, HAROLD B. HALTER. FARM EQUIPMent ManufacTURERS ASSOCIATION It is AID policy and practice to require that commodity specifications be stated in a nonrestrictive manner in order to permit maximum response from prospective suppliers. In screening the notices which are received for publication, we attempt to see that they are not preclusive or unreasonably restrictive. In many instances we have insisted that specifications be modified before publication There are cases where, because we are not familiar with the details of all of the products of all manufacturers, some items have been published which certain manufacturers considered to be restrictive. When these cases were brought to our attention and we found the complaint to be justified, we required that the specifications be modified. We invite any supplier who considers specifications which are published in our Circulars to be overly restrictive to bring the case to our attention. The time permitted for submissions of bids and offers after the date of publication is normally a minimum of 30 days. We believe that, in most cases, this is adequate. We further believe that a general extension of the bidding period would place an undue burden on the foreign importer and is impracticable. Counting the time required by the foreign importer for preparation in the English language of the information to be publicized, mailing time to Washington, the time required for review in Washington, plus the time required for printing and mailing by the Government Printing Office, the importers waiting time already exceeds 60 days. In countries which require large advance deposits prior to obtaining an import license, the high cost of money (often 6-15% per month) adds substantially to the importers cost for every additional day of delay. Complete specifications are normally available from AID/W, the Embassy of the country of destination in Washington, or a consulting Engineer in the United States. Where we know that additional information must be obtained from oversea sources, we attempt to provide additional bidding time. In any case where a potential supplier is unreasonably delayed in obtaining complete specifications, and the supplier has himself requested them promptly, we would welcome being advised of the facts so that we could take corrective action. We believe it is understandable that importers in the relatively unsophisticated and developing nations of the world will describe the items they wish to buy in terms of the equipment they know or have seen exhibited locally. We also believe that it is understandable that a foreign importer, (who is required to pay the full local currency equivalent of his purchases from the United States), will prefer to buy a product which he knows or has seen operate and for which there are established spare parts and servicing facilities available locally, rather than an unknown, to him, make. We agree that it is difficult to convince many buyers that a small manufacturer's product is equal when it comes to actual practice. This is also true of some large manufacturers' products. It is true in the United States, as well as overseas. We do not believe that it would be a proper or appropriate function of AID, however, to promote or to force the purchase of one class of product over another. GEORGE ENGINE CO., INC. MR. JOE L. EVINS, M. C., GEORGE ENGINE CO., INC., Chairman, House Small Business Committee, U.S. Congress, Washington, D.C. Re A.I.D. financed purchases. DEAR MR. CHAIRMAN: As one of the largest distributors of diesel engines, generator sets, small boats, and diesel engine parts in the United States we have constantly sought to increase our penetration into the export market and have accomplished this to some degree. However, in only one instance have we ever been able to participate in an AID financed program and this involved one of the emerging African Nations. The various Embassy representatives and Engineering Consultants for many of the foreign Nations appear reluctant to furnish promptly the bid information as published in the AID Small Business Circulars. Bid Bond, when submitted, are often withheld for weeks or months with no announcement from the Buyer as to who the successful bidders are. With the contributions being made to this program by the Small Business Firms of the United States, it appears that each and every one of us should be entitled to the fullest cooperation on the part of the Buyer as well as on the part of AID. We will look forward with great interest to the action of your Committee in this regard. Yours very truly, H. F. COLBY, GEORGE ENGINE CO. We are aware of relatively few cases where Invitations for Bid have not been furnished to prospective suppliers promptly. These delays have resulted from oversight, or when the demand for copies exceed the available supply and additional copies had to be prepared. In such cases, we have arranged to extend the bid date where the time remaining appeared to be inadequate. In any case where a potential supplier is unreasonably delayed in obtaining a copy of an Invitation for Bid, and the supplier himself has requested it promptly, we would welcome being advised of the facts so that we could take corrective action. AID expects foreign purchasers using AID funds to make awards within a reasonable time after the bid opening and to promptly release bid bonds to unsuccessful bidders. We invite any bidder who believes that an award action is being unreasonably delayed or that a bid bond he has furnished is being withheld without reason, to so advise us. If we find the complaint to be justified, we will use our best efforts to expedite the award or to secure a prompt release of the bond. (279) GOODPASTURE INC. GOODPASTURE INC., Mr. JAMES C. CORMAN, M.C., Chairman, Procurement Subcommittee, House of Representatives of the United States, Brownfield, Tex., June 25, 1969. DEAR MR. CORMAN: This is in response to your letter of June 11, 1969, in which you ask for our proposed statement concerning the hearings conducted by the Procurement Subcommittee. Please regard this letter as our statement to be made a part of the printed records of the hearings on July 10, 1969. Recently the fertilizer blend, 20-20-15, was taken off the list of fertilizers offered to the Republic of Vietnam under the AID program, and replaced with a 16-16-8 chemically formulated fertilizer. We feel that the elimination of blended fertilizers from the list of fertilizers approved under the AID program has given an advantage to large firms at the expense of small ones, such as ourselves. Therefore, we respectfully request that you consider these points during your hearings. A blended fertilizer can be produced with an inexpensive blending plant which blends basic raw materials, whereas a chemically manufactured fertilizer is produced in an expensive chemical plant. Due to the capital expenditure involved, blended fertilizers can be produced at less expense than can a chemically manufactured fertilizer, which results in a lower delivered price per unit of plant food to the consumer. Also, it has been proven agronomically that a blended fertilizer will produce as good, and sometimes better results than will a chemically manufactured fertilizer. By eliminating such as 20-20-15, in favor of chemically manufactured fertilizers such as 16-16-8, small firms in the business of blending and exporting fertilizers, such as ourselves, have been discriminated against and the larger firms favored. Sincerely, KEN MULDROW, Secretary. GOODPASTURE INC. The statement that 20-20-15 blended type fertilizer has been removed from the authorized list of Vietnam imports is not correct. It is still on the list of eligible commodities for AID financing under the Commercial Import Program. However, Vietnamese importers and farmers are now displaying a preference for the 16-16-8 fertilizer which they believe is less susceptible to deterioration in the hot and humid Vietnamese climate. Fertilizer applications considered to be most effective to meet the varied challenges of soil, climate and plant growth in Vietnam is subject to continuous experimentation. Fertilizer imports show a wide variance of the types used by the Vietnamese over the past five years. If the 16-16-8 fertilizer does not meet expectations, the importers and farmers may well revert to a preference for the 20-20-15 mix, or may alternatively test other blends of fertilizer. Since these buyers must pay the full local currency equivalent of their purchases from the United States, we believe that they should have the right to purchase the type of fertilizer they believe will be most useful for their purpose. (280) HLH PRODUCTS HLH PRODUCTS, REPRESENTATIVE JOE L. EVINS, Chairman, House Small Business Committee, A DIVISION OF HUNT OIL CO., DEAR SIR: We refer to a Release dated May 1, which was received in this office today. We are pleased that your Committee has decided to probe AID Financed Purchases and to review AID policies and practices. We feel that AID financed shipments are biased in that only the suppliers of bulk commodities and raw products are favored. Furthermore, most of this business is controlled by New York export-import houses and we feel that these shipments should be equally distributed throughout the country and the monopoly of New York houses divested. We are canners of foods and certainly cannot take advantage of AID exports because our products are seldom included in AID financing programs. However, in 1963 we were able to ship several thousand cases of canned whole chicken to the Congo. Since that time, canned food products have not been financed under this program. In the past, we were also able to ship bottled and packaged liquid paraffin (mineral oil) to Pakistan. But, of late, this item, too, has been discontinued. We feel that AID financed commodities should be so distributed that all manufacturers would share in the sales of over $1 billion annually. We enclose herewith a list of products that we can supply, and we suggest that the Committee take into consideration our request to include some of these items under the AID program. Thanking you in advance for your assistance and cooperation, Sincerely yours, RAUL A. QUADROS, Vice President, International Department. (281) H. L. HUNT PRODUCTS A Festo or HUNT O. COMPANY POST OFFICE BOX 1677) - INDUSTRIAL STATION LIST OF PRODUCTS Listed on these pages is a brief list of some of the products which we are in a position to supply. Please check the products in which you are interested in importing and indicate the quantities you feel you would be able to order. We will forward C.I.F. or C. & F. prices for all sizes of products in stock at our warehouses, which amount to around three million cartons on any day. |