The proposal that AID act as an intermediary "for anyone seeking AID financing" by mailing individual procurement inquiries to individual firms included on a pre-established list maintained by AID would require the availability of far more personnel than could reasonably be expected to be provided. We believe that our current practice of mailing Small Business Circulars containing an item within a commodity category in which an American firm has expressed an interest, provides the same information as contemplated in the proposal, and is far less costly. The language of the proposal also appears to imply the belief that foreign importers seek AID financing directly from AID. Such is not the case. AID loans and grants are made directly to the governments of the developing countries. The foreign importers apply to their own government for the foreign exchange required to finance their purchases from the United States. Their government decides whether the application will be approved and, if so, whether the foreign exchange will be from their own free dollar resources or from AID programs. We can appreciate the desire of American firms which have made offers or bids to foreign importers to learn the outcome of the procurement action. While the dissemination of such information is customary when U.S. Government agencies are procuring under formal Invitation for Bid, this is not necessarily the practice in the case of commercial buyers in the United States, and is probably rarely so in the case of foreign purchasers, particularly when procurement is based on the informal solicitation of offers or quotations. We believe that it would be an unreasonable burden on foreign importers, many of whom themselves are small business firms and must pay for their purchases in full, to require that they inform each responding American supplier of the outcome of their procurement action. We hope to be able to fill this information gap ourselves, however, by periodically publishing award information in the near future. MINI-DOZER TRACTOR CORP. MINI-DOZER TRACTOR CORP., Representative NEAL SMITH, DEAR CONGRESSMAN EVINS: We are most appreciative that your committee has the foresight to investigate AID finance purchases relating to American small business participation in the procurement of goods and services to foreign countries. We are certain that there are a lack of opportunities for most small business firms, including ourselves, and we would appreciate your efforts in reviewing AID policies and practices to determine whether they encourage and develop all possible opportunities for small business to sell its products and services in this market as intended by Congres. While we will be unable to have anyone from our firm testify in these hearings, we would appreciate written communication from your office as to the final outcome and recommendations of your committee. Our firm has received almost daily the AID small business circular containing various quotation opportunities. We have followed these recommendations and requirements to the letter. We have in instance of each offer sent the original quotation offer to the named importer; one copy to the USAID/Commercial Import Program, c/o the American Embassy, Saigon, Vietnam; and one copy to the Director of Commercial Aid, Ministry of Economy and Finance, Government of Vietnam, Saigon, Vietnam. To this date, we have received no answer whatsoever from any of the aforesaid addressees. Subsequent correspondence on our part to the American Embassy has received no answer either. We will be most happy to furnish copies of the aforementioned quotation offers for your scrutiny, and we will provide copies for each member of your committee upon written request. Respectfully yours, R. H. WITTKE, President. HOUSE SMALL BUSINESS COMMITTEE, Washington, D.C., May 26, 1969. Mr. R. H. WITTKE, President, Mini-Dozer Tractor Corp., DEAR MR. WITTKE: This is in reference to your letter of May 9, 1969, concerning the hearings on Agency for International Development that the Subcommittee on Government Procurement is currently conducting. I feel sure that the Subcommittee would appreciate the opportunity to examine any quotation offers that you might care to submit. I have also taken the liberty of referring your informative communication to the Subcommittee, and have requested that your name be placed on the mailing list to receive further information regarding these hearings. The interest you have shown in this matter is appreciated. Sincerely yours, NEAL SMITH, Chairman, Subcommittee on Special Small Business Problems. (314) Hon. NEAL SMITH, MINI-DOZER TRACTOR CORP. Chairman, Subcommittee on Small Business Problems, Rayburn House Office Building, Washington, D.C. DEAR MR. SMITH: Thank you for your letter of May 26, 1969 regarding the Subcommittee hearings on USAID. We herewith submit copies of 13 quotation bid offers dated January 3, 1969. We prepared and mailed these quotations to Saigon Vietnam buyers as per the regulations in SBC Circular #68-430, dated December 5, 1968. To date, we have received absolutely no response of any kind from anyone. You will note that the bid deadline as stated in the SBC circular was January 14, 1969, with the validity period of the offer six months from the quotation date. I should think that your committee would be vitally interested in the comparison of all quotation offers and just who ultimately receives the final sale. Enclosed please find a copy of our correspondence dated January 13, 1969, addressed to USAID Commercial Import Program, % American Embassy, Saigon, Vietnam, to which we received no response either. It is our contention that large manufacturers somehow control sales to overseas markets, possibly in violation of the Sherman Anti-Trust Laws. Please do not feel that we are bitter or vindictive. We realize that we cannot possibly win all bids. However, we do feel that we, and perhaps other small businesses, are denied an equal opportunity to markets both here and overseas. I would suggest that your committee take appropriate action to have the names and final bid amounts of the individual or firms who are awarded the final sales published so that all respective bidders would know within a reasonable period of time the outcome of all bids submitted. To my knowledge, AID does not publish this information currently. I would further recommend that your committee establish specific guidelines to insure an equal balance between large, medium, and small businesses with protection and opportunity for all. It is my considered opinion that the American businessman cannot possibly police himself; therefore any infractions must be dealt with by some governmental agency. Perhaps your committee can find appropriate methods and establish an agency to protect the small businessman. To my thinking, the problem of the small businessman today is multifaceted with many far reaching consequences. I do feel that basic problems could best be met by a hard hit educational and positive action program under the combined sponsorship of the U.S. Department of Commerce, the U.S. Chamber of Commerce, and the U.S. Junior Chamber of Commerce to help police the situation and report any infractions that occur in local areas to the proper governmental agency. I would appreciate any comments you or your fellow committee members may have on the above suggestions. If you feel that my remarks are worthy of further reference, please have this communication read into the committee records. We would apprecipate the return of the enclosed documents; even though we apparently did not get the bids, we would like to place these in our files. While we are unable to attend hearings in person, we are most vitally interested in the future of the American small businessman. If you have any further questions, please feel free to contact me at once. With kind regards, R. H. WITTKE, President. MINI-DOZER TRACTOR CORP., Waterloo, Iowa, January 13, 1969. USAID, COMMERCIAL IMPORT PROGRAM, American Embassy, Saigon, Vietnam. GENTLEMEN: Our firm recently offered bid quotations on gasoline engines destined for buyers in Vietnam. We are primarily concerned as to whether or not our bids dated December 10, 1968 and January 3, 1969 reached your offices in Saigon; a recent series of chartered mail-delivery aircraft accidents during this same time period caused us to believe that perhaps these bids did not ever actually reach you. 33-611 0-70 -21 We would also like to know if your office or the Vietnam buyers return the bid forms that do not qualify for low bids and/or which are rejected because of errors, omissions, or non-compliance. Our experience has been rather limited with USAID rules and regulations. We seek to comply with information given in SBC circulars. We would appreciate knowing if our bid quotations are current in content and in form. If we have inadvertently omitted anything that should be on the particular quotations, please advise us. Your prompt reply will be most appreciated. No answer to this letter. MINI-DOZER TRACTOR CORP. R. H. WITTKE, President. C. & F. QUOTATION BID OFFER, JANUARY 3, 1969 (Commodity description: Aircooled gasoline engines with standard accessories, cast iron, 4-cycle single cylinder, L head, high-voltage magneto, fuel tank and filter, mechanical governor, quiet muffler, external breaker points.) Note: Specifications for commodities listed below will meet or exceed those set forth in SBC circular No. 68-437, dated Dec. 10, 1968: Total U.S. dollars (Firm price of commodities). Additional marking: "May be sold in Vietnam." Validity period of offer: 6 months from quotation date. Total cube of shipment: 800 cu. ft. Total weight of shipment: 7,800 lbs. Inland freight: Grafton, Wis., to port of export, San Francisco, Calif. Ocean freight: San Francisco, Calif., to Port of Saigon, Vietnam, by U.S.-flag vessel.. Documentation and handling... Total U.S. dollars (C. & F. quotation).. U.S. dollars, total price $12, 880. 00 2,940. 00 15, 820,00 496, 86 1,230.00 40,00 17, 586. 86 1 Lauson-Power Products Engines. Note: Specifications of commodities listed below will meet or exceed those set forth in SBC Circular No. 68-430, dated Dec. 5, 1968: Ocean freight: San Francisco, Calif., to port of Saigon, Vietnam, by U.S.-flag vessel. Total U.S. dollars (C. & F. quotation).. 80,500.00 865.80 6,650.00 40.00 88,055.80 Additional marking: "May be sold in Vietnam." Validity period of offer: 6 months from quotation date. Shipment: 60 days after receipt of confirmed L/C. Total Cube of shipment: 2,080 cu. ft. Total weight of shipment: 21,540 lbs. Inland freight: Grafton, Wis., to port of export, San Francisco, Calif. Ocean freight: San Francisco, Calif., to Port of Saigon, Vietnam, by U.S.-flag vessel. Total U.S. dollars (C. & F. quotation)..... U.S. dollars, total price $24, 150.00 10, 290.00 1,344.00 2, 450.00 2,520.00 40, 754.00 799.20 3,458.00 40.00 45, 051. 20 Inland freight: Grafton, Wis., to port of export, San Francisco, Calif. Ocean freight: San Francisco, Calif., to Port of Saigon, Vietnam, by U.S.-flag vessel.. Total cube of shipment: 5,300 cu. ft. 799.20 Total weight of shipment: 53,250 lbs. Inland freight: Grafton, Wis., to port of export, San Francisco, Calif., Ocean freight: San Francisco, Calif., to Port of Saigon, Vietnam, by U.S.-flag vessel. Total U.S. dollars (C. & F. quotation)....... 1,182.15 8, 811.25 40.00 115, 103.40 1 Lauson-Power Products Engines. |