Bulgarian Companies to Compete for Over 200 Billion USD in US Army Tenders: American Experts Teach US Contracting Procedures in Procurement
07/03/2006
With over 50 participating companies in Yambol and 160 companies in Sofia the training seminars on US contracting procedures turned out to be the ideal venue for business opportunities in Bulgaria created by the establishment of US-Bulgaria training facilities. The training was organized by the US Defense Acquisition University, American Chamber of Commerce in Bulgaria and the US Commercial Service in Sofia. Public contracts worth tens of millions of dollars are expected to be awarded in the next couple of years, the experts from US envisaged. Several Bulgarian companies have already obtained registration, it emerged at the seminar. Eighteen Bulgarian and foreign companies won contracts for BGN 1.5 million during the joint military exercise of Bulgaria, USA and Romania July this year in Novo Selo.
Every year the US Government is buying products and services for 400 billion USD, approximately 250 billion USD of them for the US Army. Once they know the procedures, the Bulgarian companies could apply together with other companies for those 250 billion USD.
The seminars in Yambol and in Sofia were a follow up of the AmCham Conference on June 27, 2006 entitled: US Joint Training Facilities: Commercial Opportunities and Business Partnerships held in the National Palace of Culture in Sofia. The importance of regional security was also in the focus of the opening speeches. Since Bulgaria has become a NATO member, its role as a factor of stability and economic growth, ties together with the issues of security.
During the training in September the companies presented in Yambol and in Sofia received a practical guidance of how to register in the Central Contractor Registration /www.ccr.gov/ to be able to participate in the ongoing tenders not only for opportunities in Bulgaria but also in Iraq, Turkey and for the needs of the US Army throughout the world. The US team of experts was headed by Mark Lumer, Contracting Executive, US Army Space&Missile Defense Command. The other guests were: Marcia Coleman, Lead Contracting Officer, Wiesbaden Contracting Center, Bruno Wengrowski, Professor of Contract Management at Defense Acquisition University-South Campus in Huntsville Alabama, and David Lewis, Defense Acquisition University, Midwest Region.
Alexander Karagiannis, Deputy Chief US Mission to Bulgaria welcomed the companies and guests at the seminar in Sofia September 14. He stressed that Bulgaria is a strong partner of US and after the completion of the US Bulgaria Defense Agreement good opportunities for the local companies are created. According to the diplomat the joint facilities would be good for both countries, as far as they will generate strong economic activities. “Strong and vibrant Bulgaria is good for the region”, Alexander Karagiannis said, pointing out that the US would like very much to see Bulgaria in the European Union in the beginning of 2007.
The US contracting procedures are transparent and candidate contractors are treated equally regardless of their nationality, Bruno Wengrowski of the Defense Acquisition University explained. The only condition for a company to be admitted to a tender is to obtain the so-called DUNS number and CAGE code and register at the US Central Contractor Registration. The procedures are free of charge.
The tutors presented a very detailed picture of the US contracting system, which is very structured and predictable, but the candidates should be very careful of the deadlines and tender conditions. According to Bruno Wengrowski the process is mechanical, not political, and the Federal acquisition system aims at satisfying the customer in terms of cost, quality, and timeliness of the delivered product or service. The US contracting procedures are very complex and are based on 700 US laws but the tender rules are clear and accessible mainly electronically, Bruno Wengrowski went on the say.
The potential candidates could act as prime contractor, partner, sub-contractor or supplier. Concerning business opportunities in US-Bulgaria’s training facilities, the tutors mentioned as most needed the hotel services, water and food supply, engineering and construction services, transport, mobile telecommunications, office consumables, fuel, electricity supply, portable toilets and showers, laundry and dry cleaning, medical services, custom services. In addition, the US military will enjoy the recreation and leisure time in the surroundings of the facilities, which in fact would be extra investments in the local economy, the visiting US experts predicted.
The criteria for evaluation of company offers are specified in advance in the tender announcement, Mark Lumer explained. The companies have to follow strictly the rules of the respective tender, doing neither more, nor less. It is almost impossible to abuse the Federal tender rules and if this happens, the “candidates” are disqualified and put in a list with no right to participate in tenders for three consecutive years. In worst cases those individuals and companies are treated as criminals and put in jail, Mark Lumer explained further.
Past performance of the candidates is also of great importance for successful funding. The companies should submit written evidence of skills, for example, acknowledgment letters of partners and names f previous contractors. “If a company does not have past performance, it is evaluated “zero”. It is not harmful for the overall performance but is not beneficial as well”, Bruno Wengrowski said. The candidates that do not succeed in a tender receive feedback information with guiding points and recommendations on how to do better in the next tender. Depending on the tender, the whole process of applying and receiving of financing may take one week to one month.
Sharing personal experience, a successful candidate from Kotel, won a tender for water delivery for one of the military exercises in Novo Selo region. By winning a contract, he got good references and now he would be able to participate in missions and tenders of US Army all over the world. The businessman participated as a subcontractor of an US company. The quality of the water was tested in Germany because it had to meet certain world standards.
According to the teaching US experts, once the companies get DUNS and CCR Registration, they apply for the NATO Cage code /NCage/ which classifies a company in the NATO codification catalogue.
The Bulgarian expert Kalina Damianova, Ministry of Defense said that over 70 Bulgarian companies have already obtained NCage code in order to enlarge their activities and businesses. After applying, within 90 days a company receives NCage code, which in emergency cases could be received within 2 days, Kalina Damianova added.