**TRICKS OF THE TRADE: NAVIGATING NIS TENDER ANNOUNCEMENTS**

 

By Kelly Raftery and Tanya Shuster

 

In the past several months, many U.S. companies have askedfor clarification on the process of tendering in the NIS countries to determinehow they can successfully access these opportunities. 

 

Tenders can be divided into two broad categories: (1) tendersoriginating from a multilateral development bank, such as the European Bank forReconstruction and Development (EBRD), the Asian Development Bank (ADB), or theWorld Bank group, and (2) tenders originating from an NIS government body atthe federal, regional, or municipal level.  

 

Multilateral Tenders

The biggest challenge U.S. companies face in working withmultilateral development banks is learning the exact procedures unique to eachorganization, and understanding how to access the tender announcements. Eachmultilateral development group follows set procedures in issuing a tender.Although the procedures vary between these organizations, they do share some commonelements. For example, they have a set announcement period for a tender, andalso use predictable methods of disseminating announcements**—**via web pages, international publications, or the local press inthe country where the project will be completed. With a multilateraldevelopment bank, a major goal is to make the tendering process clear andtransparent to companies competing for the project. 

 

EBRD and ADB have websites on which tender, prequalification,and general procurement notices are posted regularly. A company serious aboutpursuing tender opportunities should subscribe to any publications thatannounce tenders and check the websites frequently. (Link to websites viawww.bisnis.doc.gov/bisnis/finance/finance.htm) 

 

NIS Government Tenders

Tenders originating from the NIS do not necessarily followthe same patterns as multilateral development bank tenders, which can frustratehopeful bidders. NIS government tenders sometimes have a very shortannouncement period prior to the tender document deadline. These tenders may ormay not be announced in the local press, and are unlikely to be announced ininternational publications like *TheEconomist*. Occasionally, NIS governments may hold what they consider to bea “closed” tender, which is available only to those companies the governmentsingles out for participation.

 

Guidelines for Tenders

Regardless of the source of a tender, following a few generalrules will put a U.S. company in a better position to take advantage oftenders.

*Know the Market***—**More and more NIS companies aresuccessfully bidding on tenders, and tender competition is increasing. TheseNIS companies have local knowledge and can meet the technical tenderspecifications. As is widely known, the NIS is not just any internationalmarket, and success in one region does not guarantee success in another.Although large, internationally recognized companies may carry a reputationthat makes them an appealing bidder on the basis of product alone, real successin these markets requires real familiarity with the local business environment.Without strong knowledge or experience in the local market, a company’sexpectations should be lower. 

 

*Foster Active Contacts***—**It is essential to foster good workingrelationships with a variety of organizations in the United States, in thecountry where the tender originated, and/or the multilateral financialinstitution that is funding the tender, and especially in the country in whichthe opportunity is being pursued. For NIS government tenders, target contacts includeregional industry committees and ministries, as well as local administrationoffices and others. Particularly with government tenders, wherepre-announcements are a rarity, being in regular contact with local officesshould reveal “tenders in the works” and when they are likely to be announced. 

 

*Consider Subcontracting***—**A possibility for small- tomedium-sized companies that find it difficult to get past the ex-Soviet “biggeris better” mentality is to subcontract to companies that have been awarded largecontracts. Awards are announced by the multilateral development banks in theirprocurement publications. This strategy will also help a company develop aworking relationship with local authorities. 

 

Resources

A first stop for a company interested in pursuingmultilateral development bank opportunities is the **Multilateral Development Bank Operations** (MDBO) office in theDepartment of Commerce’s USA Trade Center [dial 1-800-USA-TRADE (872-8723)press 4 and then 7, or 202-482-3399]. The Department of Commerce’s U.S. andForeign Commercial Service has commercial representatives in each of themultilateral development banks, as well as in embassies in many NIS cities.Information on Foreign Commercial Service offices in the NIS can be found atwww.bisnis.doc.gov/bisnis/country/9910nis.htm. 

 

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