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ACTION COME-00
INFO OCT-01 EUR-12 ISO-00 SSO-00 EB-07 /020 W
--------------------- 043318
O R 301135Z APR 76
FM AMCONSUL ZAGREB
TO SECSTATE WASHDC IMMEDIATE 3711
INFO AMEMBASSY BELGRADE
UNCLAS ZAGREB 332
E.O. 11652: N/A
TAGS: BEXP, YO
SUBJECT: PRODUCT OPPORTUNITY: NAFTOVOD OIL PIPELINE -
TELEMETRY AND CONTROL EQUIPMENT
REF: A. ZAGREB BNWQ
B. STATE 98101
1. HARRIS CORPORATION REPS PUNCH AND ADERSON MADE PRESENTATION
TO NAFTOVOD PROCUREMENT OFFICIALS AND TECHNICAL STAFF MORNING
OF APRIL 30. IN JUDGMENT OF CONGEN OFFICER WHO ACCOMPANIED,
TECHNICAL STAFF READILY ACCEPTED FACT THAT HARRIS COMPETENT
AND EXPERIENCED IN PIPELINE SUPERVISORY SZSTEMS AND WOULD BE
GENUINELY INTERESTED IN HAVING HARRIS IN THE COMPETITION.
2. PROBLEM, AS REPORTED REFTEL A, IS THAT PREQUALIFICATION DEAD-
LINE ON TELEMETRY AND CONTROL EQUIPMENT HAS PASSED. NAFTOVOD
ACTING COMMERCIAL DIRECTOR, DAMIC, WHO ATTENDED PRESENTATION,
STATED NAFTOVOD ON ITS OWN AUTHORITY COULD NOT REPEAT NOT ACCEPT
HARRIS QUALIFICATION DOCUMENTS. HOWEVER, IF IBRD, WHICH IS
CALLING THE SHOTS ON TENDER PROCEDURES CONCURS, NAFTOVOD WOULD
ACCEPT HARRIS. IBRD REP RISTOCELLI (TITLE AND FUNCTION UNKNOWN)
IS SCHEDULED TO VISIT NAFTOVOD FOR FIVE DAYS BEGINNING MAY 5,
AND NAFTOVOD WILL POSE QUESTION TO HIM.
3. FYI. NAFTOVOD CONCERNED THAT IF IT MAKES EXCEPTION IN TELE-
METRY CASE IT WILL SET PRECEDENT FOR SUBSEQUENT PREQUALIFICATIONS
AND CREATE MESSY ADMINISTRATIVE SITUATION. TEN FIRMS WHICH DID
MEET DEADLINE FOR TELEMETRY UNDERSTOOD TO HAVE BEEN PUT ON
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THE "QUALIFIED" LIST. THIS NUMBER INCLUDES 3 FRENCH, 1 SWISS,
AT LEAST ONE FROM UK BUT NO AMERICAN FIRMS.
4. ACTION REQUESTED: CONGEN RECOMMENDS APPROACH TO IBRD PRIOR
RISTOCELLI'S DEPARTURE (HE IS UNDERSTOOD TO BE COMING DIRECTLY
FROM WASHINGTON) TO MAKE FOLLOWING POINTS: (A) IT IS DIFFICULT
FOR U.S. FIRMS TO BID OR PREQUALIFY ON NAFTOVOD TENDERS BECAUSE
OF SHORT 30-DAY LEAD TIMES AND DELAY INHERENT SIMPLY IN GETTING
INFORMATION AND DOCUMENTS TO THE U.S. AND RETURNING DOCUMENTS
AND BIDS TO YUGOSLAVIA; (B) ALL PARTIES INVOLVED -- NAFTOVOD,
GOY, LENDERS, CONSUMERS -- WOULD BENEFIT FROM HAVING GOOD
SELECTION OF BIDDERS, AND AS HARRIS CERTAINLY ONE OF TOP SUPPLIERS
IN THE WORLD FOR THIS TYPE OF EQUIPMENT FAILURE TO PERMIT BID
FROM THEM COULD MEAN THAT PERHAPS MOST QUALIFIED AND LOWEST COST
SUPPLIER EXCLUDED;
(C) THIS NOW IS ONLY THE PREQUALIFICATION STAGE. THEREFORE THERE
WOULD BE NO COMPROMISE OF INTEGRITY OF BIDDING PROCEDURE TO
INVITE ADDITIONAL BIDS. CERTAINLY ORGANIZATION SUCH AS NAFTOVOD
FOR PURPOSE OF DETERMINING WHO WILL BE INVITED TO BID SHOULD BE
FREE TO AUGMENT A LIST OF POTENTIAL BIDDERS COMPILED ON SELF-
NOMINATION BASIS WITH OTHERS OF DEMONSTRATED ABILITY AND INTERNA-
TIONAL REPUTE; AND (D) IN LIGHT OF THESE CONSIDERATIONS, NAFTOVOD
AND IBRD OBJECTIVES BEST SERVED BY ACCEPTING HARRIS PREQUALIFICATION
DOCUMENTS. KAISER
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