Chapter 2

Targeting Opportunities

Numerous government programs and publications are available to assist business executives market their products and services abroad, as well as locate opportunities for growth and expansion. Publications and database services identify everything from trade and procurement leads to potential cross-border investment opportunities. U.S. government and multilateral agency experts can provide insight into the best methods of penetrating any given market. Most of these sources of information are provided free of charge or at a nominal cost and can make a considerable difference to small businesses or companies just beginning to venture into the international marketplace.

In most countries, relationships must be well developed before business transactions take place. Laying the groundwork and establishing a network are crucial first steps to the success of any international operation. This chapter outlines the publications, databases, and organizations and services that can help U.S. firms target international opportunities and make contact with those most suited to their individual needs. Additionally, there is a section at the end of the chapter on procurement. Organizations such as the World Bank often open up bidding for project goods and services to the private sector. These opportunities offer excellent business development and market expansion opportunities to businesses qualified to secure these contracts.

Consider the case that you are an executive at a U.S.-based manufacturer of construction equipment, “ABC,” which sells construction equipment solely in the United States and Canada. During periods of economic stability and growth, ABC experiences strong sales figures. In economic downturns, however, sales of new equipment decrease significantly as owners of equipment manufactured by ABC forego purchasing new equipment, and instead find ways of squeezing the life out of their existing assets.

As an executive of ABC, it is your job to find new sources of revenue, and you understand that emerging economies, especially Latin America and Africa, have increasingly high demand for construction equipment. As such, you assign your marketing department the task of reviewing procurement opportunities released by the World Bank, African Development Bank (AfDB), and the Inter-American Development Bank or IDB (see Procurement section). After a few months of continuous monitoring of procurement opportunities, the head of your marketing department comes to you with a notice from the World Bank, who is seeking all construction equipment manufacturers to submit a proposal in order to supply up to $100 million worth of equipment for the construction of a power plant in Nigeria. After submitting a proposal, ABC is notified by the World Bank that they have been awarded the $100 million contract in Nigeria. Over the course of the following months, and despite a recession at home in the United States, ABC receives significant orders for similar equipment in Indonesia, Kenya, and Nicaragua. Five years following the World Bank contract, ABC’s foreign revenue has grown to account for 60% of its total revenue.

The following is a list of topics included in this chapter:

Publications

Department of Commerce (DOC)

Commercial News USA (CNUSA)

This DOC publication provides worldwide publicity for U.S. products available for immediate export. Published 10 times a year and distributed outside the United States, this service enables foreign firms to identify and contact U.S. exporters of specific products, giving U.S. companies a direct indication of market interest by generating sales leads, agent contacts, and other benefits. Specific regions may be targeted in advertising.

Each edition of CNUSA contains short descriptions and photographs of 150 to 200 new products, together with the names and addresses of each exporter. CNUSA ultimately reaches over 250,000 readers and government leaders in over 178 countries. CNUSA is also sent to Chambers of Commerce abroad and to DOC district offices. The minimum cost to advertise in the publication is $495; however, the publication is available for free at the following web address.

International Trade Update

Through the International Trade Administration, the DOC puts out a free monthly newsletter (International Trade Update) highlighting relevant issues in international trade, areas in which the commercial service can help firms, and upcoming calendar events and international trade roundtables. To subscribe, please visit the following web address.

U.S. Agency for International Development (USAID)

USAID Business Forecast

This annual publication from USAID includes in-advance information about opportunities to partner with USAID. USAID is active in over 80 countries and works regularly with host countries, beneficiaries, U.S. government agencies, international donors, and implementing partners to meet the development needs of each country. The publication serves to inform individuals and businesses on competitive opportunities (i.e., contract, grant, or cooperative agreement), attract new development partners, and promote USAID’s ongoing efforts.

U.S. Trade and Development Agency

USTDA eNewsletter

The USTDA eNewsletter provides subscribers with a biweekly update on all the latest news and information about USTDA investments, conferences, and reverse trade missions, as well as current contracting opportunities with USTDA and its overseas grant recipients. These reports are highly customizable by region and sectors of interest. To register, please visit the following web address.

Databases

Department of Commerce (DOC)

Trade Leads

This database administered by the International Trade Administration (ITA) provides information on qualified trade opportunities and government tenders available to U.S. exporters. Leads can be categorized according to target country, region, and industry.

International Partner Search

The U.S. Commercial Service utilizes its network of trade specialists in over 80 countries in an effort to find and interview suitable partners for U.S.-based companies seeking international expansion through local partnerships. U.S. companies provide information including marketing materials and company background, and the Commercial Service taps into its network of international contacts to compile a list of up to five prequalified potential partners. Information is generally available 30 business days from submission of the original documentation.

Export Contact List Service

This database-retrieval service provides exporters with the names of prospective international customers by country or industry. The U.S. exporter specifies the Standard Industrial Classification (SIC) code, geographic area, and type of contacts desired (i.e., distributor, retailer, etc.). The service also provides names and contact information, along with company background and product or service specialty. Names are collected and maintained by the DOC district offices and commercial officers at foreign posts. The cost of this service is $150 for up to 10 companies. Delivery time is generally 10 working days.

U.S. Department of Agriculture (USDA)

Agricultural Online Access (AGRICOLA)

AGRICOLA is a database maintained by USDA’s National Agricultural Library, which contains detailed publications and resources encompassing all aspects of agriculture. Topics covered include plant and animal sciences, forestry, entomology, soil and water resources, agricultural economics, agricultural engineering, agricultural products, alternative farming practices, and food and nutrition. AGRICOLA can be accessed and searched online but can also be accessed for a fee through several commercial vendors, both online and on CD-ROM, and users may also purchase magnetic tapes containing AGRICOLA records from the National Technical Information Service.

Foreign Buyers List

The USDA, through its Foreign Agricultural Service (FAS) offices worldwide, maintains a database of more than 20,000 foreign firms classified by their demand for certain kinds of agricultural products. By registering with the local FAS office, foreign firms can receive a number of services that will assist importers in finding U.S. products and suppliers. This information is also made available by commodity and country to U.S. firms interested in establishing contacts with foreign firms. In addition, Foreign Buyers Lists are used by FAS local offices to extend invitations to special promotion events. Registration is free of charge.

U.S. Supplier Lists (USL)

These lists are maintained by FAS, and are designed to meet the needs of prospective exporters and foreign purchasers of U.S. food and agricultural products. The lists are categorized by Harmonized System (HS) codes and include name, address, telephone, fax numbers, SIC codes, sales information, and the year the firm was established. The cost per list is $15.

World Bank

Data on Consultants (DACON) Information Center

The World Bank’s DACON Information Center maintains a computerized data bank that lists information on the qualifications of consulting firms that have participated in Bank-financed projects. Registration is limited to firms with at least five full-time professionals who have at least 5 years of experience in their field. Registration to DACON is free of cost.

Private Participation in Infrastructure (PPI) Project Database

The PPI Project Database tracks contract and investment information for over 4,600 infrastructure projects in 137 low- and middle-income countries. The database is the leading source of PPI trends in emerging markets, and covers the following industries: energy, telecommunications, transport, sewage, and water. Data can be viewed and downloaded for free.

Organizations and Services

Millennium Challenge Corporation (MCC)

Business Opportunities

MCC offers opportunities for businesses to both invest and provide goods and services to countries where compacts have already been established. Through these opportunities, MCC seeks to facilitate trade and investment within or alongside compact-funded projects, leverage and sustain compact funding, and maximize poverty reduction through economic growth. Opportunities are available in two sectors:

Department of Commerce (DOC)

The Advocacy Center

The Advocacy Center helps to ensure that sales of U.S. products and services have the best possible chance of competing abroad. In addition, the Advocacy Center has helped hundreds of U.S. companies—small, medium, and large enterprises—in various industry sectors win government tenders throughout the world.

The Advocacy Center also has Commercial Service liaisons to five multilateral development banks or MDBs (World Bank, Inter-American Development Bank, European Bank for Reconstruction and Development, Africa Development Bank, and Asian Development Bank) to assist U.S. firms and advocate on their behalf when they compete for bank tenders.

International Sales and Marketing Services

The U.S. Commercial Service offers a number of services to facilitate international expansion and growth for U.S. businesses. Trade specialists provide businesses with market research, arrange meetings with potential trade partners, and even help with travel, accommodations, interpreter service, and clerical support. These services are also offered digitally, where potential partners are connected via videoconferencing instead of in person. Alternatively, the U.S. Commercial Service can be contracted to offer tailored services to clients including identifying markets, launching products, developing major project opportunities, resolving commercial disputes, and providing assistance on regulatory or technical issues.

Gold Key Matching Service

This service helps U.S. companies find interested and qualified foreign agents or distributors for their products and services. U.S. foreign commercial specialists will seek a foreign agent, distributor, or a representative for a U.S. company’s product line. Reports provide information on up to six qualified representatives interested in representing the U.S. company and include company names, contacts, phone and fax numbers, preferred language of correspondence, interest level concerning the product, product marketability, and the specialist’s assessment of each prospect’s capability to distribute the product. A search usually requires 30–60 days. The cost is $250 per report.

Country and Industry Desk Officers

These DOC officers provide expert market research assistance to U.S. companies. Professional staff in the Trade Development Office focuses on an industry-specific approach to the international market, while country desk officers focus on an individual country or region. To obtain contact information for individual industry desk officers, please refer to appendix L. For individual country desk officers, contact the trade information center.

Customized Market Research (CMA)

This product offers customized product marketing information to U.S. exporters. Information is prepared by specialists who conduct interviews with local importers, distributors, end-users, and manufacturers of comparable products. Analysis provides information regarding market potential, local or foreign competition, distribution channels, product pricing, market entry barriers, and licensing issues. A CMA takes approximately 60 days to prepare and must be purchased from Trade Information Center.

Customized Sales Services (CSS)

This service provides firms with key marketing and foreign representation information for specific products. CSS staff conducts interviews to obtain marketing background on the product, such as sales potential in the market, comparable products, distribution channels, going price, competitive factors, and qualified purchasers. The cost varies from $500 to $2,000 depending on the country.

Matchmaker Trade Delegations Program

This program helps small- and medium-sized U.S. firms establish business relationships in major international markets. Each matchmaker trade delegation targets major markets in two or three countries with strong sales potential for U.S. exports. Commercial specialists arrange appointments with prescreened business contacts as well as interpreter services. Furthermore, these specialists also offer in-depth country analyses and briefings. For a list of upcoming Matchmaker Trade Delegations contact a local Export Assistance Center (see appendix B).

International Company Profile

The U.S. Commercial Service provides customized reports based on its worldwide network of specialists. The reports contain a detailed credit report of prospective overseas partners, a listing of the company’s key officers and senior management, banking and other financial information about the company, and market information. Specialists investigate the financial condition of the foreign company, provide useful information found in local press, industry contacts, and analyze other sources that will be useful in determining the viability of the foreign partner. To obtain an international company profile, please contact the appropriate Commercial Service specialist referenced in appendix A.

Trade Missions

This service is conducted by the DOC’s International Trade Administration to promote the sale of U.S. goods and services throughout the world. Trade Missions are intended to provide participants with a wide range of firsthand country- and industry-specific information. During a trade mission, participants are assisted with advanced planning and publicity, logistical support, and prearranged appointments with potential buyers and government officials. The number of business executives participating in the trade mission can range from 5 to 12. Cost depends on location and number of countries visited.

U.S. Department of Agriculture (USDA)

Agriculture Network Information Center (AgNIC)

AgNIC is an electronic source of agricultural information available over an international network. Agricultural information includes not only basic, applied, and developmental research, but also extensions such as teaching activities in food, agriculture, renewable natural resources, forestry, and physical and social sciences. AgNIC identifies major collections of agriculture-related information, subject area experts, and other resources in an effort to foster improved communication within this industry.

Agricultural Trade Offices (ATOs)

The Foreign Agricultural Service (FAS) maintains overseas ATOs to help exporters of U.S. farm and forest products in overseas markets. These offices supply U.S. exporters with current market information, potential customers, and promotional opportunities. Each ATO has library facilities, conference rooms, and office space.

Market Development Cooperators Program (MDCP)

MDCP is composed of agricultural nonprofit associations that work with the FAS to promote and expand international markets for U.S. products. More than 50 foreign agricultural associations, 7,000 processors and handlers, and 1,500 farm cooperatives representing millions of farmers participate in this program. U.S. companies receive assistance in expanding international markets for their food products by contacting the Market Development Cooperator for their respective industry.

National Agricultural Library (NAL)

The NAL has resources designed to assist agricultural exporters in locating relevant trade and marketing material. One of the main resources is the Agricultural Online Access (AGRICOLA) database, which contains detailed publications and resources that encompass all aspects of agriculture. The NAL is open to the public during regular business hours.

U.S. Agency for International Development (USAID)

Office of Small and Disadvantaged Business Utilization (OSDBU)

This office assists U.S. firms interested in contracting with USAID-sponsored projects. OSDBU administers the procurement of set-aside programs and keeps businesses informed of procurement opportunities. The office is an initial point of contact at USAID for U.S. businesses, particularly small, minority, and women-owned firms. The primary concern of the office is to help firms access the full range of procurement available through USAID, including information and counseling on USAID programs, contracting and subcontracting opportunities, and marketing and operational strategies for conducting business with USAID.

U.S. Trade and Development Agency (USTDA)

Reverse Trade Mission

Under the USTDA’s Reverse Trade Mission, high-level foreign government officials are brought to the United States with the objective of expanding the number of foreign government procurement opportunities available to U.S. firms. While in the United States, the foreign delegates meet with U.S. industry and government representatives and inform them of specific projects requiring U.S. equipment and services.

World Bank

Private Sector Development Roadmap

This website provides scores of information on development opportunities in the developing world, including links to the majority of World Bank resources. Products and services are listed either by World Bank division such as Multilateral Investment Guarantee Agency (MIGA) and International Finance Corporation (IFC), by activities such as advisory services or financial instrument, or by subjects such as grants and intellectual property rights. This service is free of charge and provides open access to the resources of the World Bank’s private sector development resources.

Public Information Center (PIC)

Through the PIC, the World Bank and the IFC disseminate a number of operational documents that provide valuable intelligence to companies seeking procurement opportunities abroad. These include economic reports, environmental assessments, and project information documents, to name a few. Most of these documents are provided free of charge and can be found at the following web address.

Political Risk Insurance Center (PRI-Center)

Through the PRI-Center, MIGA provides access to valuable political risk management and insurance resources. The PRI-Center is a searchable portal containing documents on legal issues related to arbitration and mediation, research on political risk issues and their relationship to foreign direct investment (FDI), and other specialized tools. In addition, the PRI-Center has a directory of political risk insurance providers, intermediaries, and consultants. Information is categorized by country, topic, and sector.

Inter-American Investment Corporation

FINPYME

FINPYME was designed to help bolster the competitiveness of small- and medium-sized enterprises (SMEs) operating in a number of countries in Latin America and the Caribbean (check website for specific countries). An FINPYME agent will conduct a thorough examination of the company based on a number of competitive and market concerns. This analysis culminates in a report titled “Competitiveness Improvement Plans,” which sets out recommendations for short-, medium-, and long-term strategic and operating actions the company can take. General technical assistance is also provided through the program. For more information, please visit the following web address.

Department of Commerce (DOC)

Export.gov

The U.S. government’s web portal, Export.gov, brings together resources from across the U.S. government to assist American businesses in planning their international sales strategies and succeed in today’s global marketplace. Resources include export and trade assistance, tariff and tax information, country- and region-specific export information, international documentation, regulations and standards, logistics, free trade agreements, as well as information on accessing export-related information offered by local, state, and federal entities. In addition, it may be helpful for businesses to contact a U.S. export assistance center to assess the market potential of their products or services, develop and implement a market entry or expansion strategy, and identify and evaluate potential international business partners.

Procurement

Once an agreement is reached between a lender and borrower, and the construction or operation of a project begins, it becomes necessary to secure goods and services to facilitate project completion. The process of selecting the vendors and service providers to work on these projects is known as the procurement process. Banks and other lenders are interested in ensuring that contracts are awarded to qualified and cost-efficient companies and individuals in order to reduce the risks involved in project lending. Lenders typically oversee the bidding process as they often have greater visibility and transparency to a wider range of consultants and companies. Additionally, lenders often provide assurance to bidders that the process will employ equal opportunity practices and adhere to guidelines governing the process.

It should be noted that the following resources mentioned do not constitute an exhaustive list, but are rather some of the most comprehensive forums through which procurement opportunities are listed. In addition to consulting the following sources, it is advisable to review procurement opportunities listed by the major development banks such as Asian Development Bank (ADB), African Development Bank (AfDB), Islamic Development Bank, International Bank for Reconstruction and Development (IBRD), European Bank for Reconstruction and Development (EBRD) and Inter-American Development Bank (IDB).

World Bank

Procurement Policy and Coordination Unit

The World Bank often assists the recipients of its financial aid in locating suppliers of goods, equipment, civil works and services by overseeing the procurement and bidding process and making these opportunities as open to the public as possible. The World Bank issues standard bidding documents, supports borrowers in developing a procurement capacity, disseminates information on procurement matters, and communicates with the business community through periodic conferences and monthly business seminars.

The World Bank ensures that its procurement policy adheres to five basic guidelines: (a) economy and efficiency must be maintained; (b) loans may only be used for purposes specific to project completion; (c) equal opportunity must be provided to every bidder; (d) the money should open opportunities to local contractors and manufacturers; and (e) transparency must be ensured throughout the procurement process.

Standard bidding documents, instructions for bid applications, and general guidelines for the World Bank can be downloaded from their website.

Development Gateway Market (dgMarket)

The dgMarket is one of the primary services established by Development Gateway, a nonprofit organization founded by the World Bank and 10 supporting countries. It serves as an online marketplace dedicated to providing information on government procurement notices and their associated tenders, contract awards, and documentation for the bidding process. With nearly a third of all global government contracting opportunities listed on the website, dgMarket creates an international business culture of transparency and efficiency that promotes competitive bidding in addition to promoting the presence of small- and medium-sized enterprises (SMEs). The site also provides information on development projects, country reports, and more.

United Nations (UN)

United Nations Development Business (UNDB)

This publication of the United Nations monitors all development bank projects and publicizes opportunities to bid as they arise. Companies specializing in anything from environment to telecommunications to water supply and sanitation will find opportunities to bid on consulting, contracting, and supply contracts. UNDB is available online for $550 per year or in hardcopy to be sent bimonthly for $590 per year. It is regarded as one of the most comprehensive information sources for companies surveying procurement opportunities in projects financed by the United Nations, governments, or development banks such as World Bank, Inter-American Development Bank (IDB), and Asian Development Bank (ADB), to name a few. UNDB contains information in three categories: Development Bank Operational Summaries, Procurement Notices, and Contract Awards.

U.S. Agency for International Development (USAID)

Office of Procurement

USAID awards approximately $4 billion dollars every year in contracts and grants. Most USAID contacts are awarded for technical assistance but also include the areas of transportation services, construction, and various forms of equipment as needed. Contracts and grants are often open to the public. USAID ensures that procurement procedures are conducted in an open and transparent manner and employ equal opportunity practices.

Millennium Challenge Corporation (MCC)

While MCC lists its large procurements through FedBizOpps.gov, MCC also provides small procurements and consultant opportunities directly through its website. MCC procurement opportunities adhere to World Bank procurement guidelines as well as Federal Acquisition Regulations (FAR).

Other

FedBizOpps.gov (FBO)

The FBO website serves as the central forum through which U.S. government agencies can post procurement opportunities greater than $25,000. Commercial vendors interested in making their products or services available to the federal government can utilize the website as a means to identify procurement opportunities well suited for the firm’s respective goods and service specialization. Vendors can search for federal procurement opportunities based on several criteria including solicitation number, procurement type, response deadline, and place of performance. Opportunities can be viewed without registering with the FBO; however, controlled unclassified documents can only be viewed once a company has applied for and received a Data Universal Numbering System (DUNS) number (also free of charge). As the service provided through FBO is a composite of the opportunities found among several government agencies, inquiries are directed to the Federal Service Desk as opposed to any specific agency.