MILITARY SUPPLIES U.S. Forces Seek Tenders In N.Z.

Press, Volume CVIII, Issue 31774, 3 September 1968, Page 1

MILITARY SUPPLIES U.S. Forces Seek Tenders In N.Z.

The increasing encouragement of New Zealand firms to tender to supply American forces was not a political move, said Lieutenant-Colonel James Smith in Christchurch yesterday.

Colonel Smith, who is the military procurement officer for the United States Military Purchasing Office, Canberra, is visiting New Zealand to discuss possible purchases from manufacturers.

The American forces were interested in buying, from New Zealand anything from a bootlace to a bulldozer, he said.

Food mainly came froip the United States and this was not likely to be a field in which New Zealand could tender significantly. Colonel Smith told an informal meeting of Canterbury manufacturers that he was representing his department for purchase for the military forces “from off-shore” (outside the United States mainland). Asked if the greater United States interest in buying for its forces from New Zealand was because New Zealand was fighting in Vietnam, Colonel Smith said: “Our interests are mutual.”

Asked why America was making a greater effort to encourage New Zealand firms to tender for United States military contracts, he said that he did not really know the background to it. “It came to me in- the form of official instructions to make a visit to New Zealand with the idea of increasing the potential of New Zealand firms to participate in our overseas procurements,” he said. Asked if the increased Ame. rican interest could be associated with Britain’s withdrawal from South-East Asia, Colonel Smith said that politics were not his department “My headquarters arranged to make it possible for me to come over from Canberra at least once every three months or more frequently as time and work permit,” he said.

Colonel Smith said that so far only 14 New Zealand firms had registered for the quoting list for American military supply. Many more firms were capable of producing items for United States military requirements in the western Pacific.

Firms should apply to get on the registration list for quoting. When a particular line was required, New Zealand companies on the list could be requested to tender. Colonel Smith said that advice on contracts would be speeded up so that New Zealand firms knew details at the same time as did Australian firms. He said that he would like to visit each New Zealand firm interested in supplying the United States forces to see facilities and production capacities. Most requirements by the United States military in the west Pacific area had an early delivery date. The Buy America Act and the balance of payments programme had to be considered but there were many exceptions where the forces could buy outside the mainland. Sometimes a time limit did not allow the purchasing officer to go to the United States. Unless specifically stated there was nothing to prevent New Zealand firms tendering for sections of big items, provided the price, quality, and delivery time were suitable, Colonel Smith said.

On the subject of New Zealand firms tendering to supply goods to qanteens or P.X.s, he said that these were a quasi-military organisation that had to defray expenses, unlike the military purchasing organisation which worked on a Government appropriation. It was hoped to send a purchasing agent from the P.X. organisation to New Zealand to survey items that might be available. As far as he knew .the only direct purchase by the United States Military Purchasing Office from New Zealand had been frozen iamb after President Johnson’s visit to New Zealand. Any other supplies to the United States forces would have been on a sub-contract. Construction Jobs Colonel Smith said that New Zealand might also do business with the United States forces in the western Pacific in supplies for construction of airfields, docking facilities, roads or military housing for which American firms, working on a cost-plus basis, did their own buying. American companies em gaged in military construction projects in the western Pacific would be encouraged to get in touch with some New Zealand firms direct. This could provide work for contractors on construction and installation jobs, he said.