COMMERCIAL ADVOCACY FOR U.S. FIRM - DATACARD - CONTRACT

UNCLAS PODGORICA 000117 SIPDIS SIPDIS USDOC FOR 4332/ITA/MAC/OERRIS/SSAVICH USDOC ALSO FOR ADVOCACY CENTER/PNUGENT BELGRADE, PRAGUE FOR FCS E.O. 12958: N/A TAGS: EINV ECON MW SUBJECT: COMMERCIAL ADVOCACY FOR U.S. FIRM - DATACARD - CONTRACT AWARD REF: A. A) PODGORICA 26 ¶B. B) PODGORICA 72 ¶1. (U) Summary: U.S.-based DataCard has been awarded the Euros 8 million contract for the production of Montenegro's passports, drivers' licenses, and identification cards. On April 13, Montenegro's Public Procurement Commission rejected as "unfounded" a complaint lodged by the French firm "Axalto" against the tender process conducted by the Ministry of Interior and Public Administration. DataCard will begin final contract negotiations with the Ministry on April 23. This is the first major Government of Montenegro contract with a U.S. firm. The U.S. Embassy supported DataCard's efforts throughout with active commercial advocacy (Reftels). End summary. ¶2. On March 14, the France-based "Axalto" had formally objected to the choice of Data Card to produce Montenegro's identity documents. (Note: "Axalto" merged into "Gemalto" last summer, but kept the "Axalto" name in Montenegro. End note.) By this stage, "Axalto" and DataCard were the sole competitor for the contract. After the Ministry of Interior upheld the contract award, "Axalto" appealed to Montenegro's Public Procurement Commission. "Axalto" claimed that DataCard did not have the technical ability to fulfill the contract, among other bases for the appeal. The commission on April 13 found that the Ministry followed public procurement law and acted in line with the commission's suggestions provided after the previous failed tender. ¶3. Local DataCard representatives confirmed to econoff April 16 that they will begin final contract negotiations with the Ministry of Interior on April 23. BARNES