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41 ACTION MEMORANDUM FOR THE ASSISTANT ADMINISTRATOR FOR AFRICA
FROM: AFR/OR, James M. Kelly
SUBJECT: Procurement Source Origin Waiver
Problem: Request for a Procurement Source Origin Waiver from Geographic
Code 000 (U.S. Only) to Geographic Code 935 (Free World).
a. Cooperating Country : Mauritania
b. Nature of Funding : Grant 682-0204
c. Project : Mauritania Vegetable Production
d. Description of Goods : (Four) 4x4 all terrain vehicles
(One) 3 ton Stake-bed Truck
e. Approximate Value : $90,000
f. Probable Scurce : France, England
Discussion: Section 636(i) of the Foreign Assistance Act of 1961, as
amended, prohibits A.I.D. from the purchase or long-term lease of motor
vehicles unless such vehicles are manufactured in the United States.
However, Section 636(i) does provide that "...where special circumstances
exist the President is-authorized to waive the provision of
this section in order to carry out the purpose of this act." No
facilities exist in Mauritania to service U.S. manufactured vehicles.
Efforts have been made by the U.S. Ambassador and the A.I.D. mission
in Mauritania to interest U.S. manufacturers of four-wheel drive vehicles
to enter this market, and specifically to establish after sales servicing
facilities in Mauritania. Despite these efforts (over a 15 month period;
only one U.S. manufacturer ever responded. However, that firm showed no
evidence of further interest after a brief investigation of the problems
and potentials of the local market.
Tlhe project sites are located in isolated areas outside of the capital
city, Nouakchott. Experience has shown that given the extremely difficult
road conditions in these areas, vehicles require frequent repairs.
Even local mechanics with formal training are not familiar with U.S.
vehicles. On the other hand, the capability to maintain Landrovers and
Peugeots exists not only among formally trained mechanics, but also among
self-trained mechanics in Selibaby as well as many other isolated areas
of Mauritania.