Special Considerations When Pursuing International Tenders

Adapted from an article I wrote for the Association of Proposal Management Professionals (APMP) Liberty Chapter March 2018 Newsletter.

When working for a South Korean marine heavy lift transportation firm catering to mostly Oil & Gas clients, I found myself pursuing mostly international projects in Northern and Western Australia. Now, as a consultant for an enterprise SaaS provider pursuing contracts with public safety departments around the world, I have noticed a few consistent considerations one must make when deciding to respond to international RFPs:

Should You Actually Pursue?

While this applies to all tenders, special attention should be paid to an international RFP as to whether your organization actually possesses the capability to provide the goods or services requested. Providing goods and services internationally usually means added costs for shipping out materials and/or dispatching personnel. Unless you possess some sort of competitive advantage, such as lower costs or higher quality, it may not make sense for you to respond. Do you know where your company ranks as compared with other international competitors? If not, you may want to conduct some additional research before pursuing international work.

Legal Considerations

Pursuing work in another country often means agreeing to be subject to another country's laws and regulations. Are you registered as a foreign entity in your target country? Do you know and understand all of the regulatory statutes in that country that may pertain to your industry (ex. labor, product quality, safety, and energy standards, and taxes)? If not, it could pose a significant risk to your organization to respond to this RFP blindly (especially if you win). It may be stipulated in the RFP itself or sample contract which country's laws the contract will be subject to, which determines what country's courts will be in charge of settling legal disputes. Pay special attention to these clauses, as you may be at a legal disadvantage in another country's court system. For example, arbitration clauses may stipulate that arbitration occur within a certain country's jurisdiction that is more favorable to the drafter. Consider bringing in legal counsel who specialize in regulatory compliance with the client's country.

Linguistic and Cultural Considerations

While most international RFPs will be released in some form of English, you will probably find that in order to conduct business properly with the customer, you must possess some understanding of their native language and culture, i.e. have employees that understand the language and culture. And, since organizations are run by people, the client will definitely appreciate the comfort of interfacing with an employee who can speak their language and understand their customs. Do not underestimate this! In one example, having reached the final round of presentations and figuring they "had it in the bag", a proposing organization neglected to send staff who possessed cultural and linguistic competence with the client organization, whereas they had done so in all previous rounds. They were passed over in favor of a competitor who did. In addition, differences in cultures, including business culture, can lead to cultural clashes, faux pas, and misunderstandings. For example, as a Korean American, I am familiar with East Asian countries and understand that they have very different business customs from the USA, even around simple matters such as business card etiquette, in which ignorance will irreparably damage a business relationship. It doesn't matter if it's another country, the rule still applies: know your customer.

In the end, whether you respond to a local or international RFP, it's all about whether you can provide a competitive, compliant response that will both satisfy the customer and profit your company. In addition to your standard proposal development reviews, keep in mind the above considerations, and you may find yourself doing business internationally!