US embassy cable - 04ROME3092

UNCLAS  ROME 003092 
 
SIPDIS 
 
 
SENSITIVE 
 
USDOC FOR DAVE DE FALCO; 
STATE FOR EUR/WE, EUR/ERA, EB/CIP, EB/CBA 
 
E.O. 12958: N/A 
TAGS: BEXP, IT, ECIP 
SUBJECT: AMBASSADOR ADVOCATES FOR U.S. FIRMS WITH INTERIOR 
MINISTER 
 
 (U) This cable is Sensitive but Unclassified.  Not for 
Internet distribution.  Contains Business Confidential 
information. 
 
1. (SBU) The Ambassador met with Interior Minister Pisanu 
July 29 to discuss the DOE Megaports Initiative (septel).  He 
used the occasion to advocate for three U.S. firms with 
business before the Ministry of Interior:  Lion Apparel, 
Motorola, and MD Helicopters. 
 
Lion Apparel 
------------ 
 
2. (SBU)  The Interior Ministry is preparing tender documents 
on a service contract for protective clothing and gear for 
the 29,000 firefighters of the Italian Fire Brigades.  The 
Ambassador urged the Minister to consider Lion Apparel for 
this contract.  He noted that the Lion system would not only 
provide improved safety to the Fire Brigades, but would 
result in significant cost savings. Moreover, it would create 
jobs in Italy. He asked that the Minister ensure that Lion 
has a fair chance to bid. 
 
3. (SBU) Minister Pisanu responded that the Fire Brigades had 
already examined Lion's proposal, and he had asked that Lion 
be invited to participate in the September tender.  The only 
question that remained was the compatibility of the Lion 
system with the Fire Brigades system.  The technical issues 
needed to be thoroughly examined and resolved.  Lion would, 
however, certainly have a fair chance to compete. 
 
Motorola 
-------- 
 
4. (SBU) Motorola is teaming with Italy's Finmeccanica to 
supply Terrestrial Trunked Radio (TETRA) technology for a 
public safety and emergency mobile communication system for 
the police, Carabinieri, Guardia di Finanza and Forestry 
Corps.  The Ambassador told the Minister that he had followed 
closely the efforts of Finmeccanica and its partner Motorola 
to conclude a contract with the Ministry on a mobile 
communications network.  He asked that the Minister: (1) make 
this network a priority; (2) ensure that contract discussions 
are concluded between the Ministry and Finmeccanica; and (3) 
ensure that the Finance Ministry confirm the availability of 
funding for the first phase of the project. 
 
5. (SBU) Minister Pisanu responded by stressing that he 
personally was the principal supporter for a nationwide 
network using TETRA technology.  So committed was he to this 
concept that he had stopped a tender in the Campagna region 
for a network based on different technology.  The only 
problem was money.  The Minister did not have sufficient 
money in the Ministry of Interior budget for this purpose. 
He had asked for supplemental funds for this purpose, but had 
not received them.  If funding could be found, the network 
could go forward. 
 
MD Helicopters 
-------------- 
 
6. (SBU) The Ambassador told the Minister that MD Helicopters 
had kept him informed of the Ministry's efforts to procure 
light, twin-engine helicopters.  MD Helicopters' model was 
quite competitive, with an excellent safety record, superior 
performance characteristics,  and lower life cycle costs. 
The Ambassador said it was a disappointment when the Ministry 
chose to move from an open tender to confidential 
negotiations with Agusta for this procurement. MD continues 
to challenge the Interior Ministry's negotiated procurement 
of Agusta helicopters in Italian courts. The Ambassador noted 
that Italian courts have upheld MD Helicopters' challenges, 
and asked whether court decisions in MD's favor would cause 
the Ministry to open all of these procurements to public 
tender.  He urged the Ministry to open the bidding so these 
procurements take place on a fair basis.  Not only would this 
not compromise Italian security concerns, but it would 
benefit Italian civil protection forces by getting them the 
right product at the right price. 
 
7. (SBU) Minister Pisanu answered that he would have to 
thoroughly review the file and come back to the Ambassador on 
this issue at a later time. He had not kept up with the 
various legal cases, and was not in a position to respond 
immediately.  His basic view, however, was that private 
 
 
negotiation rather than an open tender was the right avenue 
for this procurement.  The procurement was for helicopters as 
a platform for confidential equipment.  The Carabinieri and 
Guardia di Finanza were militarized forces.  The Ambassador 
pointed out that the Fire Department was not militarized. 
The Minister replied that he "would not exclude" that the 
Fire Department procurement could be handled separately 
through an open tender.  However, he preferred to wait and 
discuss this matter with the Ambassador after thoroughly 
reviewing the files. 
 
 
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SEMBLER 
 
 
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	2004ROME03092 - Classification: UNCLASSIFIED