VZCZCXYZ0000
PP RUEHWEB

DE RUEHBUL #3431/01 3000949
ZNR UUUUU ZZH
P 270949Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 2503
RUEKJCS/SECDEF WASHDC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
INFO RUEHNO/USMISSION USNATO 3864
RUCNDT/USMISSION USUN NEW YORK 4500
RUEATRS/DEPT OF TREASURY WASHINGTON DC 0922
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHC/DEPT OF AGRICULTURE WASHINGTON DC 0133

UNCLAS KABUL 003431 
 
SIPDIS 
 
DEPT FOR S/SRAP, SCA/A, INL AND EEB 
DEPT PASS FOR AID/ASIA SCAA 
DOD FOR DUSD FOR BUSINESS AND STABILITY PAUL BRINKLEY 
DOD FOR DASD DAVID SEDNEY 
CENTCOM FOR USFOR-A 
 
E.O. 12958: N/A 
TAGS: EAID ECON PGOV PREL AF
SUBJECT: AFGHAN FIRST: BUILDING AFGHAN CAPACITY, LEADERSHIP, AND 
SUSTAINABILITY 
 
¶1. SUMMARY:  Embassy Kabul and USFOR-A intend to implement "Afghan 
First" to support Afghan leadership, capacity, and sustainability. 
Procuring goods and services from Afghan companies promotes economic 
development, supports the growth of a modern and competitive 
business sector, and boosts Afghan employment.  The coalition 
military and development agencies are significant players in the 
Afghan economy and our influence will be more positive to the extent 
we actively partner with Afghans and Afghan companies to create 
jobs. 
 
¶2. "Afghan First" means that, consistent with all applicable U.S. 
law governing USG procurement and acting within legal authorities, 
USG officials making procurement decisions for goods and services in 
support of USG operations in Afghanistan, will actively solicit 
Afghan suppliers who can immediately or prospectively meet our 
requirements on a price, quantity, and quality competitive basis. 
If necessary, procurement officers will work with appropriate U.S. 
agencies, contractors and grantees to meet required price, quantity, 
and quality standards within reasonable time horizons.  Afghan firms 
know the terrain and can often provide goods and services with 
comparable quality at competitive prices.  With a shorter supply 
chain, local procurement is often the best way for the buyer to 
maximize value and timely delivery of needed goods and services. 
Such business engagement can broaden Afghan support for our mutual 
strategic objectives in Afghanistan.  But most importantly, it helps 
local businesses to grow, gain experience, and generate jobs in the 
industrial, commercial, and agriculture sectors.  END SUMMARY 
 
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AFGHAN FIRST POLICY AND PROCEDURES 
---------------------------------- 
¶3. Maximizing local procurement in all USG and other foreign 
procurement contributes directly to private-sector-led economic 
development, something that is critically important to accomplish 
our shared purpose: to support Afghan leadership, capacity, and 
sustainability.  Embassy Kabul and USFOR-A therefore intend to 
implement a procurement policy of "Afghan First." 
 
¶4. Local procurement can be faster, easier, and less expensive than 
purchasing from vendors outside Afghanistan.  For many products and 
services -- e.g., building and construction machinery; manufacturing 
components and supplies; electrical and lighting equipment; air and 
ground transportation; office equipment and supplies -- local 
quality standards may already meet the standards of imported 
alternatives, or with focused and sustained effort, they may be 
raised to world standards.  Afghan First guiding principles include: 
1) Substantive Afghan ownership, investment, employment presence, 
and branding; 2) Demand-driven development; 3) Capacity-Development; 
and 4) Effectiveness (employing local Afghans and Diaspora members 
where possible). 
 
¶5. Increasing local procurement, at acceptable standards for 
quality, quantity, price and reliability of supply, will require 
sustained senior management attention (as permitted by procurement 
regulations), and the dedication of those USG employees at all 
levels regarding procurement decisions.  All of us must be 
innovative, proactive, and creative to implement "Afghan First." 
 
------------------------- 
IMPLEMENTING AFGHAN FIRST 
------------------------- 
 
¶6. Embassy Kabul and USFOR-A intend to use existing local resources 
and Afghan business directories such as The Peace Dividend Trust 
(PDT).  The PDT is a non-profit organization that fosters and 
implements innovations in peacekeeping and economic development. 
Its goal is to make programs efficient, effective, and equitable. 
Through USAID programs, the USG has supported local partners such as 
PDT, which has been working in Afghanistan since January 2006 to 
increase local procurement by connecting international buyers to 
Afghan sellers.  The PDT manages a database of about 3,500 Afghan 
suppliers listed on PDT's webpage: www.buildingmarkets.org.  The PDT 
trains Afghan companies about bidding and performance issues. 
 
¶7. To develop Afghan skills, we intend to: 1) retain Afghan firms 
wherever possible; 2) consider transitioning from large contracts to 
smaller contracts that Afghan businesses are more likely to be able 
to fulfill.  This breakdown may be geographic, with contracts broken 
 
down into regional pieces; it could also be sector specific, with 
multi-sectoral contracts broken down into sectoral pieces.  A third 
part of our effort to develop Afghan skills would be to coordinate 
training programs for current or prospective suppliers or refer them 
to an existing program with incentives to participate. 
 
¶8. To encourage a greater response from Afghan businesses, Embassy 
Kabul and USFOR-A intend to: 1) advertise tenders and contracts with 
local communities, ensuring that the notice is printed in Dari and 
Pashto; 2) simplify tender documents wherever possible so that they 
are easier to read, understand, and respond to; 3) clearly identify 
business contacts in each Mission section who are fluent in Dari and 
Pashto; 4) make vendor registration procedures and key forms 
available in Dari and Pashto; and 5) provide bid invitations and 
tender documents free of charge to local Afghan businesses. 
 
¶9. In terms of Human Resources, Embassy Kabul and USFOR-A intend to: 
1) hire Afghan national staff directly and by contract wherever 
possible; and 2) build capacity of national staff and provide 
mentorship, training, and professional development opportunities. 
We will continue to provide recognition, referrals, and 
recommendations to support their professional development and 
motivation. 
 
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NEXT STEPS 
---------- 
 
¶10. The U.S. Mission will work with UNAMA, USFOR-A, ISAF and 
international organizations to increase procurement of Afghan 
supplies and services for civilian and military activities.  At the 
Local Procurement Campaign Conference in June 2009, Ambassador Kai 
Eide, Special Representative of the UN Secretary-General, challenged 
conference participants to increase local procurement by at least 
10%.  By implementing Afghan First, the USG can establish targets to 
meet and exceed this goal.  USG procurement offices (including Human 
Resources Offices) should record the procurement of all goods and 
services, and analyze and report this data quarterly, e.g., by using 
existing WebPass and eServices systems.  Each quarterly analysis 
should identify prospective ways and means to increase local 
procurement of goods and services.  In addition to posting this 
information on our website, we will also share progress on local 
procurement with the GIRoA, UNAMA, Peace Dividend Trust, and others. 
 Specifically, Embassy Kabul intends to sign and issue a joint 
policy with USFOR-A to implement Afghan First to support Afghan 
leadership, capacity, and sustainability via local procurement. 
 
EIKENBERRY