SIELMAN S.A.

Mr. Robert C. Grieser
Manager, Planning , Research & Activation
Federal Prison Industries, Inc.
U.S. Department of Justice
320 First Street, N.W.
Washington , D.C. 20534

Dear Mr. Grieser:

This letter is in response to FPI’s Competitive Impact Study regarding FPI’s Proposed Production of Engine Electrical Components. Your making available this Study to Sielman S.A. and giving us the opportunity to comment is very much appreciated.

Needless to say, Sielman S.A. was shocked to learn that there was a concerted effort by the U.S. Government to "repatriate" our engine generator contracts with the United States Army Tank Automotive Command. For Sielman S.A. such an action is beyond our comprehension for the reasons Set Fourth below.

• In Greece, companies like Sielman S.A. were encouraged by the U. S. office of Defense Cooperation (ODC) to pursue defense contracts in the U. S. consonant with the provisions of the Defense Industrial Cooperation Agreement (DICA) signed by the governments of Greece and the United States.
• Sielman S.A., which is a small business firm (50 employees ) , made major investments in both people and equipment in order to achieve the requisite quality standards demanded by U. S. Government purchases. The loss of these contracts and this investment would have a serious adverse impact on Sielman since our primary business is based on the manufacture of engine electrical components.
• Our success in the U. S. market , which is difficult to penetrate, has been limited. In terms of attempts we have been successful only five percent (5%) of the time. In terms of dollar value, our contracts total less than $2.0 million per year.
• In terms of the loss of jobs to U.S. firms of indeed to the FPI, Sielman’s involvement in this market has a minuscule impact. Given the extremely small size of the Greek industrial base, however , the loss if these contracts would be of major significance.
• There is another aspect of job impact that needs to be considered. I’m confident that the U.S. Ambassador to Greece, the Honorable Nickolas Burns and the U. S. Secretary of Defense, the Honorable Bill Cohen, would be equally dismayed by your proposed action. Both were instrumental in the creation of thousands of jobs in the United States by virtue of Greek Government defense purchases from U.S. firms totaling several billions of dollars. Among Forces. In view of the foregoing, I believe they would be hard pressed to answer why an agency of the U.S. Government is seeking to repatriate a handful of jobs from Greek industry.
• The above is particularly significant for yet another reason. It is my understanding that Sielman S.A. is the only company in Greece that has a manufacturing contracts with the U.S. Government. And, to have this taken away by the FPI, a division of the U.S. Department of Justice, is indeed an irony from the standpoint of fairness and equity. Moreover it makes a mockery of the Defense Industrial Cooperation Agreement between our way which is hardly a basis for cooperation. Also I believe it would jeopardize a flow of defense trade which is extremely favorable to the United States. In brief, I do not see iota of justice in the proposed action.
• In closing, again I wish to thank you for allowing me to comment. Further , I sincerely hope that this initiative will be terminated and that FPI will pursue other options. Clearly , the disadvantages associated with FPI’s proposed production of engine electrical components far outweigh the gains that would accrue to FPI’s laudable inmate work program.

Sincerely,

Theo Bfremides

President

cc: The Honorable Nickolas Burns
U.S Ambassador to Greece
The American Embassy
Athens, Greece

The Honorable Bill Cohen
U.S. Secretary of Defense
The Pentagon
Washington, DC

The Honorable Akis Tsonatzopoulos
Hellenic Minister of Defense
The Greek Pentagon
Athens, Holargos
Greece

Commanding Officer
U.S. Office of Defense
Cooperation
Athens, Holargos
Greece