The new rules impose a mandatory requirement for The State, Government Corporations and Public Agencies (hereinafter referred to as Government Buyers) to ask for Industrial Cooperation when their purchase of foreign goods or services exceeds the threshold amount equivalent to 5 Million USD. It also binds health sector institutions to the mandatory policy. Legislation in that regard is in process, aimed at including Municipal Authorities to comply with this requirement as well. This will affect, for instance, contracts for sewage treatment projects, water treatment, power systems, etc.
The regulations distinguish between defence related purchases and civil purchases. The former, except when acquisitions are made under the FMF program, require a 50 percent Industrial Cooperation undertaking. Civil acquisitions require an undertaking of 20 percent from Foreign Suppliers in countries which are parties to the Government Procurement Agreement (GPA), and 35 percent from all the rest.
Foreign Suppliers may contact the ICA regarding any subject related directly or indirectly to their Industrial Cooperation Undertaking or fulfilment activity. Assistance will be provided to potential and existing obligors in identifying and locating suitable Israeli manufacturers and partners for joint ventures, outsourcing, R&D, and other modes of cooperation and strategic partnerships with Israeli industry.
All ICA support, assistance and services are provided on a complimentary basis. The ICA will:
- Provide information about Israeli industry.
- Conduct surveys related to Israeli industry.
- Co-ordinate visits by representatives of Israeli industry to foreign companies.
- Co-ordinate visits by representatives of foreign companies to Israel in order to survey local industry.
- Organise conferences between foreign companies and Israeli industry.