The Republic's small- and medium-sized enterprises (SMEs) can now compete on equal terms with US firms for federal government tenders of much smaller amounts than in the past, Wong Chian Voen, a former Singapore government trade policy expert, said yesterday.

They can have a shot at contracts with a minimum bid size of US$56,000, instead of the US$180,000-minimum in place before the landmark FTA came into being.

Wong, who is now manager of WCI Consulting, said: "The new lower minimum bid size under the FTA opens up vast new opportunities for our SMEs."

"Singapore SMEs will now be able to bid more easily for smaller contracts," the former Trade and Industry Ministry official told The Straits Times yesterday.

There is considerable scope for Singapore companies to provide professional services such as architectural and engineering, e-solutions and environmental services to the US, she said.

"We may also have an edge in supplying educational books and developing curriculums."

One Singapore company that is already eyeing the lucrative US market and getting ready to bid for some of the contracts is GlobeSoft, an IT services provider.

"We will be opening an office in California early next year to be nearer the market to tap the new opportunities," said its vice-president, TV Suresh.

"The plan is to follow up quickly with an office on the East Coast within six months," he added.

The US federal government bought goods and services worth US$130 million from Singapore last year. While this was just 0.05 percent of the potential market, trade experts said yesterday that this number would go up significantly once the FTA kicks in.

Under the FTA, Singapore SMEs are guaranteed the same conditions and the lower minimum bid size as US companies when bidding for federal government procurement contracts, said Wong, who was speaking after addressing a seminar on "Tapping US Government procurement contracts under the US-Singapore FTA".

Government contracts worth less than US$56,000 are typically supplied by local companies because of the small size and ease of fulfilling them locally.

But experts said that with the average federal government procurement contract worth about US$30,000, Singapore SMEs should now actively look at pursuing the huge market.

While many jobs do go to the big boys, nearly 80 percent of the procurement is done through SMEs, said Joseph Breen, president of Breen & Associates, which specialises in government sales consulting. "The system is set up to favour SMEs," said the expert.

He had flown in from the US to conduct the one-day seminar organised by International Enterprise Singapore, in collaboration with other government agencies, which attracted nearly 150 participants.

"Every minute of every day, the US government buys US$200,000 worth of goods and services... Under the US-Singapore FTA, you have the right to actively pursue and enjoy expanded access to a market that in the past was restrictive," said Breen.

For companies that take the time and effort to understand the procedures and develop a viable sales and marketing strategy, "their efforts can result in potentially billions of dollars in profitable revenue".

Wong said that the federal government awarded 8.65 million of such contracts worth US$250 billion in 2002.

She added that not all states are open to suppliers from Singapore and elsewhere, as 13 of the 50 had not signed the relevant commitments under the World Trade Organisation.