Defence procurement from Canada made easy
U.S. Department of Defense (U.S. DoD) contracting specialists can access free procurement assistance through the Canadian Commercial Corporation (CCC). CCC is mandated under the Defence Production Sharing Agreement (DPSA) and DFARS to assist the U.S. DoD in defence-related procurement from Canadian suppliers.
How CCC can help
- Broaden your supply base: CCC makes sure that Canadian suppliers are informed of your requirement, helping to ensure the most competitive pricing;
- Qualified suppliers only: CCC reviews a Canadian supplier’s technical, managerial and financial capabilities to deliver on spec, on time, and on budget;
- Price certified “fair and reasonable”: CCC undertakes price analysis to ensure the offering price is fair and reasonable according to the Cost and Profit Policy of the Government of Canada;
- Contract performance monitoring: CCC monitors the quality and progress of the work on your requirement, including coordinating inspections through DND, verifications and acceptance by Defense Contract Management Americas (DCMA), to ensure successful delivery;
- Reduce the administration burden: CCC verifies invoices submitted by the supplier, and deals with any discrepancies that might arise, relieving some of the administrative burden arising from a long-term or complex contract;
- Assist Audits at your request: CCC performs assist audits whenever they’re requested.
The DPSA and CCC’s role in an integrated North American defence industrial base
Historically, the traditional cooperation between Canada and the U.S. in matters involving mutual defence of North America, and the agreements between the two governments confirmed that Canadian industry should participate in the development, production and supply of U.S. DoD requirements. This understanding culminated in the Canada-U.S. Defence Production Sharing Agreement (DPSA) in 1956.
The Canada-U.S. Defence Production Sharing Agreement (1956)
Under the DPSA, signed in 1956, the U.S. DoD purchases goods and services from Canadian suppliers through CCC. Through its government-to-government contract services, CCC acts as prime contractor and guarantees contract performance for the U.S. DoD. In 1960, a similar agreement was established with NASA.
The Canada-U.S. Defence Development Sharing Agreement (1963)
Since 1963 the Defence Development Sharing Agreement (DDSA) promotes joint funding of research and development projects involving Canadian contractors in the initial stages of defence technology development. It allows for Canada and the U.S. to jointly fund defence research when contracts are awarded to a Canadian firm for the development of new technology.
Guarantee of contract performance
When you procure from Canada, and CCC acts as prime contractor, we offer the U.S. DoD a guarantee of contract performance according to the terms and conditions of the contract, backed by the Government of Canada. This ensures that the specifications, terms and conditions of the contract will be met. CCC signs a separate domestic contract with the Canadian supplier to fulfill your requirement.
CCC – part of your procurement system
CCC is integrated into the U.S. DoD procurement system, as specified in DFARS 225.870
All defence purchases from Canada above the simplified acquisition threshold must be transacted through the Canadian Commercial Corporation (CCC).
CCC also serves as the point of contact for U.S. DoD procurement officials and the DCMA office located in Ottawa, Canada.
| U.S. Procurement Regulations that relate to CCC |
DFAR 225.870 |
Contracting with Canadian Suppliers, purchases over the simplified acquisition threshold |
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DFAR 225.870-1(a) |
Contracts awarded to CCC are guaranteed by the Government of Canada |
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DFAR 225.870-2(a) |
Canadian suppliers will be placed on U.S. DoD source lists at the request of CCC |
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DFAR 225.870-4(a) |
Purchases from Canadian suppliers shall be made through CCC |
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DFAR 225.872-1 |
Waiver of “ Buy America Act” |
The U.S. DoD has waived the Act for Canadian materials and suppliers used in defence equipment |
DFAR 252.225-7013 |
Duty-free entry |
Most Canadian products, when imported into the U.S. for defence use, are exempt from U.S. Customs duties |
DFAR 215.403-1(4)(A) |
Waiver of requirements for CCC to submit cost and pricing data |
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FAR 30.201 |
Waiver of U.S. cost accounting standards for CCC contracts (48CFR +9903.201-1(B)(4)) |
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In 1985, Canada and the United States reaffirmed commitment to the DPSA, resulting in the creation of the bilateral North American Defence Industrial Base Organization, now the North American Technology and Industrial Base Organization (NATIBO). More recently, in a statement issued by the Pentagon on February 27, 2006, the U.S. DoD reaffirmed its commitment to defence economic cooperation with Canada.
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