Getting ready to make your bid
Submitting your bid
Receivables Discounting
CCC's fee structure
Why is CCC often involved in my dealings with U.S. DoD?
How do I get more information on this opportunity and make my bid?
U.S. Government procurement opportunities including DoD can be found at: Federal Business Opportunities. Need to link to www.fbo.gov.
There are so many terms and conditions - how do I complete a proposal?
Canadian companies who have never dealt with the U.S. government in the past are often surprised with the volume of terms and conditions that they include in their opportunities. While many more terms and conditions do apply in this situation than with most commercial contracts, they can be interpreted fairly easily with a little assistance.
This is why companies who wish to submit proposals will often seek the assistance of CCC. We can help Canadian companies interpret the numerous terms and conditions that are incorporated into opportunities by reference, and not by text. CCC can provide Canadian companies with the applicable texts, what they mean, how they impact Canadian companies, and advice on how to respond.
While you can access the Federal Acquisition Regulations (FAR), as well as the Defence Federal Acquisition Regulations Supplement (DFARS) quick reference guide online at http://farsite.hill.af.mil/, it is still strongly recommended that you let CCC help you interpret these regulations.
I would like assistance with the terms and conditions of my U.S. DoD opportunity
Contact CCC by phone (613) 996-0034, by fax (613) 995-2121, or by email for assistance in interpreting the regulations found in your U.S. DoD opportunity.
The Canadian Department of Foreign Affairs and International Trade also has produced the guide
How to Read a Solicitation that may help you in responding to your opportunity, as well as a
solicitation guide.
As a Canadian company, which social programs do I qualify for in my proposal with the U.S. government?
Canadian companies do not qualify for any social programs with the U.S. government, unless they have an in-country U.S. division and are paying income tax to the U.S. Federal Government and have a U.S. Tax Identification Number (TIN).
As you are completing your contract bid, you will notice that the Section K that is included in most U.S. government contract bids prompts you to describe what kind of company you are, which determines if you qualify for any U.S. social programs. In fact, Canadian companies can only be classified as ‘non-resident aliens' unless they have a TIN, and are not able to claim as a 'small business', or for any other social set-aside.
It is strongly recommended that you let CCC help you to complete Section K of your opportunity. It is often a long and complex portion of the contract bid, and the company submitting the bid is liable for any false claims.
Who can I speak to about my opportunity with the U.S. government?
If you have a question regarding an opportunity you are interested in pursuing with the U.S. government, contact CCC by phone (613) 996-0034, fax (613) 995-2121, or email.
CCC can:
- Provide you with a CAGE Code Form.
- Provide you with a Military Technical Data Agreement Form.
- Provide instructions on how to get a SIC number.
- Provide instructions on how to get a DUN.
- Support your company's CAGE Code application and forward to the Department of National Defence.
How do I prepare my company to do business with the U.S. government?
In order to sell to the U.S. government, Canadian companies have to be registered with the Central Contractor Registry (CCR). Read on to learn how CCC can assist you in this process.
Registering at the Central Contractor Registration (CCR) Home
Registration with the CCR is mandatory in order for companies to receive any contract award from any U.S. Federal Government department. The first step in the registration process involves getting a NCAGE Code, SIC Code and/or a NAICS, and a DUN.
Canadian companies can register by going to the CCR website.
Getting a NCAGE Code application form to fill in
An NCAGE code is a NATO Commercial and Government Entity specification code, and is an identifier of who you are and where your company is located. You need this code before you can do business with the U.S. Federal Government, as well as with the defence forces of other NATO countries. It also allows you to register your company with the U.S. government's Central Contractor Registry (CCR).
To get an NCAGE Code, download the NCAGE Code form and either send the completed form to CCC at 1100 – 50 O'Connor Street, Ottawa ON, K1A 0S6, fax it to (613) 995-2121, or email it to Michael Hahn or Diane Brisson.
Getting CCC support of your NCAGE Code application when completed
Once your NCAGE Code form has been completed and sent to CCC, we 'support' your company and forward your application to the Canadian Department of National Defence (DND) to have a code assigned. The process takes three to four days.
How to get a SIC number
Standard Industrial Classification codes identify the type of product or service your company provides. You can get your codes at www.theodora.com/sic_index.html.
How to get a NAICS code
While the NAICS code is not often used, it can give a buyer a better idea of what you do, and differs from the SIC number because it takes into consideration how many employees you have, and your annual revenue. You can determine your NAICS code by visiting the U.S. DoD's online SIC to NAICS converter and inputting your SIC code.
How to get a DUN
A DUN, or Dun and Bradstreet number enters you into a database of corporate information, and is required in order to pursue U.S. Federal Government opportunities. You can obtain your Dun and Bradstreet number by calling 1-800-463-6362 (8:00a.m. to 7:00p.m. EST).
How do I prepare my company to do business with the U.S. Department of Defense (U.S. DoD)?
Getting a Militarily Critical Technical Data Agreement (DD Form 2345, or JCP form)
The U.S./Canada. Joint Certification Office (JCO) will review, approve or reject all Militarily Critical Technical Data Agreements received and upon approval assign a certification number to Canadian companies needing to access unclassified military critical technical data or documents and also to companies wishing to set up a Directly Arranged Unclassified Visit Request with a U.S. military establishments. Begin by downloading and completing the Militarily Critical Technical Data Agreement.
Where to send your Militarily CriticalTechnical Data Agreement when completed
Send the signed original form, along with proof of incorporation or legality (either your company's provincial business licence, incorporation certificate, articles of incorporation, federal or sales tax ID number), directly to the United States/Canada Joint Certification Office, Defense Logistics Information Service, Federal Centre, Battle Creek, MI, USA 40937-3084.
Please contact the U.S./Canada Joint Certification Program at 1-800-352-3572 for more information.
Getting security clearance for your company and/or its employees
In your export contract, your company and/or its employees may be required to have security clearance granted to them by the Industrial Security Sector (ISS), an organization under Public Works and Government Services Canada (PWGSC).
Visit ISS's web site to learn more about the security screening process. You should keep in mind that there is a time element to getting security clearance, and that the security screening of an organization requires sponsorship from a Canadian Federal Government department or agency.
Are there export controls for selling to the U.S. government for my product or service?
Export controls may still exist for some products or services when selling to the U.S. government. Visit the Canadian Department of Foreign Affairs and International Trade Web site Export Permits and Export Controls in order to determine if you must meet various Canadian and American requirements concerning the transfer and re-export of controlled items. Canadian firms interested in exporting certain advanced technology or defence related goods should pay special attention to these requirements.
Submitting your bid
CCC's Prime Contractor Service for Sales to U.S. DoD and NASA
CCC specializes in sales to the U.S. DoD and NASA through its free prime contractor service, where these sales take place under the Canada-U.S. Defence Production Sharing Agreement (DPSA), or the NASA/CCC Letter of Agreement respectively. Working with us gives you privileged access to one of the largest procurement markets in the world, and provides additional benefits that include waiver of U.S. cost accounting standards, waiver of requirements to submit cost and pricing data to the U.S. DoD, and waiver of the regulations of the Buy America Act.
U.S. DoD procurement regulations (DFARS) specify that all direct purchases over the simplified acquisition threshold from Canadian suppliers are to be contracted through CCC.
You submit your response to the opportunity directly to the buyer, with a full copy of your response, including a full pricing proposal, sent to CCC. CCC analyzes the bid, determining your technical ability to do the job, and your company's managerial and financial stability. In some instances the reasonableness of the price and your ability to deliver or complete the bid is also verified upon request by the U.S. government. This process assists CCC to support your bid.
CCC knows your U.S. government buyer
One of CCC's roles is to advise the U.S. government buyer on how to do business with Canadian companies under the DPSA and the NASA/CCC Letter of Agreement. Occasionally, the buyer is not accustomed to doing business with Canada, and is not aware that CCC does a lot of their due diligence work for them, or that Canadian companies must be considered for all intents and purposes domestic sources of supply. CCC representatives are frequently in contact with U.S. buyers, briefing them on the advantages of buying from Canadian companies, as well as to the various trade agreements that exist between Canada and the U.S.
What kind of relationship will I have with CCC as Prime Contractor if my bid is accepted?
Once CCC is satisfied with your bid, we endorse your offer to the U.S. buyer. This means that the Government of Canada is stating that if this offer is accepted, it guarantees performance of the contract at the price quoted and within the delivery time frame, minimizing or eliminating any risk evaluation concerns the buyer may have in dealing with a small Canadian company.
If the offer is accepted, the buyer awards the contract to CCC, which in turn sub-contracts 100% to you by issuing a Domestic Contract. This is particularly advantageous for smaller firms: in spite of the fact that the product or service is being exported, the receivable remains domestic and is with CCC, and not with a distant buyer. Having your receivable remain domestic is often required in order for financial institutions to consider it to be an asset. Foreign receivables are frequently deemed by financial institutions to have little value, making your finances appear less favourable.
You perform in accordance with the terms and conditions of the domestic contract, and then bill CCC. Subsequently, CCC pays you in accordance with the terms and conditions of the contract, billing and collecting from the buyer itself.
What do I get as a part of the Prime Contractor Service for Sales to U.S. DoD/NASA?
This service is available to you at no charge, and includes the following activities to help you win the opportunity on the best possible terms and manage your project:
- Provide a CCC Package and a CCC officer as a contact for your company.
- Issue Letter of Acknowledgement of Receipt of Offer to U.S. DoD, and send a copy to you.
- Coordinate Public Works and Government Services Canada (PWGSC) technical/managerial/financial review of your company.
- Issue Endorsement as per DFARS to U.S. DoD buyer, and send a copy to you.
- Issue Advance Notice of Award to your company if CCC is awarded the contract.
- Forward Prime Contract to PWGSC.
- Pay your claims/invoices (within 30 days from receipt of a payable invoice).
- If required, complete Contract Close Out documents after PWGSC completes finance audit for time and materials.
Additional service you can request
The use of Electronic Data Interchange (EDI) has become a major focus of the U.S. government, allowing them to transmit contract documents between two computer systems, and eliminating the need to mail, fax, or email these documents.
An advantage of contracting through CCC is that it is EDI capable. Since CCC's system is compatible with that of the U.S. government, we can ensure you receive contract documents promptly rather than having to wait up to two weeks to receive them.
Receivables Discounting
Canadian companies, having receivables on a contract with CCC, have access to immediate payments for their invoices through Receivables Discounting. This allows you to meet your immediate financial obligations without increasing your debt.
If you have a contract with CCC, have delivered on the contract, the goods have been accepted and your buyer's risk is satisfactory, Receivables Discounting may be the solution for you to avoid the cash flow waiting game. For more details, please contact your project manager at CCC.
CCC's fee structure
How does CCC's fee structure work for Sales to the U.S. DoD/NASA?
CCC's Prime Contractor Service for Sales to the U.S. DoD and NASA is provided at no cost to you and your buyer.
Mandatory contract services offered under the Defence Production Sharing Agreement (DPSA) or the NASA/CCC Letter of Agreement continue to be funded by government allocations. If you are pursuing an opportunity with the U.S. DoD or NASA and would like to hire the services of a project manager to assist you with your bid preparation, our fee-for-service would apply.
Why is CCC involved in my dealings with the U.S. DoD?
CCC and the U.S. Department of Defense – the DPSA connection
Since 1956 CCC has provided privileged access for Canadian exporters to the U.S. aerospace and defence market, under the U.S.-Canada Defence Production Sharing Agreement (DPSA) and a related agreement with NASA.
Working with CCC gives Canadian exporters privileged access to one of the largest procurement markets in the world. Canadian companies are considered for all intents and purposes a domestic source of supply when selling to the U.S. Department of Defense (U.S. DoD). The acquisition policies of the U.S. DoD specify that all of its defence purchases from Canada above the simplified acquisition threshold must be done through CCC. This service is available at no charge to Canadian companies.
How you benefit:
- Waiver of U.S. accounting standards for contracts;
- Waiver of requirement to submit cost and pricing data to the U.S. DoD;
- Waiver of the regulations of the Buy America Act.
The agreement between NASA and CCC, first signed in 1960, is based on the DPSA model. It provides for discretionary use of CCC as prime contractor to NASA.
When is CCC involved in my dealings with the U.S. DoD?
If the value of the U.S. DoD contract is more than the simplified acquisition threshold, CCC automatically takes on the role of Prime Contractor as required under the DPSA. For contacts less than the simplified acquisition threshold, CCC's involvement is at your discretion.
With CCC acting as Prime Contractor – signing a contract with the foreign buyer and a matching contract with the exporter – your foreign customer receives a government-backed guarantee of contract performance.
Your company will also benefit from the use of Canadian procurement rules. This includes the waiver of U.S. cost accounting standards for contracts; the waiver of requirements for submitting cost and pricing data to the U.S. DoD; the waiver of the regulations of the Buy America Act; and duty-free entry for goods and services.
When you are contracted to provide research and development services for the U.S. military - The Defence Development Sharing Agreement (DDSA) connection
The Defence Development Sharing Agreement, signed in 1963, was designed to establish a cooperative agreement in defence research and development between the U.S. and Canada.
It complements the DPSA, and affects Canadian suppliers who are involved in research and development contracts solely funded by the U.S. military: the U.S. buyer may contract directly with the Canadian supplier, no matter the value of the contract. In this case CCC's involvement is not required, but both parties may wish to use its services.
Useful contacts with respect to the DDSA include Industry Canada.
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