Government to government (G2G) contracting is our signature approach to connecting qualified Canadian businesses with foreign government buyers.
What is G2G contracting?
Government to government (G2G) contracts, also known as intergovernmental contracts, are agreements between government entities for the purchase of products, services, or solutions.
G2G contracts are often used for the purchase of goods and services of national security and importance, such as the purchase of aircraft or agricultural products. They can also be used for public work contracts, such as the construction of airports, hospitals and water sanitation systems.
The G2G contracting approach is unique in that instead of having an agreement with a company for the supply of a product, service, or project, a government buyer has a commercial agreement with another government entity to deliver on the requirement.
This has the benefits of increasing bilateral relationships, reducing procurement risk and increasing the number of bankable projects of national or sub-national importance.
Best use of G2G
The G2G contracting solution is an alternative procurement strategy that can be used by foreign governments within the bounds of national procurement laws. Procurements best suited to the G2G contracting approach include projects:
- Identified as urgent and compelling such procurements for emergency response or procurements on critical deadlines
- That might lack of government procurement capacity to be delivered successfully
- That might have issues of bribery and corruption that put project outcomes at risk
- That have already had a failed competitive procurement process and future competitive processes are likely to yield similar results.
G2G contracting is a low-risk way for companies and governments to do business. It minimizes the political, business and payments risks exporters can face when doing business with a foreign government. It also greatly reduces the procurement contracting risks faced by foreign government buyers.
Canada's G2G track record
Countries that engaged in G2G contracts with Canada (2012-2022)
Value of G2G contracts between Canada and other nations (2012-2022)
G2G for government buyers
Reduce procurement risks
Contracts at a government level is used to jump start projects from failed competitive procurement processes, to meet urgent and compelling needs and meet needs of security importance.
Reduces project risks
Using organizations like CCC for G2G contracts benefits departments with lack of procurement capacity or capabilities and get protection from inadequate needs analysis and poor supplier selection.
Reduces bribery and corruption risks
Reduces financing risks
Deepens relationships between nations
G2G for businesses
Reduces political risks
Reduces business risks
Reduces bribery and corruption risks
Reduces payment risks
Elevates commercial opportunities to a government level
Canada's approach to G2G
Canada can enter into a contract with most sovereign governments for the sale of Canadian solutions. We work with all levels of government including national, provincial/state , and municipal governments.
Canadian businesses looking to participate in G2G contracts (outside of the U.S. military) must have the capacity to meet the procurement and project needs of the government buyer and pass our financial, managerial, technical, and integrity compliance and human rights assessments.
Other criteria we look for are:
- A track record of selling internationally, especially into similar markets
- Past sales directly to international government entities
- Priority set on selling internationally as a key component to grow sales
- Existence of local staff, partners, or representation
For Canadian businesses looking to participate in G2G contracts with the U.S. military, we are looking for Canadian businesses that have solutions to meet both traditional military and non-military needs of the U.S. DoD. Companies will be required to:
- Register with the U.S. DoD
- Complete a financial, managerial, and technical due diligence review
- Undergo an integrity compliance and human rights assessment
- Work through CCC for bid or proposal submissions to U.S. DoD
Typically large-scale projects in major sectors qualify for government to government contracting with Canada. This includes aerospace, defence, cleantech, infrastructure, and information and communication technology (ICT).
However, that is not always the case. G2G contracts are also used for the purchase of good and services of national importance or because a government buyer specifically requests a government to government contract.
Roles and responsibilities
As the organization responsible with creating and administering Canada’s commercial G2G contracts with foreign governments, we offer a number of services to facilitate and ensure the success of the procurement deal.
- Before the negotiation– We work with the government buyer to confirm the procurement opportunity, co-develop project scope and define outcomes and measures for success. We also qualify potential Canadian suppliers, collaborate on a draft proposal, support activities to attract financing, and confirm alignment on the proposed terms and conditions.
- During the negotiation– During this phase, the Canadian exporter speaks to the technical details of the solution while we facilitate the contract negotiations with the government buyer. These can include everything from advising on pricing strategies, contract guarantee instruments, and contract terms or conditions.
- After the negotiation– Once the contract with the government buyer is signed, a sub-contract between the Canadian exporter and CCC is signed. As the prime contractor, we oversee the execution of the contract which includes administration of funds to ensure transparency and accountability, compliance to anti-corruption policies, and manage any contractual issues that might arise. The Canadian exporter handles any technical issues directly.
As prime contractor, we offer a Government of Canada assurance that the contract will be completed as per the agreed terms and conditions.
Canada's G2G success examples
Canada-U.S. DoD G2G
Canada and the United States have a unique G2G contracting relationship for military acquisitions from Canada. Anchored in the Canada-U.S. defence trade relationship, the G2G approach provides many benefits to both Canadian businesses and U.S. DoD buying commands.
Benefits for U.S. DoD buyers
- Broader supply base of vetted solutions
- Assured value for money
- Reduced contract administration effort
- Same rights as contracts with U.S. firms
- Contract performance guarantee.
Benefits for Canadian businesses
- Greater competitive advantage
- Less effort to interpret documents and navigate U.S. DoD procurement system
- Simplified accounting requirements
- More Government of Canada support and advocacy
- Greater credibility for proposals.
Canada's G2G contracting process
Project definition and information gathering: In this first stage, government representatives from both nations discuss project needs and potential solutions. It is at this stage that a Memorandum of Understanding (MOU) is often signed. The MOU provides a framework of cooperation and work agreements between countries. Success is criteria is also defined at this stage.
Due diligence: At this stage, CCC identifies and qualifies a supplier. We onboard Canadian suppliers by performing an integrity compliance, a human rights, technical, managerial and financial assessments.
Proposal development: During this phase, the supplier and the contracted government collaborate to provide a proposal to the contracting government (government buyer). In Canada’s G2G contracts, we enter into teaming agreements with the Canadian supplier and collaborate to provide proposals to the government buyer.
Contract negotiations: Once a solution has been agreed upon, the next phase is establishing a mutually agreed upon contract. These can include everything from advising on financing and pricing strategies, contract guarantee instruments and contract terms.
Delivery of goods and services: Once the contract has been signed, it is time to deliver the various aspects of the contract.
Contract management: Good G2G contracts often have well defined processes for dispute management and financial administration to ensure equitable delivery of contract phases. In Canada’s G2G contracts, CCC oversees the execution of the contract which includes the transfer of funds to ensure transparency, compliance to anti-corruption policies, and manage any issues that arise.
Close of contract: Once the contract has been delivered as agreed upon, a formal handoff is done to the government buyer.
G2G contract support
Where to find government opportunities
Government procurement opportunities are generally posted on online portals for bidding companies to review, register and respond. To help Canadian businesses access more global opportunities and to help government buyers receive bids from Canadian companies, Canada offers a portal called the Global Bid Opportunity Finder (GBOF).
The single sign-on portal provides access to bid opportunities from over thirty sources in over 200 jurisdictions. Five thousand new opportunities are added to the portal daily. Examples of portals whose procurement opportunities are aggregated into GBOF include SAM.gov (U.S), Contracts Finder (UK), AusTender (Australia), TED (Europe), and JETRO (Japan).
We support Canadian businesses that are looking to sell internationally. Whether is an active sales opportunity in hand or not, we can provide advice on how Canadians can take the next step to sell to foreign governments.
Canada’s G2G programs
We support Canadian businesses and government buyers through our International Prime Contractor program where we create government to government (G2G) contracts that connect foreign government buyers with Canadian businesses for public sector contract opportunities.
Our U.S. DoD Prime Contractor program is designed to help Canadians sell to the U.S. military. Any procurement opportunities over USD$250,000 in value between Canada and the U.S. DoD must go through this program.