Entering the United States Department of War (U.S. DoW) market offers several pathways for Canadian businesses. The right choice depends on the size of the contracts you are targeting and whether you are ready to lead as a prime contractor or prefer to partner with others.
Market entry pathways
CCC’s U.S. DoW Prime Contractor Service
For Canadian businesses, one early decision is to connect with CCC which serves as the U.S. DoW’s official contracting authority for all purchases from Canada over USD$350,000.
Under the 1956 Canada-U.S. Defence Production Sharing Agreement (DPSA), Canadian firms can sell through CCC to U.S. DoW, on an equal footing with U.S. businesses.
The CCC pathway often simplifies contracting as U.S. DoW buyers prefer working with CCC because it is a known and trusted procurement route.
As a Canadian business, we’ll always recommend you take advantage of the services and support CCC offers Canadian business who want to sell to the U.S. DoW.
If this does not fit your business, here are some other market entry options to consider.
Micro-purchase opportunities
Best for very small contracts below the $15,000 micro-purchase threshold.
Allows authorized U.S. officials to buy goods or services without a formal bidding process, typically using government purchase cards.
Subcontractor to a U.S. prime contractor
Best for companies new to the U.S. DoW market or offering niche technologies/services.
Build relationships with potential U.S. prime contractors to explore teaming or subcontracting opportunities on existing or upcoming defense projects.
Teaming agreements with established U.S. vendors
Best for strengthening your bid. Teaming agreements allow you to form a strategic alliance with established U.S. defence companies already trusted in the market.
This allows you to leverage their trusted status and market presence to increase your chances of winning.
Partner with a U.S. small business
Best for access to U.S. DoW small business set-aside programs that are only accessible by small U.S. businesses.
Collaborate with qualified U.S. small business partners that meet federal requirements or have an established presence in the target region.
Supplement your team with local agents
Best for accelerating network building.
Consider hiring local consultants or business developers with existing U.S. DoW expertise and connections relevant to your business.