Businesses in Canada looking to sell to the U.S. DoD under the DPSA agreement are considered a domestic supplier to the U.S. DoD.
If you set up in the U.S., unless the owner of of your subsidiary is a U.S. citizen and owns over 51% of your business, that business will be considered a foreign-owned entity.
Now if you’re a foreign-owned entity, you’re going to be listed on a foreign-entity list within the U.S. and there’ll be some limitations as to what you can actually bid on from the US. So as a Canadian company, you’re actually disadvantaged unless you have a more than majority ownership within the U.S..
On the flip side, if you’re a Canadian business, the DPSA agreement
actually allows you to be considered as a domestic supplier. You actually have a better vantage point from Canada to bid on U.S. DoD contracts.
Do you have an opportunity with a foreign government?
Contact CCC to learn more about how we can support your bid.