Is it better to respond to a U.S. DoD opportunity (RFP) as a Canadian company or a U.S. subsidiary?

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.

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