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Canadian Commercial Corporation
The Government of Canada
International Contracting and
Procurement Agency
Briefing to Industry Supplier(s)
Version 5.2
Overview
• Established in 1946
• Export sales agency, a Government of Canada Crown
Corporation
 Reports to the Minister for International Trade
• The contracts signed in the name of CCC have the same
legal effect as those signed in the name of the
Government of Canada
• Mandated to “assist in the development of trade between
Canada and other Nations”
2
Government & Industry Partners
•
DND – entrées into certain markets and opportunities
 joint procurement, international cooperation, military attachés
•
DFATD – frontline service and in-country intelligence
 Trade Commissioner Service (TCS), Geographic Desks, Defence and
Security Advisory Board, Export Controls
•
PWGSC – support services
 Industrial Security
•
Export Development Canada (EDC)
 export finance and insurance products
•
Industry Canada (IC)

Industrial Technical Benefits (ITB) program
•
CADSI, AIAC and Regional Sector Associations
•
Canadian Industry
3
CCC’s Business Lines
International
Commercial
Business
Other
Services
DPSA
U.S. DoD & NASA
Procurement
for Other
Government
Departments
Global
Defence &
Security
Sector Activity
Aerospace
Defence and
Security
Consumer goods and
services
Energy and Power
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Education & Health
Infrastructure
Engineering Services
& Construction
Transportation
Typical Roles
• CCC brings international buyers and Canadian
exporters together through contracts that offer
the best possible terms and conditions
 Prime Contractor to International Buyer
• Guarantee contract performance according to the terms and
conditions of the contract
• Contracts with qualified Canadian supplier
– Typically directed contract to pre-qualified supplier
 Procurement Service
• Acts as a procurement agent to procure Canadian goods
and/or services for foreign buyers and/or OGD’s
• Competitive solicitations for qualified suppliers
Prime Contractor Service
Prime Contractor
Government of Canada
Government-to-Government
Contract
Domestic
Contract
7
Canadian Supplier
Contract Structure
Foreign Government
Prime Contractor
Basis
Govt-to-Govt
Agreement
Procurement
Services Basis
Financing
Or
Or
Export
Development
Canada
CCC
Other Financial
Instituions
Or
Canadian Supplier/Team
Other Commercial
Financial Instituions
Sub Suppliers
Local Sub Suppliers
Foreign
Material & Services
Local Construction &
Material & Serivices
International Government or Qualified Buyer
US DoD versus International
“No Cost to the Buyer” versus “CCC
Costs”
US DoD
• In 1956, the Canada-U.S. defence materiel acquisition
relationship was formalized as the Defence Production
Sharing Agreement (DPSA) whereby:
 CCC acts as Prime Contractor for U.S. DoD purchases in Canada.
• For contracts over $150K in value
 Canadian industry is given a fair opportunity to compete with U.S.
industry for U.S. DoD requirements (DFARS 225.870).
 CCC ensures timely payments to suppliers
• Mitigates supplier cash flow risks.
 CCC provides (at no cost to the U.S. DoD or to Canadian firms):
• “fair and reasonable” price certification; and
• contract and management services.
• CCC is funded by Parliament for DPSA work
Other than the U.S. DoD
• CCC is expected to be financially “self-sustaining”
• Pre-Contract award
 Service Agreement is Needed
• Think of it as the legal document that governs our relationship up to the point
of a contract award
 Due Diligence Questionnaire must be completed and approved
 CCC labour costs are complimentary (in this phase)
 Supplier covers Travel & Living costs for meetings where the
supplier requests CCC presence
• Remember to include all costs in customer quotations
 Including CCC costs
• Post-Contract Award
 CCC must earn revenue to cover costs:
• Legal, Financial, Contract Management, Travel & Living, Overheads and
contribution to “contingency reserve”
Working with CCC
What we look for
Eligibility Consideration
• Experienced Exporter
• Are selling a proven product or service
• Have been in business for more than 3 years
• Are in good financial standing and your annual revenue is
in line with the value of the project being pursued
• Ethical business practices
When to Contact Us
• You suspect or know that the Buyer prefers a
Government to Government (G2G) contracting
mechanism
• Where jurisdictions permit sole-source purchases
on a G2G basis
• The Buyer lacks procurement capacity
• Credible and transparent procurement process
• To protect the supplier and/or the buyer
• If you have concerns about getting paid
• Government has infrastructure needs and wants
access to proven Canadian suppliers
Points to Remember
• Managerial, Technical and Financial
 CCC may not support a specific deal if deemed too risky
• No guarantee that the buyer will pay, however:
 CCC invoices are normally paid
 Supplier invoices are normally paid
• Qualified agent/in-country representative costs
accepted
• CCC contracts for “off-the-shelf” and/or
“customized” solutions
Points to Remember
• Formal Agreements between Canada and the Buying
country may offer advantages
 Free Trade Agreement
 Cooperation agreements between Ministries of Defence
• CCC involvement may result in waiving of performance
bonds, etc
 Because of the sovereign guarantee of the Government of Canada
• CCC is relatively inexpensive; but, outside of the DPSA, is
not free.
• Projects that include “infrastructure” need additional
approvals depending on the value:
 CCC Board Of Directors and the Ministry of Finance and/or the Treasury
Board of Canada
Working with CCC
What’s in it for the
Buyer and/or the Supplier
The Challenges of
International Pursuits
• Current Financial Situation
worldwide
 Increased Competition
 Currency fluctuations
• Political desire to support
domestic economy and
suppliers
• Occasional Buyer requirement
for rapid procurements
• Transparency
Additional
Challenges
• International risks:
•
•
•
•
•
•
•
Terms and Conditions
Legal Jurisdiction
Performance Bonds, etc.
Getting Paid
Offset Policies / Desires
Reputational / CSR
Many stakeholders that
need to be accommodated
• Tax Authority, Border
Security
The “Hope”
The Result
Buyer’s
Challenges
•
•
•
•
Internal Processes
Transparency
Project Management
Funding
• “Colour of money”
• Availability in FY
• Decision Authority
Stakeholder
Alignment
Buyer’s Options
Direct
US Foreign
Commercial Sale Military Sales
(FMS)
Government of
Canada (CCC)
Time to Contract
Several months /
years
Several months /
years
Few weeks /
months
Contractor
Oversight
Buyer
US DoD
CCC
Project Risk
Buyer
US DoD
CCC
Tailored solutions
Yes
No or Limited
Yes
Payment
As per contract
In Advance
Negotiable
Management
Fees
Separate budget
Yes
Yes (least
expensive)
Yes
Yes
Expiring Funds
Benefits to
International Buyers
Guarantee of contract performance according to
the terms and conditions of the contract
Provides access to Canadian capability
Performs due diligence on the supplier prior to
entering into the contract
Offers tailored contracting and procurement
solutions to meet the buyer’s requirements
Supplier Benefits
Needs
CCC Involvement
Competitive Edge • Guarantee of contract performance to buyer (according
to the terms and conditions of the contract) increases your
/ Higher
credibility
Probability of
Contract Award
• May allow buyers to eliminate/shorten tender
(Pwin)
processes, reduce their costs, increase speed
• A transparent process for foreign buyers
• Can encourage lenders to finance a project
•Increases access to international buyers and to in-country
Embassy staff
Supplier Benefits
Needs
CCC Involvement
Increase sales
• May permit direct contracting
• Joint marketing program – we can approach
buyers together
Risk Mitigation
• Govt of Canada is with you in all
contract discussions, which means:
 Reduced payment risk
 Reduced project risk
 Reduced corruption risk
“P win”
Your Win Probability
Assessment . . . takes into
account the importance of
each possible approach to a
business pursuit …
• Prime versus Subcontractor
• Competitive Tender
• Limited Tender
• Sole Source
Competitive Tender >>> Sole Source
Working with CCC
The Procurement Option
That MAY be
The Optimal Pwin
and Minimal Risk Structure
For the
Buyer and the Supplier
Important Notes
Important Notes
• CCC has executed contracts with individual values ranging
from $72K to in excess of $14B
• The CCC “Fee” is intended to cover the CCC costs related
to the negotiation and management of the contract
• The CCC involvement mitigates many risks for the Buyer
and the Supplier
• CCC cannot guarantee the payment of supplier invoices
 CCC is, however, normally able to secure payment from the Buyer
(and ensure that the supplier is paid)
 Occasionally, a supplier will be advised to get receivable insurance
Important Notes
• CCC needs to contract with a Canadian Supplier as our
Domestic Prime Contractor
 The industry team can include international sub-contractors
• CCC does require “reasonable” Canadian content
• CCC has been deliberately structured by the Government of
Canada to be “non-bureaucratic”, fast acting and flexible
• CCC is not allowed to provide financing and/or insurance
 These are provided by entities like EDC and/or financial institutions
• The Supplier is responsible as the primary lead for the
Marketing and Business Development
Contact Information
350 Albert Street, 7th Floor
Ottawa, Ontario Canada, K1A 0S6
Toll-free in Canada/ 1-800-748-8191
www.ccc.ca
Stan Jacobson
Director, Global Defence and Security Sales
Tel:
(613) 992-3528
E-mail: [email protected]