Accessing US Defence Department contracts to grow your business

Posted by The CCC Team on April 4, 2022 at 2:00 AM

As the world’s largest military spender, the U.S. Department of Defense (U.S. DoD) is on the radar of defence companies worldwide. Thanks to special provisions in the Defence production Sharing Agreement (DPSA), Canadian firms enjoy unique advantages and special access to the U.S. DoD market.

Integrated Canada-US defence industrial base

The U.S. DoD relies on Canadian exports for a vast array of military goods and services — everything from technologies and transportation to manufacturing and R&D — to the tune of more than $2 billion a year. Some of the most sought-after solutions include search, detection, navigation and guidance technologies ($506 million), aircraft parts and auxiliary manufacturing ($263 million), aircraft manufacturing ($61 million) and small arms ammunition and manufacturing ($60 million).

Since just after the end of the Second World War, Canada has had special access to the U.S. DoD through the Canada-U.S. Defence Production Sharing Agreement (DPSA). The DPSA outlines Canada’s integral role in North American defence and the continent’s shared industrial base. It places Canadian companies on an equal footing with U.S. businesses.


U.S. DoD procurement regulations approve buying from Canada

U.S. DoD procurement regulations also contribute to Canada’s advantage in accessing the largest defence market in the world. The Defense Federal Acquisition Regulation Supplement (DFARS) helps U.S. DoD procurement specialists understand how they should treat Canadian bids and how they should contract with Canadian suppliers:

  • DFAR 225.870Contracting with Canadian contractors
  • Establishing CCC as the prime contractor for U.S. DoD contracts over USD $250,000 (DFARS 225.801-2)
  • Guaranteeing Canadian employee and site security clearances are honoured by the U.S. DoD (DFARS 225.870-8)
  • Waiving the Buy American Act for defence contracts (DFARS 225.872-1)
  • Ensuring Canadian goods can enter the U.S. duty-free (DFARS 252.225-7013)

These clauses make it easier for Canadian defence companies to do business in the U.S. and provide some remedy against rising U.S. protectionism, which has intensified over the last several years.


How to find U.S. DoD bid opportunities

On top of all that, Canadian companies have full access to tradeshows and conferences that attract U.S. DoD buyers, U.S. DoD innovation acquisition programs, as well as Canada’s web application to help you find U.S. DoD tenders for you to bid on – the Global Bid Opportunity Finder. — giving visibility into what the U.S. DoD is looking for today and indications of future purchasing intentions. Through the Foreign Comparative Testing program (more on that in our next blog), Canadian firms can showcase new and emerging technologies to U.S. buyers.


How CCC can help

As prime contractor to U.S. DoD for all contracts over USD $250,000, CCC has spent the last 65 years working closely with the U.S. DoD to connect American military needs with Canadian solutions. If you’re a Canadian defence company looking to sell to the U.S., you may want to check out our step-by-step Guide to U.S DoD Market Entry and take the first steps toward doing business with the U.S. DoD.


Contact our business advisors

For more information, contact us or call 1-800-748-8191.

Tags: G2G Contracting



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