Government to government (G2G) contracts provide protection for both exporters and buyers, making them a great mechanism for selling to governments abroad. But how do you know if your target buyer is open to a G2G contract? While every situation is different, there are a few signs you can look for.
The need is urgent
Standard competitive bidding processes aren’t known for moving quickly. That’s not ideal for governments when public safety or security are at stake, or when there’s a need to demonstrate quick results to stakeholders. If time is of the essence, a G2G contract can expedite things for the buyer so that equipment or services are delivered faster.
The situation requires confidentiality
Many governments, particularly ministries responsible for national security may have concerns about sharing sensitive information; an open tender may effectively broadcast a vulnerability to the whole world. A G2G contract lets the purchasing government avoid that risk by dealing directly with Canada as a single, trustworthy partner nation.
There is risk of a failed tender or corruption
Large, complex procurements are often highly visible. If the tendering process fails, a government can lose face with its own people. Bribery and corruption can also derail contracts and damage reputations within a given country and internationally. A G2G contract facilitated by CCC eliminates those risks, thanks to Canada’s reputation and commitment to being an ethical and reliable partner.
The buyer has concerns about performance or contract delivery
Even with financial remedies, foreign buyers suffer real consequences if a contract fails, the chosen vendor fails to deliver to scope, or costs balloon out of control. Buyers who are highly concerned about results may be reassured by the contract performance guarantee that comes with CCC’s G2G contracting approach. We oversee the whole contract, from signing to final delivery, making sure all terms are fulfilled.
The buyer has used a G2G contract in the past
Maybe the best indication that a government buyer is open to a G2G contract is if they’ve used one before. Past experience with G2G means the buyer’s legislative framework allows for such contracts, eliminating one potential hurdle. And if they’ve successfully worked with CCC, they likely appreciate the benefits of this approach and would be open to following it again.
Another signal as to whether a nation’s procurement laws allow for government to government contracting is to determine whether they have ever purchased via the US DoD’s Foreign Military Sales program. If a foreign government has used the U.S. DoD’s Foreign Military Sales program, a similar state-to-state contracting mechanism, it is likely that the government has procurement legislation that allows it to acquire products or services on a government to government basis.
For more information on talking to buyers about G2G, download our e-book, Winning Contracts with Foreign Governments: Introducing the G2G contracting approach to your foreign government customer.