Government-to-government (G2G) sole-source contracting is a low-risk way for governments abroad to buy from Canadian exporters — but not every government is familiar with the approach. This blog series, Introducing G2G Contracting to Foreign Government Buyers, will help you answer some of the questions your potential government customers may have about this unique contracting approach.
G2G contracting through CCC offers many benefits to Canadian exporters. When you work with us, we help you navigate complex foreign procurement policies and regulatory issues, provide you with a competitive advantage, and connect you to high-level government officials.
But you’re not the only one who benefits from the G2G approach. So does your foreign government buyer. If they’re unsure about what’s in it for them, here are a few key benefits of contracting through CCC you can point out:
Take advantage of Canadian expertise
Acting as prime contractor, CCC provides foreign governments with easy access to Canadian products and services — allowing them to choose their preferred Canadian exporter for whatever expertise they require.
Meet urgent deadlines
When a competitive procurement process or the risk of failed tender has the potential to introduce unacceptable delays to high-value, high-priority projects — or even compromise national security — the G2G approach accelerates the contracting process to ensure urgent acquisition needs are met.
Transfer and reduce procurement risk
Countries that sign G2G contracts with us have the Government of Canada’s assurance that their projects will be delivered as negotiated, guaranteed. Before working with any Canadian exporter, we conduct a thorough review of their technical, managerial, and financial capabilities. This ensures they have the skills and capacity to complete the project per the terms of the contract and are committed to working within the strictest ethical standards.
Because we take on all performance oversight and financial administration of the contract, the G2G approach also greatly reduces the risk of bribery, corruption, and other practices that can hinder procurement effectiveness.
In addition to those three main benefits, a G2G contract also provides foreign government buyers with:
- Value for money: G2G contracts are well regarded by financial institutions and commercial lenders, often resulting in favourable financing terms for both buyer and seller. We also deliver value for money through our fee structure. Our fees cover the effort and cost of managing and executing a contract, as well as up-front business development costs. For your buyer, there are no surprises: our fees are embedded directly in your proposal. And if your contract is with the U.S. Department of Defense, there are no fees at all per the Canada–U.S. Defence Production Sharing Agreement — our services to your U.S. DoD buyer come free of charge.
- Support for local economies: Beyond the products or services being delivered, G2G contracts can also create local jobs (including the use of local subcontractors) and provide opportunities for local training and knowledge transfer, all of which result in positive, long-term economic impacts. In Bermuda, for example, Canada’s Aecon Group successfully built a new terminal for the country’s airport. It’s the largest infrastructure project in the island’s history — and not only did Aecon use mostly local contractors during construction, but 90 percent of the employees of the subsidiary it created to manage the airport’s operations are Bermudian.
For more advice on talking to buyers about G2G contracting, download our e-book, Winning Contracts with Foreign Governments.