CCC — U.S. DoD Prime Contractor
Highlights
This program is designed for Canadian businesses like yours that want to expand their reach by selling to the U.S. Department of Defense (DoD). By participating, you can compete on equal footing with U.S. firms and be seen as a domestic supplier. This means your proposals will receive the same consideration as those from U.S. companies.
Key Benefits:
- Government of Canada Endorsement: We review your technical and financial proposals, providing a Government of Canada endorsement.
- Simplified Cost and Pricing: We certify that your price aligns with Canadian government cost and profit policy, eliminating the need to conform to U.S. accounting standards.
- Expert Support: We help you interpret DoD tender documents and navigate the procurement process, increasing your chances of winning contracts.
What's in it for You:
- Guaranteed Contract Performance: The Government of Canada guarantees your contract performance, giving U.S. buyers confidence in your reliability.
- Broadened Supply Base: Our service broadens the U.S. DoD’s supply base and reduces their supply chain risk by performing due diligence on your company.
- No Cost to Participate: For approved opportunities, there is no cost to Canadian companies to participate in this program.
This program makes it easier for you to sell to the U.S. military, providing you with the support and credibility needed to succeed in this complex market.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 10 years.
- Interest Rate: Fixed rate of 3.5% per annum.
Eligible Expenses:
- Purchase of equipment and machinery.
- Leasehold improvements.
- Working capital.
- Research and development costs.
- Marketing and promotional expenses.
Ineligible Expenses:
- Real estate purchases.
- Repayment of existing debts.
- Personal expenses.
- Any non-business-related expenses.
Fees:
- Application Fee: $200.
- Annual Administration Fee: 1% of the loan amount.
- Late Payment Fee: 2% of the overdue amount.
Qualifications
- Must be a Canadian business.
- Must have goods and services of interest to the U.S. military.
- Must have an opportunity to sell directly to the U.S. Department of Defense.
- Sales lead must be valued at more than USD $250,000.
- Must have financial statements for the last two financial year ends.
Must have a two-year track record of sales.
Disqualifications:
- None explicitly mentioned.
Description
This program offers your business a fantastic opportunity to grow by selling products and services to the U.S. Department of Defense (DoD). You can receive up to $1,000,000 to support your business activities.
Here’s how you can use the funds:
- Up to $500,000 for purchasing equipment or improving your rented space.
- Up to $150,000 for costs like software or operational expenses to keep your business running smoothly.
Key benefits include:
- 85% of the loan is guaranteed by the federal government, providing a significant safety net for your business.
- Flexible repayment options: Choose between a variable interest rate, a fixed rate, or a combination of both.
- Up to 15 years to repay the loan, regardless of what you spend it on.
This program is designed to help your business compete on equal footing with U.S. firms, making it easier for you to secure contracts with the U.S. DoD.
Program Steps
Gather Required Documentation:
- Financial statements for the last two financial years.
- Business plan detailing the intended use of funds.
- Sales lead valued at more than USD $250,000.
- Any relevant certifications or registrations (e.g., DUNS number, NCAGE code, SAM registration).
Prepare Your Proposal:
- Assess whether your business meets the U.S. DoD service or solicitation requirements.
- Include due diligence information covering integrity, technical, managerial, and financial aspects.
Submit Your Proposal:
- Send your proposal, including all required documentation, to the U.S. DoD buyer.
- Ensure a copy of the proposal is also sent to CCC for review.
CCC Review:
- CCC will review the due diligence information in conjunction with your proposal.
- A “fair and reasonable” price evaluation will be completed by Public Services and Procurement Canada (PSPC) for any sole-source requirements.
Negotiate Contract:
- Work with CCC and the U.S. DoD buyer to negotiate a mutually beneficial contract.
- Ensure all terms and conditions are clearly understood and agreed upon.
Contract Administration:
- Once the contract is awarded, CCC will manage all contractual issues and financial administration.
- Ensure timely delivery of goods and services as per the contract terms.
Project Completion:
- Upon successful completion of the project, explore other potential opportunities with the U.S. DoD.
- Maintain communication with CCC for future support and guidance.