Is CCC right for you?
CCC is interested in working with Canadian exporters who are a good fit for its government to government contracting approach.
CCC helps navigate the contracting process between Canadian exporters and foreign government buyers. Partnering with CCC can be advantageous for exporters but your company must be able to pass our integrity compliance and due diligence assessments.
What does CCC look for in an exporter?
All Canadian exporters are screened to ensure they are a good fit for CCC’s government to government contracting approach.
CCC looks for Canadian exporters who:
- Are targeting a foreign government buyer for future sales;
- Are able to demonstrate experience in selling internationally;
- Have at least two years worth of sales; and,
- Are able to provide CCC with audited financial statements.
How does CCC assess exporters?
Prior to contracting with a Canadian exporter, CCC assures itself that the Canadian exporter has the capability to deliver the project.
When a lead has been identified and the Canadian exporter has requested CCC support, CCC will initiate its Integrity Compliance Process and Due Diligence Process by having the exporter complete the CCC Due Diligence Questionnaire.
Completion of of the Due Diligence Questionnaire triggers a review of the exporter by the CCC
Integrity Compliance Committee and setting of the CCC fee by the CCC Risk and Opportunities Committee.
A CCC Account Manager, working with the Canadian exporter, will bring the deal forward for formal CCC approval to pursue the opportunity. This allows CCC and the Canadian exporter to enter into a Service Agreement that binds CCC and the Canadian exporter to a joint pursuit of the opportunity on a government to government basis.
What is the Integrity Compliance process?
The Canadian exporter must complete a mandatory due diligence questionnaire, which requests information on the Canadian exporter's business ethics and use of agents or other representatives. CCC requires the Canadian exporter to sign a certificate of compliance for the information provided.
If CCC believes further due diligence on the integrity of the Canadian exporter is required, a full Enhanced Managerial Review is undertaken. CCC will assess whether a company has taken appropriate measures to prevent bribery and corruption by assessing whether the Canadian exporters’ processes and policies are adequate to reduce the likelihood of illegal or unethical acts from occurring.
What does the technical managerial/financial due diligence consist of?
As CCC is reviewing the draft proposal, the Canadian exporter must also provide CCC with information on its technical, managerial and financial capability to deliver on the proposed contract.
In its technical due diligence, CCC will determine if:
- the technical expertise of the Canadian exporter is sufficient to meet the requirements of the contract;
- the Canadian exporter has the capacity to undertake the contract. CCC may undertake site visits to the Canadian exporter’s locations, as required;
- there is an alternate source of supply of the product or service.
In its managerial due diligence, CCC will determine if:
- the Canadian exporter has a management team capable of carrying on the business of the company during the life of the contract;
- the Canadian exporter has a project team capable of managing the contract; and,
- the Canadian exporter has previously managed successful export contracts in markets with similar risk profiles to that of the proposed contract.
In its financial due diligence, CCC will determine if:
- the risk of the Canadian exporter's insolvency during the contract period is understood;
- the Canadian exporter's cash-flow capacity is adequate to meet the contract’s cash-flow demands; and
- the Canadian exporter can withstand scope changes and cost overruns commensurate with the risk of the project.
How does CCC price its services?
CCC fees cover the Corporation’s level of effort and costs related to management and execution of a contract as well as any up-front business development costs. These fees are commensurate with the contract value, risk and nature of the transaction.
There are a number of factors that impact CCC fees:
- Costs - A cost estimator tool is used to project the cost of associated with managing a contract to ensure the proposed fees cover the projected costs.
- Risk - the risk profile of the opportunity (managerial, technical, financial, political and project complexity), is taken into account when setting the fee.
- Transaction type – the complexity of the project (eg. supply and install contracts vs complex construction projects) and subsequently the level of effort for our team is also taken into account when setting the fee.
The CCC fee is set on a project-by-project basis but, for illustrative purposes, it falls generally into ranges across various sectors:
CCC’s Fee Structure
|Aerospace, defence and security sectors
|Infrastructure, cleantech and ICT sectors
It is possible for CCC fees to fall outside these ranges if the value of the contract is greater than CAD $100 million or less than CAD $1 million. When this is the case, fees are based on a cost analysis and may result in a fixed fee for contracts below CAD $1 million and a lower percentage fee for contracts over $100 million.
As CCC is the prime contractor for the Canadian supplier in the Government to Government contract, CCC’s fees are embedded within the price supplied to the foreign government buyer within our proposal.
*Contracts with U.S. Department of Defense are not subject to a CCC fee, per the Canada-United States Defence Production Sharing Agreement (1956).