Canadian Commercial Corporation
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The Canadian Commercial Corporation (CCC; ) is a Canadian federal
Crown corporation Crown corporation () is the term used in Canada for organizations that are structured like private companies, but are directly and wholly owned by the government. Crown corporations have a long-standing presence in the country, and have a sign ...
mandated to support the growth of international trade by helping Canadian exporters gain access to foreign government procurement markets and by helping government buyers abroad to obtain goods from Canada. The ability to enter into commercial contracts as a Government of Canada entity through CCC is designed to give Canadian exporters the opportunity to mitigate risks associated with foreign procurement and international contracting. Canadian businesses exported $2.92 billion in products and services through CCC contracts during the CCC's 2020-2021 fiscal year. The Corporation was established in 1946 by an Act of the Parliament of Canada, the
Canadian Commercial Corporation Act
and is accountable to the Parliament of Canada through the
Minister of International Trade, Export Promotion, Small Business and Economic Development The Minister of International Trade () is the minister of the Crown in the Canadian Cabinet responsible for the federal government's international trade portfolio. Along with the Minister of Foreign Affairs and International Development, it is ...
. The Act outlines CCC's broad mandate, which is to assist in the development of trade by helping Canadian exporters to access markets abroad and by helping foreign buyers obtain goods from Canada. The legislation also provides the Corporation with a range of powers, including the ability to export goods from Canada either as principal or as agent in such a manner and to such an extent as it deems appropriate. As a result, CCC negotiates and executes bilateral government to government (or intergovernmental) procurement arrangements, facilitating export transactions on behalf of Canadian exporters. As Canada's international contracting agency, CCC is mandated to support Canadian business targeting public sector procurement markets as a prime contractor for government to government (G2G) contracts or as a procurement agent for foreign governments importing Canadian goods and services. CCC's core business is delivered under the 1956 Canada-U.S. Defence Production Sharing Agreement (DPSA), which governs procurement of Canadian products and services by the U.S. Department of Defense (U.S. DoD). CCC administers U.S. defence purchases above US$250,000 and has a similar agreement with NASA.Department of Foreign Affairs and International Trade, CanadExport, Vol. 20, No. 14, September 3, 2002
/ref> These agreements provide special access for Canadian companies to U.S. aerospace and defence markets. Under the DPSA, Canadian exporters are generally treated the same as domestic suppliers by the U.S. DoD including under the Buy America provisions. CCC also works with Canadian exporters to pursue international opportunities where G2G contracting is considered by both Canada and the buying government as a mechanism to advance mutual economic interests and bilateral relationships. CCC's guarantee of contract performance is designed to add incentive for foreign governments to access Canadian expertise for priority projects. The Corporation negotiates deals and manages contracts in a broad range of sectors, including defence electronics, environmental technologies, capital infrastructure projects, information and communications technology, transportation equipment, electrical power equipment. These services are available to small and medium-sized Canadian exporters in addition to foreign government buyers.


History


Origins

During the Second World War, 28 Crown corporations were created partially in response to the demand for supplies at a level required for the war effort which was beyond the capacity available from the private sector. These Crown corporations were managed by the Department of Munitions and Supply, the successor of the short-live
War Supply Board
As Canada transitioned into peacetime, the creation of Crown corporations was one tactic used to stabilize production of essential commodities while the labour force adjusted to the post-war environment. While the wartime Crown corporations were largely terminated, the agencies in areas of government interest such as weapons production and housing were retained. In December 1945, the Department of Munitions and Supply was merged with the Department of Reconstruction to become the new Department of Reconstruction and Supply. The CCC was established in 1946 to coordinate the sales and export of Canadian defence products to foreign governments. The responsibility for defence procurement and production was assumed by the new department. By 1948, the
Canadian federal government The Government of Canada (), formally His Majesty's Government (), is the body responsible for the federal administration of Canada. The term ''Government of Canada'' refers specifically to the executive, which includes ministers of the Crown ...
decentralized and separated out the responsibilities for defence procurement and production on account of the reduction in defence spending during peacetime. Production responsibility was transferred to the Industrial Defence Board in April 1948, while procurement responsibility was transferred to the CCC between November and December 1948. By March 1949, both the Industrial Defence Board and CCC were under the authority of the Department of Trade and Commerce.


Rearmament in the 1950s

The increasing tension from the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
, the creation of the North Atlantic Treaty Organization (NATO), and the outbreak of the
Korean War The Korean War (25 June 1950 – 27 July 1953) was an armed conflict on the Korean Peninsula fought between North Korea (Democratic People's Republic of Korea; DPRK) and South Korea (Republic of Korea; ROK) and their allies. North Korea was s ...
led to the Canadian federal government needing to increase defence budgets and to begin increasing defence production. The Defense Supplies Act in 1950 gave the Department of Trade and Commerce the authority to carry out defence procurement activities but was replaced in 1951 in response to the escalation of the Korean War and continuing friction with the
Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
. The Defence Production Act reorganized defence procurement and defence production into a single centralized Department of Defence Production (DDP). The DDP did not take over the responsibility for the export of Canadian defence products from CCC, instead it replaced the Department of Trade and Commerce in an oversight capacity. In addition to CCC, seven other Crown corporations reported to Parliament through the DDP: Canadian Arsenals Limited; Crown Assets Disposal Corporation; Defence Construction (1951) Limited; Eldorado Mining and Refining Limited;
Northern Transportation Company Limited Marine Transportation Services (MTS) formerly Northern Transportation Company Limited (NTCL) is a Ship transport, marine transportation company operating primarily in the Mackenzie River watershed of the Northwest Territories and northern Albert ...
; and Polymer Corporation Limited.


Foreign aid and aerospace focus in the 1960s and 1970s

Post-war focus in the 1960s saw CCC focus on delivering in-kind foreign aid in response to natural disasters and famine around the world. In 1960, at the request of Canada's Department of External Affairs, CCC purchased 9,800 tons of flour for earthquake relief in Chile and another 28,300 tons for Lebanon and Egypt following unrest in those countries. CCC also sent tens of thousands of tons of flour to Norway and the United Kingdom as part of a
NATO The North Atlantic Treaty Organization (NATO ; , OTAN), also called the North Atlantic Alliance, is an intergovernmental organization, intergovernmental Transnationalism, transnational military alliance of 32 Member states of NATO, member s ...
collaboration."75 Years of Delivering Canada to the World" Canadian Commercial Corporation
/ref> Also in 1960, CCC signed a Letter of Agreement (LOA) with
NASA The National Aeronautics and Space Administration (NASA ) is an independent agencies of the United States government, independent agency of the federal government of the United States, US federal government responsible for the United States ...
which set out the terms and conditions for CCC to act as prime contractor for material and technologies from Canada. Some of Canada's first contributions were for a "Minitrack" Satellite Tracking Station as well as the design and fabrication of a prototype erectable antenna unit. Later in the 1960s, CCC managed orders for both tactical and fighter aircraft to the U.S., and tactical ground support aircraft to the Netherlands. In 1979, the CCC-NASA LOA laid the groundwork for the Shuttle Remote Manipulator System (SRMS) (now commonly known as the Canadarm) to be contracted through CCC by
Spar Aerospace SPAR Aerospace was a Canadian aerospace company. It produced equipment for the Canadian Space Agency to be used in cooperation with NASA's Space Shuttle program, most notably the Canadarm, a remote manipulator system. The company went through a s ...
Limited of Toronto. For 30 years, NASA's
Space Shuttle The Space Shuttle is a retired, partially reusable launch system, reusable low Earth orbital spacecraft system operated from 1981 to 2011 by the U.S. National Aeronautics and Space Administration (NASA) as part of the Space Shuttle program. ...
program used the remote-controlled mechanical arm to deploy, capture and repair satellites, position astronauts, maintain equipment, and move cargo. During the period from the 1960s and 1970s, responsibility for CCC was transferred to the Department of Supply and Services in 1969 and subsequently to the Department of Industry, Trade and Commerce in 1978.


Contracting with established and emerging economies: 1980s-present

CCC has facilitated a number of contracts between Canadian exporters and foreign governments over the last few decades. In addition to its focus on U.S. defence contracting, CCC has brokered government to government contracts with emerging economies. In 1982, CCC won contracts with the
World Health Organization The World Health Organization (WHO) is a list of specialized agencies of the United Nations, specialized agency of the United Nations which coordinates responses to international public health issues and emergencies. It is headquartered in Gen ...
to spray rivers in Africa to help control disease, with
UNICEF UNICEF ( ), originally the United Nations International Children's Emergency Fund, officially United Nations Children's Fund since 1953, is an agency of the United Nations responsible for providing Humanitarianism, humanitarian and Development a ...
for a measles vaccine plant in Pakistan, and with the Foundation Company of Canada to build a hospital in the Ivory Coast. From the 1980s to present day, CCC has facilitated government to government contracts and signed memorandums of understanding with a number of emerging economies around the world. In 2017, the government of Bermuda entered into a contract with CCC on behalf of the Canadian Government and Canada's Aecon. The Public Private Partnership included the construction of a new airport terminal building and a 30-year lease at the L.F. Wade International Airport. The 288,000 square foot was officially completed in 2020. In March 2021, the Kpone Unity Terminal was handed over to the Ghana Ports and Harbours Authority upon completion of a five-year project funded through a USD 126 million loan procured from the Canadian Commercial Corporation. The Kpone Unity terminal was originally designed to serve as an off-dock terminal for devanning activities from the Port of Tema. In October 2022, CCC worked with General Dynamics Mission Systems–Canada to secure a $24 million government to government contract with the
Portuguese Air Force The Portuguese Air Force () is the air force, aerial warfare force of Portugal. Locally it is referred to by the acronym FAP but internationally is often referred to by the acronym PRTAF. It is the youngest of the three branches of the Portuguese ...
to help modernize its fleet of P-3C aircraft. That same month, it was revealed that the Philippines would be the first market to implement Canada's government to government CANbuild infrastructure framework—a consolidated exporter service offered by CCC, Canada's
Trade Commissioner Service Part of Global Affairs Canada, the Canadian Trade Commissioner Service (TCS) is a network of more than 1000 trade professionals working in Canadian embassies, high commissions, and consulates located in 161 cities around the world and with offic ...
and
Export Development Canada Export Development Canada (EDC; ) is Canada's export credit agency and a Crown corporation wholly owned by the Government of Canada. Its mandate is to support and develop trade between Canada and other countries, and help Canada's competitiveness ...
. Responsibility for CCC has been transferred several times in the last few decades—to the Secretary of State for External Affairs (1982), the Minister of International Trade (1987), the Minister of Supply and Services (1992), and back to the Minister of International Trade (1996). Since the 2019 federal election, Canada's international trade portfolio, including responsibility for CCC, is now overseen by the Minister of Small Business, Export Promotion and International Trade.


Purpose

The purposes of the CCC as set out in the Canadian Commercial Corporation Act are:


Operations


Business Lines

CCC delivers its government-to-government contracting services through two core lines of business: (1) International Prime Contractor; and (2) U.S. DoD Prime Contractor which includes the administration of the Defence Production Sharing Agreement (DPSA) In addition to its core business line operations, CCC performs activities related to sourcing and other Government of Canada priorities which include the maintenance and administration of the trade development offices in China on behalf of Global Affairs Canada, sourcing transactions with Government of Canada departments and agencies and a shared services arrangement with another crown corporation which generate
economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...
in providing delivery of in-kind foreign aid.


Services

CCC's International and U.S. Department of Defense (DoD) prime contractor services facilitate government to government contracts and are designed to provide Canadian companies with greater access to international public sector contract opportunities. As prime contractor, CCC helps pair Canadian companies with international government buyers, aids in contract negotiation and logistics, and provides Government of Canada endorsements and guarantees. CCC is the Government of Canada's executing agency for the DPSA and is embedded in the U.S. DoD's Defense Federal Acquisition Regulation Supplement (DFARS) to act as the prime contractor for all contracts over US$250,000 awarded to Canadian companies. Additional services under the U.S. DoD prime contractor program include interpretation of bid documents, price review and certification, advocacy and dispute resolution, and protection from payment risk. CCC administers the Global Bid Opportunity Finder—an online tool funded by the Government of Canada that enables Canadian businesses to search for commercial opportunities with foreign governments in over 200 jurisdictions. CCC also partners with Canadian government departments and agencies to help them deliver in-kind foreign aid to governments around the world. For example, in October 2022, CCC sourced 400,000 pieces of winter clothing from Canadian companies totaling $15 million CAD, as part of a military aid package for Ukraine.


Corporate Governance

CCC's corporate best practices and corporate social responsibilities are outlined in the Canadian Commercial Corporation Act and th
Code of Conduct and Business Ethics
CCC's Social Responsibility Policies
/ref>


Board of directors

CCC is governed by a
Board of Directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
that exercises its responsibilities in keeping with the general provisions of the CCC Act and Part X of the
Financial Administration Act The ''Financial Administration Act'' () ('The Act') is legislation enacted by the Parliament of Canada, governing financial administration of the government, public assets, the estimates process, the Department of Finance, the Treasury Board ...
. The Board of Directors is accountable for the affairs of CCC and ensures the proper delivery of public policy on behalf of the Government of Canada. The Board of Directors is appointed by the Government of Canada and represent the Canadian business community and the federal government. * Robert Kwon (President & CEO) * Dyanne Carenza * Guy Desrochers * Mark Deniesch * Douglas Harrison * Michael Johnson * Mora Johnson * Julian J. Ovens * Mylène Tassy * Nicole Verkindt * Christa Wessel


References


External links


Canadian Commercial Corporation homepage



U.S. Federal Acquisition Regulation
{{authority control Federal departments and agencies of Canada Companies based in Ottawa Canadian federal Crown corporations