FAR and DFARS › DFARS Part 225: Foreign Acquisition › Subpart 225.8
DFARS 225.870-4 Contracting procedures.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section tells contracting officers how to handle purchases from suppliers in Canada, generally by awarding contracts to the Canadian Commercial Corporation. It also sets rules for when the Canadian Commercial Corporation must provide data other than certified cost or pricing data, and requires contracts paid in Canadian currency to show the currency type and conversion rate. For contractors, it matters because it affects who the contract is with, what pricing data may be required, and how payment currency is handled.
Applies to: DoD contracts with suppliers located in Canada, generally through the Canadian Commercial Corporation
What it requires
- Award individual contracts covering purchases from suppliers in Canada to the Canadian Commercial Corporation, except for contracts described in 225.870-1(c)(1) through (4)
- Obtain the Canadian Commercial Corporation's approval on any matters involving changes to the contract when communicating directly with the Canadian supplier
- Submit data other than certified cost or pricing data when the contracting officer requires it to determine a fair and reasonable price
- Identify in the contract the type of currency, i.e., U.S. or Canadian
Key terms: Canadian Commercial Corporation · certified cost or pricing data · data other than certified cost or pricing data · sole source acquisition · competitive solicitation
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Except for contracts described in 225.870-1(c)(1) through (4), award individual contracts covering purchases from suppliers located in Canada to the Canadian Commercial Corporation, 350 Albert Street, Suite 700, Ottawa, ON K1R 1A4.
(b) Direct communication with the Canadian supplier is authorized and encouraged in connection with all technical aspects of the contract, provided the Corporation's approval is obtained on any matters involving changes to the contract.
(c) Requirement for data other than certified cost or pricing data. (1) DoD has waived the requirement for submission of certified cost or pricing data for the Canadian Commercial Corporation and its subcontractors (see 215.403-1(c)(4)(C)).
(2) The Canadian Commercial Corporation is not exempt from the requirement to submit data other than certified cost or pricing data, as defined in FAR 2.101. In accordance with FAR 15.403-3(a)(1)(ii), the contracting officer shall require submission of data other than certified cost or pricing data from the offeror, to the extent necessary to determine a fair and reasonable price.
(i) No further approval is required to request data other than certified cost or pricing data from the Canadian Commercial Corporation in the following circumstances:
(A) In a solicitation for a sole source acquisition that is—
(1) Cost-reimbursement, if the contract value is expected to exceed $700,000; or
(2) Fixed-price, if the contract value is expected to exceed $500 million.
(B) If the Canadian Commercial Corporation submits the only offer in response to a competitive solicitation that meets the thresholds specified in paragraph (c)(2)(i)(A) of this section.
(C) For modifications that exceed $150,000 in contracts that meet the criteria in paragraph (c)(2)(i)(A) or (B) of this section.
(D) In competitive solicitations in which data other than certified cost or pricing data are required from all offerors.
(ii) In any circumstances other than those specified in paragraph (c)(2)(i) of this section, the contracting officer shall only require data other than certified cost or pricing data from the Canadian Commercial Corporation if the head of the contracting activity, or designee no lower than two levels above the contracting officer, determines that data other than certified cost or pricing data are needed (or in the case of modifications that it is reasonably certain that data other than certified cost or pricing data will be needed) in order to determine that the price is fair and reasonable) (see FAR 15.403-3(a).
(3) The contracting officer shall use the provision at 252.215-7003, Requirement for Submission of Data Other Than Certified Cost or Pricing Data—Canadian Commercial Corporation, and the clause at 252.215-7004, Requirement for Submission of Data Other Than Certified Cost or Pricing Data—Modifications—Canadian Commercial Corporation, as prescribed at 215.408(2)(i) and (ii), respectively.
(4) Except for contracts described in 225.870-1(c)(1) through (4), Canadian suppliers will provide required data other than certified cost or pricing data exclusively through the Canadian Commercial Corporation.
(5) As specified in FAR 15.403-3(a)(4), an offeror who does not comply with a requirement to submit data that the contracting officer has deemed necessary to determine price reasonableness or cost realism is ineligible for award, unless the head of the contracting activity determines that it is in the best interest of the Government to make the award to that offeror, based on consideration of the following:
(i) The effort made to obtain the data.
(ii) The need for the item or service.
(iii) Increased cost or significant harm to the Government if award is not made.
(d) Identify in the contract, the type of currency, i.e., U.S. or Canadian. Contracts that provide for payment in Canadian currency shall—
(1) Quote the contract price in terms of Canadian dollars and identify the amount by the initials “CN”, e.g., $1,647.23CN; and
(2) Clearly indicate on the face of the contract the U.S./Canadian conversion rate at the time of award and the U.S. dollar equivalent of the Canadian dollar contract amount.
Sections it refers to
- 225.870-1 General.
- 215.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
- 2.101 Definitions.
- 15.403-3 Requiring data other than certified cost or pricing data.
- 252.215-7003 Requirement for Submission of Data Other Than Certified Cost or Pricing Data—Canadian Commercial Corporation.
- 252.215-7004 Requirement for Submission of Data Other Than Certified Cost or Pricing Data—Modifications-Canadian Commercial Corporation.
- 215.408 Solicitation provisions and contract clauses.
Sections that refer to it
- 215.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
- 215.408 Solicitation provisions and contract clauses.
- 225.870-3 Submission of offers.
- 252.215-7008 Only One Offer.
← 225.870-3 Submission of offers. · 225.870-5 Contract administration. →
Rule changes for DFARS Part 225
- Defense Federal Acquisition Regulation Supplement: Modifications to Printed Circuit Board Acquisition Restrictions (DFARS Case 2022-D011) ↗ · proposed 2026-07-02 · comments due 2026-08-31
- Defense Federal Acquisition Regulation Supplement: Small Purchase Exception for the Acquisition of U.S. Flags (DFARS Case 2024-D013) ↗ · proposed 2026-06-25 · comments due 2026-08-24
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · final rule 2025-08-25 · effective 2025-10-01
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2025-08-25 · effective 2025-08-25
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · proposed 2025-01-17 · comments due 2025-03-18
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-12-18 · effective 2024-12-18
- Defense Federal Acquisition Regulation Supplement: Inapplicability of Additional Defense-Unique Laws and Certain Non-Statutory DFARS Clauses to Commercial Item Contracts (DFARS Case 2018-D074) ↗ · final rule 2024-11-15 · effective 2024-11-25
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-11-15 · effective 2024-11-15
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.