The Industrial and Technological Benefits Policy
The Industrial and Technological Benefits (ITB) Policy leverages defence and security procurement to create jobs and economic growth. The ITB Policy requires companies awarded defence contracts to do business in Canada equal to the value of their contracts.
ITB Policy objectives
The ITB Policy has five main objectives:
- support the long-term sustainability and growth of Canada’s defence sector
- support the growth of prime contractors and suppliers in Canada, including small and medium-sized firms in all regions of the country
- boost innovation through research and development in Canada
- increase the export potential of Canadian-based firms
- identify skills development and training opportunities for Canadians
The ITB Policy applies to most procurements by the Canadian Armed Forces and the Canadian Coast Guard:
- with an estimated contract value of more than $100 million and to which the National Security Exception applies
- defence projects with estimated contract values between $20-100 million
Bidders must submit an evaluated Value Proposition, outlining their bids’ economic benefits to Canada.
Key Industrial Capabilities
In May 2018, the ITB Policy identified 16 Key Industrial Capabilities (KICs) to better drive innovation, exports and the growth of firms. These are areas of emerging technologies with strong growth potential, such as:
- cyber resilience
- artificial intelligence (AI)
- remotely-piloted systems
Other KICs are areas where domestic capacity is essential to national security, such as:
- training and simulation
- aerospace systems and components
- shipbuilding, design and engineering
Making KICs part of the Value Proposition encourages industry to invest across the supply chain in these capabilities. It will lead to more opportunities for innovative businesses and research institutions
Western Economic Diversification Canada (WD)'s role in fulfilling the ITB Policy
WD helps support and leverage opportunities created by the ITB Policy. It is part of a strategic network of partners in Canadian defence procurement. WD works with:
- existing defence contract holders
- key federal government departments and agencies
- potential bidders (prime contractors and their top tier suppliers)
This network allows WD to stay informed about:
- defence procurement projects and associated business opportunities
- which prime contractors might bid on them
- how the ITB Policy will be applied to each project
WD’s ITB team also works directly with other stakeholders, including:
- industry associations
- provincial governments
- western Canadian companies
- academic and training institutions
WD also finds relevant trade shows, conferences and other events that foster business development.
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