Application and funding process: Canadian Defence Industry Resilience Program

The Canadian Defence Industry Resilience Program funding process is divided into 3 main stages:

1. Before you apply
2. Apply
3. After your project is approved and Contribution Agreement signed

Before you apply

1. Consultations

Before applying, a consultation with CDIR officials (CDIR-RIDC@forces.gc.ca) helps to ensure:

• your project aligns with CDIR objectives
• your project supports the Government of Canada Buy Canada Policy by prioritizing Canadian goods and services wherever feasible
• your project meets the eligibility requirements
• your organization is better prepared to complete the steps in the application stage of the process

At this stage you are required to:

• review CDIR's project requirements
• check your eligibility online
• pitch your project to CDIR during a consultation meeting

Apply

2. Statement of Interest (SOI) application

Following the consultation, CDIR officials may recommend that you submit the SOI containing a high-level overview to start the application stage of the CDIR funding process. CDIR officers will email you the application form.

In the SOI, you will describe:

• what your project is and who your main partners are, if any
• how it benefits Canada
• how it supports the Buy Canada Policy  through the use of Canadian suppliers, materials, and services
• how it meets the objectives and priorities of CDIR
• how your organization has the capacity and experience to execute the proposed project, to achieve the stated objective.

Once you submit the SOI, CDIR will:

A. acknowledge receipt of your SOI and provide you with contact information of the CDIR officer leading your project

B. assess the information

C. notify you of the results, which may include one of the following:

1. a request for additional information to be further assessed

2. invitation to the next phase of the process (full application) through a Letter of Intent (LOI)

3. a notice that your project will not be further considered for support with potentially a referral to another program

3. Full application

A. If you receive an invitation to submit a full application, you will be invited to submit more information about your project for CDIR to complete a due diligence and benefits assessment.

This additional information may include, but need not be limited to: 

Organizational information such as: 

• description of the applicant (e.g., legal structure, ownership, management, business experience, past and forecasted financial statements for the years covered by the project, technical team, etc.)
• demonstration of how the applicant meets the eligibility criteria
• explanation of how the project will comply with the Buy Canada Policy, including measures to maximize Canadian content and procurement from domestic suppliers
• assurance that the applicant is in good standing with regard to all federal, provincial, territorial and municipal laws and regulations
• corporate documents as the Minister deems necessary (e.g. articles of incorporation, corporate by-laws and related instruments)
• affirmation that any person, including any consultant or in-house lobbyist who lobbies on its behalf, to obtain funding under the program, and who is required to be registered pursuant to the Lobbying Act, is registered pursuant to the Act
• affirmation that the applicant has not, and neither has any person on its behalf, engaged or employed any person (other than an employee) for the purposes of obtaining funding; and paid, or agreed to pay that person, a commission, contingency or success fee or any other consideration (whether monetary or otherwise) that is dependent upon the applicant receiving funding
• assurance that any former public servant, who derives benefit from the contribution agreement, will be in compliance with the Values and Ethics Code for the Public Service, the Values and Ethics Code for the Public Sector, and the Policy on Conflict of Interest and Post-Employment
• assurance that any former public officer holder, who derives benefit from the contribution agreement, will be in compliance with the Conflict-of-Interest Act
• assurance that no member of the House of Commons or Senate will benefit from the contribution agreement
• attestation from key executives indicating that any contributions from the program will not be included in the evaluation of, nor be used for, executive performance pay 

Project information such as:

• a project proposal, as well as major activity areas including the project’s scope and objective, workplan and budget, key project milestones, risks, commercialization plan, and planned repayment schedule (if applicable)
• the forecasted total cost (eligible and ineligible costs) of the project, and details of financing
• the forecasted benefits
• information on federal, provincial, territorial and municipal assistance or tax credit, sought, received or likely to be received for the project
• a description of how the project and the applicant will meet the assessment criteria detailed in Section 9 of these Terms and Conditions

B: Applications will be assessed to identify those that demonstrate substantial national security benefits. The applicant will need to demonstrate benefits for national security, which may include benefits such as, but not limited to:

• support the supply chain of provision of a key materiel or munition
• support Canadian capacity for rapid production of an urgent operational requirement and/or
• sustain a key ammunition capability or capacity (i.e., strategic munition supply) within Canada

Secondary consideration may be made for other benefits on a case-by-case basis. Compliance with the Buy Canada Policy will be considered as part of economic and public benefits, demonstrating commitment to strengthening Canadian industry:

• innovation benefits
• economic benefits
• public benefits

The proposed project will also be evaluated to assess the capacity and experience of the applicant to execute the proposed project, to achieve the stated objective and to better position Canada to have a robust and dynamic defence industry which can respond to future threats, emergencies, or defence requirements. Factors taken into consideration may include:

• management and workforce capability
• corporate technical capability
• corporate financial stability and capacity
• market risk

C: If the project passes due diligence, CDIR will enter into negotiations with the applicant for the development of a Term Sheet and a recommendation may be made to the Minister for approval.

D: Once the project has received all necessary approvals, CDIR will work with you to develop a Contribution Agreement based on the approved Term Sheet.

After your project is approved and Contribution Agreement signed

4. Implementation and monitoring

CDIR is a claim based program. Once the Contribution Agreement is signed by both parties, you will start claiming your costs, typically, on a quarterly basis and report on the status of the project. CDIR will require regular reporting throughout the life of your project.

The reports will help to track the progress of the project as defined in the Statement of Work and its risks. CDIR monitors all projects regularly, including work performance and compliance with the benefits listed in the Contribution Agreement.

CDIR may also audit projects to verify:

• costs claimed during the work phase of the project
• royalties reported during the benefits phase of the project
• compliance with the Lobbying Act and the Impact Assessment Act during negotiations of the Contribution Agreement

Learn more: Reporting requirements: Canadian Defence Industry Resilience Program