Eligibility requirements

Below are the eligibility requirements of the Canadian Defence Industry Resilience (CDIR) program. If your project appears to meet the eligibility requirements, please send an email to CDIR-RIDC@forces.gc.ca to obtain more information or request a consultation.

Eligible recipients

Eligible recipients to be considered for funding through the CDIR include:

• corporations incorporated pursuant to the laws of Canada proposing to carry on business in Canada
• a general or limited partnership established pursuant to the laws of Canada proposing to carry on business in Canada

Eligible activities

Funding will be considered for the following eligible activities if the proposed project directly contributes to the CDIR objectives:

• enhance existing and introduce new production capabilities
• maintain Canadian companies as centres of excellence for defence goods
• support activities such as:
  • supply chain improvements 
  • increased Canadianization
  • maintaining surge capacity
  • sustaining production readiness
  • new capabilities design and construction (equipment and infrastructure) 
  • existing capability sustainment / site modernizations (equipment and infrastructure) 
  • centre of excellence maintenance / workforce retention 
  • introduction of existing defence goods designs into the domestic industry
  • advanced development and commercialization (industry intellectual property) 
  • federal/provincial policy driven improvements 
  • readiness to produce program (industry owned)
• increase Canadian content in existing supply chains
• build and consolidate Canadian expertise such as expertise that may reside in other government departments, academia, industry, etc.
• design, engineering, or other developmental and planning work in support of the above activities or to further develop a proposal
• increase the availability of domestic sources of key materials, supplies, and minerals in production through expanded production, refinement, extraction or other related activities

Eligible expenditures

Eligible expenditures are those incurred by the recipient and which are necessary and reasonable to carry out the eligible activities. Eligible expenditures will be limited to non-recurring costs that are specifically related to the project:

• direct labour
• subcontracts and consultants
• direct materials and equipment
• corporate overhead costs 
  • the maximum amount of eligible costs which can be dedicated to overhead is set at 30%
• legal, accounting and consulting fees in connection with obtaining patents or other statutory protection for project intellectual property
• other incremental costs directly related to the project and the objectives defined in the contribution agreement:
  • travel costs in alignment with the National Joint Council Travel Directive 
  • web hosting and other telecommunications and IT services
  • training for project-specific skills
  • intellectual property legal costs
  • construction equipment
• land, buildings and infrastructure
• the costs of obtaining licenses or intellectual property necessary for the successful completion of the project

Additional eligibility requirements

1. Eligible recipients will first be required to demonstrate that proposed projects meet the program objectives by submitting a high-level overview of the project.

2. Projects must align with Government of Canada priorities, including the Buy Canada Policy, to maximize domestic content and strengthen Canadian supply chains.

3. Applicants must demonstrate corporate capability to complete the project.

4. Applicants must currently or plan to hold all the necessary intellectual property (IP) rights for the successful execution of your project.

5. The applicant must be willing to enter into a Contribution Agreement with the Government of Canada for the benefit of Canadians.

6. The recipient must incorporate processes to ensure Canadian suppliers are provided a full and fair opportunity to compete for work related to the project. This includes Canadian suppliers, materials, and content to the extent that they are available and competitive. 

7. The recipient must provide Canada with annual reports demonstrating the extent to which Canadian content is incorporated, including rational for using non-Canadian content where it is applied.

8. The recipient must adhere to Buy Canada policy’s expected results and indicators. Expected results of the policy include strengthening participation of Canadian suppliers in strategic sectors, increasing the use of Canadian steel, aluminum, and work products (minerals), and increasing the integration of Canadian content.  

Other goods and services to consider for Buy Canada requirements include: 

• Canadian industries and supply chains, including steel made using domestic raw materials, Canadian-certified softwood lumber, and engineered wood 
• Canadian skilled labour, including domestic trade professionals 
• Canadian professional services, such as Canadian payroll services, Canadian resident project leads, Canadian small-medium enterprises (e.g. digital, engineering, and design services) 
• Canadian research and development 

For additional information on how to apply, go to Application process.