The Industrial and Technological Benefits Policy

Backgrounder

Originally known as the Industrial and Regional Benefits (IRB) Policy, the Industrial and Technological Benefits (ITB) Policy was launched in 2014. The ITB Policy requires companies that are awarded defence procurement contracts to undertake business activity in Canada equal to the value of the contract. The Policy applies to all eligible defence procurements with a value over $100 million.

The ITB Policy includes a Value Proposition. This is the economic commitment that bidders make to Canada up front at bid time, which is a scored and weighted factor in winner selection and becomes a contractual commitment for the winning bidder. Value Proposition requirements are tailored to each procurement to allow the government to steer investments and take advantage of the unique economic opportunities offered by each project.

The portfolio of IRB and ITB obligations includes 137 contracts valued at over $40 billion:

  • Over $37 billion in activity has been invested or is currently under way.
  • There is nearly $3.8 billion in future work opportunities.

Between 2011 and 2015, the ITB Policy resulted in $1.75 billion being invested in 375 small and medium-sized enterprises (SME). These investments helped embed these SMEs into supply chains with long-term growth opportunities.

During the same time frame, the policy supported research and development at 45 Canadian post-secondary and research institutions at a value of $82 million. Innovation investments create commercialization opportunities across sectors. The policy investments helped to maintain or create 39,000 jobs annually across Canada.

Contractors are required to report on fulfilling their obligations, and this progress is published at www.ic.gc.ca/ITB. The departmental report shows the progress toward meeting obligations in a manner that respects commercial confidentiality. The report ensures that Canadians are more informed on the impact of the policy. This also allows Canadian-based companies to more easily identify and engage prime contractors who are still exploring partnerships and potential investments in Canada to fulfil their obligations.


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