The Honourable Lynne Yelich, Minister of State for Western Economic Diversification, is attending the Abbotsford International Airshow today to meet with industry leaders and demonstrate the Government of Canada’s continued support for western Canada’s aerospace and defence sector.
“This event provides a valuable opportunity for representatives from the Western Canadian aerospace industry to build on their recent successes at the Farnborough International Airshow,” said Minister Yelich. “Our government recognizes the tremendous potential of the aerospace industry and is proud to play a leadership role in facilitating new growth opportunities.”
Western Economic Diversification Canada (WD) provided $13,000 to support the Industrial Regional Benefits (IRB) Bootcamp that took place prior to the Airshow. The Bootcamp provided an opportunity to educate western Canadian small- and medium-sized enterprises on the IRB policy and how best to engage Prime Contractors involved in IRBs.
Western Economic Diversification Canada is committed to advocating on behalf of western Canadian industry in the development and application of the federal procurement and Industrial and Regional Benefits policy. WD is also a business facilitator, partnering with, and promoting western Canadian firms and organizations to Prime Contractors that have IRB obligations.
For additional information contact:
Jerra Byrne
Office of the Minister
Western Economic Diversification Canada
Jerra.Byrne@wd-deo.gc.ca
WD Toll-Free Number:1-888-338-WEST (9378)
Teletypewriter (TTY): 1-877-303-3388
WD Website: www.wd-deo.gc.ca.
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Industrial Regional Benefits (IRBs)
The IRB Policy provides the framework for using federal defence procurement to leverage long-term industrial and regional development within Canada. It was created in 1986 to ensure that Canadian companies can derive benefits from procurements, such as new business or investments in new technologies.
Under the IRB Policy, winning contractors are required to make investments in advanced technology sectors of the Canadian economy in an amount equal to the contract value. The investments can either be directly related to the procured item, or indirectly related to it. IRBs are the Canadian version of industrial participation, practiced around the world by over 100 countries.
Industry Canada is responsible for the administration of the IRB Policy, with the assistance of the Regional Development Agencies. Within the Industrial and Regional Benefits Directorate, there is a group of experienced IRB managers who are available to help and answer questions.
IRB Objectives
A key objective of Government of Canada procurement is to ensure that the right goods and services are purchased at the best possible price for the taxpayer. Sometimes, Canadian firms meet the procurement requirements and provide significant Canadian content in their goods or services. Other times, global firms provide goods and services that combine high-value Canadian content with world-class items sourced outside of Canada.
The IRB Policy does not dictate where the goods and services are purchased. Instead, it allows for the best available balance between quality and value for money, while ensuring that an equivalent amount of high-value economic stimulus is injected into the Canadian economy. IRBs help ensure that the Canadian economy in all regions benefits from procurement, regardless of the final outcome of the procurement process and which company wins the contract.
The IRB Policy strongly encourages prime contractors to select their Canadian partners based on what makes the best business sense, with the goal of generating long-term, sustainable business relationships in Canada. These strategic relationships stimulate the Canadian economy while helping to ensure a more competitive Canadian industry. The long-term focus of the IRB Policy provides Canadian companies with an opportunity to develop and apply their own strengths and competitive solutions and to take advantage of real business opportunities that will last years beyond the initial IRB commitment.
IRB Requirements
During the bidding process for a project with IRB requirements, bidders must submit an IRB proposal as part of their overall bid. The IRB proposal is a specific plan that outlines how the bidder plans to engage with Canadian companies over the life of the contract. The IRB proposal responds to several key requirements, such as providing plans for regional and small business participation, along with specifically identifying business activities being proposed. A team led by Industry Canada evaluates each IRB proposal to determine whether it satisfies the requirements of the IRB Policy.
The IRB Policy recognizes both "direct" and "indirect" types of business activities. Direct IRB are goods, services or investments that relate to the item being procured by Canada under the contract and direct global value chain work on strategic international fleets. Indirect IRB are goods, services or investments related to the contractor's other product or business lines or other approved investments that meet the established eligibility criteria. Both are measured for their Canadian content value (i.e., Canadian labour, goods and services).
The Government of Canada does not force winning bidders to do business with specific Canadian companies. The government asks them to identify and undertake high-value business opportunities in Canada that make good business sense to all parties involved.
Sustainable, Long-Term Benefits
The IRB Policy benefits the Canadian economy by:
- securing major investments in the Canadian economy
- providing the incentive for global prime contractors to partner with leading Canadian companies
- increasing Canadian industrial competitiveness, through improved market access of advanced-technology sectors
- facilitating the entry of Canadian firms in the global supply chains of major international corporations
- developing and maintaining a capacity in Canada to deliver long-term equipment support to the Canadian Forces and other clients around the world
- promoting growth of Canada's small and medium-sized enterprises and the development of regional industrial capacity
For more information on Canada's IRB Policy, a description of ongoing and future federal procurements subject to the IRB Policy, and the phase-in plan for the enhancements to the IRB policy, please visit the IRB website.
