Industrial and Technological Benefits (ITB)
What are Industrial and Technological Benefits (ITBs)?
As part of the Government of Canada's Defence Procurement Strategy, the Industrial and Technological Benefits (ITB) policy was established to promote business opportunities for Canadian industry through federal defence and security procurement projects.
Based on the policy, companies awarded a defence and security procurement contract are obligated to undertake business activities in Canada equal to 100 percent of the value of the contract.
What opportunities are available for small- and medium-sized enterprises?
Defence Contractors that secure contracts with the Government of Canada are required to involve Canadian small- and medium-sized enterprises (SMEs) in carrying out generally 15 percent of their ITB obligation.
SMEs can benefit in several ways, including through:
- Direct opportunities, which include business activities undertaken by the contractor and its suppliers in Canada that directly relate to the equipment or service being procured by Canada.
- Indirect opportunities, which involve business activities related to the contractor's product or business lines, but not directly related to the equipment or service being procured by Canada. These activities may include the purchase of goods and services from suppliers, investments in R&D, technology transfer, supplier development and other eligible activities.
How does FedDev Ontario support ITB opportunities?
Industry Canada is responsible for the administration of the ITB policy, and the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) has an important role in leveraging this opportunity for economic growth. In particular, FedDev Ontario works with other government and industry partners to:
- Identify opportunities for businesses in the aerospace and defence industry;
- Promote the region's industrial and technological capabilities to defence contractors;
- Broker connections between defence contractors and southern Ontario businesses; and
- Promote the economic interests of southern Ontario in the development and implementation of the ITB policy, including the design of procurement strategies and the evaluation of bid proposals.
Contact FedDev Ontario for more information.
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