Industrial and Technological Benefits

What are Industrial and Technological Benefits (ITBs)?

The Government of Canada's Industrial and Technological Benefits (ITB) policy was established to promote significant 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 will be expected to involve small and medium-sized enterprises (SMEs) in fulfilling generally 15 percent of their ITB obligation and may be incented to exceed this floor.

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 undertaken by the contractor 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?

Innovation, Science and Economic Development Canada is responsible for the administration of the ITB policy, and FedDev Ontario has an important role supporting and promoting opportunities associated with this policy. 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
  • Support the design and development of procurement strategies and the evaluation of bid proposals.


Contact us should you have questions or inquiries about FedDev Ontario's role in Industrial and Technological Benefits in support of southern Ontario.

Senior Manager Harold Deck (613) 325-3484
Christine McKnight (613) 697-5726
Craig McClelland (519) 404-6429
Ken McConnell (613) 791-0912

For more information on the Government of Canada’s vision and approach to defence, please see Strong, Secure, Engaged: Canada's Defence Policy.

Information on Government of Canada tenders, including those related to defence procurements, can be found on

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