New Approach: Enhanced Priority Technology List

Previous Approach

Contractors were currently not required to invest a minimum percentage of their Industrial and Regional Benefits (IRB) obligations into medium and/or long term emerging critical technology needs of the Department of National Defence (DND).

Why change?

Innovation, Science and Economic Development Canada (IC) desires to better align the IRB Policy with the emerging critical technology needs of DND. The addition of a more focused technology list will provide important information to industry regarding the future needs of the military, thereby encouraging the development of Canadian advanced technologies in the aerospace and defence sector. The new list also demonstrates a more coordinated approach to defence industrial development across government departments and reflects a willingness to work together to seek technology-focused outcomes. Lastly, the change may enhance export opportunities for Canadian advanced technology firms, as the requirements for allied defence procurements become harmonized along specific defence platforms.

New Approach

IC is introducing a new Enhanced Priority Technology List (EPTL), which contains the emerging and transformational technologies needed by DND over the long term.

Contractors are required to align a minimum of five (5) percent of the value of their IRB activities with technologies and services associated with the EPTL. In this way, the IRB Policy will help leverage Canadian industry's capacity to develop transformational technologies and services that meet the long-term requirements of DND.

The EPTL has been developed by DND and captures critical technologies across all key platforms (i.e., Air, Land, and Marine). In order to ensure consistent application, the EPTL will apply to all defence and security procurements that are subject to the IRB Policy. In addition, the EPTL will be "evergreen"–updated on a regular basis by DND as its critical technology needs evolve over the years.

Although DND has developed the EPTL, IC will be fully responsible for administering it within the IRB Policy. As a result, IC will be the only point of contact for industry for information and guidance on the contents of the EPTL. IC will also be responsible for assessing and deciding on the eligibility of all proposed IRB activities related to the EPTL. As needed, IC will consult with DND and other stakeholders for technical advice and support.

All proposed EPTL activities must meet all IRB eligibility criteria as well as be assessed against various technical criteria, such as: relevance to the EPTL, and the unique and cutting-edge nature of the technology.

The new approach will work as follows:

  1. As part of all new IRB obligations, the Request For Proposal (RFP) and contract terms and conditions will indicate that a minimum of five (5) percent of the value of IRB activities, over the life of the contract, must be associated with technologies identified on the EPTL.
  2. Contractors develop proposed EPTL transactions and submit them to IC. Following contract award, IC is available to meet with the Contractor to provide information and guidance on the EPTL-related requirement.
  3. IC will review all proposed transactions and make a decision on IRB eligibility. IC will consult with DND and other defence technology stakeholders, as required. As with all IRB activities, annual reporting and verification are required before IRB credits are formally confirmed.

Version Control of the Technology List

The EPTL provided by DND is expected to be reviewed regularly and, as a result, is subject to change with the evolving technology needs of DND. For any new procurement, the most up-to-date version of the EPTL will be applied at the time of release of the IRB requirements. Each version of the EPTL will be identified by a version number and date, and will remain applicable for the duration of the procurement process. A change to a more recent EPTL would only be considered after contract award.

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