Glossary of terms


Older IRB contracts may contain definitions and wording that are different than what is outlined below. In all cases, the wording in an IRB contract takes precedence.

  • Advance Contract Award Notice (ACAN)—An ACAN is a notice issued by the government indicating to industry that it intends to award a contract to a pre-identified contractor. During the posting period, which usually lasts for no less than 15 calendar days, other potential suppliers can submit a statement indicating how they could fulfill the contract requirements set out in the ACAN. If no supplier can demonstrate that they meet the requirements, the contract may then be awarded to the pre-identified contractor and the government will have met the competitive requirement of its contracting policy. (Préavis d'adjudication de contrat (PAC))
  • Canadian Content Value (CCV)CCVis that portion of the selling price of a product or service that includes Canadian labour and materials. CCV does not include product components that were imported into Canada. For the purposes of IRB valuation, only the CCV of a particular work package is counted toward the completion of an IRB obligation. (Valeur du contenu canadien (VCC))
  • Causality—An eligibility criteria of the IRB Policy which stipulates that a proposed work package or "IRB Transaction" was brought about due, in part, to the IRB obligation in Canada. (Causalité)
  • Consortium/Consortia—A public-private partnership established by the IRB contractor with the intent of undertaking activities in Canada related to research and development. (Consortium)
  • Controlled Goods Certification—The Controlled Goods Program is administered by Public Works and Government Services Canada and is Canada's domestic industrial security program. It is designed to strengthen Canada's defence trade controls. (Certification de marchandises contrôlées)
  • Direct IRB Transactions—Direct IRB Transactions are business activities, such as investments or the purchase of goods and services, undertaken by the IRB contractor in Canada that directly relate to the equipment or service being procured by Canada. It may also include direct global value chain work on strategic international fleets. (Transactions de RIR directes)
  • Eligible Parties—The provider of the IRB, and consists of: the contractor, its parent corporation, and all the parent’s subsidiaries, divisions and subdivisions; and Tier One suppliers related to the performance of the Work under the contract, their parent corporations and all the parents’ subsidiaries, divisions and subdivisions. For proposed Eligible Parties that are Canadian Companies with less than 500 employees, Contractors must clearly demonstrate that the Canadian Company has the capacity to undertake IRB Obligations. (Parties admissibles)
  • Foreign Military Sales (FMS)FMS is a method of procurement wherein governments and international agencies procure defence-related articles and services from the United States of America on a government-to-government basis. (Ventes militaires étrangères (VME))
  • Global Value Chain (GVC)—In the IRB context GVC represents work performed on a platform that is similar to the platform being proposed for a particular project, has a market potential (measured by market size and longevity) equal to or greater than the platform proposed for the particular project, and offers significant opportunities for technological advancement, growth in the level of system integration, small and medium-sized business participation, etc. This work may also have potential large-scale and sustainable acquisition and/or sustainment opportunities. (Chaîne de valeur mondiale (CVM))
  • Import Replacement—The production or manufacture of a good or the provision of a service in Canada that was formerly manufactured or provided from an off-shore source of supply. (Remplacement des importations)
  • Incrementality—Incrementality applies to IRB Transactions for the purchase of goods or services from a Canadian company that is currently supplying similar goods or services to the IRB contractor. This criterion allows the IRB contractor to claim the growth in the business that a Canadian company will receive as a result of the IRB contractor's commitments. The principle of causality would still have to be met for any transactions that apply the incrementality criteria. (Effet d'accroissement)
  • Indirect IRB Transactions—Indirect IRB Transactions are business activities such as the purchase of goods and services related to the contractor's product or business lines but not directly related to the equipment or services being procured by Canada. (Transactions de RIR indirectes)
  • Industrial and Regional Benefit (IRB) Transaction—A transaction is the business activity between the IRB contractor and a Canadian recipient. It can be carried out by means of a contract, including any purchase order, sales agreement, license agreement, letter of agreement or other similar instrument in writing, that has an identified dollar value, meets the IRB eligibility criteria set forth in the specific procurement contract and has been approved by the IRB Authority. (Transactions de retombées industrielles et régionales (RIR))
  • Industry Days—Organized by the Government of Canada, an industry day provides an opportunity for the federal government to present information on an upcoming procurement to industry. (Journées de l'industrie)
  • IRB Annual Report—The IRB Annual report is submitted by the IRB contractor to Innovation, Science and Economic Development Canada on an yearly basis and provides details of the progress of their IRB plan and related activities. The IRB contractor makes an official claim for IRB credit in this report. Once the report is reviewed and verified by Innovation, Science and Economic Development Canada, the IRB contractor is informed of the status of their obligation. (Rapport annuel sur les RIR)
  • IRB Authority—The Minister of Industry or any other person designated by the Minister of Industry to act on the Minister's behalf. The IRB Authority is responsible for evaluating, accepting, monitoring, verifying and crediting IRB, and for assessing the contractor's IRB performance. (Autorité en matière de RIR)
  • IRB Contractor—Prime Contractor—IRB obligor— The IRB contractor is the company that holds contractual responsibility for delivering the IRB obligation to Canada. (Entrepreneur des RIR — Maître d'œuvre — Obligé de RIR)
  • IRB Recipients—An IRB Recipient is the Canadian entity that receives the business activity from the IRB contractor outlined in the IRB Transaction. (Récipiendaires des RIR)
  • Letter of Interest (LOI)—A LOI or Request for Information (RFI) is used by the government early in a procurement process to communicate with industry about its intentions and to solicit feedback. (Lettre d'intérêt (LI))
  • Major Crown Project—A Major Crown Project is a procurement that is valued at more than $100 million and which is of high risk and complexity, as determined by Treasury Board policy(Grand projet de l'État)
  • MERX—MERX is Canada's public tendering website service. Other pre-solicitation documents (Letter of Interest, Solicitation of Interest and Qualification, Request for Information and Request for Proposals) are also posted on this site. More information can be found at
  • Performance Guarantees—Performance guarantees are contractual instruments in the contract to penalize an IRB contractor if they do meet their IRB commitments. These penalties may take the form of payment holdbacks and/or liquidated damages. (Garantie d'exécution)
  • Small and Medium Business (SMB)—For the purposes of the IRB Policy, a SMB means a Canadian-based, independently-owned and operated manufacturer or service company with fewer than 250 full-time personnel as of the date of entering into an IRB Transaction. (Agents and distributors of foreign goods and services, as well as subsidiaries of firms that are Contractors or Eligible Parties on any IRB contract, do not qualify as SMB.) (Petite et moyenne entreprise)
  • Solicitation of Interest and Qualification (SOIQ)—An SOIQ is issued by the federal government to invite potential suppliers to indicate their interest and demonstrate their ability to meet mandatory, high-level performance criteria. If more than one potential supplier meets the mandatory criteria, a formal Request for Proposal will be issued. (Demande d'expression d'intérêt et de qualification (DEIQ))
  • Timing—IRB work must be completed within the IRB period, which begins after the first official documentation that is released to industry, such as an Letter of Interest or Request For Proposal and usually ends with final delivery. However, depending on the project, the IRB period may extend past the final delivery date. The IRB period is defined through the overall procurement contract period. (Calendrier)
  • Verification—The IRB contractor must submit annual IRB reports detailing which IRB commitments have been achieved. IRB officials will then verify that the information in the reports is complete and accurate. There are several verification methods, including correspondence, telephone enquiries and site visits. Credit for IRB activities is only granted to IRB contractors once Innovation, Science and Economic Development Canada has completed the verification. (Vérification)
  • World Product Mandate—A long term supplier relationship between the IRB contractor or an Eligible Party and a Canadian company whereby the Canadian company has been legally authorized to carry out and has sole responsibility for specific activities including the design, development, intellectual property, manufacture and marketing related to the supply of products, components, modules or services destined for the domestic and world markets. (Exclusivité mondiale)
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