Type of IRB Transactions (Direct and Indirect)
An IRB transaction is the actual business activity between the IRB contractor and the Canadian company. This business activity can take many forms but is usually takes the form of a purchase of a product or a service. IRB contractors can meet their IRB obligations with two classes of business activities: either "Direct" or "Indirect"IRB transactions. Each project may have its own mix of direct and indirect IRB activities, depending on the overall procurement strategy, specific IRB requirements, and what makes business sense to the IRB contractor.
Direct IRB transactions are IRB transactions containing work directly related to the product or service that the federal government is procuring; this could include production of parts or maintenance directly on the Canadian equipment purchase. Work on approved Global Value Chain (GVC) platforms will be considered to meet a direct work requirement, as it offers significant technological opportunities on similar platforms that the IRB contractor is providing to Canada.
Indirect IRB transactions are IRB transactions containing work or investments that are not related to the Canadian purchase. Work within the IRB contractor's other business lines which meet the IRB eligibility criteria, is considered indirect.
Example: an IRB contractor that provides military helicopters to Canada places work in a Canadian company that produces aircraft parts for a commercial program. The IRB contractor is placing work from another business line to support their IRB obligation on the helicopter project.
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