Introduction and Procurement Approach
Public Works and Government Services Canada (PWGSC) is issuing this Call for Proposals (CFP) on behalf of Innovation, Science and Economic Development Canada’s (ISED) Innovative Solutions Canada (ISC) program and participating departments, seeking to purchase innovative solutions to address a wide range of challenges facing federal departments and agencies. The purpose of this CFP is to create various pools of potential solutions that Canada may select from to address the challenges. Pools created as a result of this CFP can be utilized by any participating department.
This CFP will be published on an ongoing basis for PWGSC to post departments’ challenges. Details related to each challenge, including entry phase, estimated number of contracts, maximum contract value, contract duration, the specific challenge closing date, and the essential and additional outcomes (if applicable) that the innovation must meet as long as it remains in the challenge stream, will be published under distinct Challenge Notices on the CanadaBuys website, which will form part of this CFP solicitation.
1.1 Innovative Solutions Canada Program Overview
There are three components to the ISC program – the Challenge Stream, the Testing Stream and the Pathway to Commercialization. This CFP addresses entry and advancement through the Challenge Stream whereby solutions may later have the option of exiting the Challenge Stream for advancement into the Testing Stream. It also addresses entry to the Pathway to Commercialization.
The Challenge Stream is designed to support the development of pre-commercial innovations by Small Businesses, with possible progression along a Technology Readiness (TRL) maturity scale.
Entry into the Challenge Stream may occur at Phase 1 or at Phase 2, as specified in the individual Challenge Notices. Solutions may progress from entry TRL to a level which can be used by departments to solve the specific Challenge and be used in government operations.
Challenge notices will specify the phases for which proposals can be submitted as set out in section 1.2.1.
1.2.1 Challenge Stream Entry
1.2.1.1 Entry at Phase 1: Proof of Feasibility
Offerors with an innovation at TRL 1-4 may apply to enter the program at Phase 1. The objective of Phase 1 is for selected Offerors to conduct research and development (R&D) on their proposed solutions and deliver a proof of feasibility to Canada.
Offerors are encouraged to progress their solutions as far as possible on the TRL scale during Phase 1.
Offerors that demonstrate feasibility of their solution to the satisfaction of the sponsoring department upon completion of Phase 1 may be invited to submit a proposal for the Phase 2 outlined in section 1.2.2.1. Advancement to Phase 2 is not guaranteed. It is at the sole discretion of Canada to proceed with Phase 2.
OR
1.2.1.2 Entry at Phase 2: Prototype Development
Offerors with an innovation at TRL 5-9 may apply to enter directly into Phase 2, if specified in the Challenge Notice. The objective of Phase 2 is to conduct R&D on the proposed solution with the goal of developing, testing and delivering a prototype to Canada addressing the Challenge. Offerors enter into Phase 2 at TRL 5 to 9.
Offerors are encouraged to progress their solutions as far as possible on the TRL scale during Phase 2.
1.2.2 Advancement of Research and Development Activities
1.2.2.1 Invitation to Advance to Phase 2: Prototype Development
The objective of Phase 2 is to continue the R&D efforts of the proposed solution from Phase 1 with the goal of developing, testing and delivering a prototype to Canada for the selected Challenge.
Small Businesses that have completed their Phase 1 contract and where the innovation remains of interest to Canada may receive an invitation, by way of a request for documentation, to advance to Phase 2 at the sole discretion of Canada. There is no minimum TRL level for a Phase 1 innovation to advance to Phase 2.
Small businesses should not have any expectations of being invited to advance to Phase 2. In other words, there is no guarantee of participation in Phase 2. Canada will not provide justifications to small businesses as to why an innovation was not selected to participate in Phase 2.
1.2.2.2 Advancement into Testing Stream: Prototype Testing
The objective of the Testing Stream is to procure, test and evaluate R&D pre-commercial goods and services in late-stage development (TRL 7 to 9), as defined on the ISC website here - https://www.ic.gc.ca/eic/site/101.nsf/eng/00077.html. Canada may purchase multiple quantities of prototypes, test them and provide valuable feedback. In some cases, departments that originally sponsored the challenge may decide not to move forward with further research and development, however, small businesses may be matched with another Government of Canada Organization under the Testing Stream.
Small businesses should not have any expectations of being offered the opportunity to submit a proposal. In other words, there is no guarantee of participation in Testing Stream: Prototype Testing. Canada will not provide justifications to Suppliers as to why an innovation was not selected to submit a proposal for Testing Stream: Prototype Testing.
1.2.2.3 Pathway to Commercialization
The Pathway to Commercialization (PTC) component is an opportunity for companies that have a market-ready innovation developed under the ISC program to sell that innovation to the Government of Canada. The PTC includes a list that departments may consult as options to meet their requirements.
Eligible Small Businesses who demonstrate successful completion of a Phase 2 or Testing Stream Contract may be eligible to submit a proposal for the Pathway to Commercialization. To be placed on the PTC List, Eligible Small Businesses will be required to, demonstrate how their innovation continues to meet their respective ISC requirements and provide a realistic commercialization plan. Should a Offeror qualify, the Small Business certification will be thoroughly re-validated prior to the contract award process. The innovation inclusion onto the PTC List will remain active for a period of up to three years after notice of qualification. Canada has no obligation to procure from this list and will determine the procurement strategy for each potential contract.
Who Can Submit a Proposal for Challenge Stream Entry
Offerors must certify program eligibility as part of their proposal. Selected Offerors must also re-certify eligibility before contract award. Re-certification may be required at any phase under the ISC program. Eligibility criteria must be met, or contracts may be terminated if a business fails to meet eligibility criteria during the contract period.
Offerors must meet all the following eligibility criteria:
for profit
incorporated in Canada (federally or provincially)
499 or fewer full-time equivalent (FTE) employees*
research and development activities that take place in Canada
50% or more of its annual wages, salaries and fees are currently paid to employees and contractors who spend the majority of their time working in Canada*
50% or more of its FTE employees have Canada as their ordinary place of work*
50% or more of its senior executives (Vice President and above) have Canada as their principal residence*
* Calculations must consider and include affiliated businesses, such as parent companies and subsidiaries that are either in or outside of Canada.
Under the Innovative Solutions Canada program, an "affiliate" relationship exists in the following situations:
An affiliate is a corporation that is a subsidiary of another corporation;
If a corporation has two subsidiary corporations, the two subsidiaries are affiliates of each other; or
If two corporations are controlled by the same individual or business, the two corporations are also affiliates of each other.
A subsidiary is understood to be a business which has more than 50% of its ordinary shares or voting power owned by another business or individual.
Challenges:
Federal departments and agencies may post challenges that use either procurement contracts or grants as financial instruments to support R&D in Phases 1 and 2. This notice pertains to procurement contracts. For information on open challenges funded by contracts, please see the ISC website: http://www.ic.gc.ca/eic/site/101.nsf/eng/h_00000.html
NEW: There are no open challenges at the moment
