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Defence procurement strategy - Value Proposition - Medium Range Radar


Army.ca Veteran
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Thought I'd share this for anyone else that found out they have to apply the 'Value Proposition' to their project.  This is the update to the old IRBs that they have renamed 'Industrial and Technological Benefits' (ITBs).  The project I started working on (Hfx DG replacement) got tagged with it, and took us a while to find this info.

If you want an example of the contract clauses, they are available on the MRR contract on buy and sell;


The Industry Canada site on this is here

All the ITB stuff is in the zip files near the bottom, but some of it is also in the main contract in bits and pieces.

Keep in mind this is new, and the interim process while it's in development, so there are some errors/inconsistencies due to the time crunch they were under to add it in.  Also, the IC folks were supposed to have six months to figure this out prior to it being implemented, and it got put in place effective immediately, so they are doing their best.

Big changes seem to be;

-ITB is now included in the weighting of the bid proposal; MRR is 10% of total (possibly the standard?)
-this is further broken down into extra points for additional Canadian content above the minimum, and also doing the paperwork to detail how they will meet the ITB requirements they commit to

-this may be similar to the IRBs, but they also have to report during the contract on acheivement.  After a year I think they need a plan to meet 60%, and after three years it's 100%.  There are some clauses on the impact of not meeting those commitments and some financial penalties, but they vary between the acquisition and ISS portions for this specific case

-for meeting the Canadian content, depending on the activity, there are multipliers.  For example, for an approved R&D activity, that value is multiplied by nine.

Looks like it is mostly a bureaucratic exercise, and there really shouldn't be a huge issue to meet the requirements if you use some imagination and the multiplication factors, but I think ultimately the costs will get passed on to DND.  So seeing as they aren't funding us to a reasonable level for sustainment, and this will also cause a number of delays in getting stuff on the street as well as scare away some bidders, think the money would be better spent by the government in simply directly investing in Canadian industry.  Just my  :2c:

Anyway, full policy is still in development, so expect to see some changes as they learn from the interim application and get industry feedback, but not really any getting around it.  Best advice I could give is talk to IC and read the MRR contract.  Biggest thing I can see that needs to get sorted is the clauses relating to any ITB affecting payment/damages, as they aren't yet consistent throughout the contract.  Understandable given their deadlines.