Industry Engagement Request – Industrial Benefits Questionnaire

1.0 Purpose

The purpose of the Industry Engagement Request (IER) is to support the Department of National Defence’s evaluation of options to sustain a Canadian Armed Forces fighter capability well into the 21^st century. The evaluation of options, which is anchored in the principles of openness, due diligence and third party oversight, will review and assess all available fighter aircraft and will result in a comprehensive report with the best available information on the capabilities, costs and risks of each option, to support a decision on next steps for a replacement aircraft for Canada’s fleet of CF-18s.

A key element of this evaluation of options is a market analysis; it is a standard tool that is used to determine market price and availability. The market analysis is being led by the National Fighter Procurement Secretariat (NFPS) in collaboration with the Department of National Defence (DND), the Canadian Armed Forces (CAF), Public Works and Government Services Canada (PWGSC) and Industry Canada.

Companies have already been provided with a Capability, Production and Supportability Questionnaire and a Price Questionnaire. This Industrial Benefits Questionnaire seeks information regarding potential industrial benefits to Canada in the context of the evaluation of options exercise. As stated in the Evaluation of Options to Sustain a Canadian Forces Fighter Capability: Terms of Reference, “Industry Canada will contribute its assessment of the associated industry benefits” based on the work being done on the evaluation of options.

In requesting this information, we recognize that industrial benefits can be obtained either through Industrial and Regional Benefits, which is typically applied to defence and security procurements, or through Industrial Participation, which is unique to the Joint Strike Fighter (JSF) Program. This questionnaire is structured to give companies flexibility to provide information on potential benefits to Canadian industry, whether through Industrial and Regional Benefits, Industrial Participation, or both.

2.0 Process

There will be no short listing or pre-qualification of suppliers for the purposes of undertaking any future work as a result of the IER. The IER is neither a call for Tenders nor a Request for Proposal (RFP). No agreement or contract will be entered into with any person or entity based on the IER. The issuance of the IER is not to be considered in any way a commitment by the Government of Canada or as authority to undertake any work, which could be charged to Canada.

3.0 Requested Information

Industry Canada will not assess any specific industrial plans or proposed investments submitted by the companies. The Government of Canada may request detailed information about benefits to Canadian industry in the future.

Companies should identify commercially confidential information at the earliest possible opportunity in the IER process.

4.0 Closing Date

Respondents are requested to provide responses on the Industrial Benefits Questionnaire at any time until the date indicated on the cover letter of this IER. The NFPS reserves the right to accept late responses at its sole discretion. Comments are to be submitted to the Executive Director of the National Fighter Procurement Secretariat:

Rachel Wernick
Executive Director
National Fighter Procurement Secretariat
Public Works and Government Services Canada
Place du Portage, Phase 3, 9C2
Gatineau, Quebec, Canada
K1A 0S5

Industrial Benefits Questionnaire

Background

The Industrial and Regional Benefits Policy ensures that Government of Canada defence and security procurements generate high value-added business activity for Canadian industry. The Industrial and Regional Benefits Policy requires that companies undertake incremental business activities in Canada valued at 100 percent of the value of the defence or security contract they have been awarded by the Government of Canada. The Industrial and Regional Benefits obligation is a contractual commitment and part of the overall government procurement contract. Typically, the Industrial and Regional Benefits Policy would apply to defence and security procurements.

The Industrial and Regional Benefits Policy is managed by Industry Canada, working closely with the Regional Development Agencies. Once the Government of Canada decides on a procurement strategy, a process is triggered whereby bidders seek specific investments and partners to fulfill Industrial and Regional Benefits obligations. To obtain further information about Canada's Industrial and Regional Benefits Policy, including its requirements regarding regional plans, undertaking business activities with Canadian Small and Medium Sized Enterprises, and the recent improvements which were made to the IRB Policy, please visit the Industry Canada website.

For information on Industrial Participation, please refer to the report on Canadian Industrial Participation in the F-35 Joint Strike Fighter Program – December 2012.

Questions

Responses to the following questions will be used to assess your company’s commitment to provide industrial benefits by generating high value-added business activity in Canada and whether your company’s proposed approach to engage industry to pursue potential benefits in Canada is acceptably comprehensive, complete and credible.

The first question seeks information on your company’s willingness to comply with Canada’s Industrial and Regional Benefits Policy as it applies to defence and security procurement.

The second question seeks information on your company’s proposed approach to engage Canadian industry, including (but not limited to): industry days or supplier conferences; consultations with Canada’s Regional Development Agencies and Canadian industry associations, proposals for enhancing partnerships with existing Canadian-based suppliers or affiliates; proposals for establishing new capacity in Canada related to fighter jets or other aerospace and/or defence platforms.

In the event of a fighter aircraft acquisition in which Canada’s Industrial and Regional Benefits Policy were applied, would your company be prepared to fulfill all eligibility requirements of Canada’s Industrial and Regional Benefits Policy including, but not limited to, undertaking high quality and advanced technology business activities in Canada valued at 100 percent of the contract value, submitting regional plans as part of a bid and undertaking business activities with Canadian Small and Medium Sized Enterprises?
a) Please describe your company’s experience in complying with industrial benefit offset programs, either in Canada or in other countries.
b) Based on your experiences in Canada or in other countries, what approach would your company take to pursuing industrial benefits in Canada?