ITB links defence procurement to economic activity in Canada.
Under the ITB framework, companies awarded covered defence or Canadian Coast Guard contracts undertake business activity in Canada equal to the value of the contract. That creates openings for Canadian suppliers, researchers, manufacturers, technology companies, and strategic partners.
Procurement-driven
This is not a standard grant. It is tied to defence procurement and contract obligations.
Market-driven
The source materials repeatedly describe the policy and VP as evidence-based and market-driven.
Regional impact
The framework is designed to create jobs, growth, and regional distribution of work across Canada.
Supplier-facing opportunity
Canadian firms can benefit by becoming useful to primes and obligors.
Defines technical requirements and specifications for what Canada is procuring.
ISED
Administers the ITB policy, engages industry, helps evaluate bids, and monitors contract progress.
PSPC
Acts as the contracting authority and manages stakeholder engagement plus evaluation activity.
When the policy generally applies
Eligible defence and Canadian Coast Guard procurements over $100 million
Procurements where the National Security Exception is invoked
Some eligible defence procurements in the $20 million to $100 million range are reviewed for possible application
Why Canadian companies should care
Primes need credible Canadian business activity and Canadian partners
Value proposition scoring creates demand for aligned suppliers and transactions
ITB fulfillment creates post-award opportunities, not just bid-stage opportunities
Need help understanding where your company fits?
We can help determine whether your strongest path is prime support before award, ITB fulfillment after award, or a longer-term supplier-readiness strategy.
Frequently asked questions
What does the ITB policy require?
A company awarded an eligible defence or coast guard procurement must carry out business activity in Canada equal to the value of the contract it is awarded.
Who administers the ITB policy?
Innovation, Science and Economic Development Canada administers the policy and verifies that obligations are met, working alongside Public Services and Procurement Canada on the procurement itself.
Is the value proposition scored in the bid?
Yes. On applicable procurements, bidders submit a value proposition that is rated as part of the evaluation, which is why the commitments made to Canadian suppliers are decided before award.
What happens if an obligation is not met?
Obligations are contractual and carry financial consequences. Primes therefore track their commitments closely and expect suppliers to be able to document Canadian content.