Does your company bid on major defense contracts in Canada? Then consider how Elasto Proxy can help you to strengthen your Value Proposition (VP) under Canada’s Industrial and Technological Benefits Policy (ITB). The ITP Policy is an important part of Canada’s Defence Procurement Strategy and leverages purchases of defense equipment to create jobs, foster innovation, and promote economic growth.

For nearly 35 years, Elasto Proxy has supplied defense contractors with industrial rubber products such as custom seals, gaskets, and thermal and acoustic insulation. There are many small and medium (SMB) businesses in Canada today, but Elasto Proxy is a woman-owned SMB that holds a Controlled Goods Certificate (CBC) and ISO 9001:2015 and AS9100D certifications.

Elasto Proxy is also a long-time member of the Canadian Association of Defence and Security Industries (CADSI) and will work with you to develop an ITP VP that results in the highest possible score. Contact us for more information or keep reading to learn how Canada awards major defense contracts, how ITB VPs are evaluated, and how Elasto Proxy can help strengthen your ITB VP.      

How Canada Awards Major Defense Contacts

Canada’s ITB Policy is part of a judged bidding process that the Government of Canada uses to award large defense contracts. Typically, these contracts are valued at over $100 million; however, the ITB Policy may also apply to contracts starting at $20 million, depending on the nature of the items to procure and national security concerns.

Companies that submit proposals for ITB-eligible awards must provide the Government of Canada with three key pieces of information.

  • a technical submission that is evaluated by the Department of National Defence
  • a financial submission that is evaluated by Public Services and Procurement Canada
  • a VP that is evaluated by Innovation, Science and Economic Development (ISED)

The VP accounts for a minimum of 10% of the overall evaluation score, and the proposal with the highest combined score wins the contract. To create jobs and promote economic growth, the ITB Policy requires the winning company to invest an amount that is equal to the contract back into the Canadian economy. Depending on the size of the contract, this can be especially significant.

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Elasto Proxy makes military gaskets for armored vehicles like the LAV series.

How ITB VPs are Evaluated

ISED evaluates an ITB VP based on the applicant’s ability to demonstrate that it will:

  • support the long-term growth and sustainability of Canada’s defense industry
  • support the growth of prime contractors and suppliers in Canada, including small and medium businesses (SMB)
  • enhance innovation through R&D in Canada
  • increase the export potential and international competitiveness of Canadian-based firms.
  • fill skills and training gaps within the Canadian economy to support a more innovative Canada

To develop a successful ITB VP, prime contractors need a Canadian supply chain with partners that can help them meet these requirements. Elasto Proxy is ready to help and provides the defense industry with sealing and insulation solutions.

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Elasto Proxy is ready to supply sealing and insulation solutions for naval ships and military aircraft.

How Elasto Proxy Can Strengthen Your ITB Value Proposition

Elasto Proxy’s defense industry credentials are backed by our two Canadian locations, skilled workforce, and proven record of innovation. We have consistently invested in research and development (R&D), including the establishment of an in-house laboratory for acoustical and rubber properties testing. Among our product innovations is thermal-acoustic insulation used in military vehicles.

Elasto Proxy can also help you to demonstrate that your ITB VP will increase the export potential and international competitiveness of SMBs. As a global business, we work with Canadian suppliers and export our value-added products to international markets. If your company is bidding on a major defense contract and needs industrial rubber products, let’s talk about how we can help you to develop a winning ITB VP.

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