Elasto Proxy is a woman-owned small business that fabricates and distributes rubber products from our headquarters near Montreal, Quebec. We also maintain a warehouse and distribution facility near Toronto, Ontario. If you’re a defense contractor, Elasto Proxy can help you strengthen your Value Proposition (VP) under Canada’s Industrial and Technical Benefits Policy (ITB).

For 35 years, Elasto Proxy has supplied defense contractors with industrial rubber products such as custom seals, gaskets, and thermal and acoustic insulation in low-to-medium volumes. We hold a Controlled Goods Certificate, are a long-time member of the Canadian Association of Defense and Security Industries (CADSI) and are ISO 9001:2015 and AS9100D certified.

Contact us to improve your ITB/VP or keep reading to learn more.  

Watch this video to see how Elasto Proxy supplies defense contractors with rubber products like seals, gaskets, and insulation.

How Canada Awards Major Defense Contacts

Canada’s ITB Policy is part of a judged bidding process that’s used to award large defense contracts. Most of these contracts are valued at over $100 million, but 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 pieces of information: a technical submission, a financial submission, and a value proposition.

  • The Department of National Defence evaluates the technical submission.
  • Public Services and Procurement Canada evaluate the financial submission.
  • Innovation, Science and Economic Development (ISED) evaluates the value proposition.

The Prime Contractor is responsible for meeting ITB/VP requirements.

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

Understanding Canada’s ITB/VP and Multipliers

The ITB’s Value Proposition accounts for a minimum of 10% of a bid’s overall evaluation score. Bidders compete not just on technical merit and price, but on their commitment to undertake work in Canada. Under the ITB Policy, an awardee must invest an amount that’s equal to the value of the contract in Canada.

Importantly, some research and development (R&D) investments are subject to multipliers. The amount of the multiplier depends on the type of investment and can range from a multiplier of five to a multiplier of nine. For example, an investment of $100,000 with a small or medium business (SMB) like Elasto Proxy may receive a credit of $500,000 towards a prime contractor’s ITBVP obligation. 

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Elasto Proxy's first project was for Canadian naval vessels.

Partnering with a Woman-Owned SMB Strengthens Your ITB/VP

Canada’s ITB Policy defines an SMB as a Canadian company with fewer than 250 full-time personnel. Elasto Proxy meets this definition of an SMB, but so do 90% of the companies in Canada’s defense supply chain. As a woman-owned SMB, however, Elasto Proxy can also help you to meet gender and diversity requirements under the ITB/VP.

Beginning in 2018, ISED added a new requirement to the ITB/VP: the Gender and Diversity Plan. Today, bidders must describe their approach to achieving general balance and increasing diversity within their Canadian supply chains. ISED describes Gender and Diversity Plans as “mandatory to ensure bid completeness.”  

Elasto Proxy is a long-time CADSI member and has been a regular attendee and exhibitor at CANSEC, including this year’s event.

Contact Elasto Proxy About New Bids and Existing Contracts

Elasto Proxy can help you strengthen your ITB/VP for new bids, and we can also help you to meet your current obligations on defense contracts. Examples of the industrial rubber products that we’ve supplied for military projects include:   

  • Rubber seals for vehicle doors, windows, and hatches
  • Military gaskets for generator sets and other equipment
  • Vibration mounts for sensitive electronic displays
  • Personal protection pads for confined spaces such as tanks
  • Thermal and acoustic insulation for engine compartments and cabs
  • Specialty seals for engine exhaust and amphibious equipment
  • Parts for partitions and push-button tents

Elasto Proxy has consistently invested in R&D, including the establishment of an in-house laboratory for acoustical and rubber properties testing. Talk to our team to more.

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