What is the IRB Policy?
The IRB Policy ensures that Government of Canada defence and security procurements generate high value-added business activity for Canadian industry. The IRB Policy requires companies undertake 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 IRB obligation is a contractual commitment and part of the overall government procurement contract.
Company "A" wins a $200-million contract with the Government of Canada to provide radar systems to the Department of National Defence. Company "A" is then obligated to invest $200 million in Canadian business activities over a specified period of time (e.g., it must buy goods and services from Canadian companies).
The IRB Policy is a market-driven policy that ensures that companies with IRB obligations (IRB Contractors) and Canadian companies enter into arrangements that make good business sense to both parties. This principle will encourage long-lasting business relationships for Canadian high technology companies.
The IRB Policy is intended to provide Canadian companies with opportunities to develop and competitively sell innovative products and services to companies with IRB obligations, many of which are large multinational aerospace and defence corporations. Canadian firms that become a valued partner or supplier to an IRB contractor can position themselves to pursue additional and future business opportunities that may last well beyond the initial IRB period.
Canada currently has more than 60 defence and security procurements that are subject to the IRB Policy. Together, these IRB obligations represent in excess of $20 billion in current and future business activity with Canadian industry. The IRB portfolio is comprised of nearly 2000 transactions and more than 700 distinct recipients.
For more information on how the Policy works check out the section How the IRB Policy works?
For information on the individual IRB projects please check out section Procurement Projects.
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