Proposals must include detailed information about the company, in the following three sections:
Contact information
Companies must provide the following information at the beginning of their proposal:
- legal name
- mailing address
- name of principal contact
- telephone number of principal contact
- fax number of principal contact
- email address of principal contact
- preferred language of communication (English or French).
Corporate profile
Proposals should include a corporate profile, especially with respect to the company's ownership, organization and legal status. The following is required:
- the location of incorporation (province or territory, or Canada)
- confirmation that the company is a legal entity with which SADI may sign a contribution agreement
- the names of the principal shareholders (when the company is privately held) or shareholders holding more than 10 percent of voting shares (when the company is publicly held)
- the number of employees
- the name and address of any parent company
- the names and addresses of any subsidiary, affiliated or related companies, and details of the ownership of such companies
- a diagram showing the corporate structure of the company, including all parent, subsidiary, affiliated and related companies, including foreign companies, and how they interrelate (The chart should be annotated to indicate respective mandates and the ownership chain.)
- an organization chart identifying the key personnel associated directly with the proposed project
- details of key business lines (products and services) and mandates, key alliances, suppliers and customers
- a list of facilities, including locations where the project work will be conducted (see also Project locations)
- a description of the company's history in the aerospace, defence, space and security sectors.
Research and development program
Overview
Proposals should provide an overview of the company's research and development (R&D) program and set out both its short- and long-term objectives. The text should describe major successful corporate activities, particularly R&D projects, and note the total number of employees engaged in R&D.
Project description
This part of the proposal should include a high-level summary of the project, describing its scope, current stage of development, objectives, expected results, degree of innovation, key technical challenges and R&D outcomes for the applicant. Specifically, the summary should outline the major R&D activities for which SADI investment is sought, including whether the R&D is industrial research or pre-competitive development. The SADI information booklet contains more information on this.
The text should outline the significance of the proposed project to the company's R&D program, particularly to its (and by extension, the sector's) capabilities and current operations. The proposal should also present the company's process for managing risk during the R&D phase to ensure that the work is completed on time and within budget.
The following information is required in this section:
- project name
- explanation of the extent to which the R&D is likely to do one or more of the following:
- support the development of next-generation aerospace-, defence-, space- and security-related products and services
- build on Canadian strengths in aerospace and defence technology development
- enable Canadian companies to participate in major platforms and supply chains
- assist the sector in achieving Canada's international obligations (e.g. development programs supported by Canada)
- amount of assistance needed from SADI (with percentage sharing ratio; a typical sharing ratio is 30 percent)
- total project costs (including ineligible costs) — see Appendix 1: SADI project costs principles for more information
- total estimated eligible project costs — see Appendix 1: SADI project costs principles for more information
- anticipated start date of the project
- completion date (i.e. the date that the R&D phase of the project, as detailed in the statement of work, will be completed).
Key aspects of the technology
This part of the proposal should describe the key aspects of the technology underlying the project, including whether the technology is a new application of an existing technology, an incremental advancement or a breakthrough. The text should also set out what strategic capabilities the project will enhance and how the technology areas being addressed fit into the company's corporate strategy.
This section should also include the following:
- a brief assessment of the company's main competitors in the technology areas
- a clear outline of the current status of the technology and the technological advancement that will result from the proposed project
- a technological risk analysis outlining all the potential barriers and hurdles that constitute risks to the success of the project, and an explanation of the company's strategy to mitigate those risks.
Intellectual property
Proposals should identify all the existing intellectual property (IP) required to complete the project or properly exploit the technology to be developed as part of the project. The text should include confirmation that the company either owns or is licensed to use all such IP. (In the latter case, companies should ensure the licences are available for SADI officials to review.) Finally, the proposal should describe the company's approach to safeguarding any IP developed during the project.
Companies should be mindful when preparing their proposal that they will be required to represent and covenant as part of the contribution agreement that they will exclusively own all the IP developed or acquired during the project and that they will not transfer or grant any interest or licence to this IP, except through end-user licences in conjunction with the sale of any products that incorporate IP developed or acquired as part of the project.
Need for SADI investment
Companies must demonstrate in their proposals that the SADI investment is necessary and justified in order for the project to proceed with the planned scope, timing and location. In particular, proposals should address the following:
- If the project involves extraordinarily high levels of technological, market and/or financial risk, the company should describe what would likely happen in the absence of SADI assistance.
- If the project requires SADI assistance in order to meet an internal hurdle rate test, the proposal should demonstrate and justify the company's choice of hurdle rates.
- If the project is in direct competition with other internal projects for scarce funds, the proposal should clearly indicate both the nature of this competition and the budget constraints under which the company operates.
- If other parts of the company (inside or outside of Canada) are competing to conduct this project, the proposal should set out their relative advantages and disadvantages, with quantifiable information, when possible.
- When applicable, companies should explain why they have been unable to attract adequate financing for the project (e.g. debt, equity).