Archived — SADI Program Highlights 2011–2012

7. 2011–2012 Highlights

New Agreements

In 2011–12, the government announced a $399,386 repayable contribution to Integran Technologies Inc. The Mississauga-based Company is developing innovative nano-structured aerospace and defence products that will offer superior performance while meeting the highest environmental standards. Integran's project is expected to result in the creation of next-generation metal alloys that are more robust and free from toxic beryllium copper. This will help expand the company's product line and its customer base. As part of the initiative, Integran will collaborate with graduate-level engineering students from the University of Toronto.

Demand for SADI is expected to be more robust in 2012–13 as the market conditions improve. The Conference Board of Canada forecasts a resumed expansion based on a modest economic increase in North America and expects the industry to reap large gains in orders from emerging markets.

Service Standards

Service standards were developed in 2010. In 2011–12, ITO improved its client focus, meeting its service standard to respond to all incoming requests in one business day, process applications under $10 million in under six months, and process claims in under 45 days. ITO's performance in meeting service standards is published every quarter.

Table 4: SADI Service Standards
Service Standard 2010–2011 2011–2012
Application Assistance Response Time
  • Respond within one business day when one requests assistance with a project application through one of our toll-free numbers or email.
100% 100%
Application Processing Time
  • Complete the proposal review and provide a funding decision within 6 months of receiving a completed application. Applications requesting more than $10 million require additional review by Treasury Board and/or Cabinet, and may require additional time.
7 months average
(7 projects approved)
4.4 months average
(1 project approved)
Claims Processing Time
  • Process completed claims and release the payment as per contribution agreements in good standing within 45 calendar days.
93% 100%

Terms and Conditions

The Terms and Conditions of a program define the parameters under which transfer payments may be made for that program. On March 23, 2012, the Minister of Industry renewed SADI's terms and conditions.

SADI Evaluation

In 2011, the department conducted an evaluation of SADI to assess the program's relevance and performance. The evaluation concluded that SADI addresses a demonstrable need for R&D support to the aerospace and defence sector, is aligned with the priorities of the department, and is consistent with the overall federal responsibility to increase competitiveness. The evaluation recommended that the program further streamline the application process; improve client uptake, particularly among small and medium sized enterprises; and further enhance collaboration.

ITO developed and implemented a new SADI Proposal Development Guide to help reduce the application processing time for potential recipients. Further efforts will be made to process applications efficiently without compromising the required due diligence. ITO also has embarked on a renewed outreach effort to raise awareness of the program, particularly among small and medium sized enterprises. In addition, collaboration commitments are now systematically included in Contribution Agreements as contractual requirements. View a copy of the SADI Evaluation and Management Response.

Auditor General Report

The Auditor General completed a review of SADI in 2012. The report concluded that the department collects sufficient information to determine progress against the program's objectives, uses reasonable program controls to review recipients' claims and progress reports before issuing payment, and funds recipients that meet program eligibility requirements. In response to recommendations of the audit, ITO will revise its claims standard to apply it to a broader base of claims, publish more information on program results and accomplishments, and implement the other administrative improvements as proposed.

Recipient Audits

In 2011–12, ITO performed a total of 26 SADI and TPC project audits: five cost audits, 14 revenue audits and seven lobbyist audits. Projects were selected for audit based on risk and materiality. The projects audited are part of a multi-year audit plan which identifies audits planned for the period ending 2015–16. Recipients were found to be in compliance with the conditions of the contribution agreements and all audit findings were resolved satisfactory.

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