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Canada overhauls its offsets programme

By Paul Lalonde and Olivia Wright

Public Works and Government Services Canada (PWGSC) and the Department of National Defence recently announced the launch of a new Defence Procurement Strategy, which will overhaul Canada’s Industrial Regional Benefits (IRBs) Policy in a stated effort to better leverage military procurements to provide economic benefits to Canadian industry. Going forward, IRBs and the IRB Policy will be rebranded as Industrial and Technological Benefits (ITB).

The IRB Policy required companies bidding on certain defence and security contracts to undertake business activities in Canada valued at 100 per cent of the awarded contract. The new strategy retains this reinvestment requirement but certain industrial considerations (termed ‘value propositions’) will now be rated and weighted as part of the bid evaluation process. This marks a significant change from the IRB Policy pursuant to which IRB requirements were evaluated on a pass-fail basis.

ITB’s will be applied differently, depending on the value of the procurement…

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