Space Technology Development Program Industrial Capability-Building Contribution: STDP AO3

Announcement of Opportunity

Publication date: June 8, 2015

Application deadline: August 7, 2015

1. Introduction

The Canadian Space Agency (CSA) is issuing this Announcement of Opportunity (AO) to support the development of Canadian industrial capabilities in the area of space technologies with the aim of increasing the commercial potential of Canadian space companies to secure its fair share of the New Space Economy. Within Canada's Space Policy Framework, the Canadian Government underlines the fact that space yields more commercial opportunities than ever. It is therefore not surprising that "Positioning the Private Sector at the Forefront of Space Activities" has been identified as one of its core principles. The Framework also mentions that the lifeblood of the space industry is innovation, which in turn rests on research and development (R&D). Working with industry, the Government of Canada will encourage opportunities in R&D and innovation by increasing its support for technology development, especially in areas of proven strength such as robotics, optics, satellite communications and space-based radar, as well as in areas of emerging expertise.

It is indeed paramount that the Canadian space industry remains strong, healthy and relevant, and that it has the required readiness to respond to national demand and the necessary competitiveness to secure its fair share of commercial and institutional markets worldwide. Only through innovation and continued investments in R&D can Canada ensure that it has the industrial depth and breadth to remain a valued player in the international arena.

The Space Technology Development Program (STDP) of the CSA has the mandate to support the development, sustainment and enhancement of industrial technological capabilities in the space domain that are of strategic importance to Canada. In light of the above, this AO will award non-repayable contributions to support the development of industrial capabilities. It is intended to support the industry's responsiveness to future market demand and the maintenance of its global competitiveness.

Applicants are asked to read the following AO thoroughly before submitting their applications. This AO was prepared to help applicants complete the application process, and outlines key elements, including mandatory criteria for eligibility, details on eligible projects and the selection process. In the event of any discrepancies between this AO and the individual funding agreements governing a project, the latter document(s) will take precedence.

2. AO Objectives

The objective of this AO is as follows:

To support the development of Canadian industrial capabilities in the area of space technologies for the purpose of increasing the commercial potential of Canadian space companies.

3. Eligibility Criteria

3.1 Eligible Recipients

Eligible recipients are limited to for-profit organizations established and operating in Canada.

• Universities and not-for-profit organizations can be included in the work as subcontractors but are not eligible as recipients of the contribution agreements.

3.2 Eligible Projects

The CSA's STDP aims to support the strengthening of industrial capabilities (new concepts, products and/or know-how) related to basic R&D of space technologies.

The technology themes eligible under this AO include the following list as mentioned in Canada's Space Policy Framework:

• Robotics;
• Optics;
• Satellite communications; and
• Space-based radar.

Notes:

The high-level theme titles are meant to be broad guidelines. It is the applicant's responsibility to select which theme title best characterizes the proposed project. Only proposals that do not fit in any of the eligible projects will be screened out using the eligible project screening criterion (see section 5.1).

Eligible projects do not include software and application development activities related to Earth Observation data. Specifically related to Earth Observation data, there is a separate CSA program called Earth Observation Applications Development Program (EOADP) that would cover such activities.

Mission concept studies are not eligible.

A project may consist of several activities to attain its final objectives or results. Any logical breakdown or combination of these activities can constitute a funded project. However, purposely breaking down a project into numerous activities or sub-activities to obtain more than the maximum contribution funding is not allowed for what is considered to be one project. Furthermore, even if the maximum funding for one project is not reached, the completion of a funded activity does not automatically guarantee funding of the remaining activities of the project.

3.3 Links to CSA Priorities

This AO focuses on the CSA's priority of building industrial capabilities, meaning those projects that aim to develop new concepts, products and/or know-how. Industrial capability building therefore encompasses all projects aimed at strengthening the industry core capabilities with particular focus on developing its people, knowledge and competitive advantage.

3.4 Links to Program Objectives

This AO supports STDP objectives and contributes to the following objectives of the CSA Class Grant and Contribution (G&C) Program:

• To support the development of technologies relevant to Canada; and/or
• To foster the continuing development of a critical mass of highly qualified people in Canada.

3.5 Basic R&D Definition

Eligible projects supported under this AO must comply with the following definition for basic R&D by providing the required justification within section 5 of the Application Form (Information with respect to basic R&D provided only in the proposal will not be used for screening the project):

"Any pre-commercial technology activities that are carried out to resolve unknowns regarding the feasibility of space concepts in the space sector."

The following due diligence process will be applied to determine whether projects are compliant with this definition. To that end, justification provided in section 5 of the Application Form must:

• Quantify the technical objectives being sought and must describe how the expected results will be measured;
• Clearly state which technological unknowns are proposed to be answered;
• Clearly state the working hypotheses behind solving the unknowns and describe how plausible it is anticipated to solve these unknowns;
• Demonstrate that the proposed project consists of more than ordinary engineering or current operations; and
• Substantiate the current Technology Readiness Level (TRL) and the proposed TRL expected to be reached (up to TRL 6).

R&D activities supported under this AO shall be undertaken in Canada.

4. Applications

4.1 Required Documentation

The application must include the following:

• A completed original Application Form signed by the duly authorized representative;
• A full Proposal:
  • A detailed description of the project;
  • An implementation plan;
  • An itemized and balanced budget for the project, indicating projected expenditures, cash flow requirements as well as confirmed and potential revenues and other sources of funds (in more details than is required in sections 3 and 4 of the Application Form);
  • The names, titles and telephone numbers of persons responsible for managing the project; and
  • The résumés of each team member responsible for managing the project and key technical personnel. The resumes should be limited to two pages with only information that is relevant to the application.
• The above proposal and application form must be provided in both a paper copy and in a standard electronic media format (USB flash drive, CD or DVD). If there is any discrepancy between the hard and the soft copies, the hard copy takes precedence;
• A copy of the document(s) confirming the legal name of the applicant;
• Letters from other funding contributors confirming their contributions, if applicable; and
• The Declaration on Confidentiality, Access to Information Act and Privacy Act form signed by the duly authorized representative (refer to the Applicant Declaration on Confidentiality, Access to Information Act and Privacy Act section included in the application form);

Note: The completed application form and the full proposal shall be two separate files, each with self-contained information including cross-references, if required and as appropriate.

It is the applicant's responsibility to ensure that the application complies with all relevant federal, provincial and territorial legislation and municipal bylaws.

Applications must be mailed to the CSA at the following address:

• The application has to reach CSA before 12:00 noon (EDT), August 7, 2015.
• The application can be mailed/couriered/delivered to the address indicated.
• There is no one to receive hand delivered proposals during the weekends. Hand delivered proposals will only be accepted during business hours.
• Applications sent by email will not be accepted.
• Incomplete applications shall not be considered.

Questions and answers related to this AO will be posted on the CSA website in the Frequently Asked Questions (Section 9).

4.2 Service Standards – Complete Applications

Applicants will be notified in writing of decisions regarding their application. Selected applications will be announced on the CSA website. The CSA has set the following service standards for processing times, acknowledgement of receipt, funding decisions and payment procedures.

Acknowledgement: The CSA's goal is to acknowledge receipt of the completed application package within 5 business days of the AO's closing date.

Decision: The CSA's goal is to respond to the proposal within 10 weeks of the AO's closing date and to send a contribution agreement for signature within 4 weeks after formal approval of the proposal.

Payment: The CSA's goal is to issue payment within 6 weeks of the successful fulfillment of the requirements outlined in the contribution agreement.

Compliance with these service standards is a shared responsibility. Applicants must submit all required documentation in a timely fashion. Service standards may vary by AO.

5. Evaluation

5.1 Eligibility Criteria

• Represents an eligible recipient as defined in Section 3.1;
• Represents an eligible project as defined in Sections 3.2, 3.3 and 3.4;
• Meets the basic R&D definition in Section 3.5; and
• Meets program funding provisions in Section 6.1.

5.2 Point Rated Evaluation Criteria

Applications will be evaluated according to the following point rated criteria:

1. Innovation and Market Need (25%)
   • 1.1. Degree of Innovation
   • 1.2. Market Assessment
2. Project Feasibility, Resources and Risk Assessment (25%)
   • 2.1. Team Technical Expertise
   • 2.2. Project Clarity, Completeness, Feasibility and Risk Assessment
3. Outcomes and Benefits to Canada (50%)
   • 3.1. Development of Industrial Core Capabilities
   • 3.2. Competitive Advantage
   • 3.3. Highly Qualified Personnel (HQP)
   • 3.4. Path to Commercial Potential

The word limit to support each of the previous criteria and the scoring grid is specified in Appendix A.

5.3 Evaluation Process

Only applications that have passed the eligibility assessment listed in Section 5.1 will be given further consideration.

Once the eligibility criteria are confirmed, evaluators will assess the screened applications according to the criteria listed in Section 5.2. Evaluators shall be experts in the field relevant to the applications and may include representatives of other Canadian government departments. An application must receive an overall minimum score of 65% as well as minimum specified thresholds to be considered for funding. Contribution agreements will be offered to the applicants in the final ranking order of the proposals to maximize the use of available funding (Section 6).

Before a final decision is made, the CSA's Program Manager responsible for this AO may seek input and advice from other organizations, including (but not limited to) federal, provincial, territorial and municipal government agencies and organizations.

The amount of support will be determined according to the total eligible cost of the project, as well as the other sources of funds invested by other stakeholders and the applicant.

6. Funding

6.1 Available Funding and Duration

The total funding available under this AO is $10 million with the following maximum and minimum per project:

• CSA's maximum contribution for any project is $2 million
• CSA's minimum contribution for any project is $200,000

The maximum duration for any project is 36 months.

The overall number of contributions awarded and their level will depend on the availability of funds.

Approved proposals will be eligible for a total government (federal, provincial/territorial and municipal) assistance of up to a maximum of 75% of total eligible project costs. Thus, the maximum assistance of $2 million will be available for projects with $2.67 million of total eligible project costs.

Company financial statements for the last two years and the most recent interim results will be requested from successful applicants as a condition to signing a contribution agreement. It is not required to submit financial statements with the application.

Applicant must identify all sources of funding in their application and confirm that information in a funding agreement if the project is selected for funding. Upon completion of a project, the recipient must also disclose all sources of funding. To determine the amount of its financial support, the CSA will consider the total eligible project cost as well as funding obtained by the recipient from other organizations/sources.

The CSA reserves the right not to accept any proposals or to reduce the amount of the contributions at its entire discretion.

6.2 Eligible Costs

Eligible costs are direct expenses that are associated with the delivery of the approved project and that are required to achieve the expected results of the project. Expenses will be covered subject to the applicant signing a funding agreement in the form of a contribution with the CSA.

Eligible costs are limited to one or a combination of the following categories (see definitions):

• acquisition or rental of equipment (not to exceed 20% of the total project eligible costs);
• consultant services;
• data acquisition;
• laboratory analysis services;
• material and supplies;
• overhead (administrative) costs (not to exceed 15% of project eligible costs);
• salaries^{Footnote 1} and benefits; and
• travel.

7. Funding Agreements

7.1 Payments

The CSA and each successful applicant (the recipient) will sign a funding agreement. This is a condition for any payment made by the CSA with respect to the approved project.

Payments for contribution agreements will be made in accordance with the process and the reporting requirements described in the signed funding agreement. Upon notice of a successful application, the CSA will have no liability until a funding agreement is signed by both parties. Only eligible costs incurred after the funding agreement is signed and indicated in the agreement will be reimbursed.

7.2 Audit

The recipient of a funding agreement shall keep proper records of all documentation related to the funded project, for the duration of the project and for six (6) years after the completion date of the project, in the event of an audit. This documentation shall be available upon request.

7.3 Conflict of Interest

In the funding agreement, the recipient will certify that any current or former public office holder or public servant it employs complies with the provisions of the relevant Conflict of Interest and Post-Employment Code for Public Office Holders and the Values and Ethics Code for the Public Sector respectively.

Note: Employees of the CSA are not eligible to participate in any way in any application under this AO.

7.4 Intellectual Property

All intellectual property developed by the recipient in the course of the project shall vest in the recipient.

7.5 Performance Measurement

The CSA will ask the recipients to report on the following topics at the end of their projects:

Knowledge Creation

• Intellectual Property (including patents)

Capability Building

• Number of HQP supported
• Enhancement of Industrial Core Capabilities

As a courtesy, the CSA would like to receive a copy of publications arising from the work, and to be informed in advance of significant press releases or media interest resulting from the work.

8. Privacy Notice Statement

The CSA will comply with the federal Access to Information Act and Privacy Act with respect to applications received. By submitting personal information, an applicant is consenting to its collection, use and disclosure in accordance with the following Privacy Notice Statement, which explains how the applicant's information will be managed.

Necessary measures have been taken to protect the confidentiality of the information provided by the applicant. This information is collected under the authority of the CSA Class G&C Program to Support Research, Awareness and Learning in Space Science and Technology – Research Component, and will be used for the evaluation and selection of proposals. Personal information (such as contact information and biographical information) included in the rejected proposals will be stored in a CSA Personal Information Bank for five (5) years and then destroyed (Personal Information File no. ASC PPU045). Personal information included in the successful proposals will be kept along with the proposal results for historical purposes. These data are protected under the Privacy Act. According to the Privacy Act, the data linked to an individual and included in the proposal being evaluated can be accessed by the specific concerned individual who has rights with respect to this information. This individual may, upon request, (1) be given access to his/her data and (2) have incorrect information corrected or have a notation attached.

Applicants shall note that for all agreements over $25,000, information related to the funding agreement (amount, grant or contribution, name of the recipient and project location) will be made available to the public on the CSA website.

For additional information on privacy matters prior to submitting a proposal, please contact:

9. Frequently Asked Questions (FAQ)

It is the responsibility of the applicants to obtain clarification of the requirements contained herein, if necessary, before submitting an application.

For any questions related to the AO, applicants shall use the following generic email address lecedessetc-thegandccoe@asc-csa.gc.ca. Questions and answers related to this AO will be posted on the CSA website in the Frequently Asked Questions section of this AO. The CSA will respond to questions received before 12:00 noon (EDT), July 24 , 2015.

At any point, applicants are welcome to share with the CSA their comments or suggestions regarding the AO, the program or the process. Applicants may either use the generic email address or the generic web-based Comments and Suggestions Box.

Appendix A Point-Rated Evaluation Criteria

Application must receive an overall minimum score of 65% as well as minimum specified thresholds to be considered for funding. Contribution agreements will be offered to the applicants in the final ranking order of the proposals to maximize the use of available funding (see Section 6). The following point-rated criteria will be evaluated using 4 benchmark statements. Each benchmark statement will receive the following percentage of maximum points according to the following scale:

1. Poor: 25%
2. Average: 50%
3. Good: 75%
4. Excellent: 100%

1. Innovation and Market Need (25% of overall score)

Maximum: 20 points
Minimum: 10 points (50%)

1.1 Degree of Innovation

(Please limit the proposal pertaining to this criterion to 500 words)

Maximum: 10 points

This criterion evaluates the novelty associated with the new concepts, products and/or know-how to be developed. Innovation can range from sustaining innovations that improve the performance of existing products (but do not create new markets) to disruptive innovations that offer an entirely different value proposition leading to the creation of new markets. This criterion seeks answers to the following:

• What is the degree of innovation being proposed?

1.2 Market Assessment

(Please limit the proposal pertaining to this criterion to 1500 words)

Maximum: 10 points

This criterion evaluates the applicant's understanding of the market needs associated with the proposed technology. It includes a thorough analysis of market demand. Incidentally, this criterion also evaluates whether the proposal addresses the existence and number of competing alternatives on the market. This criterion seeks answers to the following:

• Is the applicant aware of its current market share?
• What are the factors that drive the demand for this technology?
• Who are the customers for this technology?
• Who are the competitors and what alternatives do they offer?

2. Project Feasibility, Resources and Risk Assessment (25% of overall score)

Maximum: 20 points
Minimum: 10 points (50%)

2.1 Team Technical Expertise

(Please limit the proposal pertaining to this criterion to 500 words)

Maximum: 10 points

This criterion evaluates the combined technical qualifications and experience of the team assembled to carry out the proposed work. Résumés appended to the proposal will be assessed for this criterion.

2.2 Project Clarity, Completeness, Feasibility and Risk Assessment

(Please limit the proposal pertaining to this criterion to 1500 words)

Maximum: 10 points

This criterion evaluates the completeness and effectiveness of the proposed implementation plan in directing the project to successful completion. This criterion seeks answers to the following:

• Does the proposal include a clear and complete implementation plan consisting of a Work Breakdown Structure (WBS), detailed Work Package Descriptions (WPD), schedule, milestones, resource (personnel, facilities, laboratories, field sites, specialized equipment, etc.) availability and allocation as well as risk identification and mitigation?
• Does the proposed implementation plan seem credible and well suited to the project objectives, and does it embody sound methodology and management?

3. Outcomes and Benefits to Canada (50% of overall score)

Maximum: 40 points
Minimum: 26 points (65%)

3.1 Development of Industrial Core Capabilities

(Please limit the proposal pertaining to this criterion to 1000 words)

Maximum: 10 points

This criterion evaluates the potential of increasing industrial capabilities through the advancement of knowledge (know-how) or improvement of the state-of-the-art. It also assesses how the proposed project will contribute to enhancing Canadian industry's ability to meet national space needs. This readiness is reflected by the breadth and depth of the technological domains in which the Canadian industry is active. This criterion seeks answers to the following:

• Will the proposed work lead to the creation of new or enhanced Canadian industrial capabilities?
• Does the new or improved product or services have the potential to lead to more efficient operations, increased production capability and/or cost reduction?
• How will these new or improved capabilities enable the applicant to respond to national space needs (industry's readiness)?

3.2 Competitive Advantage

(Please limit the proposal pertaining to this criterion to 1000 words)

Maximum: 10 points

This criterion assesses the merit and potential of the proposed project to positively affect the company's competitive advantage and/or overall market share. It is recognized that an improvement in the company's overall market share (or competitive advantage) can be achieved through creating a new market, penetrating for the first time an existing one and/or increasing one's position in an already accessed market.

3.3 HQP

(Please limit the proposal pertaining to this criterion to 500 words)

Maximum: 10 points

This criterion evaluates the degree to which this project will help retain and enhance the number of skilled workers as well as their knowledge and expertise through their involvement in this project. This criterion seeks answers to the following:

• Will this project help retain or enhance the number of skilled workers (engineers, scientists and technicians) in the space sector, through their involvement in this activity?
• Does this project have the potential to stimulate the creation of highly skilled jobs in Canada?

3.4 Path to Commercial Potential

(Please limit the proposal pertaining to this criterion to 1500 words)

Maximum: 10 points

This criterion evaluates the applicant's roadmap for implementing the technology in space. This criterion seeks answers to the following:

• Does the applicant have a post-project strategy, with expected budget and schedule, to further develop the technology in order to achieve commercial potential?
• What future space missions are relevant for this technology?