STDP AO 4.2 Space R&D - Small Businesses

3.1 Eligible Recipients

Eligible recipients are limited to small for-profit and not-for-profit organizations established and operating in Canada (up to a maximum of 50 employees), excluding academic institutions.

• Academic institutions are encouraged to be included in the work as consultants to the recipient 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 (space and/or ground segment).

Eligible projects do not include application development related to Earth Observation data, Satellite Telecommunications data, and Global Navigation Satellite Systems (GNSS) data.

All development phases necessary for a project are eligible. Any logical breakdown or combination of these phases can constitute a funded project. However, breaking down a project into numerous phases to obtain more than the maximum contribution is not allowed. Furthermore, even if the maximum funding for one project is not reached, the completion of a funded phase does not automatically guarantee funding of the remaining phases.

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 and technologies.

3.4 Links to Program Objectives

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

• To support the development of technologies relevant to Canada; and
• To foster the continuing development of a critical mass of highly qualified people (HQP) 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).

The following TRL definitions must be used:

TRL 1:

Basic principles observed and reported

TRL 2:

Technology concept and/or application formulated

TRL 3:

Analytical and experimental critical function and/or characteristic proof-of-concept

TRL 4:

Component and/or breadboard validation in laboratory environment

TRL 5:

Component and/or breadboard validation in relevant environment

TRL 6:

System/subsystem model or prototype demonstration in a relevant environment (ground or space)

Basic R&D activities supported under this AO shall be undertaken in Canada unless it is essential to the success of the project.

4.1 Required Documentation

The application must include the following:

• A completed original Application form signed by the duly authorized representative;
• One copy of full Proposal:
  • A description of the project that responds to the evaluation criteria in Appendix A;
  • 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 résumés 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);
• For organizations in Quebec, M-30 Supporting Documentation form completed and signed by the duly authorized representative (refer to the M-30 form for organizations in Quebec 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), July 21, 2017.
• 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 within 5 business days of receiving the completed application package.

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.

5.1 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 (35%)
   • 1.1. Degree of Innovation
2. Project Feasibility, Resources and Risk Assessment (15%)
   • 2.1. Project Clarity, Completeness, Feasibility and Risk Assessment
3. Outcomes and Benefits to Canada (50%)
   • 3.1. Development of Industrial Core Capabilities
   • 3.2. HQP and Students Developing science, technology, engineering and math (STEM) Skills
   • 3.3. 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, an individual quantitative evaluation of the screened applications will be performed 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 as well as external consultants. An application must receive an overall minimum score of 65% as well as minimum specified thresholds to be considered further for funding.  This will generate a ranked list of successful proposals. A review committee will then make an overall selection based on the priorities of the Government of Canada and the CSA. Contribution agreements will be offered to the applicants in this final list in the 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.

6.1 Available Funding and Duration

The total funding available under this AO 4.2 is currently expected to be approximately $3M, with the following maximum per project:

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

The maximum duration for any project is 24 months with a possibility of extension to 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 $200,000 will be available for projects with $267,000 of total eligible project costs.

Company financial statements for the last two years and the most recent interim results will be requested, in a later phase of the evaluation process, as a condition to signing a contribution agreement. It is not required to submit financial statements with the application.

To determine the amount of funding to be allocated, consideration will be given to the availability of CSA funds, the total cost of the project, and the other confirmed sources of funds provided by other stakeholders and the applicant.

Applicants must identify all sources of funding in their applications and confirm this 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.

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.

7.1 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. The CSA intends to audit at least 5% of all funded projects upon their completion.

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: Current 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 Organizations in Quebec

An organization in Quebec whose operations are partially or fully funded by the province of Quebec may be subject to the Act Respecting the Ministère du Conseil exécutif, R.S.Q., Chapter M-30.

Under Sections 3.11 and 3.12 of this Act, certain entities/organizations, as defined in the meaning of the Act, such as municipal bodies, school bodies, or public agencies, must obtain authorization from the Secrétariat aux affaires intergouvernementales canadiennes du Québec (SAIC), as indicated by the Act, before signing any funding agreement with the Government of Canada, its departments or agencies, or a federal public agency.

Consequently, any entity that is subject to the Act is responsible for obtaining such authorization before signing any funding agreement with the Government of Canada.

Quebec applicants must complete, sign and include the M-30 Supporting Documentation form with their application.

7.6 Performance Measurement

The CSA will ask the recipients to report on the following topics:

Knowledge Creation

• Knowledge Production
  • Initial and Final TRL achieved under the project
  • Number of technology breakthroughs
  • Achievements resulting from research
• Publications and Presentations
• Number and types of Foreground Intellectual Property (FIP) generated (e.g., Trademark, Patent, Copyright, Know-how, etc.)

Capacity Building

• HQP (by gender) involved directly and indirectly in the project
• Number of students or post-docs involved during the project
• Number and nature of industrial core capabilities and products developed
• Number and nature of infrastructures developed

Collaboration

• Number of different organizations involved
• Number of different disciplines

Benefits generated by the Canadian Government support up to 10 years

• Return on Investment (ROI) that the government contribution has supported.
• Success Stories in the sale/use of the developed technology
• Evolution of the company and positioning in the world market

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.

1. Innovation (35% of overall score)

Maximum: 35 points
Minimum: 17.5 points (50%)

2. Project Feasibility, Resources and Risk Assessment (15% of overall score)

Maximum: 15 points
Minimum: 7.5 points (50%)

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

Maximum: 50 points
Minimum: 32.5 points (65%)