Space Technology Development Program Industrial Capability-Building Contribution: STDP AO2

Announcement of Opportunity

Publication date: June 2, 2014

Application deadline: July 25, 2014

1. Introduction

In the newly issued 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 remain strong, healthy and relevant, and that it have 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 Canadian Space Agency (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. This Announcement of Opportunity (AO) pursues the intent of the STDP's first industrial contribution initiative issued in the fall of 2012 that focused on spacecraft platform technologies: Industrial Capacity-Building Contributions in the Area of Spacecraft Platforms: STDP AO1.

In light of the above, this AO will award non-repayable contributions to support the development of industrial capabilities, which include developing novel concepts, products and/or know-how. It is intended to support the industry's responsiveness to future market demand and the maintenance of its global competitiveness.

This document has been prepared to assist applicants through the application process and it outlines important 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 contribution agreements governing a project(s), the latter document(s) will take precedence.

2. AO Objective

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

3.1 Eligible Recipients

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

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.

Also, the following technology themes that were determined through consultation with the Canadian space industry are eligible:

• Spacecraft Platform Technologies;
• Radio Frequency Remote Sensing Technologies;
• High Resolution Detection and Monitoring/Tracking Systems;
• Detector Technologies at the Device and Instrument Levels;
• New Materials for Space Applications;
• Structures & Mechanisms for Space Applications; and
• Software for Ground-Based Systems and Data Analytics for Space Assets.

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 Link 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 Link to Program Objectives

This AO supports STDP objectives and contributes to the following objectives of the CSA Class Grant & 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.

4. Applications

4.1 Application Requirements

Supporting material required from the applicants must include, but is not limited to, the following:

• A detailed description of the project;
• A demonstration that the evaluation criteria and the program objectives are met;
• An elaboration on the funding requested under the program;
• 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; and
• The names, titles and telephone numbers of persons responsible for managing a project.

4.2 Application Content and Forms

The Application must include the following:

• A completed and typed paper copy of the original application form signed by the Duly Authorized Representative;
• An electronic copy of the application form (identical to the signed paper copy) and full proposal on a standard electronic media (USB flash drive, CD or DVD). In case of discrepancy, the hard copy will take 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
• Declaration on Confidentiality, Access to Information Act and Privacy Act form signed by the Duly Authorized Representative.

Applications must be received at the CSA no later than noon (12:00 p.m. EDT) on July 25, 2014, at the following address and to the attention of:

Note: Applications sent by email or fax will not be accepted. Incomplete applications will be rejected.

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

4.3 Service Standards

The CSA has set service standards for the timely delivery of the acknowledgement of receipt, funding decision and payment processes.

Acknowledgement: The CSA's goal is to acknowledge receipt of proposals within 5 business days of receiving an application package.

Decision: The CSA's goal is to respond to the applicants within 6 weeks of the AO's closing date and to send a contribution agreement for signature within 4 weeks of formal approval of the proposal.

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

Compliance with these service standards is a shared responsibility. The applicant must submit all required documentation in a timely fashion. Service standards for this Announcement of Opportunity may vary from other AOs.

4.4 Contact Information

The questions and answers related to this AO will be posted on the CSA website under the "Frequently Asked Questions" section of this AO. The CSA will respond to questions received before 5:00 p.m. (EDT) on Monday, July 14, 2014, and sent to the following generic email address:

Email: lecedessetc-thegandccoe@asc-csa.gc.ca

5. Evaluation

5.1 Selection Process

Applications MUST first meet all of the following screening criteria. Only applications that have passed these screening criteria will be considered further. The screening process will determine if the application:

• Is submitted by an eligible recipient (see Section 3.1);
• Represents an eligible project (see Section 3.2);
• Is linked to at least one of the Program Objectives (see Section 3.4);
• Includes the required documentation and declarations (see Section 4.2);
• Meets the definition of basic R&D (see Section 5.2);
• Meets program funding provisions (see Section 6); and
• Has been completed and signed by the Duly Authorized Representative.

Screened-in applications will then be evaluated against the point-rated criteria (see Section 5.3).

5.2 Basic R&D Definition

Projects supported under this AO MUST comply with the following definition for basic R&D:

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

The following due diligence process will be applied to determine whether projects are compliant with this definition. To that end, the proposals 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 level expected to be reached.

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

5.3 Point-Rated Evaluation Criteria

An evaluation committee will assess screened-in (compliant) applications according to the following 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.

5.4 Evaluation Process

An evaluation committee will assess each application based on the evaluation criteria listed in Section 5.3. Committee evaluators will 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 (see 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.

5.5 Notification and Announcement

Applicants will be notified in writing of the decision related to their application. Successful applications will be announced on the CSA website.

6. Funding

6.1 Available Funding and Duration

The total funding available under this AO is $10M; $8M allocated for Category A projects and $2M for Category B projects. The two categories of funding are:

• Category A covers proposals for which the CSA's contribution will not exceed $600,000 (over a term of up to 24 months in duration).
• Category B covers proposals for which the CSA's contribution will not exceed $200,000 (over a term of up to 24 months in duration).

The following table explains the total envelope for each category:

Unused funding from either category will be transferable to the other. 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 75% of total eligible project costs.

Recipients 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 associated with the delivery of the approved project and deemed required to achieve the end results. 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;
• consultant services;
• data acquisition;
• laboratory analysis services;
• material and supplies;
• overhead (administrative) costs (not to exceed 15%);
• salaries* and benefits; and
• travel.

*Only the real salary rates are authorized as admissible costs (Public Works and Government Services Canada rates typically do not apply, as they contain a profit element).

7. Funding Agreement

7.1 Payments

The CSA and the successful applicants (hereinafter referred to as the Recipients) will sign a Funding Agreement. This represents 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 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 Value and Ethics Code for the Public Sector respectively.

7.4 Intellectual Property

All intellectual property that arises 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 Highly Qualified Personnel supported
• Enhancement of Industrial Core Capabilities

As a courtesy, the CSA would appreciate receiving a copy of publications arising from the work.

8. Privacy Notice Statement

The CSA will comply with federal Access to Information Act and Privacy Act vis-à-vis applications received under this Component. By submitting your personal information, you are 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 Grant and Contribution Program in order to support the 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 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 archival 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 should 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) through this component and the purpose of the funding will be made available to the public on the CSA website.

For additional information on privacy matters (before sending your proposal), please contact Danielle Bourgie, Coordinator, Access to Information and Privacy, at the CSA.

Telephone: 450-926-4866
Email: aiprp-atip@asc-csa.gc.ca

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 this AO, applicants must use the following email address: lecedessetc-thegandccoe@asc-csa.gc.ca. Questions and answers related to this AO will be posted on the CSA website under the "Frequently Asked Questions" section of this AO. The CSA will respond to questions received before 5:00 p.m. (EDT) on Monday, July 14, 2014.

At any point of the process, applicants are invited to share with the CSA their comments or suggestions regarding the AO, the program or the process. Applicants can use the generic web-based Comments and Suggestions Box available at www.asc-csa.gc.ca/eng/funding-programs/grants-and-contributions-snapshot.asp#comments.

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:

• Poor: 25%
• Average: 50%
• Good: 75%
• 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)

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)

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)

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)

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 Highly Qualified Personnel (HQP)

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

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)

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?