STDP AO 4.1 Space R&D

Industrial Capability-Building Contribution

Announcement of Opportunity

Publication date: May 23, 2017

Application deadline: July 21, 2017

1. Introduction

Canada's Innovation and Skills Plan is focused on three priority areas to spur innovation: People, Technologies, and Companies. Working with industry, the Government of Canada will encourage innovation by increasing its support for basic research and development (R&D) in space technology development. 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 capture global opportunities.

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 an increased 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.

In light of the above, this AO concerning Space R&D will award non-repayable contributions up to $2M per space technology project that expect commercial potential in the short to medium term (i.e. 2 to 5 years).

This AO is consistent with the terms and conditions of the Canadian Space Agency (CSA) Class Grant and Contribution Program to Support Research, Awareness and Learning in Space Science and Technology – Research Component.

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 and not-for-profit organizations established and operating in Canada, 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 Grant and Contribution (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 Technology Readiness Level (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. Applications

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. 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 (30%)
   1. 1.1. Degree of Innovation
   2. 1.2. Market Assessment
2. Project Feasibility, Resources and Risk Assessment (20%)
   1. 2.1. Team Technical Expertise
   2. 2.2. Project Clarity, Completeness, Feasibility and Risk Assessment
3. Outcomes and Benefits to Canada (50%)
   1. 3.1. Development of Industrial Core Capabilities
   2. 3.2. Competitive Advantage
   3. 3.3. HQP and Students Developing science, technology, engineering and math (STEM) Skills
   4. 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, 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 the 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. Funding

6.1 Available Funding and Duration

The total funding available under this AO 4.1 is currently expected to be approximately $10.5M, with the following maximum per project:

• CSA's maximum contribution for any project is $2 million

The maximum duration for any project is 36 months with a possibility of extension to 48 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, 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. 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. 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 Technology Readiness Level (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 in the short to medium (term 2-5 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.

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 7, 2017.

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. Obtaining the highest score possible maximizes your chance of being selected to obtain financial support (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 (30% of overall score)

Maximum: 30 points
Minimum: 15 points (50%)

1.1 Degree of Innovation

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

Maximum: 15 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: 15 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 (20% 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: 50 points
Minimum: 32.5 points (65%)

3.1 Development of Industrial Core Capabilities

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

Maximum: 5 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 1500 words)

Maximum: 30 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 and Students Developing STEM Skills

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

Maximum: 5 points

This criterion evaluates the degree to which this project will help retain and enhance the number of HQP as well as their knowledge and expertise through their involvement in this project. The criterion also evaluates the degree to which the project encourages Canadians to develop STEM skills in order to prepare them for the jobs of tomorrow.

This criterion seeks answers to the following:

• Will this project help retain or enhance the number of skilled workers (project managers, engineers, scientists, post-doc fellows, 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?
• Does this project involve students and post-doc fellows to help develop their STEM skills?

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?