March 18, 2012

The NSPS and Canadian Small and Medium Business --- 5 Answers You Need to Know

1. Are there opportunities for Small and Medium Business in the National Shipbuilding Procurement Strategy (“NSPS”)?

Small and Medium Business is specifically referred to in the Industrial and Regional Benefits – Model Contract (“Model Contract”). Prime Contractors are encouraged to commit to a level of transactions from Small and Medium Business. The Prime Contractor is required to submit a detailed Small and Medium Business Development Plan which is to form part of the contract.

2. What commitment is there regarding participation of Canadian Small and Medium Business?

At Section 3.4 of the Industrial and Regional Benefits – Model Request for Proposal it notes that:

3.4. It is the objective of Canada to encourage the participation of Canadian small and medium businesses as suppliers on major federal procurements and to increase their export market access. IRB Transactions proposed to be undertaken by the Bidder in support of small and medium business supplier development and subcontracting will be assessed on this project.

3. What size is “Small and Medium Business”?

The Model Contract defines Small and Medium Business as follows:
1.1.29. “Small and Medium Business” or “SMB” means a Canadian-based, independently-owned and operated manufacturer or service company with fewer than 250 full-time personnel as of the date of entering into an eligible IRB Transaction. Agents and distributors of foreign goods and services as well as subsidiaries of large firms do not qualify as Small and Medium Business.

4. How are Small and Medium Business transactions tracked?

Like all other IRB transactions, the Prime Contractor is required to track its ongoing IRB Policy obligations in reports to Industry Canada. The Prime Contractor must make detailed submissions with specifics regarding transactions for Small and Medium Business.

5. If I'm not located in Vancouver or Halifax, what opportunities are there for my business?

The Model Contract requires a Prime Contractor to designate, in the Contractor’s proposal, a specified dollar figure for each of the Atlantic, Quebec, Northern Ontario, Ontario (excluding Northern Ontario), and Western regions. As such, businesses in any of these regions stand to benefit from the shipbuilding contracts.

Click to read more about the shipbuilding contracts and Industrial and Regional Benefits Requirements.

For more information contact:

David Reid- (902) 491-4131 -
Contract Negotiation/Drafting, Corporate Law, Industrial and Regional Benefits 

Thomas Donovan - (902) 491-4213 -
Dispute Resolution, Litigation, and Contract Management 

This Cox & Palmer publication is designed to present information of a general nature only and not legal advice.

Cox & Palmer publications are intended to provide information of a general nature only and not legal advice. The information presented is current to the date of publication and may be subject to change following the publication date.