Transaction Engagement Process


  • Canada’s Industrial and Technological Benefits (ITB) Policy requires contractors to undertake business activities in Canada.  Contractors select the business activities and investments they wish to make in Canada and propose them to ITB officials in the form of “transactions”, which must meet the policy’s eligibility criteria in order to be counted towards a contractor’s ITB obligation. 
  • There is information available to help companies understand the transaction eligibility criteria, such as the ITB terms and conditions in their procurement contract or the sample version of them on the ITB website.  There is also a series of information bulletins on the website.
  • For companies that are developing more complex transactions, the transaction engagement process (TEP) is another source of information and feedback. 

Principles of the TEP

  • The TEP provides feedback to companies throughout the transaction submission and approval cycle in a manner that is consistent, transparent and fair. 
  • The TEP applies to complex transactions, which often involve considerable planning by the company and may raise questions related to eligibility and valuation. 
  • A complex transaction is defined as investments such as those involving a multiplier, a technology transfer, a high value or an activity not clearly addressed by the terms and conditions.
  • Eligibility discussions take place between the ITB manager and the contractor (or its Tier 1 partner, if it is the company undertaking the business activity).   

Overview of transaction engagement process



  • The concept phase provides a chance for companies to present an early idea to an ITB official and for the ITB official to become familiar with the business opportunity.
  • Concept presentations are "for information only" and no eligibility feedback will be provided.  
  • All companies involved in a potential business activity may participate in a concept presentation.  Regional Development Agencies may also be invited to attend if the activity is within their regional interest.

Term Sheet

  • A term sheet allows a company to submit an early draft of its proposed activity in Canada to an ITB Manager, without prejudice.  The ITB Manager will then provide written feedback to the company. 
  • Term sheet feedback does not constitute acceptance or rejection of the potential transaction.  These decisions are only made in the final phase (transaction sheet).
  • Companies should ensure that term sheets are submitted well in advance of any relevant solicitation process.  At its discretion, an ITB Manager reserves the right to return a term sheet without providing feedback.
  • The term sheet template is available

Transaction Sheet

  • A transaction sheet submission represents a commitment by the company to undertake the proposed business activity as part of a contract. 
  • Upon receipt, the ITB Manager will assess eligibility and determine acceptance or rejection of the transaction.
  • Transaction sheet templates are obtained through the solicitation/contract process of each procurement project.  A generic transaction sheet template is available.
  • ITB officials reserve the right to accept or reject a transaction based upon the information provided at the time of transaction sheet submission.