Call for quantum sensing prototypes: Scaled down dilution refrigerator

The Testing Stream aims to procure, test and evaluate innovative late stage pre-commercial prototypes. Eligible applicants can receive up to $550,000 to test their prototypes in real life settings.

Call for prototypes sponsor:
National Research Council of Canada

Funding mechanism:
Contract

Opening date:
February 3, 2022

Closing date:
February 24, 2022, 14:00 Eastern Standard Time

Overview

Problem statement

The National Research Council invites eligible innovators who have developed a prototype to submit their application for a demonstrator, easy to use, "table top" version of a dilution refrigerator which would be four to five times smaller (including all components) than currently available. This dilution refrigerator should also be built with a special focus on being suitable for hybridizing quantum platforms. An example of a hybrid quantum system that such a cryostat could be used for, amongst many others, is a quantum repeater for quantum communications, where flying optical qubits interact with solid state qubits. The flying qubits are used for transferring the quantum information, whilst the solid state qubits perform the necessary quantum teleportation protocol operations. The hybridization would take place on the dilution refrigerator. The table top system must be easy to operate without specialized knowledge, allow easy access to the low temperature region with enough room for the user to add complex quantum components (e.g. a miniaturized ultra-low temperature optical table) and provide a rapid turn-around time (24 hours) for exchanging quantum device. We believe such a system would extend the availability and use of dilution refrigerators thus helping to generate new quantum technologies.

Essential outcomes

The proposed innovation must:

  1. Be a practical application of quantum sensing in providing a solution to the Problem statement.
  2. Represent an improvement on current dilution refrigerator technologies in terms of ease of use.
  3. Have a cost and footprint which make its wide-spread use in different experimental settings (academia, government, and industry) realistic.
  4. Be safe and legal to incorporate into scientific laboratories.

The dilution refrigerator must also be able to demonstrate the following minimum criteria in a laboratory setting:

  1. Require no use of cryogenics such as liquid helium.
  2. Reach temperatures of 30 mK or less and sufficient available cooling power (250 microW at 100mk) to incorporate new components for future experiments.
  3. Allow the precise delivery (with micrometer precision) of photons to the devices both via line-of-sight and via optical fiber without compromising temperature.
  4. Incorporate enough electronic wiring covering a broad band spectrum (up to GHz frequencies) to operate and readout qubits without compromising temperature.
  5. Allow control of magnetic qubits by the application of a magnetic field of minimum 5T.
  6. Have a small enough footprint (3 to 4 times smaller than existing systems) to integrate with optical table experiments.
  7. Vibration isolation needs to be evaluated and match or surpass existing systems.
  8. Allow sample exchange time of 24 hours or less.

Additional outcomes

In order to be considered having met the additional outcomes and to what degree, the proposed innovation should:

  1. Support a variety of qubit technology types, including photonic, spin, and charge qubits.
  2. Be robust and support long lasting experiments without interruptions.

The successful dilution refrigerator design should allow the operation of novel hybrid quantum technologies. This translates to:

  1. Ability to reach cryogenic temperatures suitable for solid state qubit implementations.
  2. Ability to couple optical 'flying' qubits with solid state qubits.
  3. Ability to electronically control and readout qubit devices.
  4. Ability to control and operate spin qubits.

Additionally, in terms of laboratory use and installation, the proposed design should allow:

  1. Fast sample exchange.
  2. Easier operation than current dilution refrigerator technologies. Non-experts with no training in cryogenics should be able to use it.
  3. Easier integration with existing laboratory equipment such as optical tables by reducing the size of the equipment.

Background

The last two decades have generated an incredible growth in new quantum technologies research, which has the potential to radically transform how our society evolves. Indeed, it is generally accepted that we are on the cusp of the Quantum 2.0 revolution (Quantum 1.0 previously involving the transistor and laser). Canada has been one of the world's leaders in fundamental research in quantum technology. The challenge now is to transfer this knowledge to new industries. It is also becoming increasingly recognized that to optimize quantum technologies hybridization of quantum platforms will be necessary. For example, while photons are the obvious platform for transmitting information over long distances because they only weakly interact with the environment the very same property makes it difficult to use photons for logic operations. Hybridization allows each quantum platform (spins, superconducting qubits, atoms, defects, Majorana Fermions etc…) to perform the task it is optimally suited for. Most quantum technologies, for coherence requirements, utilize a system that cools the quantum devices to temperatures as cold as 10 mK, namely dilution refrigerators (e.g. each D-wave quantum computer comes with a dilution refrigerator). The dilution refrigerator industry is currently growing at an accelerated rate of ~10% per year due to the increased demand for novel quantum technologies, but only a handful of companies outside of Canada produce them and waiting times for system purchases are long. While dilution refrigerators are based on a relatively old technology and physics concept, they underwent a revolution a decade ago when cryogen free technology was introduced (i.e. there is no longer need for liquid helium or nitrogen to reach these temperatures). In spite of these developments, the systems are still very large and complex, basically requiring a whole dedicated laboratory to house them and Ph.D. trained staff to operate. This limits their accessibility for quantum researchers and the development of future industries that could take advantage of them. It is also important to note that cooling quantum devices involves a lot more than just producing cold temperatures e.g. the electron-phonon interaction the principal cooling route for electrons in semiconductor quantum devices goes as T5 (T is the temperature) so as one goes colder, it becomes increasingly more challenging to cool them, even if they are mounted on a plate that is itself cold (i.e. cooling power is not the main concern). Such cryogenic considerations are left to the end user to solve, again requiring very specialized expertise and limiting their adoption. While undoubtedly there are applications for which these large and complex dilution refrigerators are necessary, for many if not most applications this is not the case.

Eligibility

Bidders are required to certify program eligibility as part of their proposal. Selected Bidders will be required to re-certify eligibility at any phase under the ISC program. To remain eligible for the Testing Stream, eligibility criteria must be met at all times.

Canadian Bidder:
The Bidder must meet the definition of a Canadian Bidder.

Canadian content:
80% of the financial proposal costs, must be Canadian goods or Canadian services, as defined in the Canadian Content certification.

Ownership:
The Bidder must be the owner of the Intellectual Property (IP) for the proposed innovation, or have a licence to the IP rights from a Canadian licensor for the proposed innovation and not be infringing on any IP rights.

Pre-commercial status:
The proposed innovation must not be openly available in the marketplace, and must not have been previously sold on a commercial basis as of the date of this bid submission. (Please note: Once your company submits a proposal for an innovation to the program, the innovation is able to be sold commercially)

Previously pre-qualified innovation:
The proposed innovation or any other versions of the proposed innovation must not have been previously awarded a contract in any of the Innovative Solutions Canada Streams, the Build in Canada Innovation Program (BCIP) or its predecessor, the Canadian Innovation Commercialization Program (CICP), and it is not currently active in a pool of pre-qualified Innovations.

Active pool:
A proposed innovation that is currently active in a pool will be accepted only once the bid validity period for that proposal has expired or the Bidder has withdrawn their innovation from the relevant pool in collaboration with the Contracting Authority. The Bidder agrees that having pre-qualified into a pool does not guarantee pre-qualifying under the current solicitation.

Maximum funding:
The Bidder's financial proposal must not exceed the relevant component's maximum funding amounts which are $550,000.00 CAD for the standard component (applicable taxes, shipping, and travel and living expenses are extra, as applicable).

Eligibility specific to the small and medium enterprise call for proposals

The Bidder must be a for-profit with 499 or fewer full-time equivalent (FTE) employees. This calculationFootnote 1 must take into account and include affiliated businesses, such as parent companies and subsidiaries that are either in or outside of Canada.

  • research and development activities that take place in Canada
  • 50% or more of its annual wages, salaries and fees are currently paid to employees and contractors who spend the majority of their time working in CanadaFootnote 1
  • 50% or more of its FTE employees have Canada as their ordinary place of workFootnote 1
  • 50% or more of its senior executives (Vice President and above) have Canada as their principal residenceFootnote 1

Under the Innovative Solutions Canada program, an "affiliate" relationship exists in the following situations:

  • An affiliate is a corporation that is a subsidiary of another corporation
  • If a corporation has two subsidiary corporations, the two subsidiaries are affiliates of each other; or
  • If two corporations are controlled by the same individual or business, the two corporations are also affiliates of each other.

A subsidiary is understood to be a business which has more than 50% of its ordinary shares or voting power owned by another business or individual.

Evaluation

Mandatory Criteria (MC)

MC1: Canadian Bidder

The Bidder must meet the definition of a Canadian Bidder. A Canadian Bidder is defined as a Canadian person or entity submitting a proposal on its own behalf and having a place of business in Canada where the person or entity conducts activities on a permanent basis that is clearly identified by name and accessible during normal working hours.

MC2: Canadian Content

80% of the financial proposal costs, the total proposal price to Canada stated in "Section Four – Financial Proposal", must be Canadian goods or Canadian services. For the complete Canadian content definition please refer to the Canadian Content Definition A3050T (2020-07-01) at Part 1, General Information, Article 1.5 of the solicitation documents.

MC3: Ownership

The Bidder must be the owner of the Intellectual Property (IP) for the proposed innovation, or have a licence to the IP rights from a Canadian licensor for the proposed innovation and not be infringing on any IP rights.

MC4: Notice Problem Statement

The Bidder's proposed innovation, as described and in its intended application, must provide a relevant solution to the problem described in the Problem Statement of the Demand Notice.

MC5: Pre-Commercial Status

The proposed innovation must not be openly available in the marketplace, and must not have been previously sold on a commercial basis as of the date of this bid submission. Refer to the definitions of "Pre-Commercial Innovation and Commercial Sales" at Appendix 2 of the solicitation documents.

MC6: Previously Pre-qualified Innovation

The proposed innovation or any other versions of the proposed innovation must not have been previously awarded a contract or grant in the Build in Canada Innovation Program (BCIP) or its predecessor, the Canadian Innovation Commercialization Program (CICP), nor under any Innovative Solutions Canada (ISC) Streams.
The proposed innovation or any other versions of the proposed innovation must not currently be active in a pool of pre-qualified innovations in any of the above. A proposed innovation that is currently active in a pool will be accepted only once the bid validity period for that proposal has expired or the Bidder has withdrawn their innovation from the relevant pool, prior to solicitation closing date.
A Bidder can participate more than once, as long as the proposed innovations are sufficiently different. If the proposed innovation resembles an innovation that is currently active in a pool and has not been withdrawn prior to solicitation closing, the following assessment will be used to determine sufficient difference to proceed.

Pass Sufficiently Different
  • A distinct product and/or service that has undergone a completely separate path of R&D or that diverged early in technology development.
  • Significant modifications to the application of the previous technology or components of the technology, applied in a setting or condition which was not possible or feasible for the pre-qualified or contracted innovation; OR
  • A significant improvement in functionality, cost or performance over the pre-qualified or contracted innovation.
Fail Not Sufficiently Different
  • Incremental improvements;
  • Technologies that follow a normal course of product development (i.e. the next version or release); OR
  • Stated differences are not quantified or are inadequately described.

MC7: Maximum Funding

The Bidder's Financial Proposal must not exceed $550,000 CAD not including applicable taxes, shipping costs, and travel and living expenses, where applicable. Refer to Section H – Financial Proposal.

MC8: Program Eligibility

The Bidder's proposal must be aligned with the mandate of the ISC Testing Stream where Canada procures, through a Contract, the Bidder's Innovation with the purpose of testing it in an operational environment.

MC9: Small Business

The Bidder must be a for-profit person or entity, with 499 or fewer full-time equivalent (FTE) employees. This calculation must take into account and include affiliated businesses, such as parent companies and subsidiaries that are either in or outside of Canada.

MC10: Bidder Presence in Canada

The Bidder must meet the following minimum requirements: 50% or more of the Bidder's FTE employees have Canada as their ordinary place of work; 50% or more of the Bidder's annual wages, salaries and fees must be paid to employees and contractors who spend the majority of their time working in Canada; and 50% or more of the Bidder's senior executives (Vice President and above) have Canada as their principal residence. These calculations must take into account and include affiliated businesses, such as parent companies and subsidiaries that are either in or outside of Canada.

Stage 1 Technical Evaluation – Screening Criteria (SC)

SC1: Innovation

The proposed innovation must meet one or more of the ISC definitions of innovation below:

  • An inventionFootnote 2, new technology or new process that is not currently available in the marketplace.
  • Significant modifications to the application of existing technologies/components/processes that are applied in a setting or condition for which current applications are not possible or feasible.
  • An improvement in functionality, cost or performance over an existing technology/process that is considered state-of-the-art or the current industry best practice.
Pass The proposed innovation meet one or more of the ISC definitions of innovation.
Fail
  • The proposed innovation does not meet any of the ISC definitions of innovation; or
  • The proposed innovation is an incremental improvement, "good engineering", or a technology that would go ahead in the normal course of product development (i.e. the next version or release).

SC2: Operational Readiness Validation

The Bidder must demonstrate that at the time of proposal submission, the proposed innovation is ready for testing in an operational environment, i.e. at minimum TRL 7 per the ISC Technology Readiness Level Scale.

Pass
  • The Bidder has provided evidence demonstrating that, at minimum, the proposed innovation is a functional prototype (form, fit, and function) ready for demonstration in an appropriate operational environment, at the time of proposal submission; and
  • The Bidder has provided evidence supporting that an operational demonstration of the proposed innovation is feasible.
Fail
  • The proposed innovation is not ready for demonstration in any operational environment at the time of proposal submission or the Bidder has not provided evidence to that effect; or
  • The Bidder has not provided evidence supporting that an operational demonstration of the proposed innovation is feasible.

SC3: Safety Considerations

The Bidder must demonstrate that they have obtained or possess, at the time of proposal submission, the certifications, licences, and approvals required to safely deploy the proposed innovation, and that it poses no risks to individuals or Government of Canada organizations involved in an operational demonstration.
This is to ensure that a Government of Canada organization and personnel are not exposed to safety or privacy risks during the conduct of the operational demonstration.

Pass At the time of proposal submission:
  • The Bidder has demonstrated that they have obtained or possess the certifications, licences, and approvals required to safely deploy the proposed innovation; and
  • No concerns remain regarding the physical safety and privacy of individuals that could be involved in an operational demonstration; and
  • The proposed innovation does not pose organizational safety or security concerns for a Government of Canada organizations when used in an operational setting.
Fail At the time of proposal submission:
  • The Bidder has not demonstrated they have obtained or possess the certifications, licences, and approvals required to safely deploy the proposed innovation; and/or
  • Concerns remain regarding the physical safety or privacy of individuals that could be involved in an operational demonstration; and/or
  • The proposed innovation may pose organizational safety or security concerns for a Government of Canada organizations when used in an operational setting.

SC4: Scope – Essential Outcomes

The Bidder must demonstrate that the proposed innovation provides a solution to the Problem Statement, and meets all of the Essential Outcomes identified in the Demand Notice.

Pass
  • The proposed innovation is within the scope of the Problem Statement, and clearly addresses all Essential Outcomes identified in the Demand Notice.
Fail
  • The proposed innovation is articulated as out of scope for the Problem Statement, or;
  • The proposal does not clearly demonstrate how the proposed innovation addresses all Essential Outcomes identified in the Demand Notice, or;
  • The proposed innovation is poorly described and does not permit concrete analysis, or;
  • There is little to no scientific and/or technological evidence that the proposed innovation is likely to meet any of the Essential Outcomes.

Stage 2 Technical Evaluation – Point-Rated Screening Criteria (PS)

PS1: Advance on State of the Art

The Bidder must demonstrate that the proposed innovation improves upon current approaches and state of the art, or current practices relevant to its purpose or application, in a manner that yields competitive advantages.

2 points
  • The proposed innovation improves minimally upon the current state of the art, though not sufficiently enough to create competitive advantages in existing market niches; or
  • The stated advancements are not substantiated with specific, measurable evidence.
12 points
  • The proposed innovation offers one or two minor improvements, and no significant improvements, to the state of the art that are not likely to create competitive advantages in existing market niches; or
  • The stated advancements are well-described in general, but are not substantiated with specific, measurable evidence.
24 points
Minimum
  • The proposed innovation offers three or more minor improvements to the state of the art, that together are likely to create competitive advantages in existing market niches; or
  • The proposed innovation offers one significant improvement to the state of the art, that is likely to create competitive advantages in existing market niches.
40 points
  • The proposed innovation offers two or more significant improvements to the state of the art, that are likely to create competitive advantages in existing market niches and could define new market spaces; or
  • The proposed innovation can be considered a new benchmark of state of the art that is clearly ahead of competitors and that is likely to define new market spaces.

PS2: Intellectual Property (IP) Strategy

The Bidder must demonstrate a suitable Intellectual Property (IP) strategy, relevant to protect IP generated by the proposed innovation and to protect the Bidder. This criteria also assesses the degree to which the strategy is appropriate to support successful commercialization.

0 points The Intellectual Property (IP) strategy is insufficiently rationalized or substantiated, and is poorly suited for background IP or generated IP as they pertain to the proposed innovation.
8 points
Minimum
  • The ongoing activities described and rationalized form a suitable IP strategy in terms of relevant background IP or generated IP, and enables the application of suitable protection where and when relevant, as they pertain to the proposed innovation; and
  • A path to effective monetization of the proposed innovation is generally described, and sufficiently adequate considering the maturity of the company and the sector or industry.
12 points
  • The activities described are well substantiated and form an IP strategy that addresses all relevant background IP and generated IP as they pertain to the proposed innovation, and will ensure the Bidder is protected; and/or
  • The Bidder describes an IP strategy factoring considerations beyond the operational demonstration of the proposed innovation, for the effective and competitive leveraging of IP in terms of profitable exploitation and market access.

PS3: Management Team

The Bidder must demonstrate that they have filled the key roles in the management team with individuals possessing relevant background or skill setFootnote 3, who can support the successful commercialization of the proposed innovation.

  • Role A: Company leadership (e.g. CEO, or equivalent)
  • Role B: Technology development (e.g. CTO, or equivalent)
  • Role C: Commercialization strategy (e.g. Business Manager, or equivalent)
  • Role D: Financial management (e.g. CFO, or equivalent)
0 points
  • One or more roles are not identified; or
  • One or more roles significantly lacks relevant background or skill set; or
  • One or both company leader role and technology manager role have significant and unmitigated gaps in qualifications relevant to the company's activities, which could obstruct the company's efforts to reach commercial launch.
4 points All roles are identified and possess a background or skill set (education and/or experience) that is relevant to the company's activities or their respective fields, however gaps remain that are unmitigated and have the potential to impede commercial launch and commercial success.
8 points
Minimum
All roles are identified and possess, or are supported by, a background or skill set (education and/or experience) that is relevant to the company's activities or their respective fields, and will likely enable them to reach commercial launch.
12 points All roles are identified and possess, or are supported by, a strong background or skill set (education and/or experience) that would serve well in commercializing the proposed innovation, is clearly relevant to their respective industry, and increases the likelihood of commercial success.

PS4: Financial Capacity

The Bidder must demonstrate that they have sufficient financial resources and a credible financial strategy in order to execute their commercial launch plan, without a potential ISC Testing Stream contract.
In determining the credibility of a financial strategy, evaluators consider: funding sources, the amount of secured and unsecured funds, the degree of risk, and whether these risks are reasonable or sufficiently mitigated based on the context of the sector. Credibility, potential risks, and applicability to support launch costs should also be considered.
Financial resources must demonstrate ability to commercialize the proposed innovation.

0 points
  • The Bidder has not demonstrated they have sufficient funds to commercialize the proposed innovation; or
  • The Bidder has no credible plan to secure necessary funds or the costs are significantly underestimated; or
  • The financial strategy provided is inadequate, unrealistic, or incomplete.
8 points
Minimum
  • The Bidder has demonstrated they have funds in place, and otherwise possesses the financial capacity to undertake production and delivery of the proposed innovation; or
  • The Bidder has a credible financial strategy and remaining unsecured funds will not significantly impede commercializing the proposed innovation.
12 points The Bidder has demonstrated they have sufficient secured funds and have a credible financial strategy to successfully commercialize the proposed innovation.

Stage 3 Technical Evaluation – Point Rated Criteria (PR)

PR1: Innovation Benefits

This criterion is intended to assess the degree to which the proposed innovation could contribute to the positive economic development of the innovation ecosystem in Canada.

0 points Economic benefits are not identified or are insufficient.
4 points Economic benefits to the innovation ecosystem in Canada are limited.
8 points Economic benefits to the innovation ecosystem in Canada are significant.

PR2: Operational Demonstration Risk Mitigation Strategies

0 points
  • 2 or more important risks were not identified and/or have a high level of residual risk.
4 points
  • 1 important risk was not identified; and/or
  • The risks that were outlined in the demonstration scenario have mitigation strategies that are plausible and sufficiently described.
8 points
  • All important risks have been identified; and
  • The risks outlined in the demonstration scenario have mitigation strategies that are plausible and sufficiently described, but there is some residual risk.
16 points
  • All important risks have been identified; and
  • The risks outlined in the demonstration scenario have mitigation strategies that are comprehensive and well described, and there is very little residual risk.

PR3: Equity, Diversity, and Inclusion (EDI) Benefits

This criterion is intended to assess the degree to which the Bidder has sufficient measures to effectively achieve and maintain gender balance and diversity within; their business, supply chain, or business ecosystem.
Percentages noted are the number of the following elements the Bidder addressed in their answer:

  • Anti-discrimination policies;
  • Recruitment strategy and hiring process;
  • Training available for to educate the Bidder's workforce on diversity and inclusion;
  • How diversity and inclusion are factored into Bidder's supplier selection methods.
0 points Policies regarding gender balance and diversity are not identified, are insufficient, or do not appear genuine.
4 points Information provided clearly demonstrates that the Bidder is implementing some measures (up to two (2) elements) to achieve and maintain gender balance and increase diversity.
8 points Information provided clearly demonstrates that the Bidder is implementing most measures (two (2) or more elements) to achieve and maintain gender balance and increase diversity.
12 points Information provided clearly demonstrates that the Bidder is implementing all measures (all four (4) elements) to achieve and maintain gender balance and increase diversity.

PR4: Commercialization Strategy and Market Risks

This criterion is intended for the Bidder to demonstrate that they have a credible strategy to commercialize the proposed innovation, identifying market risks and providing suitable mitigation strategies for these risks.

0 points
  • The presented commercialization strategy, market risk strategies and mitigation strategies are inadequate, incomplete or have not been presented.
8 points
  • The presented commercialization strategy, market risk strategies and mitigation strategies could support limited target market entry; or
  • Shortcomings in the expertise, human resources, partners/sales channels or physical assets present unmitigated risks to successful commercialization.
24 points
  • The presented commercialization strategy, market risk strategies and mitigation strategies are clear and well-developed and, given full implementation, should support entry into the target market; and/or
  • Shortcomings in the expertise, human resources, partners/sales channels and physical assets present only small risks to successful commercialization.
32 points
  • The presented commercialization strategy, market risk strategies and mitigation strategies are complete, strong, and are highly likely to support long-term and sustained entry into the target markets; and
  • The Bidder has the expertise, human resources, partners/sales channels and physical assets required to move forward with successful commercialization.

PR5: Adoption Potential – Features & Benefits, Target Market

This criterion is intended to assess to what degree the proposed innovation's features and benefits are attractive to the relevant target market.

0 points
  • Key features and benefits are limited and/or offer minimal differentiation from the competition; and
  • Target market is small in size, offers low growth and/or has limited long term potential.
4 points
  • Key features and benefits offer moderate differentiation from the competition; or
  • Target market is moderate in size, offers moderate growth and/or has adequate long term potential.
8 points
  • Key features and benefits offer either moderate or clear differentiation from the competition; and/or
  • Target market is moderate in size, offers moderate growth and has adequate long term potential.
16 points
  • Key features and benefits offer clear differentiation from the competition; and
  • Target market is large in size, promises high growth and/or has significant long term potential.

PR6: Adoption Potential – Cost to End User

This criterion is intended to assess to what degree the cost of the proposed innovation and the efforts required to adopt it are attractive and relevant for the target market.
The acquisition costs of the proposed innovation include the intended market price, the organizational impact, time and resources required for training and installation, and other direct costs for target market end-user (the customer) to acquire the proposed innovation.

0 points In relation to the acquisition cost and key features and benefits, an unacceptable amount of time and resources are required for the end user to adopt the proposed innovation.
4 points In relation to the acquisition cost and key features and benefits, a significant amount of time and resources are required for the end user to adopt the proposed innovation.
8 points In relation to the acquisition cost and key features and benefits, a reasonable amount of time and resources are required for the end user to adopt the proposed innovation.
16 points In relation to the acquisition cost and key features and benefits, virtually no time and resources are required for the end user to adopt the proposed innovation.

PR7: Scope – Additional Outcomes

If no Additional Outcomes are identified in the Demand Notice, Bidders will be awarded 16 points.

0 points Insufficient or no information was provided to clearly demonstrate that the proposed innovation addresses any of the Additional Outcomes identified in the Demand Notice.
4 points Information provided clearly demonstrates that the proposed innovation addresses some (< 50%) of the Additional Outcomes.
8 points Information provided clearly demonstrates that the proposed innovation addresses most (50% or more and < 100%) of the Additional Outcomes.
16 points Information provided clearly demonstrates that the proposed innovation addresses all (100%) of the Additional Outcomes.

Maximum available points from Stage 2 & Stage 3 : 192 points
Minimum Total ScoreFootnote 4 from Stage 2 & Stage 3 to pre-qualify: 115 points

Pathway to commercialization

Enabling the Government of Canada to buy what it tries – a Pathway to Commercialization for eligible Canadian SMEs

Innovative Solutions Canada (ISC) is pleased to be piloting a Pathway to Commercialization under its Testing Stream. Established under the Call for Proposals dedicated to Canadian small and medium enterprises (SMEs), this opportunity will enable eligible SMEs to receive commercial contracts based on the successful testing of their pre-commercial prototype and fulfilment of related readiness requirements. It is important to note that this flexibility will only be available to eligible Canadian SMEs, which represent over 97% of all businesses in Canada, a percentage that mirrors past participation in the program.
Important considerations:

  • Government of Canada organizations will be able to purchase successfully tested prototypes through the Pathway to Commercialization, without the requirement for additional competition for up to a period of three years.
  • The requirements for commercial contracts will reflect the operational needs of client departments, the nature of the innovation, as well as input from Public Services and Procurement Canada, the program's Contracting Authority.
  • Contracts under this initiative will each have a limit of up to $8M.
  • This feature is expected to increase the Government of Canada's support for the growth and scale up of innovative SMEs.
  • The Pathway to Commercialization will complement the Testing Stream's existing Additional Testing component, which enables GC organizations to buy and further test additional quantities of already qualified prototypes. Unlike Pathway to Commercialization contracts, Additional Testing contracts are still considered R&D contracts, similar to the initial Testing Stream contract.
  • Additional testing opportunities are open to all program participants, SMEs and non-SMEs.
  • A Pathway to Commercialization already exists under the program's Challenge Stream as Phase 3, and reflects ISC's commitment to bringing the program into closer alignment with the highly successful US Small Business Innovation Program after which it was modelled.

How will the Pathway to Commercialization feature work?

  • Once their initial ISC testing contract is completed, eligible ISC innovators will have up to 12 months to be assessed against criteria (see point 3 below), which would determine whether they are eligible to be placed on the Pathway to Commercialization source list of approved innovations.
  • Innovations on the source list will be available for purchase for up to three years.
  • A number of criteria will be used as part of the assessment process, including:
  • Financial capacity
  • Technology readiness
  • Certifications
  • IP strategy
  • Company size
  • Scalability
  • Innovation test performance

Please read the CFP and related FAQs for more information on the Pathway to Commercialization.

Frequently asked questions

Can Canada confirm if there is a maximum size business that can apply to Call for Proposals (CFP) EN578-22ISC3?

This Call for Proposal is targeting small businesses of 499 or fewer full-time equivalent (FTE) employees.

What is the purpose of two Testing Stream Calls for Proposals EN578-22ISC3 and EN578-22SC4?

Canada's intent is to allow, through two distinct Calls for Proposals, all eligible businesses to propose their innovations. The first Call for Proposals will target eligible Canadian small businesses and the second will be open to eligible Canadian businesses and entities who are large companies, non-profit, universities, etc.

Can Bidders apply to both CFPs?

No. Bidders must determine under which Call for Proposals they are eligible by referring to Article 1.3 Who Can Submit a Proposal. Bidders are only eligible to apply under one Call for Proposals.

What are the steps for submitting a proposal under the Testing Stream?

As per the solicitation document Article 3.1. Proposal Submission sub article 3.1.2, Bidders must submit their proposal using the Testing Stream Electronic Proposal Submission Form. The form can be found by clicking the "Submit your Proposal" button on the ISC website. Proposals that are submitted in an alternate format will not be accepted unless prior approval has been obtained from the Contracting Authority at: TPSGC.PASICVoletessai-APISCTestingStream.PWGSC@tpsgc-pwgsc.gc.ca

Is there an option to submit to this Call for Proposals using a PDF form or to provide attachments?

There is no option to upload additional information. The innovation description should be presented in the form as requested. In exceptional circumstances only, the following sub articles will apply:

"3.1.5 Bidders who are not able to submit their proposal using the web-based system must contact the Contracting Authority at TPSGC.PASICCOVID19-PISCCOVID19.PWGSC@tpsgc-pwgsc.gc.ca to arrange delivery of their proposal. This includes the submission of proposals with a security level exceeding Protected B."

and

"3.1.6 All proposals submitted will be bound by the same terms, conditions and limitations. For all proposals submitted, any text submitted above the character limit specified in the Testing Stream Electronic Proposal Submission Form will not be evaluated."

Is there potential relief available on the 80% Canadian content requirement for prototype subcomponent materiel?

At this time the Testing Stream is not considering reducing the Canadian Content Requirement therefore Bidders must ensure innovations demonstrate 80% Canadian Content in accordance with article 1.5 Canadian Content A3050T (2020-07-01) Canadian Content Definition of the solicitation document in order to be considered for this requirement.

The SACC 2040 (2021-12-02), General Conditions – Research & Development section 2040 26 (2008-05-12) Liability clause included in the Resulting Contract states that "The Parties agree that no limitation of liability or indemnity provision applies to the Contract unless it is specifically incorporated in full text in the Articles of the Agreement". Is this clause mandatory, i.e. if the innovation gets selected through the process and a department is interested in procuring it, would we have to sign an unlimited liability clause?

The Draft Resulting Contract Clauses included in the solicitation document at Appendix 3, remains silent on liability in accordance with 2040 (2020-05-28), General Conditions – Research & Development section 2040 26 (2008-05-12) Liability below. All testing stream contracts generally do not include clauses that limit liability as they involve R&D tests for which risks are mitigated through the design and implementation of the test plan. Therefore contracts will rely on the default clause below.

"The Contractor is liable for any damage caused by the Contractor, its employees, subcontractors, or agents to Canada or any third party. Canada is liable for any damage caused by Canada, its employees or agents to the Contractor or any third party. The Parties agree that no limitation of liability or indemnity provision applies to the Contract unless it is specifically incorporated in full text in the Articles of Agreement. Damage includes any injury to persons (including injury resulting in death) or loss of or damage to property (including real property) caused as a result of or during the performance of the Contract."

Regarding the Mandatory Criteria MC5 Pre-Commercial Status of the Calls for Proposals, would Canada consider removing / relaxing the requirement that: "The proposed innovation must not be openly available in the marketplace, and must not have been previously sold on a commercial basis as of the date of this bid submission."

At this point, Canada is not considering removing this requirement for this Call for Proposals.

Does Canada require a company that does safety testing on equipment to provide certification prior to the equipment being complete?

Bidders must demonstrate, at time of proposal submission that their proposed innovation is safe to test in an operational environment.

Can Bidders submit more than one proposal?

Yes. Bidders can submit more than one proposal, so long as it is for distinct innovations.

Can a university submit a proposal for this call?

In order to submit a proposal, Bidders must comply with all the requirements of the Calls for Proposals, including Article 1.3 Who Can Submit a Proposal. In general universities are eligible for Call for Proposals EN578-22ISC4, however the proposal is evaluated on areas which include management team and commercialization plan. Joint-ventures are eligible under this CFP, which could include a University working with a for-profit enterprise.

Can Canada advise as to when announcements will be made regarding the successful applicants? Will a Bidder with a pre-qualified proposal that has been selected by a Government of Canada organization, and that has a verified capacity to undertake the Work as per an agreed-upon SOW, be precluded from completing the contract award process if the Bidder has no financial history by virtue of the fact that it is a new start-up company?

All prequalified Bidders who are selected by a Government of Canada organization will be required to undergo the Contract Award Process outlined in the Call for Proposals at sub articles 5.2 and 5.3. Canada reserves the right to verify the financial capability of a Bidder prior to proceeding with Contract Award, as per sub article 5.3.3 Financial Capability.

What is the Pathway to Commercialization (Direct Buy) and intent?

Pathway to Commercialization (Direct Buy) is an initiative that Innovative Solutions Canada is piloting to better support both small businesses and government organizations. Pathway to Commercialization will allow government organizations to commercially buy the innovation, within a pre-established framework, in larger quantities to meet operational requirements without having to compete for it through normal competitive vehicles. This pilot initiative will be open to contractors who have completed an initial contract resulting from this call for proposals EN578-22ISC3 and met the entry requirements of the Direct Buy pilot.

Canada's intent is to determine the feasibility of implementing this initiative on a long-term basis. This will be achieved by monitoring the process, gathering data and analyzing the benefits and disadvantages for Canada. Canada will determine if it is beneficial to proceed with a direct buy or compete the requirement separately through other methods of supply to meet operational requirements.

Can Bidders apply directly to the Pathway to Commercialization (Direct Buy) pilot?

Only Small Canadian businesses who have received and completed an initial ISC contract as a result of CFP EN578-22ISC3, and whose innovation has reached the end of the TRL scale and are ready for market may participate in the Pathway to Commercialization pilot.

Will the same terms and conditions as standard R&D apply to the Direct Buy pilot?

Direct Buy Contracts will use different terms and conditions that are commodity-specific, outside of the R&D umbrella. Various terms and conditions that may be used are listed on Buy and Sell.

Will Direct Buy contracts need to be competed separately?

Direct Buy Contracts will not be competed per se though eligible small businesses will be required to re-certify eligibility to enter the Pathway to Commercialization (Direct Buy), meet additional criteria outlined in Appendix 5 of the Call for Proposals EN578-22ISC3 and agree to the new terms and conditions of any resulting Direct Buy Contract.