Quantum communications

From: Innovation, Science and Economic Development Canada

We are seeking pre-commercial innovative prototypes that can be tested in real life settings and address a variety of priorities within the Government of Canada.

Funding mechanism:
Contract

Opening date:
July 5, 2023

Closing date:
August 3, 2023, 14:00 Eastern Time

 

Overview

Problem statement

Quantum technologies are at the cutting edge of science and innovation, both in Canada and worldwide. As an enabling platform, quantum is leading to a new suite of technologies in computing, sensors, secure communications and advanced materials. These technologies will support the growth of key sectors such as computing, communications, security, transportation, aviation and logistics.

Quantum communications technologies are of particular interest to the Government of Canada (GoC) in a range of theatres from military and secure communications, to communications related to Uncrewed Aerial Systems (UAS), to quantum information distribution and management. One capability that the government wishes to advance, relates to signal fidelity over long distances. Long-distance communication is hindered by the effects of signal loss and decoherence inherent to most transport mediums such as optical fiber or through the atmosphere. In classic communications, amplifiers can be used to boost the signal during transmission, but in a quantum network amplifiers cannot be used since qubits cannot be copied. ISC is soliciting proposals seeking a variety of quantum solutions that can assist the GoC in the development and eventual application of quantum communications technologies.

Definitions

Quantum repeater: A true quantum repeater allows for the end-to-end generation of quantum entanglement, and by using quantum teleportation, allows for the end-to-end transmission of qubits. In quantum key distribution protocols, one can test for such entanglement.

QKD: Quantum key distribution (QKD) is a secure communication method for distributing encryption keys only known between shared parties. The communication method uses properties found in quantum physics to exchange cryptographic keys in such a way that is provable and theoretically secure.

Outcomes

Innovations must meet at least ONE of the following outcomes to meet the requirements of SC4 Evaluation Grid.

  • Quantum Technologies or components with the potential for eventual application in any of the following fields: defence, telecom, aviation, finance, energy, or advanced manufacturing.
  • Quantum communications hardware, software or supporting equipment that is in the prototype stage and ready for testing, using commercially available infrastructure.
  • Quantum communications hardware with high rate quantum light sources such as weak coherent pulsed sources, or entangled photon sources, or a single photon source.
  • Hardware solutions including quantum transducers (frequency converters).
  • Quantum enabling technologies, electronic and detection components, such as non-photonics-based enabling tech and components to support in the deployment of quantum communications technologies.
  • QKD solutions and quantum encryptions solutions (EXCLUDING post-quantum cryptography solutions).
  • Quantum Repeaters or quantum memory solutions.
  • Error correction solutions that account for both loss and operational errors in quantum communications.

ISC will not accept (out of scope):

  • Post-quantum cryptography components or solutions.

Eligibility and 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 –G 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: 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.

MC5: Previously Pre-qualified Innovation

The proposed innovation or any other versions of the proposed innovation must not have been previously awarded a contract in the Build in Canada Innovation Program (BCIP) or its predecessor, the Canadian Innovation Commercialization Program (CICP), nor under the Innovative Solutions Canada (ISC) Testing Stream.

The proposed innovation or any other versions of the proposed innovation must not currently be active in a pool of pre-qualified innovations. 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.

Bidders may submit multiple proposals, ensuring that each proposal is for a different Innovation.. The same or similar proposals may not be submitted twice for different problem statements. If the proposed innovation is similar or identical to an innovation previously submitted by the bidder 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.

MC6: Maximum Funding

The Bidder's Financial Proposal must not exceed $2,300,000 CAD in the Military Component, not including applicable taxes, shipping costs, and travel and living expenses, where applicable. Refer to Section G – Financial Proposal.

MC7: 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.

The following criteria only applies to Small Businesses

MC8: 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.

MC9: 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 1, 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 meets 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 that 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 – Outcomes

The Bidder must demonstrate that the proposed innovation provides a solution to the selected Problem Statement by the Bidder. In addition, the Bidder must demonstrate that the proposed innovation meets one or more of the outcomes identified in the selected Problem Statement by the Bidder. Proposed innovations that possess characteristics and functionalities cited in the out of scope outcomes will not be accepted

Pass
  • The proposed innovation is within the scope of the selected Problem Statement by the Bidder, and clearly addresses one or more of the outcomes identified in the selected Problem Statement.
Fail
  • The proposed innovation is articulated as out of scope for the selected Problem Statement by the Bidder, or;
    • The proposal does not clearly demonstrate how the proposed innovation addresses any one of the outcomes identified in the selected Problem statement by the Bidder, 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 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 2, 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 the 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

This criterion is intended to assess the degree to which the Bidder has identified all important risks in the demonstration scenario, and degree to which those risks are addressed with appropriate 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, but there is moderate residual risk.
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 diversity, inclusivity and gender equity within; their business, supply chain, or business ecosystem.

Score levels reflect the number of the following elements the Bidder addressed in their answer:

  • Anti-discrimination policies;
  • Recruitment strategy and hiring process;
  • Training available 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 diversity, inclusivity and gender equity are not identified, are insufficient, or do not appear genuine.
4 points Information provided clearly demonstrates that the Bidder is implementing some measures (two (2) elements) to achieve and maintain diversity, inclusivity and gender equity.
8 points Information provided clearly demonstrates that the Bidder is implementing most measures (three (3) elements) to achieve and maintain diversity, inclusivity and gender equity..
12 points Information provided clearly demonstrates that the Bidder is implementing all measures (all four (4) elements) to achieve and maintain diversity, inclusivity and gender equity.

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 and 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.

Maximum available points from Stage 2 & Stage 3 : 176 points

Minimum Total ScoreFootnote 3 from Stage 2 and Stage 3 to pre-qualify: 106 points

Pathway to commercialization (PTC)

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

Our new pilot project gives small and medium-sized enterprises (SMEs) the opportunity to sell your innovation directly to the Government of Canada.

Through the PTC under ISC's Testing Stream, eligible SMEs can receive commercial contracts based on the successful testing and market-readiness of your pre-commercial prototype. It is important to note that this pathway 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.

How will it work?

  • Once your initial ISC testing contract is completed, you may be eligible for the Pathway to Commercialization if your innovation is market-ready above technology readiness level (TRL) 9
  • You will have up to 12 months following the end of your initial ISC Testing Stream contract to apply to the Pathway to Commercialization, at which time you will be assessed against the PTC entry criteria to determine if your innovation will be placed on a PTC source list where government departments can browse and purchase your successfully-tested innovations for up to three years

Important considerations

  • You must be selling the same innovation from your initial Testing Stream contract
  • If you participate in the PTC, you will no longer be eligible for additional testing through the Testing Stream. Unlike PTC 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.
  • 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.

How will SMEs be assessed?

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 call for proposals (CFP) for more information on the Pathway to Commercialization.

Frequently asked questions

All incoming questions regarding this specific call for proposals should be addressed to TPSGC.PASICVoletessai-APISCTestingStream.PWGSC@tpsgc-pwgsc.gc.ca.

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