What is the Innovative Solutions Canada Testing Stream?
The Innovative Solutions Canada (ISC) Testing Stream procures and tests pre-commercial innovations from Canadian companies through research and development (R&D) contracts. Federal departments conduct the testing to assess performance and provide feedback, helping innovators improve the readiness of their technologies.
I have applied to a Call for Proposals—what happens next?
If you applied to an open funding opportunity, wait to be contacted by Public Services and Procurement Canada (PSPC), the program’s contracting partner. PSPC handles all contracting and will inform you of your application results.
My innovation has preliminarily qualified
What does that mean?
Your innovation is now eligible for testing consideration by federal departments and agencies.
Please note that preliminary qualification does not guarantee selection or a contract award. Projects are selected based on the interest of the federal departments in testing the innovation.
What are the next steps?
You will receive a letter from PSPC confirming that your proposal is preliminarily qualified, meaning it passed the program’s mandatory and technical evaluations.
The program will then reach out to you to explain the next steps. As noted, preliminary qualification does not guarantee selection or a contract award.
For program terms and conditions, refer to the solicitation document on CanadaBuys.
Eligible Testers
Any federal organization listed in the Financial Administration Act can test qualified innovations.
Where necessary, federal organizations can also sponsor innovation tests to occur with third parties who are able to provide in-kind services. Third parties include but are not limited to provinces, municipalities, hospitals, schools, Indigenous organizations, etc.
Proposal Selection and Contract Award Process
Keys to success:
- Review the clauses listed in the Call for Proposals, including those related to delivery, inspection, payment, warranties, confidentiality, data protection, certification, and intellectual property. This will enable a better understanding of the program, and prepare you for the upcoming steps in the process.
- Stay informed by reading program communications and knowing your proposal’s validity date.
- Facilitate connections by directing interested testers to use the process outlined in Step 2.
- Understand contract budget limits: $1.1 million CAD for standard problems; $2.3 million CAD for military problems. Final contract values may vary based on scope.
- Design a minimal viable test to demonstrate key functionalities in a controlled setting.
- Respond promptly to keep your project moving.
Stage I: Innovation Review, Prioritization, and Matching
Step 1: Information gathering
The program contacts qualified companies to request promotional materials for the program website. These materials help testers better understand available innovations.
Step 2: Review by testers
Departmental testers review the innovations and assess their capacity and interest in testing. They express interest through the program’s webform or by emailing solutions@ised-isde.gc.ca. Only expressions of interest received directly from testers are considered.
The program follows up with testers to:
- Understand the proposed test plan
- Evaluate feasibility within the desired setting and timeline
- Assess alignment with departmental mandates and priorities
Step 3: Matching with federal government testers
Testers submit a list of prioritized innovations of interest. The program evaluates this input based on:
- Alignment with departmental mandates
- Level of interest (e.g., multiple departments)
- Benefits to the Government of Canada
- Logistical considerations (location, objectives, security, implementation)
- Innovation readiness and testing timeline
- Fit with available funding (program or tester money)
If submitted interest meets the criteria listed above, a program representative contacts the company. A potential match does not guarantee testing or a contract.
Next, the tester evaluates the match further in Step 4. Companies not selected will be informed.
Stage II: Test Plan, Statement of Work, Contract Negotiation, and Award
Step 4: Test Plan Development
The company, tester, program and procurement representative co-develop and approve a high-level test plan using a Test Verification Form.
Key points:
- Innovation must match the original proposal – no new features can be included. Refer to the definition of customization and configuration in the solicitation document.
- Define a minimum viable test – base requirement to appropriately evaluate the innovation.
- Budget must support the test plan.
The Test Verification Form includes:
- Innovation specifications and testing locations
- Timeline and IT access requirements
- Testing duration and security considerations
You must submit a non-binding, financial forecast for the proposed test plan. Final contract value may differ from your original proposal, based on the finalized test plan and subsequent contract negotiations.
If the test plan is approved, a debrief letter from the program confirms the match. If not, your innovation remains eligible for testing for the remainder of the proposal’s validity period.
Important Notes:
- The program and tester will finalize the test scope, which may result in a contract value lower than the program's funding ceilings ($1.1 million CAD for standard and $2.3 million CAD for military).
- Tests are expected to be completed efficiently. Contracts may span fiscal years and do not have to conclude within the same fiscal year.
- A confirmed match does not guarantee a contract.
Step 5: Statement of Work (SoW)
After plan approval, the company, tester, and program’s technical writer create the SoW. It defines the innovation and testing method for the contract.
The SoW includes:
- Innovation details (items, quantity, specifications)
- Installation or configuration procedures
- Travel for setup or training
- Test objectives and evaluation methods
- Schedule
Financial forecast and security needs are re-evaluated. The program helps initiate security clearance if needed. Project cannot proceed to Step 7 without security clearance.
Note: the program has no influence over the security clearance process as it is completed by another government department. Processing times can vary depending on the complexity of the request and type of personnel security screening requested. Visit the Costs and processing times for personnel security screenings webpage for more details.
Step 6: Contract Negotiation
PSPC leads negotiations between the company and the Government of Canada. If PSPC is at capacity, your file is queued.
The company will work with a procurement officer to justify all pricing associated with the SoW deliverables. Awarded contracts must demonstrate fair value to Canada.
Prepare in advance and respond quickly to avoid delays.
Required documents requested by the procurement officer during this step:
- Signed certifications (e.g., Code of Conduct, Canadian Content, Price Certification)
- Proposal Cost Breakdown Template (at least 80% Canadian content)
- Price support documentation (kept confidential)
A draft contract is shared with all parties for approval. Contract clauses from the Call for Proposals are final and non-negotiable.
Projects may be set aside during Steps 5–7 due to:
- Missed deadlines
- Disagreements on the test plan
- Failure to meet requirements
- Budget constraints
Step 7: Contract Award and Execution (Testing)
Once all steps are successfully completed, the contract is awarded and signed.
Once a contract has been awarded, deliver the work as outlined in the SoW. The program monitors progress to ensure timelines and budgets are met.
Submit monthly billing forecasts. Only invoice after delivery—advance billing is not permitted.
Note: The Government of Canada’s fiscal year ends March 31. Contracts spanning two fiscal years may have divided values across both years. The company must deliver work within the parameters of the contract and respect the budget assigned from each fiscal year. Diverting from the monthly billing forecast may affect your work and program planning.
Notify your program representative of any delays. Contract changes require amendments initiated by the tester and approved by all parties.
Claims:
- Invoiced monthly after delivery
- PSPC verifies compliance before payment
- Testers must confirm delivery
The Government of Canada maintains a service standard of 30 days to pay valid claims.
Step 8: Contract Close
All work must be completed before the expiry date. Work done after the expiry date cannot be reimbursed.
Step 9: Post-Contract Opportunities
Post Test Report
Testers complete and share a report that provides feedback on your innovation.
Additional Sales
Visit the Additional Sales page to explore opportunities following testing.
Pathway to Commercialization (PTC)
Visit the Pathway to Commercialization page to learn how tested innovations may lead to future procurement.