Doing Business in the Defence Sector Who we are Nova Scotia - PowerPoint PPT Presentation

Doing Business in the Defence Sector

Who we are Nova Scotia Business Inc. (NSBI) • Business Development Agency • Making connections • Attracting new companies • Growing exports Your first point of contact in realizing business opportunities in Nova Scotia

Rich Billard Atlantic Canada Aerospace and Defence Association

ACADA Overview OCTOBER 4TH|2018

Who is ACADA? ACADA is the voice of Atlantic Canada’s Aerospace, Defence and Security industry  We represent 165 companies and  Our members companies entities in the Atlantic region employ over 5,200 Atlantic Canadians  The membership is 85% small- and medium-sized businesses  Collectively, we generate $1.47B in annual economic activity

What do we do? BUSINESS WORKFORCE MARKETING & DEVELOPMENT & MEMBER INNOVATION & ADVOCACY DEVELOPMENT & PROMOTION SUPPLY CHAIN DEVELOPMENT COMMERCIALIZATION CAREER PROMOTION ENGAGEMENT Major event in each High School International Trade province Outreach Training and R&D and Missions Professional Commercialization Development workshops and Workshops events Participation at Career Fairs Canadian Events Membership in Supply Chain / National Industry Days Associations Searchable online ACADA Career App member capabilities Information Industry‐Academia Sessions collaboration B2B Meeting Online Funding Programs Online Job Board Portal

 ACADA’s service model goal is to shape and enhance our unified voice increasing membership opportunities and economic output for our sub‐sectors in Atlantic Canada.  One of ACADA’s key differentiators nationally is Motivation the strong emphasis on the Small to Medium Enterprises (SME) segment given the industry base in the region .  ACADA member firms, on average represent companies with 5‐20 employees, and sales under $1M.  Currently (Oct 2018) ACADA represents 165 companies in Atlantic Canada

Upcoming Economic Opportunities for the Aerospace and Defence Industry Potential Procurement and Export Growth Opportunities In addition to the CSC program in Canada, there are multiple other Canadian Naval procurements that will require both Canadian content and partners from overseas included but not limited to: •Multi-Role Boat - $50M - $99M •Naval Large Tug - $100M - $249M •Halifax Class Combat Systems Ins Service Support - $500M - $1B •Halifax Class Integrated Platform Management System In-Service Support - $100M - $249M •Minor Warships and Auxiliary Vessel In-Service Support Contract IV - $1B - $4.99B •Next Generation Maritime Mobility - $50M - $99M •Victoria Class Modernization - $1B - $4.99B •Victoria Class In-Service Support - $1B - $4.99B

• When combined the Aerospace and Defense industries contribute almost $1.3 billion in direct contribution to the region’s GDP. Expanding the industries impact, through economic multiplier effects to include indirect and induced impacts, the overall economic impact on regional GDP is $2.85 billion • In terms of employment, the A&D industries combined accounted for direct employment of approximately 9,700 people and over 22,700 in total

Economic Impact Study

 CEO & President – Rich Billard  Manager, Finance & Admin – Linden Mattie  Manager, Membership & Communications – ACADA Staff Catherine MacDonald  Manager, Marketing & Events – Sara Franco  Provincial Director, NS – Alex Himmelmen  Provincial Director, NB – Lisa Clory  Provincial Director, NL – Jody Fancey  Provincial Director, PE ‐ Allan Campbell

Contact Us ACADA Corporate Office 5151 George Street, Suite #502, Halifax, NS. B3J 3N4 902.425.0070 www.ac‐ada.ca

Glen Chamberlain Public Services and Procurement Canada

Defence and Security Procurement

What is Defence and Security Procurement? • The acquisition of goods or services in response to Canada’s defence and security needs • Project values typically range from the low millions to billions of dollars • It can take between one to five years to develop a procurement plan and to solicit and evaluate bids, with some projects having a contract life cycle spanning 20-30 years • Specialized clothing, ships, armoured vehicles, airplanes, weapons, technological systems, equipment and in-service support are some examples 1 16 6

Roadmap to Defence and Security Procurement • Defence and Security procurement follows the same general process as standard Government of Canada procurement, but the process is more complex • Many Defence and Security procurement opportunities are exempt from international trade agreements and therefore may not be posted publicly 1 17 7

Roadmap to Defence and Security Procurement Prepare SME Consult Certification & Procurement Process Could Take 1-5 Years Involvement your Security with Identify Business Requirements Requirements Industry Make a Plan Prime Contractor Sub- Invite Bids Lower ITB contract via Government of Dollar or buyandsell Value Canada Partner Know the Defence and Industry Security Procurement Evaluate Process and Federal Negotiate Departments Bids & Agencies Larger Award the Company Industry Contract Associations Administer the Contract Contract Administration, Including In-Service Support: Spanning 20-30 Years 1 18 8

Who are the Federal Players Major Purchasers Supports buyers and suppliers • Department of National • Public Services and Defence Procurement Canada • Canadian Coast Guard • Innovation, Science and Economic Development • Canadian Space Agency Canada • Public Safety Canada • Global Affairs Canada • Royal Canadian Mounted • Canadian Commercial Police Corporation • Canadian Security Intelligence • Regional Development Service Agencies • Communications Security 1 19 Establishment 9

Who are the Industry Players • Original equipment manufacturers (OEMs) and other large defence and security suppliers • Supply chains of suppliers • Subcontractors to original equipment manufacturers or their top tier suppliers 2 20 0

Defence and Security R&D Procurement Markets • Generally more accessible to small and medium enterprises involved in research and development work, in terms of process, time and business capacity • Many are under $500,000 per contract and can provide small and medium enterprises an opportunity to: • Work with world-class scientists • Gain insight into upcoming defence and security requirements • Understand the defence and security environment 2 21 1

Defence and Security R&D Procurement Markets • The biggest federal markets for R&D procurement projects are Defence Research and Development Canada (DRDC). • You can sign up for departmental R&D newsletters and monitor R&D procurement on Buyandsell.gc.ca/tenders • If you are an intellectual property owner, visit the Treasury Board Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts to understand how Intellectual Property is treated in federal procurement. 2 22 2

Preparing your Business to Participate Upcoming Industry Projects Products Industry Players Top Tier Production Suppliers Standards Know the Confidentiality Industry Agreement Intellectual Develop a Property Possible Cost Portfolio Rights Impacts Competitive Prepare Your What You Do Unique Business ISO Website and Value Added Certifications Promo and Security Materials Security ITAR Requirements Financial and Management Controlled Structures Goods Long Term 2 23 3

Security Requirements • A security clearance is necessary when a Government of Canada contract requires your personnel to access classified or protected information, assets or sensitive federal work sites • Security requirements are identified in the solicitation document. If the opportunity that you are interested in requires a security clearance and you do not have one, contact the contracting authority as soon as possible to get the process started • The time required to obtain a security clearance will vary • Delays in the security process could result in your bid being declared non-responsive 24

Security Requirements Contract Security Program (CSP) Phone Toll-Free: 1 866 368-4646 National Capital Region: 613 948-4176 Email ssi-iss@tpsgc-PSPC.gc.ca Website http://www.tpsgc-PSPC.gc.ca/esc-src/index-eng.html 25

Promoting your Good or Service Many Defence and Security opportunities are not posted publically. This makes promoting your business even more important: • Be proactive in promoting how your business can make a contribution to the industry or specific projects • Build relationships to help you get noticed and remembered, and find potential opportunities • Consider partnering with a third, second or first tier player, to get known and involved with larger businesses over time • Have a generic confidentiality agreement prepared in case you need to engage in a detailed conversation with a prime or lower tier supplier 2 26 6