The Industrial Participation Association of Canada (IPAC) is a recently formed non-profit Canadian association operated by volunteers who are seasoned industry offset professionals involved in defence procurement.

IPAC’s goal is to represent the view of the obligor in Canada. IPAC seeks a strategic, balanced approach to Canada’s Industrial Participation policy that meets the government’s economic development objectives, allows for flexibility and minimizes cost, risk, and administrative burden for all stakeholders.

IPAC’s primary objective is to support companies which have Industrial participation commitments in Canada by promoting a better understanding of the Obligor’s perspective.Through collaboration, IPAC seeks to ensure the Canadian Industrial Participation policy creates a flexible environment that welcomes and incents investment in Canada.IPAC is committed to creating an open forum for members and driving positive change by drawing on the best aspects of the current and past Canadian Industrial Participation policies to

  • Support growth and innovation in all sectors identified as strategic priorities for the Canadian government;
  • Help educate our members on opportunities, challenges and business implications of Canada’s Industrial Participation policy;
  • Identify aspects of the policy that may be ambiguous or have unintended consequences; and,
  • Identify and mitigate risk that will increase program cost. IPAC is a network of experienced offset practitioners who can support both Canadian and international companies with Industrial Participation commitments
IRB & ITB/VP in Canada
Canada’s Defence Procurement Strategy (DPS), announced in February 2014, has transformed Canada’s Industrial and Regional Benefit (IRB) policy into the Industrial and Technological Benefit (ITB) policy.

Industrial Participation is known in Canada as Industrial Technological Benefits (ITBs) and Value Proposition (VP). It is a policy governed by Innovation Science and Economic Development (ISED) that requires companies that win Canadian defence and security contracts place business activities in Canada at the same value of the contract.

A core element of the ITB approach is a rated and weighted Value Proposition. Bidders are motivated to put forward a Value Proposition for Canada in their bid proposal, which will directly influence which bidding firm wins a contract (generally min 10%).

Who should join?
Companies doing business with Canada which have or may have an IRB and/or ITB obligation, including VP with Canada or a similar industrial participation obligation as required by Canada.

Canadian companies doing business with other countries which have established industrial cooperation, industrial participation, offset or countertrade requirements through legislation, regulation, practice, custom or otherwise.

Why should you join?
  • To network with a large number of major international companies
  • Tap into know how of many obligors regarding IRB & ITB/VP rules and procedures
  • Participate in training sessions to broaden your Canadian Industrial Participation knowledge
  • To add your voice to ongoing dialog between IPAC and Government decision makers
  • Gain a better understanding of global offset practices for Canadian companies which may incur international offset obligations​​​