Report on fiscal sustainability in Canada’s startup ecosystem, particularly with business accelerators and incubators

INNOVATION, SCIENCE AND ECONOMIC DEVELOPMENT CANADA 600116 ADVANCE CONTRACT AWARD NOTICE (ACAN) An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, during the fifteen calendar day posting period, a statement of capabilities that meet the requirements set out in the ACAN, the competitive requirements of the government's contracting policy have been met. Following notification to suppliers not successful in demonstrating that their statement of capabilities meets the requirements set out in the ACAN, the contract may then be awarded using the Treasury Board's electronic bidding authorities. If other potential suppliers submit statements of capabilities during the fifteen calendar day posting period, and meet the requirements set out in the ACAN, the department or agency must proceed to a full tendering process on either the government's electronic tendering service or through traditional means, in order to award the contract. CONTRACTING OFFICER NAME: Eric Leroux, Senior Contracting Advisor Contracts and Material Management Innovation, Science and Economic Development Canada Telephone: 343-291-2925 E-mail: eric.leroux@canada.ca TITLE: Report on fiscal sustainability in Canada’s startup ecosystem, particularly with business accelerators and incubators. BACKGROUND: Innovation ecosystems are essential to help support entrepreneurs nurture competitive technology companies, helping to create jobs and economic growth. Accelerators and incubators (BAIs) are critical players in these ecosystems, providing direct support to firms and convening support networks that include angel and venture capital investors, established anchor companies, and public sector partners. BAIs have become a critical part of the start and scale journey of many young technology companies. As a consequence, the Department of Innovation, Science and Economic Development Canada has a requirement to develop policy on Canadian business accelerators and incubators. REQUIREMENTS/RESULTS: The objective is to understand revenue models that are available to BAIs, how adopting those models would affect how BAIs support companies, which BAIs would be more likely to benefit from these new approaches, to what degree are these models sustainable, and to what degree could these models could displace government funding. Minimum Essential Requirements Any interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements:

Vast knowledge* of the current business accelerator and incubator ecosystem in Canada, related gaps, salient policy challenges and key stakeholders; Vast knowledge* of corporate innovation in Canada, as it relates to encouraging collaboration and the growth of SMEs and in the context of regional differences; Strong and trusted network business accelerators and incubators, with a wide network in Canada and best in class business accelerators and incubators internationally; Extensive experience** conducting outreach activities, conducting interviews, quantitative analysis, and developing policy recommendations on business accelerators and a strong credibility and existing relationships with the business accelerator and incubator communities across Canada and internationally;  Extensive experience** conducting interviews, quantitative analysis, and developing policy recommendations on corporate innovation in Canada;  Extensive experience** working with the federal or provincial governments and government officials; and Extensive experience** engaging with multiple stakeholders from diverse fields such as academia, government, not-for-profit and industry to plan and facilitate discussions on business accelerator and incubator policy and the start-up ecosystem.

* Vast knowledge is defined as thorough understanding of a topic, including the perspectives of different stakeholders and associated political, economic social and technical considerations. This understanding would normally be obtained through substantial research, stakeholder outreach and first-hand experience. **Extensive experience is defined as a minimum of 5 years of experience of which one is within the last year. SCOPE OF WORK: The Contractor will be required to produce for ISED:

A detailed project plan; A fiscal sustainability analysis, based on a review of financial statements of between 15 and 30 business accelerators and incubators, and on interviews with between 40 and 60 executives representing business accelerators and incubators and their stakeholders; An interim progress update; A domestic and international best practices analysis, based on case studies of at least four Canadian and several international organizations; A jurisdictional analysis of other national funding landscapes; and A final report with a length of 30 to 40 pages that outlines the key findings, best practices, and recommendations from the research.

Deliverable one: A detailed project plan Deliverable two: An interim report Deliverable three: A final report

IDENTIFICATION OF CONTRACTOR: DEEP Centre 130 Albert Street Ottawa, Ontario K1P 5G4 REASON FOR AWARDING CONTRACT TO THIS CONTRACTOR: The DEEP Centre possesses trusted and established relationships with the business accelerator and incubator ecosystem in Canada and internationally and they possess a strong expertise in the Canadian business accelerator and incubator landscape. The DEEP Centre has also conducted research on the larger Canadian economy including corporate innovation, corporate growth strategies, and industry sectors including clean technology and manufacturing, among many others. Specifically, over the last few years, on various initiatives supported by the Business Development Bank of Canada, Global Affairs, Ontario’s Ministry of Economic Development, the Atlantic Canada Opportunities Agency and Innovation, Science and Economic Development Canada, the DEEP Centre has met with entrepreneurs and investors across the country to better understand the role of business accelerator and incubator as well as corporations in helping start-ups succeed. The DEEP Centre developed the first report on a business accelerator and incubator performance measurement framework for Innovation, Science and Economic Development Canada, an initiative has been received enthusiastically by the business accelerator and incubator community. More recently, a working group consisting of Atlantic Canada Opportunities Agency and the Atlantic Canada provinces selected the DEEP Centre to develop an investment framework and action plan for the region’s start-up ecosystem. The success of these projects has relied on the DEEP Centre’s expertise of the Canadian business accelerator and incubator landscape and its connections to industry and ecosystem leaders. The DEEP Centre has unequalled experience in publishing research on business accelerator and incubators and on corporate innovation in Canada. ESTIMATED COST: The estimated value of the contract is $80,000.00, applicable taxes extra, with the work expected to take place from date of contract award to June 26th 2020. APPLICABLE LIMITED TENDERING REASONS: Section 6(d) of the Government Contracts Regulations is being invoked in this procurement as only one person or firm is believed capable of performing the contract. Agreement on Internal Trade (AIT) article 506.12(b) of AIT is applicable to this requirement, which states, where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists. Also applicable to this requirement is Article 1011 of NAFTA and Article X of the AGP-WTO, which both Articles provide exceptions to the tendering process. OWNERSHIP OF INTELLECTUAL PROPERTY: Ownership of any Foreground Intellectual Property arising out of the proposed contract will remain with the Contractor. CLOSING DATE AND TIME FOR WRITTEN SUPPLIER RESPONSES CHALLENGING THIS REQUIREMENT IS 2:00 P.M., EASTERN TIME, August 19, 2019. You are hereby notified that the government intends to solicit a bid and negotiate with the firm identified above. If you wish to submit a written response showing that you are capable of meeting this requirement, it must be done not later than the closing date and time.As it is intended to proceed in a timely manner, responses received after the closing date will not be considered.The Crown reserves the right not to open this procurement to competition. Responses received on or before the closing date will be considered solely for the purpose of deciding whether or not to conduct a competitive procurement.Information provided will be used by the Crown for technical evaluation purposes only and is not to be construed as a competitive solicitation.Your written response must provide sufficient evidence (e.g. specifications, technical data, drawings, or any other proof) that clearly demonstrates that your product or service is capable of fulfilling this requirement. Suppliers that have submitted a response will be notified in writing of ISED's decision to continue with the non-competitive procurement or to compete the requirement. Should you have any questions concerning this requirement, contact the contracting officer identified above.The Industry file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page. The Crown retains the right to negotiate with suppliers on any procurement. Documents may be submitted in either official language of Canada.