This page contains a general summary of contracting requirements to help applicants who have been notified of funding approval to prepare for execution of the SDTC Contribution Agreement. By proactively preparing to meet these criteria, applicants can reduce the amount of time required for contractual due diligence, final execution and advancement of the first disbursement.
1) Eligible Recipient description
To execute the Contribution Agreement, the Eligible Recipient (project lead) must be able to meet the following criteria:
Have contracting expertise in sustainable development technology and is a for-profit corporation, a partnership, a limited partnership or a business trust that has entered into a contract relating to the execution of the project with one or more of the following legal entities:
- another corporation;
- a partnership, a limited partnership or a business trust which has expertise in Sustainable Development technology;
- a university, a college or another provincially accredited post-secondary educational institution;
- a research institute;
- an individual who has expertise in Sustainable Development technology;
- a not-for-profit corporation, one of its purposes being to undertake, fund or otherwise support the Development or Demonstration of Sustainable Development technology;
as above, except is a for-profit corporation, a partnership, a limited partnership or a business trust that has entered instead into a collaborative arrangement with one or more of the following legal entities listed above to apply jointly to SDTC for funding to carry out a project
Note: Foreign Entities. Any entity or person that does not have legal capacity in Canada may collaborate with Eligible Recipients in relation to an Eligible Project, but do not qualify as an Eligible Recipient.
2) Status of Consortium Relationships
All consortium partners required to carry out the project successfully have confirmed (by agreement or other binding obligation) their participation. Foreign entities or persons can contribute in-kind, cash or advisory work. The foreign entity or person cannot receive direct SDTC funding; however, they may be funded through the Eligible Recipient.
The applicant has confirmed all funding sources contributing funds to this Eligible Project.
4) Work Plan and Budget
The final project work plan and associated project budget (detailing sources and uses of cash, with the use of SDTC’s funds clearly identified) is complete.
5) Environmental Assessments Required by Legislation
If the Eligible Project requires an environmental assessment under federal, provincial, territorial or municipal legislation, identify the need for the environmental assessment at the Statement of Interest (SOI) phase. Ensure that all required environmental assessments have been completed and a summary of any results of such assessments along with written certification of adequacy by a qualified independent professional (Peer Review) have been provided at the proposal phase. For more information about environment assessment visit http://www.acee-ceaa.gc.ca.
If the applicant has determined that an environmental assessment is not required a self-assessment must be identified at the SOI phase and documented at the detail proposal phase.
The environmental self-assessment must include measures that will be taken to mitigate any environmental impacts.
If an environmental assessment is not applicable to the technology (e.g. some enabling technologies) the applicant must clearly identify this at the detail proposal stage.
All insurance required to complete this project successfully has been identified and procured, and there are no outstanding issues relating to insurance for the project.
7) Other Contingencies
There are no contingencies pending or known that will prevent this Project from commencing once all funding has been confirmed (i.e. there are no outstanding results from a pilot demonstration, lab test, IP transfer or licensing, etc.)
8) Proof of Intellectual Property (IP) ownership
Proof of ownership and/or rights to use IP must be provided, and the applicant must clearly outline the ownership and rights to use for any new IP created during the course of the Eligible Project.
9) Retroactive expenses
Retroactive expenses are those costs incurred before a contract is signed.
Under no circumstances will SDTC reimburse expenses incurred prior to a Contribution Agreement being duly signed by both parties. In cases where an Eligible Project must start between the point at which it is approved by the SDTC Board of Directors and the execution of a Contribution Agreement, the Eligible Recipient must obtain SDTC approval of such an intent prior to the expenses being incurred. The Eligible Recipient will undertake such expenses at their own risk, and SDTC will have no liability or responsibility for such expenses until the Contribution Agreement is in place.
10) Revenue Generation during the Funding Period
SDTC funds projects which are in the Development and Demonstration phases only and as such are NOT intended to generate revenues during the term of the project.
Where an Eligible Recipient receives revenue from (i) the sale or (ii) commercial use of Project assets that earn income during the Period of Funding; the Eligible Recipient shall notify SDTC the amount of the proceeds from such sale or commercial use of Project assets.
Upon such an occurrence, the Eligible Recipient may be required to repay an amount to SDTC immediately or SDTC may be entitled to set-off such amount against future installments of the Contribution.
The sale of a Project asset includes the sale of any capital item, material or equipment considered to be an Eligible Project Cost. The commercial use of Project assets that earn income include the sale of any products produced using Project assets.
11) Payment installments
Typically there are 3-5 “milestones” or activity periods throughout the life of an Eligible Project, defined by sequential, non-overlapping time periods. These are defined by the Eligible Recipient in their work plan. SDTC typically advances funds towards each milestone, however SDTC reserves the right to operate on a cost-reimbursable basis.