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Artificial intelligence (AI) – Testing Stream │ Innovative Solutions Canada

July 22, 2025

Value

Each call includes a Standard Component and Military Component: Standard component: $1,100,000 CAD Military component: $2,300,000 CAD

Description

The Testing Stream aims to procure, test and evaluate innovative late stage pre-commercial prototypes.

The purpose of these calls for prototypes (CFPs) is to create pools of conditionally qualified innovations that Canada may select from to address a broad range of the Government of Canada organizations’ requirements.

Eligible Applicants

MC1: Canadian Offeror

The Offeror must be a Canadian Offeror. A Canadian Offeror is defined as a Canadian person or entity submitting an Offer on its own behalf and having a place of business in Canada where the person or entity conducts activities on a permanent basis that is clearly identified by name and accessible during normal working hours.

MC2: Canadian content

At least 80% of the financial proposal costs, the total proposal price to Canada stated in “Section–G Financial proposal”, must be Canadian goods or Canadian services. For the complete definition of “Canadian goods” and “Canadian services” please refer to Annex Solicitation of Offers Definitions of the solicitation number EN578-25ISC2 on the Canada Buys Website.

MC3: Ownership

The Offeror must be the owner of the Intellectual Property (IP) for the proposed innovation or hold a valid exclusive licence for the IP rights from a Canadian licensor for the proposed innovation. The Offeror must also ensure that the proposed innovation does not infringe on any existing IP rights.

MC4: Pre-commercial status

The proposed innovation must not be openly available in the marketplace, and must not have been previously sold on a commercial basis as of the date of the submission of the offer. Refer to the definitions of Pre-Commercial Innovation and Commercial Sales at Annex Contract Definitions of the solicitation number EN578-25ISC2 on the Canada Buys Website.

MC5: Previously conditionally-qualified innovation

The proposed innovation or any other versions of the proposed innovation must not have been previously awarded a contract in the Build in Canada Innovation Program (BCIP) or its predecessor, the Canadian Innovation Commercialization Program (CICP), nor under the Innovative Solutions Canada (ISC) Testing Stream.

MC6: Program Eligibility

The Offeror’s submission must align with the mandate of the ISC Testing Stream, as stated in the solicitation number EN578-25ISC2 on the Canada Buys Website, under which Canada procures the Offeror’s Innovation through a Contract for testing it in an operational environment. This takes into account assurance that the innovation is ready to test in an operational environment, at the time of the submission of the offer.

MC7: Offeror Presence in Canada

The Offeror must meet the following minimum requirements:

  • 50% or more of the Offeror’s full time equivalent (FTE) employees must have Canada as their ordinary place of work;
  • 50% or more of the Offeror’s annual wages, salaries and fees must be paid to employees and contractors who spend the majority of their time working in Canada;
  • and 50% or more of the Offeror’s senior executives (Vice President and above) must have their principal residence in Canada.

Eligible Expenses

Through the PTC under ISC’s Testing Stream, eligible SMEs can receive commercial contracts based on the successful testing and market-readiness of your pre-commercial prototype. It is important to note that this pathway will only be available to eligible Canadian SMEs, which represent over 97% of all businesses in Canada, a percentage that mirrors past participation in the program.

Deadline Date

July 22, 2025.

Contact

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There is grant money waiting for YOU! BUT if you step in a “grant trap,” your application is a NO! Learn the FIVE most common errors to AVOID in government grants! Get the 5 Grant Gotchas now to save you countless hours.

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