Extensive documentation accompanies each ITB transaction in a prime contractor’s bid and annual reporting to the Government of Canada. These include a Causality Certificate, Eligible Party Certificate, and Incrementality Certificate.
An eligible party refers to the prime contractor and its major tier 1 suppliers that have a legal responsibility for a portion of the prime’s ITB obligation. The definition of eligible party also includes the parent corporations, subsidiaries, divisions and subdivisions of each of these identified parties.
In the instance that a contractor proposes an eligible party that is a Canadian company with less than 500 employees, the contractor must submit an Eligible Party Certificate that clearly demonstrates that the eligible party understands and has the capacity to undertake its commitments. Some of these criteria may include: company size, product offerings, corporate ownership and structure, previous ITB experience, established processes for managing ITBs, and amount of Canadian content.
Although, a prime contractor may transfer some of its commitments to an eligible party, it remains fully responsible for the commitment and its fulfillment.