Biopharmaceutical Investment Program (BIP) APPENDIX A

These guidelines, as well as the BIP application form are subject to change from time to time without notice at the sole discretion of the Ministry of Research and Innovation.

Appendix A: Project Assessment Tool

Prior to completing an Expression of Interest, potential Applicants are encouraged to review their proposed Project in the context of the assessment criteria outlined below.  This Project Assessment Tool allows for the testing of a concept or idea for a potential submission to the Biopharmaceutical Investment Program, as it provides details of the criteria used by the Ministry of Research and Innovation to review applications to this program.  Each of the assessment criteria contain statements which describe increasingly attractive levels of performance relative to the requirements of the BIP.  Review of EoI submissions and Full Applications to the BIP will be based on how a proposal is judged to meet these levels of performance.

Summary of Assessment Criteria

ALIGNMENT	COMMITMENTS	IMPACTS
Alignment with Ontario Strengths	Company Track Record	Jobs
Alignment with Company Strategies and Plans	Investment	Skills
Risk	Collaboration and Partnerships	Building Capacity
Innovation	Follow On Potential	Economic Benefits
	Project Plan

Details of Assessment Criteria

1. Alignment with Ontario Strengths

Ontario has strengths or areas of excellence in research (e.g. oncology, cardiovascular disease, neurosciences), development, technology and advanced manufacturing.  Under this program, companies will make investments that support their business strategy and create, strengthen or build areas of excellence that contribute to Ontario being or becoming a global leader.  The proposal must identify what Ontario strengths the proposed project will leverage, expand or create.

The proposal presents an opportunity which:

• has some connections to current strengths in Ontario
• is clearly linked to a current Ontario strength
• can build on Ontario strengths
• can build new and enduring Ontario strengths

2. Alignment with Company Strategies and Plans

Proposals to the program will be company-driven, increasing the likelihood that longer-term industry investments in Ontario will be the result.  The proposal must identify how new or expanded investments will create, strengthen or build areas of excellence that contribute to Ontario being or becoming a global leader.  The proposal must explain how the project will aim to secure a global mandate for the company in Ontario.

The proposal as presented demonstrates that the work to be undertaken:

• has a relatively small role to play in the shorter term strategies and plans of the Company and its operations in Ontario
• has a significant but not major role to play in the medium term strategies and plans of the Company and its operations in Ontario
• is a major strategic initiative which will result in significantly incremental and long term enduring business for the Company and its operations in Ontario
• will result in a global mandate in Ontario upon which the Company and its operations in Ontario will build a majority  of this new business for the foreseeable future

3. Risk Management

Investments of the type being sought through BIP have inherent risk.  Proposals should set out each risk factor and present a clear picture of how these risks will be mitigated and balanced by reward, and in particular how these risks will be managed by the company to maximize the probability of successful outcomes.  Proposals must present the Applicant’s approach to recognizing and managing Technical, Business, Market and Regulatory risks.  These should include the availability of company resources needed to complete the proposed work and risks associated with corporate decision processes required to complete the investment.

The proposal presents a project which:

• has not considered risk and/or contains serious risks which are likely to prevent successful achievement of the planned objectives of the project
• has recognized the major risks but contains a few significant risks which, if not addressed before project start, could prevent successful achievement of the planned objectives of the project
• recognizes the major risks and discusses appropriate strategies to minimize their impact on successful achievement of the planned objectives of the project
• contains a complete risk analysis and risk management strategies and specific plans which give a high degree of confidence in the successful achievement of the planned objectives of the project

4. Innovation

This program is about pursuing excellence in innovation across the entire innovation system, including innovation in products, processes, advanced manufacturing, and services, where services not only include developing value-added tools but also making Ontario the location for a company’s global mandate to provide services using these tools.

The products, process, and services that will result from this project:

• largely duplicate those already in the marketplace elsewhere
• have some distinguishing features from those already in the marketplace elsewhere which should be sufficient to secure the sales which are projected for the Company in the proposal
• will be seen as innovative in the marketplace and will thus create new market niches and/or will use innovative processes which will create price, profitability, and/or efficiencies  which will provide competitive advantages in existing market niches
• will be seen as highly innovative in both their end use and application and in their production processes and as such will create significant market, profitability, efficiency and/or brand recognition advantages for the company and/or for Ontario

5. Company Track Record

A major objective of BIP is to attract new business to Ontario.  Proposals need to describe the track record of your Company with respect to: expansion of existing capacity in Ontario; or, installation of new capacity to existing operations in Ontario; or, installation of new capacity in other jurisdictions if the company has no existing operations in Ontario as these apply to the proposed project.

The Company:

• has had little or no experience in undertaking and successfully completing projects of similar size, scope and complexity
• has had some experience in undertaking and successfully completing projects of similar size, scope and complexity
• has demonstrated experience in undertaking and successfully completing projects of similar size, scope and complexity
• has a demonstrated exceptional track record of undertaking and successfully completing projects of similar size, scope and complexity and of generating the resulting expected impacts and benefits

6. Investment

Proposals must have minimum eligible project costs of $5M, over the term of the project.  If approved, Ontario’s contribution will be up to 20% of the total eligible project costs.  Subject to the program funding not yet allocated and the Minister’s discretion, there is no maximum limit on project costs.  Generally, the ministry will target larger investments to maximize benefit to the province.  The investments and job creation under each project will be incremental to the proponent company’s baseline in Ontario.

The proposal requests an investment that is:

• relatively small in size, for capabilities which exist elsewhere and where the company portion meets the minimum BIP requirements
• of medium size, for capabilities which will be largely new to Ontario and where the company portion meets the minimum BIP requirements
• of significant size, for capabilities which will be new to Ontario and among the leaders in the world and where the company portion is measurably greater than the minimum BIP requirements
• of major proportions for the company and of significant size, for capabilities which will be new to Ontario and unique in the world. The company portion is significantly greater than the minimum BIP requirements.

7. Collaboration and Partnerships

A major strategic objective for the BIP is to help create an even stronger set of collaborations and partnerships among Ontario’s biotech and related firms and our public research institutions such as the universities, colleges, research and teaching hospitals, etc.

The proposal is based on:

• collaborations with Ontario biotech and related  firms or public research institutions which are only peripheral to the objectives of the project
• collaborations with Ontario biotech and related firms or public research institutions which have a role in but are not key in achieving the objectives of the project
• collaborations with Ontario biotech and related firms or public research institutions that have an essential role in achieving the objectives of the project. 
• an innovative and exciting network of new and existing collaborations and partnerships with Ontario biotech and related firms and/or public research institutions which have an essential role in achieving the objectives of the project.  It is likely that these collaborations and partnerships which will carry on future initiatives well beyond the scope and timeframe of this project.

8. Follow On Potential

The proposal must explain how the investment will build new business for the foreseeable future, and how it will lay the foundation for long term business, market or capacity expansion beyond that proposed in the funding submission.

The proposed project:

• offers little or no opportunity for follow on business, market or capacity expansion beyond that proposed
• offers some small opportunity for follow on business, market or capacity expansion beyond that proposed
• offers significant opportunity for follow on business, market or capacity expansion beyond that proposed
• has as a major objective the ability to lay the foundation for long term business, market or capacity expansion beyond that proposed

9. Project Plan

The plan for the project as presented:

• is incomplete and/or has serious weaknesses, deficiencies or gaps which make successful completion of the project unlikely
• is largely complete but has a small number of serious weaknesses, deficiencies or gaps which unless there were remedied before project start would present serious risks to the successful completion of the project
• is largely complete, has no serious weaknesses, deficiencies or gaps and is likely to support the successful completion of the project
• is excellent in all respects with no weaknesses, deficiencies or gaps; has identified potential risks and presented mitigation strategies; and is highly likely to support the successful completion of the project

10. Jobs

Funded projects will be those with a high likelihood of creating a significant number of new high value jobs in Ontario, both within the project and in associated partner businesses and communities, and where there is a realistic potential that further expansion will occur in the future.  The proposal needs to identify the a) number and types of jobs that will be retained; b) the number and types of permanent, direct jobs that will be created by the proposed project; and c) the number and type of jobs that will be indirectly created in associated partner businesses and communities.  The proposal should not speak to induced jobs.

The proposed project:

• will retain jobs which already exist in Ontario
• will create new high value jobs in Ontario for the duration of the project
• will create a measurable number of new high value jobs in Ontario, some of which will remain after the duration of the project
• will create a significant number of new high value jobs in Ontario, both within the project and in associated partner businesses and communities.  The majority of these will remain after the duration of the project and there is a realistic potential that further expansion will occur in the future.

11. Skills

A major objective of BIP is to fund projects which will create demand for the skills being produced by Ontario schools, training programs, colleges and universities – particularly where such skills are those which are the foundation for the technologies and enterprises of the future.  BIP also funds projects that can attract to Ontario such skills from other jurisdictions where gaps exist in Ontario.

The proposed project:

• will largely use skills that are currently readily available in the company in Ontario
• will provide the opportunity to upgrade skills that are currently available in the company in Ontario
• will provide the opportunity to develop or bring to the company and its associated partner businesses and communities in Ontario skills that are in high demand
• will provide the opportunity to develop or bring to the company and its associated partner businesses and communities in Ontario a significant number of leading edge skills upon which new research and business expansion can be founded in the future

12. Building Capacity

The proposal must describe what human resources, research or commercial/advanced manufacturing infrastructures will be built or enhanced in Ontario as a result of the investment.

The proposed project:

• will primarily use human resources and research and commercial/advanced manufacturing infrastructures currently in place in Ontario
• will provide useful incremental additions to human resources and research and commercial/advanced manufacturing infrastructures currently in place in Ontario
• will help to create new human resources and research and commercial/advanced manufacturing infrastructures in Ontario which would not otherwise exist
• will help to create significant new, world class, and in some cases unique, human resource, research and/or commercial/advanced manufacturing infrastructure in Ontario which would not otherwise exist

13. Economic Benefits

Benefits under this program are viewed in the broad sense of “socioeconomic” benefits to the community where the BIP project is located, and to Ontario as a whole, and can range from the training of people to create a more highly skilled workforce, additional taxes generated, the extent to which Ontario’s strengths in R&D, technology, advanced manufacturing, and services are enhanced to make Ontario a global leader, and creation of indirect jobs.  Each BIP project will in some way enhance Ontario’s productivity and competitive advantage.

The proposed project:

• will provide primarily short term benefits over the life of the project itself
• will provided a small number of benefits beyond the life of the project itself
• will establish a “footprint” of enduring benefits that will extend well beyond the life of the project itself
• will establish a “footprint” of long term enduring benefits and will serve as a magnet to attract further world class research and commercial/advanced manufacturing investment to Ontario

>>> Continue to Appendix B – Eligible and Ineligible Project Costs