AI Assist call for proposals from organizations

1. Overview

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) is launching a call for proposals from not-for-profit organizations and post-secondary institutions to support the objectives of the NRC IRAP Artificial Intelligence (AI) Assist initiative.

The mandate of the AI Assist initiative is to help Canadian small and medium-sized enterprises (SMEs) build, deploy and integrate AI capabilities into their product or service offerings. Its specific focus is on increasing the number, the quality and competitiveness of SMEs that are building and deploying generative AI (GenAI), deep neural networks (DNN) and deep learning (DL) products into their core product and service offerings.

Canadian SMEs need support in developing and accessing the know-how and AI tools to carry out AI research and to apply AI to their products and services. To address this need, NRC IRAP is launching this call for proposals to select organizations to deliver this support to eligible SMEs referred by NRC IRAP industrial technology advisors (ITAs).

2. Eligibility requirements

Eligible applicants for this call for proposals are not-for-profit organizations, including post-secondary institutions, that meet each of the following criteria:

• Is an incorporated (federally, territorially or provincially) not-for-profit organization that carries out business activities in Canada and
  • Has facilities and conducts operations in Canada with employees based in Canada
  • Files corporate taxes in Canada
  • Withholds payroll deductions required by federal or provincial legislation
• Has significant expertise in generative AI (GenAI), deep neural networks (DNN), and deep learning (DL) with at least 3 years experience in providing AI advisory services to support SMEs to build, deploy and integrate these capabilities into their products and service offerings
• Has an established organizational structure and framework necessary to deliver the project
• Maintains professional liability insurance or errors and omissions insurance
• Has a published policy to protect the privacy, information and data of SMEs

2.1 Working with contractors

A successful applicant may collaborate with contractors (either organizations or individuals) to deliver services. The applicant must explain their intention to work with contractors in the expression of interest (EOI) form and include the contracting process to onboard them to the project team.

Once the successful applicant has signed their contribution agreement, the organization may contact potential contractors.

2.2 Working with foreign contractors

The use of foreign contractors or employees is not permitted. Foreign contractors are contractors who are based or who undertake the work outside of Canada.

NRC IRAP will vet all quotes provided by contractors to assess the Canadian content, appropriate expertise and cost estimates.

2.3 Research security

The NRC applies risk-based measures to safeguard its research, and the projects and organizations it funds from potential interference, misappropriation or misalignment with the interests of Canada. This includes, amongst other national security considerations, whether any of the individuals or organizations involved in activities supported by NRC funding are currently in affiliation with, or in receipt of funding or in-kind support, from any of the organizations on the Named Research Organization (NRO) list, published by Innovation, Science and Economic Development (ISED). The NRC will not directly fund projects where there is a current affiliation with an NRO.

3. Application process and timeline

The call for proposals follows a 3-stage process.

4. Project requirements

4.1 Objectives

The objective of this call is to obtain proposals from Canadian not-for-profit organizations and post-secondary institutions to provide and deliver services to Canadian SMEs as follows:

• Deliver AI knowledge through in-person visits or virtual meetings that will enable SMEs to determine if AI can help them achieve their business innovation and growth goals (includes identifying and conveying the business and technical elements necessary to incorporate AI into their core products and services, as applicable)
• Provide these services to SMEs in one or more Canadian province or territory
• Provide these services to SMEs in one or both official languages

4.2 Activities

The organization must undertake each of the following activities in order to achieve the desired objectives of the project:

Project set-up:

• Carry out project set-up, including working with NRC IRAP to coordinate intake of SME's and reporting requirements by the program
• Receive and review SME referrals from NRC IRAP which will contain the SME's specific requirements

Delivery of services:

• Provide services to SMEs in the below 2 main groups of activities. The organization must provide these services as part of their offering. Services are then tailored to the specific needs of each SME.
  1. Framing of potential AI usage within the SME:
     • Address questions about AI tools, technical and business requirements.
     • Discuss the integration of AI in the SME's potential use case brought forward.
     • Investigate possible AI solutions with the SME.
     • Provide cost components and approximate figures for the SME's AI use case.
  2. Dataset quality review:
     • Advise the SME on data considerations related to governance and ethics, which include but are not limited to transparency, confidentiality, security, bias, equity, responsibility, consent and adherence to privacy laws.
     • Provide a high-level opinion of AI usability in the following areas:
       • The SME's existing dataset
       • Alternative sources of data
       • New data the SME could collect
• Manage the project for the duration of the agreement.

4.3 Deliverables

Organizations successful through this call for proposals will use the NRC IRAP Innovation Portal (IIP) for submitting project-related documents, including deliverables, claims and progress reports.

Project:

Each organization must provide the following project deliverables:

• Personalized SME engagement services delivered to each SME referred by NRC IRAP, provided either online or through in-person meetings
• Action plan and recommendations for each SME on how AI can help them achieve their business innovation and growth goals

Reporting:

• Completed post service assessment for each SME engagement detailing the services rendered (submitted after an engagement is complete)
• Monthly project claims submitted to NRC IRAP accompanied by related proof of costs incurred and paid and a status report summarizing activities
• Final report at the end of the project capturing how project objectives were met, the desired outcomes achieved and lessons learned

4.4 Desired outcomes

The organization is expected to help SMEs determine their future use of AI through a combination of some or all of these outcomes:

• SMEs have the knowledge to identify which areas of their core business could be enhanced by AI to increase their growth and productivity.
• SMEs are knowledgeable about different AI solutions currently available and emerging that are applicable to their core business.
• SMEs have the ability to assess which data are required to enhance their business through the integration of AI.
• SMEs are familiar with best practices for data governance and collection and aware of risks and mitigation strategies related to human and animal ethics.
• SMEs will have a general knowledge of the human and financial resources required for integrating AI into their business.

4.5 Service delivery terms

Selected organizations must adhere to the following service delivery parameters:

• Project duration will be from the date the contribution agreement is signed until March 31, 2029.
• A midterm review will be performed by NRC IRAP:
  • Progress will be tracked and evaluated in alignment with agreed upon objectives, activities and a review of the organization's financial situation
  • The evaluation will consider factors including but not limited to performance metrics, SME satisfaction and ongoing SME needs
  • If the standards required by the midterm review are not met, it may lead to corrective measures or the termination of the agreement.
• NRC IRAP will conduct ad hoc reviews of project results through either online or in-person meetings.
• NRC IRAP will refer eligible SMEs to the organization for the engagements.
• Services will be provided to SMEs in the form of an SME engagement—a one-on-one interaction between the organization's project team and the SME referred by NRC IRAP.
• The organization is not permitted to market these engagement services externally and must not use the NRC IRAP-supported project for their own marketing purposes.
• SMEs may request that their NRC IRAP industrial technology advisor participate in the engagements with the organization.
• Each SME engagement will include up to 20 hours over a maximum period of 4 months.
• A maximum of 1 engagement per SME per fiscal year is permitted unless the need for additional engagements is approved by NRC IRAP.
• Applicants must specify the provinces and territories where they propose to deliver services.
• There is no requirement for the organization to use data that belong to the SME during an SME engagement or for any aspect of the services provided in a project under this call for proposals.
• SMEs referred by NRC IRAP will be required to contribute a flat fee of $500 per engagement to the organization to cover the cost of services. This payment must be incorporated into the costing supplied by the applicant in the proposal to NRC IRAP.
• Service standards for each SME engagement to be met:
  • Response time after receipt of SME engagement request: 6 working days
  • Completion of each SME engagement: within 4 months.

5. Project funding and eligible costs

5.1 Available funding

The anticipated total national budget for this call for proposals is $10.5 million, from contract allocation until March 31, 2029. Projects may be funded within a range of $750K to $10.5 million. Budget will be allocated per federal fiscal year (April 1 to March 31) to participating organizations. NRC IRAP will support up to 100% of the total eligible project costs, with the exception of the $500 fee paid by each SME.

5.2 Regional considerations

Funding will be allocated in a way that ensures services are available to SMEs across Canada. Applicants must specify in which languages and in which regions they will be able to provide services. Multiple applicants may be funded to ensure national coverage. Each applicant may submit only 1 EOI.

5.3 Government stacking provisions

Applicants are required to disclose any additional sources of funding that will be used to support project activities. This includes any grants, contributions or other financial assistance that applicants or their partners (if applicable) have requested or received from any entity prior to the NRC IRAP contribution agreement being signed. The total government assistance (federal, provincial, territorial and municipal) must not exceed 100% of the total eligible costs of the project. Applicants must clearly demonstrate that no single expense will be charged to two government entities.

5.4 Project costs

Applicants are requested to submit a high-level project cost estimate in their EOI. If the applicant proceeds to the proposals stage, they will be required to provide a more detailed cost breakdown for the project.

The project cost estimate will be based on the cost of delivering an SME engagement and the number of SME engagements the applicant can deliver per month for the duration of the project.

• Project cost estimation in the EOI must include all the financial resources required to complete the project.
• All project costs and fees or rates must be clearly specified in the project cost of the full proposal.
• All listed expenditures must be eligible costs and be reasonable and necessary.
• The detailed project costs in the proposal application must include an hourly rate for each resource category identified by the applicant for an SME engagement, for example:
  • Senior technical expert
  • Intermediate technical expert
  • Junior technical expert
  • Accountant
  • Project manager
  • Administrative support
• Hourly rates must be stated in Canadian dollars and must exclude taxes.
• NRC IRAP reserves the right not to accept the lowest cost proposal or any of the proposals submitted, to cancel the call for proposals at any time and to negotiate activities with any successful applicant during the contribution agreement set-up.
• NRC IRAP is not obligated to reimburse or compensate any applicant or its contractors for any costs incurred in connection with the preparation of a response to this call.

In order to evaluate the proposal, the cost estimate must be structured so that hourly rates submitted are multiplied by the specified estimated number of hours for each resource category for delivering an SME engagement and totalled to arrive at an all-inclusive cost estimate per each SME engagement.

5.5 Eligible costs

All project expenses, fees and rates must be clearly specified in the project budget. Organizations must demonstrate that all expenditures are reasonable and necessary. Only eligible costs will be funded by NRC IRAP.

Eligible costs for proposed projects:

• Salary costs
• Overhead costs (up to 30% of salary costs)
• Professional service rates
• Contractor fees
• Operating expenses
• Any portion of costs subject to refunds, rebates or credits by any government, including HST, GST and PST, that is not claimable by the applicant or its contractors

5.6 Ineligible costs

The following costs cannot be covered by NRC IRAP funding under this call for proposal:

• Travel or living expenses
• Purchase of land
• Leasehold interest
• Property taxes
• Any portion of costs subject to refunds, rebates or credits by any government, including HST, GST and PST, claimable by the applicant or its contractors
• Patenting costs
• Licensing costs
• And any other costs not specifically included in section 5.5

6. Project funding

Successful applicants will be required to sign a contribution agreement detailing the terms and conditions of the financial assistance in the form of non-repayable contributions. Funding will be used to reimburse the applicant for the eligible costs incurred during the project. The applicant will be responsible for reimbursing project contractors, if applicable.

The estimated expenditure for all resulting contribution agreements combined is $10.5 million including taxes.

NRC IRAP may select 1 or several proposals to deliver AI Assist services across Canada. NRC IRAP's objective will be to use the services of each successful applicant and, if more than one applicant is successful, to distribute the overall call for proposal funding across all successful applicants as per the agreed-upon terms in the resulting contribution agreement.

7. Contact

For more information on this call for proposals or to request an expression of interest form, send an email to NRC.IRAPctocfp-aapcaoPARI.CNRC@nrc-cnrc.gc.ca.