Rules for applicants
Supporting dual-use technology projects for access to European Structural and Investment Funds co-financing
IMPORTANT DISCLAIMER AND LIMITATION OF LIABILITY
This Request for Projects, launched by EDA with the support of the international consulting firm EY (contracted by EDA for the purposes of this initiative), is addressed to dual-use technology project-holders intending to apply for European Structural and Investment Funds (ESIF) funding, and is designed to provide prospective beneficiaries with free technical support in the preparation of their applications.
The most promising projects in terms of satisfying ESIF requirements will be selected by EDA and MoDs against the criteria prescribed herein. This initiative is autonomous from ESIF funding procedures, for which ESIF managing authorities are fully independent.
Interested project-holders should bear in mind that the granting of technical support in no way guarantees access to ESIF funding, and that neither EDA/EY nor MoDs may be held responsible in the event that projects selected for technical support are subsequently rejected by ESIF managing authorities.
Table of Contents
1 Introduction and background 4
1.1 Presentation of EDA 4
1.2 Dual-use technology projects 4
1.3 Presentation of the ESIF 5
2 Objectives of the Request for Projects and targeted projects 5
2.1 General objectives of the Request for Projects 5
2.2 Typology of Project Holders targeted 6
2.3 Typology of projects targeted 6
3 Selection process and criteria 6
3.1 Selection process 6
3.2 First level of selection 7
3.3 Second level of selection 9
4 Evaluation methodology 10
5 Application rules and procedure 11
5.1 Application Form: the Project Fact Sheet 11
5.2 Where and how to apply? 12
5.3 Deadline for submission and time frame of the evaluation process 12
5.4 Number of awarded projects 13
5.5 Award decision and notification 13
5.6 Awarded Project Holders responsibilities and commitment 13
6 Appendixes (list of) 14
1
1 Introduction and background
1.1 Presentation of EDA
The European Defence Agency (EDA) is the place to go for improving European defence capabilities. The Agency supports the Council of the European Union and the Member States in their effort to improve the European Union’s defence capabilities.
One of the missions of the European Defence Agency (EDA) is to promote synergies with wider EU policies, with to the aim of reinforcing the European Defence Technological and Industrial Base (EDTIB). In this regard, EDA initiated activities to facilitate access for industrial capabilities or R&D/R&T projects to new sources of funds such as the European Structural and Investments Funds (ESIF).
The goal is to promote greater innovation across the defence industry in Europe, with special focus on Small and Medium-sized Enterprises (SMEs), aiming key technological and industrial priorities to be maintained or developed in Europe, in close cooperation with the European Commission.
To achieve such objective, EDA launched in 2013 an initiative to analyse how R&T and industrial capability projects in dual-use technology domains could apply to European Structural Funds to get a co-funding. Based on a successful experimentation, EDA decided to go for a large scale deployment phase in order to accelerate ESIF support to dual-use technology projects and to foster significantly MoDs’ capacities to contribute to the EDTIB objective.
This Request for Projects (RfP) aims at mobilizing Project Holders, generating a pipeline of projects and selecting the most promising of those to benefit of EDA’s contractor (an international consulting firm) technical assistance to prepare and submit their projects proposals to apply for an ESIF co-funding.
1.2 Dual-use technology projects
As defence is a sovereign function of Member States Governments and as such, not part of the European Commission (EC) responsibility and perimeter of action, EDA and the EC are focusing their common actions on dual-use technologies, having both civilian and defence applications.
Dual-use research and technologies refer to studies and technology development satisfying more than one goal at any given time, meaning having both civilian and defence applications. It especially – although not exclusively - covers research at lower Technology Readiness Levels (TRL) leading to technologies or products that can address both civilian and military needs. This includes for example research and technologies in the areas of electronics, components, nanotechnologies, radars and sensors, telecom and ICT but also aeronautics, propulsion technologies and materials in general which do not have at the outset a specific defence or civil orientation. The objective of promoting dual-use research and technologies is to enhance synergies between the civil community and the military community. The promotion of dual-use technology development has one key benefit: expensive technologies which would otherwise only serve military purposes can also be used to benefit civilian commercial interests when not otherwise engaged. Some well-known examples of technologies that were developed in the past and did cross the boundaries from the military to the civilian field are Internet or Mobile Telephony. This is exactly the kind of research and innovation projects that the European Commission is willing to provide funds to through the European Structural and Investment Funds (ESIF).
It is worth to notice that for the purpose of the control of their exports, transfer, brokering and transits, the EU Council Regulation (EC) 428/2009 provides an official list of “dual-use” items, thus to some extent pointing out the sectors directly related to dual-use technologies.
NB: This Request for Projects, however, only targets specific dual-use technological priorities, as presented in its appendix n° 6.5.
1.3 Presentation of the ESIF
The ESI Funds consist of five separate funds: the European Regional Development fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF).
Among those ESI Funds, the ERDF, the ESF and the CF are the instruments of the European Cohesion Policy.
The European Cohesion Policy is an investment policy aiming at reducing economic, social and territorial disparities between regions in Europe with a budget of around 350 billion euros for the period 2014-2020. More specifically, the ERDF and the ESF are referred to as “Structural Funds” and represent main EU funding opportunities for dual-use research and technologies as well as dual-use related skill development.
NB: This Request for Projects is focused on the ERDF only. To access more details about ERDF, please refer to the brochure on the “European Structural Funds for Dual-use technology projects” published by EDA, attached in the appendices of this Request for Projects (cf. appendix n° 6.3). You may also refer to the Theoretical Background “European Structural and Investment Funds” also attached in the appendices (cf. appendix n° 6.2).
2 Objectives of the Request for Projects and targeted projects
2.1 General objectives of the Request for Projects
The objectives of this Request for Projects (RfP) are the followings:
- Identify Project Holders among the EDA participating Member States (pMS), carrying projects of R&D/R&T or reinforcement of competitiveness in the field of dual-use technologies and seeking financial resources to develop it;
- Select the most promising projects and Project Holders based on eligibility and key performance criteria;
- Provide Technical Assistance to the best project selected to help Project Holders accessing to an ERDF financial support in the form of co-financing.
2.2 Typology of Project Holders targeted
The Project Holders targeted fall into the following criteria:
- Small & Medium-sized Enterprises (SMEs)
- Large companies (only eligible for R&D/R&T projects[1]);
- Public and private research centres;
- Academia;
- Public bodies (national and local).
NB: As a general rule, all Project Holders to be selected within this RfP must fulfil the ESIF eligibility rules and be in full compliance with the rules on State aids.
2.3 Typology of projects targeted
The projects targeted are twofold:
- R&D/R&T projects[2];
- Reinforcement of competitiveness for SMEs[3].
NB: The projects targeted by this RfP are only dual-use technology projects.
NB: In the ESIF new programming period 2014-2020, a special emphasis is made on SMEs.
3 Selection process and criteria
3.1 Selection process
Projects submitted to this Request for Projects will go through two levels of selection:
- First selection by Ministries of Defence (MoDs);
- Second selection by EDA - with the support of an international advisory consultant.
NB: For each level of selection, precise criteria are pre-determined with clear selection rules.
Those criteria and rules are detailed hereafter.
3.2 First level of selection
Ø The role of Ministries of Defence:
The Ministries of Defence (MoD) across the EDA pMS are fully involved in the EDA initiative as well as in the selection process supported by this Request for Projects.
The role of the MoD in each country consists in:
- Putting into circulation the RfP to reach the potential national Project Holders;
- Making a selection amongst the national projects identified so as to select a first pipeline of maximum ten potentially eligible projects for each EDA pMS (first selection level) ;
- Communicating to EDA the results of this pre-selection with the rationale for selection of projects, so that EDA can then proceed to the next step of the selection process.
Ø Selection criteria for the first selection level by MoD:
The selection criteria for the first level of selection are the followings:
Mandatory criteria / Additional non-mandatory criteria1. Dual-use technology project; / 4. RfP priorities;
2. Project Fact Sheet (PFS) completeness; / 5. Identification of the appropriate Operational Programme(s) (OPs);
3. Project readiness. / 6. Co-financing capacity
NB: To be eligible, a project must meet the mandatory criteria. The non-mandatory criteria are optional. Nevertheless they should be taken into account by Project Holders as bonus criteria.
NB: The first level of selection by MoD will be performed based on the application form (the Project Fact Sheet - see appendix 6.1) completed by the Project Holders.
Ø Detailed definition of the selection criteria:
1. Dual-use technology project;
To be eligible, the project submitted must be a dual-use technology project. Please refer to part 1.2 of this document to see the definition of dual-use technology projects.
2. PFS completeness;
An application form, called the “Project Fact Sheet” will need to be filled-in by applicants to submit their project.
NB: The completeness of this Project Fact Sheet and the clarity of the information provided will be a mandatory condition for eligibility.
3. Project readiness:
The project readiness will be assessed in terms of:
- Technical and financial capability of the Project Holder (the PH must demonstrate its ability to carry-out and manage efficiently the project);
- Identification of potential partners (in case of collaborative project, the consistency of the consortium will be critical);
- Identification of the location(s) of the project: the project eligibility will depend on the consistency of the project with regards to the “Regional Innovation Strategy” or “Smart Specialisation Strategy” and with the regional ERDF Operational Programme. Therefore, the projects need to be clear in terms of geographical location and deployment;
- Sizing of the project: this RfP targets only projects with a budget of 500 K€ to 50 M€;
- Co-financing commitment: the Project Holder must confirm its readiness to fund part of the project costs. The co-financing rate from the ERDF will depend on the Operational Programme under which the project is submitted in the end. In any case, the Project Holder will have to finance a part of the total project costs. NB: This co-financing from the Project Holder cannot be funded from any other public grant.
4. RfP priorities:
This RfP targets specific technological priorities presented in the appendix 6.5. Project Holders to be selected under this RfP will need to identify clearly the priority or priorities they intend to serve and demonstrate how they contribute to those priorities.
5. Identification of the OPs:
The Project Holder will need to precisely identify the Operational Programme(s) (OPs) under which it intends to submit its project. It may select several OP(s) if relevant. A list of OPs and Managing Authorities is available in appendix 6.4.
6. Co-financing capacity:
The Project Holder must indicate the maximum percentage of the total project costs it is ready to fund by itself (excluding any funds from other public grants).
3.3 Second level of selection
Ø The role of EDA
Once the first level of selection is performed by MoDs, the selection results are communicated to EDA with the rationale for selection of projects, so that EDA can then proceed to the next step of the selection process.
EDA is in charge of the second level of selection with the support of its advisory consultant.
The second level of selection, similarly to the first level of selection by MoDs, is based on pre-defined criteria:
Ø Selection criteria for the second selection level by EDA:
The selection criteria for the second level of selection are the followings:
Mandatory criteria / Additional non-mandatory criteria1. R&T/innovation – Quality / 5. Cooperation prospects / EU added value
2. Reality check of cost and value for money / 6. Criteria of diversity
3. ESIF eligibility
4. Compatibility with RIS 3 (“Regional Innovation Strategy” or “Smart Specialisation Strategy”)
NB: To be eligible, a project must meet the mandatory criteria. Non-mandatory criteria are optional for eligibility but as a limited number of projects will be awarded it shall be regarded as key bonus criteria.
Ø Detailed definition of the selection criteria:
1. R&T/innovation – Quality:
a. Does the project answer to the call targeted?
b. Demonstration of good understanding of the subject matter;
c. Project Holder’s capacity to endorse responsibility for the general objectives of the project;
d. Content and quality of the technical proposal.
2. Reality check of costs and value for money:
The PH will be asked to provide a budget estimate for the total costs of the project. This budget must be relevant with regards to the nature of the expenditures covered.
3. ESIF eligibility:
ESIF eligibility will be assessed by an international advisory consultant contracted by EDA, based on the following sub-criteria: