Canada Creates Defence Investment Agency to Speed Military Supplies

The DIA will focus on projects exceeding $100 million, while smaller projects and existing agreements will continue under the current procurement system. Staff will be transferred from the purchasing branches of National Defence and Public Services and Procurement Canada.

The military will still define the equipment requirements, but the agency will act as the contracting authority.

Strengthening International Partnerships

The agency will also work closely with international partners, including the United Kingdom, Australia, and France, to enable joint defence purchases and partnerships.

Canada has traditionally purchased most of its military equipment from the United States, but the government is seeking to diversify its suppliers. Last summer, Canada signed a defence partnership with the European Union, allowing participation in the $1.27-trillion ReArm Europe plan.

Defence Secretary Stephen Fuhr noted that the U.S. is gradually stepping back from its traditional post-war role. “We want to spend as much as possible here in Canada without delaying timelines,” Fuhr said.

Leadership and Industry Reaction

Doug Guzman, former deputy chairman of the Royal Bank of Canada, has been appointed as the DIA’s CEO. Prime Minister Carney highlighted Guzman’s three decades of experience in investment, finance, and leadership as a major asset for the agency.

However, the plan has faced criticism. Conservative defence critic James Bezan warned the agency could create “another level of bureaucracy,” questioning its ability to improve procurement for troops.

Industry leaders offered cautious support. Christyn Cianfarani, CEO of the Canadian Association of Defence and Security Industries (CADSI), noted that staffing and resources may not yet match the ambitious mandate, leaving questions about the agency’s capacity to fully achieve its goals.

Longstanding Efforts to Reform Defence Procurement

Efforts to reform defence procurement have a long history. The Liberals, under former Prime Minister Justin Trudeau, promised a procurement agency during the 2019 election but did not implement it. Discussions go back to 2013 under the Stephen Harper government, which opted for a procurement strategy instead.

Concerns over defence procurement have grown in recent years. Parliament’s defence committee issued a June 2024 report calling for urgent reforms. Canada’s auditor general has also criticized how Industrial and Technological Benefits (ITBs) are applied in defence procurement.

The DIA represents a significant step toward modernizing Canada’s defence procurement, centralizing authority, and enhancing domestic industrial capacity. Officials expect the agency to improve project timelines, strengthen international cooperation, and support Canadian jobs.

The Defence Investment Agency will begin operations immediately, with key staff transitioning this fall. The first major contracts under the DIA’s authority are expected to be announced in early 2026.