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Ottawa Moves to Operationalize Defence Industrial Strategy With Stand-Alone Purchasing Agency

Analysts warn success hinges on rapidly speeding up procurement.

Overview

  • The government plans spring legislation to make the Defence Investment Agency independent, expanding it from 85 staff to an eventual 400 and positioning it as a one-stop shop for military purchasing.
  • Under a C$6.6‑billion “build, partner, buy” plan, Ottawa set goals to source 70% of defence goods domestically, lift exports by 50% and create up to 125,000 jobs.
  • Procurement timelines are being advanced, with the submarine program’s in-service date moved to 2032 and a contract potentially landing this year, and the VIP jet replacement accelerated by three to four months using a risk-based approach.
  • A new Defence Advisory Forum is being established to align priorities across government and industry and to inject accountability into procurement decisions.
  • Industry groups hailed the strategy’s ambition, while experts cautioned that the 70% domestic target and broad sovereign-capability aims may be unrealistic without clearer CAF demand signals and cultural change in Ottawa.