The federal Liberal government has launched a new Defence Investment Agency, promising to centralize procurement and speed up delivery of vital military equipment to the Canadian Armed Forces.
Announced Thursday, the agency aims to cut through years of bureaucratic delays that have plagued Canadian defence procurement. Secretary of State for Defence Procurement Stephen Fuhr said the new approach will move at the “speed of relevance.”
“We cannot be trapped outside the technology cycle with procurement,” Fuhr said. “If we deliver stuff late, then it’s irrelevant. We’re going to deliver as quickly as possible, even if it means taking some risk.”
The office, housed within Public Services and Procurement Canada, will be led by Doug Guzman, a former RBC and Goldman Sachs executive. Fuhr, a former CF-18 fighter pilot, will oversee the agency and be politically accountable.
The agency will handle all purchases above $100 million and use risk-based contracting powers, allowing contracts to be signed without repeated Treasury Board approvals. Fuhr insisted it will streamline rather than add bureaucracy, calling it “one-stop shopping” for military procurement.
Defence industry leaders cautiously welcomed the move but stressed the need for measurable targets. Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries, said Ottawa must set clear goals to grow the domestic industry and reduce procurement steps.
Prime Minister Mark Carney campaigned earlier this year on a promise to reform defence spending, implement “Buy Canadian” policies, and ensure long-term planning for the Armed Forces. Canada has also pledged NATO allies that it will meet the 2% of GDP spending target for defence annually.
The government is expected to release a new defence industrial policy in the coming months, outlining how the agency will align with national priorities and support Canadian businesses in the supply chain.