Canada announced a sweeping overhaul of defence procurement with the launch of a new Defence Investment Agency designed to deliver equipment to the Canadian Armed Forces faster, build domestic industrial capacity, and meet alliance commitments. The special operating agency, housed in Public Services and Procurement Canada, will consolidate procurement, engage industry earlier, and prioritise projects that help Canada hit 2% of GDP on defence this year and the NATO Defence Investment Pledge by 2035.

What the New Agency Will Do

The government said procurement is fragmented and too slow to respond to evolving military needs; the new agency will streamline approvals, reduce duplicative steps, and give industry clearer timelines. Early engagement between the Canadian Armed Forces and suppliers will be baked in from the start to surface realistic costs, schedules, and technology options.

Leadership and Structure

To lead the build-out, Carney appointed Doug Guzman as Chief Executive Officer, citing his three decades in finance and project execution. Day-to-day operations will be overseen by Guzman, while the agency itself will be overseen by the Secretary of State (Defence Procurement), Stephen Fuhr, within Public Services and Procurement Canada.

Spending Targets and Industrial Strategy

Ottawa reiterated that defence spending reaches roughly 2% of GDP in 2025–26, with a pathway to the NATO 5% Defence Investment Pledge by 2035, including dual-use infrastructure such as ports and airports. The agency will tie procurements to domestic industrial benefits in aerospace, shipbuilding, and advanced manufacturing to scale Canadian firms and jobs.

How It Fits With Ongoing Reforms

The move follows months of groundwork: departmental plans to “rebuild, rearm, and reinvest” in the Canadian Armed Forces this fiscal year, the development of a defence industrial strategy, and prior government notes outlining the case for a unified procurement body. The new agency’s first phase focuses on standing up integrated teams and pushing a first wave of priority buys.