National Defence did not manage its ammunition inventory to meet its needs
Ammunition for the Canadian Armed Forces
Report metadata
- Tabling date:
- Audited entities:
- National Defence
- Public Services and Procurement Canada
- Topics:
- National Defence
- Government purchasing
- Report type
- Auditor General reports
At a glance
Overall, National Defence did not manage its ammunition to meet its regular-use and strategic stockpile needs. Public Services and Procurement Canada supported National Defence by procuring ammunition when requested. However, weaknesses in contract management, including not tracking and documenting reasons for frequent contract amendments, constrained ammunition restocking.
Regular-use ammunition supports routine activities: training, military exercises, active deployments, and testing. The strategic stockpile of ammunition is reserved for emergency scenarios such as combat operations. National Defence needs to have the right types and quantities of ammunition in inventory to maintain operational readiness. However, National Defence did not have reliable information or a comprehensive ammunition management program in place to support operational readiness decisions.
Averaged over the last 3 fiscal years, the Canadian Armed Forces groups—including the Canadian Army, the Royal Canadian Air Force, and the Royal Canadian Navy—used only 56% of regular-use ammunition that was assigned to them. National Defence did not assess why ammunition went unused to determine whether regular-use ammunition needs were accurately assessed against requirements, and what the impact was on operational readiness.
For the strategic stockpile, National Defence’s assessment of the types and quantities of ammunition was not based on comprehensive analyses to demonstrate that all operational requirements had been considered. Significant gaps existed between required and actual inventory levels for strategic stockpile ammunition. Although National Defence has started replenishing the stockpile, continued attention over several years will be needed to address these gaps.
The challenge of meeting ammunition needs was compounded by persistent inventory data reliability issues and long purchasing timelines. Having reliable inventory information and achieving established targets for each type and quantity of ammunition are essential for military personnel to have access to the ammunition they need when called upon.
Key facts and findings
- National Defence’s ammunition inventory was valued at $2.5 billion as at March 31, 2025, and $2.6 billion as at March 31, 2026.
- In 2024, the government dedicated $9.2 billion over 13 years to increase the quantity of ammunition in the strategic stockpile. National Defence committed $695 million of this funding in the 2025–26 fiscal year, but ammunition had yet to be received from these commitments for the strategic stockpile as at March 31, 2026.
- As at March 31, 2026, 31% of locations where National Defence holds ammunition inventory had not completed their required annual ammunition count, representing $656 million in ammunition inventory overdue for counting.
- National Defence has various options to purchase ammunition, including the Munitions Supply Program, which supports domestic production by awarding non‑competitive contracts to Canadian suppliers; the Foreign Military Sales Program, which allows eligible countries, including Canada, to purchase defence items and services from the United States; and competitive procurement processes that are open to suppliers in Canada and abroad.
Why we did this audit
- Effective ammunition management supports readiness, security, and sound financial management.
- Inaccurate forecasting of ammunition needs can result in shortages that affect operational readiness or, alternatively, lead to costly overstocking. Accurate forecasting is also important to respond to changes in an evolving geopolitical context.
- Canadian Armed Forces’ operational readiness is dependent on effectively procuring the right type and quantity of ammunition.
Highlights of our recommendations
- National Defence should address weaknesses in the quality of its data—including performing annual ammunition inventory counts—before consolidating the 2 information technology systems used to manage ammunition.
- National Defence should establish and implement a formal, regular, and documented process for determining and updating the types and quantities of ammunition needed for its strategic stockpile.
- National Defence and Public Services and Procurement Canada should track and assess supplier performance within the Munitions Supply Program, including the frequency and reasons for using contract amendments to extend delivery dates, and determine how to minimize future delays.
Please see the full report to read our complete findings, analysis, recommendations and the audited organizations’ responses.
Exhibit Highlights
Exhibit 1—Examples of the various types and calibres of ammunition used by the Canadian Armed Forces
Text version
Exhibit 1—Examples of the various types and calibres of ammunition used by the Canadian Armed Forces
The first box shows a silhouette of a round of 5.56 x 45 mm assault rifle ammunition and a 155 mm artillery shell used by the Canadian Army.
The second box shows a drawing of 20 mm fighter jet ammunition and an air‑to‑air missile used by the Royal Canadian Air Force.
The third box shows a drawing of 57 mm frigate ammunition and an anti‑submarine torpedo used by the Royal Canadian Navy.
Note: Items depicted are not to scale.
Exhibit 2—Composition of National Defence’s ammunition inventory as at March 31, 2026 (by dollar value)
Text version
Exhibit 2—Composition of National Defence’s ammunition inventory as at March 31, 2026 (by dollar value)
This donut chart shows that as at March 31, 2026, there was a total of $2.6 billion in inventory.
The largest class was large‑calibre ammunition, accounting for 28% of total inventory.
The second class was guided munitions and bombs, accounting for 26%.
The third class was medium‑calibre ammunition, accounting for 16%.
The fourth class was small arms ammunition, accounting for 12%.
The fifth class was pyrotechnic and smoke, accounting for 10%.
The sixth and final class was miscellaneous, accounting for 9%.
Note: Percentages do not add up to 100% due to rounding.
Source: Based on information from National Defence
Exhibit 4—Five Canadian Armed Forces groups were assigned approximately 87% of all regular use ammunition by quantity in the 2023–24 to 2025–26 fiscal years
Text version
Exhibit 4—Five Canadian Armed Forces groups were assigned approximately 87% of all regular‑use ammunition by quantity in the 2023–24 to 2025–26 fiscal years
This bar chart shows that 5 Canadian Armed Forces groups were assigned a total of approximately 87% of all regular‑use ammunition by quantity. That amount consisted of the Canadian Army with 57%, the Canadian Special Operations Forces Command with 13%, the Canadian Joint Operations Command with 8%, the Royal Canadian Navy with 6%, and Royal Canadian Air Force with 3%.
The remaining 13% of regular‑use ammunition by quantity was assigned to all other groups.
Source: Based on information from National Defence
Exhibit 5—The usage of regular use ammunition by 5 large groups was substantially lower than the quantities assigned to them for the 2023–24 to 2025–26 fiscal years
Text version
Exhibit 5—The usage of regular‑use ammunition by 5 large groups was substantially lower than the quantities assigned to them for the 2023–24 to 2025–26 fiscal years
The overall average usage of the assigned ammunition stock among the 5 large groups for the 3 fiscal years was 56%.
The Canadian Army used roughly 70% of its assigned ammunition stock in each of the 2023–24, 2024–25, and 2025–26 fiscal years. Therefore roughly 30% of its ammunition was unused.
The Royal Canadian Navy used roughly 40% of its assigned ammunition stock in both of the 2023–24 and 2024–25 fiscal years. Therefore roughly 60% of its ammunition was unused. It used roughly 55% of its ammunition stock in the 2025–26 fiscal year; therefore, roughly 45% was unused that year.
The Royal Canadian Air Force used roughly 60% of its assigned ammunition stock in each of the 2023–24 and 2024–25 fiscal years. Therefore roughly 40% of its ammunition was unused. It used roughly 70% of its ammunition stock in the 2025–26 fiscal year; therefore, roughly 30% was unused that year.
The Canadian Special Operations Forces Command used roughly 50% of its assigned ammunition stock in the 2023–24 fiscal year; therefore, roughly 50% was unused that year. It used roughly 40% of its ammunition stock in the 2024–25 fiscal year; therefore, roughly 60% was unused that year. It used roughly 60% of its ammunition stock in the 2025–26 fiscal year; therefore, roughly 40% was unused that year.
The Canadian Joint Operations Command used roughly 65% of its assigned ammunition stock in the 2023–24 fiscal year; therefore, roughly 35% was unused that year. It used roughly 50% of its ammunition stock in the 2024–25 fiscal year; therefore, roughly 50% was unused that year. It used roughly 30% of its ammunition stock in the 2025–26 fiscal year; therefore, roughly 70% was unused that year.
Source: Based on information from National Defence