DM/CDS Message: Modernizing defence procurement

October 6, 2026 – Defence Stories

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We want to share an update with you about the ongoing work to modernize Canadian defence procurement. With the recent tabling of Bill C-40: Strengthening Canada’s Defence Sector, the Government has proposed establishing the Defence Investment Agency (DIA) as a Schedule III Crown corporation within the National Defence portfolio. 

The proposed changes also set out the creation of a new Associate Minister of National Defence for Procurement and new responsibilities for National Defence, particularly within Assistant Deputy Minister (Materiel), which would share responsibility for defence procurement, with DIA taking on major acquisitions. Through these changes, our focus remains the same: delivering the capabilities the Canadian Armed Forces (CAF) and Canadian Coast Guard (CCG) need to deliver on their mandates.

As the new organization takes shape, there will be changes in how responsibilities, relationships, and work are organized across the broader Defence portfolio. This will mean changes for parts of our organization and for how some of our teams work together and with the DIA. However, it is important to note that the Department of National Defence, the CAF, and the CCG retain responsibility for defining operational priorities and capability requirements. Likewise, as the Government of Canada’s senior military advisor, the Chief of the Defence Staff will continue to be responsible to provide military advice to the Government of Canada on the capabilities required to meet Canada’s defence needs. 

The tabling of the legislation is a transformational and consequential change. It provides greater clarity on the Government’s direction for defence procurement and investment in a time of major geopolitical uncertainty. There are still important steps ahead and some details — including implementation and timing — will be determined as the legislative process continues.

We recognize that this may lead to questions about what these changes could mean for teams and individuals. Some Defence Team members may be directly affected as the new organizational arrangements take shape. Where that is the case, they will receive timely notice, information, and support. 

We will continue to communicate openly as this work progresses, provide clarity as decisions are made, and support our people through the transition. There is more work ahead, and we will keep you informed as implementation plans and timelines are confirmed.

Thank you for your continued commitment, professionalism, and care for the work we do and for one another.