- Bill C-40 would establish the DIA as a Crown corporation
- The agency would receive greater authority to negotiate and manage contracts
- A new associate minister would oversee DIA procurement responsibilities
Canada has introduced legislation that would establish the Defence Investment Agency as a Crown corporation with greater authority over defense procurement and investment activities.
The Canadian government announced Tuesday that it had tabled Bill C-40, the Strengthening Canada’s Defence Sector Act, as part of an effort to restructure the way the country manages defense procurement.
What Would Change for the Defence Investment Agency?
The proposed legislation would give the DIA a new corporate structure and greater independence in managing procurement activities. Under the DIA name, the Canadian Corporation for Defence Investment would have its own board of directors and expanded powers to negotiate and administer contracts.
“Establishing the Defence Investment Agency as a Crown corporation would give it the flexibility and specialized expertise to move faster, make strategic investments and deliver the capabilities our Armed Forces need,” Stephen Fuhr, secretary of state for defence procurement, said.
The agency would conduct defense production, procurement and investment activities based on priorities and capability requirements established by the Department of National Defence and the Canadian Armed Forces. The government would continue to oversee the organization.
Who Would Oversee Defense Procurement?
Under Bill C-40, a new associate minister of national defense for procurement would answer to Parliament on behalf of the DIA. Procurement and commercial authorities in the National Defence portfolio would be consolidated under the role, which would also carry stronger accountability for procurement delivery.
Defining capability requirements, operational priorities and acceptance criteria would remain the job of DND and the CAF. The proposed structure is intended to reduce handoffs and duplication while giving the DIA responsibility for delivering capabilities based on those requirements.
How Would the DIA Support the Defense Industry?
Canada’s Defence Industrial Strategy would make the DIA a key vehicle for implementing the Build-Partner-Buy approach. The strategy is expected to create an additional 125,000 jobs and raise Canada’s defense exports by 50 percent.
The agency would also work with industry on defense production, investment and supply chain activities.
The proposed corporation would have a role in joint procurement with allies through initiatives such as Security Action for Europe and Readiness 2030. Its operations would remain subject to government and parliamentary oversight, including financial, audit and reporting requirements.
