QUESTION PERIOD — National Defence
Military Procurement
May 5, 2026
Senator Moreau, Canada is deepening defence industrial cooperation with European allies, including through NATO frameworks and joint procurement.
When the Canadian government becomes the first customer, it enables Canadian firms to validate and improve dual-use technologies and, ultimately, export internationally.
Put simply, when Canada buys first, the ability of Canadian small- and medium-sized enterprises, or SMEs, to compete is accelerated.
Yet innovative SMEs still struggle to get those all-important first contracts with the Canadian Armed Forces, or CAF.
What specific steps is this government taking to ensure that Canadian SMEs can access procurement opportunities under $5 million in support of CAF personnel? And how will the government measure whether those firms are successfully transitioning into export-ready defence suppliers?
For the first part of your question, the government knows that Canadian SMEs are the backbone of our economy. What I can tell you is that the government is in the process of revamping its defence procurement. That is why the government has created the Defence Investment Agency, which will now consolidate procurement processes, and it notably has a mandate to anchor procurement more strategically to domestic industrial benefits. The agency actually received establishment funding last Tuesday in the Spring Economic Update, which still needs legislative approval.
When its procurement strategy is outlined, I will ensure to send you the details on the opportunities under $5 million for SMEs because that is the mandate that the agency has received.
That is good news. There’s been activity on this in the past. The Innovation for Defence Excellence and Security program is there to provide early-stage support, but in the past, it has not guaranteed a path to procurement. And we have seen that through the Pathway to Commercialization program and other programs. In fact, it just goes back to the same old procurement process. I’m hoping we will see something quite different. Thank you.
As I mentioned, the government is well aware of the importance of SMEs in our economy, and the agency is now consulting and preparing for the way it will operate. I will bring your question to the attention of the minister and, through the minister, to the agency. I’m sure that it’s part of their mandate.
