Ottawa Launches Procurement Agency to Fast‑Track Defence Purchases

Secretary of State for Defence Procurement Stephen Fuhr speaks to journalists as he arrives for a meeting of the federal cabinet on Parliament Hill in Ottawa on May 14, 2025. The Canadian Press/Justin Tang

Ottawa has launched a new agency aiming to speed up defence purchases for the Canadian Armed Forces and the Canadian Coast Guard.

The new Defence Investment Agency seeks to streamline the procurement process by eliminating redundancy and red tape, while expediting defence purchases through a centralized review and approval system, according to the Prime Minister’s Office (PMO).

“Canada’s defence procurement is currently fragmented across several departments, slow to consult industry, and too complicated to respond to rapidly evolving military needs–leaving the Canadian Armed Forces waiting years, sometimes decades for critical equipment,” the PMO said in an Oct. 2 news release announcing the launch of the new agency.

The release says the agency will also work with Canadian industry to create jobs, strengthen Canada’s defence industrial base, and drive innovation in aerospace, shipbuilding, and advanced manufacturing.

“In a dangerous and divided world, Canada’s new government is ensuring the Canadian Armed Forces get the equipment they need, when they need it,” Prime Minister Mark Carney said in the release. “The new agency will bolster our defence industrial capacity, create new careers, and ensure that in this new era, Canada’s leadership is not defined by the strength of our values, but also by the value of our strength.”

The PMO said the agency will ensure “earlier engagement” between the Canadian Armed Forces and Canada’s defence industry so the military can communicate its equipment needs and the industry can provide timelines, costs, and technological options for procurement.

The government says the agency will strengthen Canada’s collaboration with partners like the United Kingdom, Australia, and France, which already have dedicated procurement bodies. It says it will also align Canada with the European Union’s Readiness 2030 plan, which aims to reinforce defence supply chains among allied nations.

The Defence Investment Agency builds on Ottawa’s commitment to increase defence spending to 2 percent of GDP by the end of this fiscal year, and to 5 percent of GDP by 2035. The agency will prioritize partnerships and investments to meet these pledges, the PMO says.

The Defence Investment Agency will operate within Public Services and Procurement Canada and will be led by Secretary of State for Defence Procurement Stephen Fuhr.

Day-to-day operations will be overseen by CEO Doug Guzman, who most recently served as deputy chair of the Royal Bank of Canada and has held leadership roles at Goldman Sachs.

The agency will also develop “integrated procurement teams” involving staff members from Public Services and Procurement Canada, the Department of National Defence, Canadian Armed Forces, Canadian Coast Guard, and Innovation, Science and Economic Development Canada.

Public Services and Procurement Canada said the agency will officially begin operations this fall, with its initial phase including tasks such as recruiting personnel, deploying procurement teams, and establishing internal processes.