Like all of us this time of year, Canada is looking for ways to buy new stuff for less.
What happened: Canada’s new Defence Investment Agency (DIA) awarded its first contract, a ~$3 million “strategic partnership” with Telesat and MDA Space to build satellite comms for the military in the Canadian Arctic. The commitment is part of a larger ~$5 billion operation the DIA is overseeing to improve satellite comms options in the region.
Why it matters: This is the first test to see if the DIA can deliver on its goals of streamlining procurement, boosting domestic industries, and involving the private sector in project development — all things Canada’s current defence procurement system struggles to do.
Since 1969, procurement has required the participation of several departments, creating a patchwork system that’s constantly criticized for being slow and costly.
In launching the DIA, the Mark Carney government is heeding the words of various committees and watchdogs calling for centralization of procurement.
Yes, but: The DIA is only in charge of handling procurements worth more than $100 million. This was done so the agency doesn’t get bogged down with every tiny deal, but some critics feel this makes the DIA simply a half-measure, cutting red tape for some projects but not all.
What’s next: The DIA is also in charge of procuring new submarines, new Arctic radar, new surveillance aircraft and software upgrades for the CC-130J Hercules transport aircraft.—QH