Muhammad Amanullah
Date: October 6, 2026 The True Post (Web News) —The federal government of Canada is preparing to transform the new Defence Investment Agency into an independent government entity in an effort to speed up the procurement of defence equipment. According to federal sources, the Liberal government plans to give the Defence Investment Agency Crown corporation status instead of keeping it as a special government agency.
The main objective of the move is to reduce the lengthy and complex government procedures involved in purchasing military equipment and other defence requirements and to complete decisions more quickly.
New Legislation
According to sources, Public Works Minister Jean-Yves Duclos is preparing to introduce separate new legislation for this purpose. The proposed legislation’s title has already appeared in House of Commons documents, although its full details have not yet been released.
The Defence Investment Agency was established slightly more than a year ago and currently operates as a special agency under Public Services and Procurement Canada.
Existing System
Canada’s defence procurement system is divided among several government institutions and departments, which can result in major military projects taking a long time to finalize. The government has already introduced legislation in the House of Commons to change the system.
Legislation aimed at giving the defence agency greater powers under the existing system was introduced in Parliament in the spring but has not yet been approved. The government is now seeking to give the agency greater independence through a new law.
Crown Corporation
If the plan becomes law, the Defence Investment Agency would operate as a Crown corporation. This would give it greater scope to function more like a relatively independent commercial organization rather than as a traditional government program.
According to experts, under the new structure the agency could have its own board, chief executive officer, corporate plan and separate workforce. This could make the decision-making process faster than within existing government departments.
Accountability to Remain
According to sources, the proposed Crown corporation would remain accountable to an associate minister of defence, ensuring that public and political oversight is maintained. Through this arrangement, the government wants to provide the agency with operational independence while also maintaining parliamentary and public accountability for major defence projects.
This aspect is important because billions of dollars in public funds are used for defence procurement, and the government also has a responsibility to ensure transparent oversight of this spending.
Potential Reduction in Bureaucracy
According to Carleton University defence policy and procurement expert Philippe Lagassé, becoming a Crown corporation could reduce bureaucratic steps between different government departments and central agencies.
He said that if the Defence Investment Agency is used as the contracting organization, obtaining defence equipment could become relatively easier for the Department of National Defence and the Canadian Armed Forces.
Potential Benefits for the Military
The biggest potential benefit of the plan for the Canadian Armed Forces could be obtaining required defence equipment more quickly than under the current system. Reducing lengthy procurement procedures could help ensure that modern equipment and essential resources are provided to the military on time.
However, experts have warned that increasing speed cannot come at the expense of military requirements and technical standards. Any defence procurement process will need to ensure that equipment meets the military’s specified technical requirements.
New Concerns
According to experts, if the new agency is also given responsibility for promoting the defence industry and strengthening Canada’s domestic defence capabilities, complications could arise in some areas.
The government will have to maintain a balance between speeding up procurement and ensuring the strength of the domestic defence industry, technical standards, transparency and effective use of public funds.
A Major Test
The plan to transform the Defence Investment Agency into a Crown corporation could represent a major change in Canada’s defence procurement system. The government’s objective is clearly to make the procurement process faster, more efficient and less bureaucratic.
However, the real test will come when the new structure is in place and the military is actually able to receive the equipment it needs in less time, costs remain under control, and transparency and political accountability are maintained in major defence projects.
