Question Period Note: Procurement Authorities of the Defence Investment Agency

What authorities will the Defence Investment Agency have and what oversight will be in place?

• The Government is committed to delivering military equipment to the Canadian Armed Forces with greater speed while maintaining oversight and accountability.
• Since 2018, lower risk defence procurements have been allowed to proceed without seeking Treasury Board approval.
• The authorities granted to the Defence Investment Agency build on this approach.
• For high-risk defence procurements of any value, Treasury Board approval of a procurement and negotiating strategy will be sought in advance of proceeding with solicitation activities or negotiations.
• This approach streamlines processes while giving Treasury Board a stronger role in shaping procurement strategies from the outset, where oversight matters most.
• Other types of authorities – like project authorities or access to funds – will still require Treasury Board approval.
• The Defence Investment Agency remains subject to all other rules and requirements that apply across the federal government.
• This includes regular reporting of plans and results, disclosure of its contracts and accounting of its spending in the Public Accounts so that anyone interested can follow the activities and progress of the Agency.

To enable the Defence Investment Agency (DIA) to deliver urgently needed military equipment, the Directive on the Management of Procurement (the Directive) was amended to reflect new contracting limits for the DIA, as approved by the Treasury Board (TB). This amendment was published on November 5, 2025. The changes to the Directive include:
1. All of Public Services and Procurement Canada’s (PSPC) contracting limits now extend to the DIA, subject to proper due diligence requirements in the Directive. One example is the “risk-based approach” where defence procurements undertaken by PSPC or DIA, which have low or medium complexity and risk levels, do not require TB approval unless specifically directed by the Treasury Board Secretariat (TBS). This allows TB oversight to focus on higher risk activities, while TBS retains a line of sight on these procurements through robust and mature interdepartmental governance.

1. The DIA was given an exceptional contracting limit, where it is not required to seek TB approval for high-risk defence contracts and contractual arrangements up to any dollar amount, only if TB approves the associated procurement and negotiating strategy before any solicitation activities or negotiations begin. This will give TB a much earlier opportunity for oversight into the procurement, compared to seeking contract approval at the end of a process when the contract is ready to be signed.

2. All exceptional limits for the DIA apply exclusively to procurements that directly support military acquisitions for the Canadian Armed Forces. These limits do not extend to IT equipment or systems for internal use by the Department of National Defence.

3. Subject to the approval by the Secretary of State (Defence Procurement), the DIA can limit or accept first and third-party contractor liability or to assume a substantive transfer of risk from risks under the contractor’s control for defence procurements, without TB approval. This will help Canada contract faster in the global market for defence goods, where defence suppliers increasingly refuse liability, and global demand leaves Canada little leverage.
   The new contracting limits were structured to promote appropriate oversight, while allowing the DIA to work with greater speed and flexibility. TB ministers will approve the strategic direction and provide the DIA with the upfront mandate to execute and deliver on high-risk contracts and will continue to approve major defence projects. The DIA is also subject to requirements in the Directive to help ensure best value to the Crown, sound stewardship, and fairness, openness and transparency.

None