Ottawa plans Crown corporation to break defence procurement logjam
The Canadian government plans to establish a Crown corporation to manage defence procurement, aiming to bypass bureaucratic delays. This move would grant the agency greater operational independence to function more like a commercial enterprise.
Why it matters
Reforming defence procurement is critical for Canada's military readiness and its ability to meet international security commitments.
The move will potentially give Ottawa substantially more freedom to run defence procurement like a specialized commercial enterprise rather than as a conventional government program.
The confidential sources, who were not authorized to speak publicly, said it's expected the Crown corporation would report to an associate minister of defence for public accountability purposes.
The DIA was created just over a year ago and has functioned as a special agency under Public Services and Procurement Canada. Legislation giving the defence agency broader powers to bypass the decades-old procurement system was put before the House of Commons in the spring and has yet to pass.
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