The federal government used CANSEC on May 27 to roll out a package of procurement policy changes designed to move money to Canadian companies faster and with less friction. The measures, announced by Prime Minister Mark Carney, are now in effect.

The Industrial and Technological Benefits Policy has been modernised with four concrete changes. Foreign contractors winning Canadian defence contracts will now face stronger incentives to subcontract to Canadian firms and invest in Canadian supply chains. A new 90-day approval standard is intended to give companies, particularly small businesses, faster and more predictable decisions.

Two new crediting mechanisms have also been introduced. The Strategic Investment Transaction credits high-value activities such as building or expanding a Canadian facility, funding research and development, or transferring intellectual property to a Canadian company. The Canadian Company Boost is more direct: if a Canadian company performs at least 70% of the work domestically, it is credited as if it did 100%, removing what the government describes as a bureaucratic penalty on companies already building in Canada.

The Strategic Partnership Framework is also now in effect. Rather than treating every procurement as a one-off transaction, the framework establishes longer-term relationships between government and selected companies around sovereign capability priorities. Companies designated as Strategic Partners will be required to invest in Canadian research and development, grow domestic supply chains, and maintain a Canadian workforce. In return the government commits to being an anchor customer, accelerating approvals, and supporting export opportunities in global markets.

A Defence Concierge Service is now operational at Innovation, Science and Economic Development Canada. The service is aimed at companies, particularly SMEs, that struggle to navigate the range of programs, procurement pathways, and support mechanisms spread across multiple federal departments. Dedicated staff will be integrated into industry associations to bring the service closer to where companies actually operate.

The Defence Advisory Forum will open a solicitation of interest on June 1. Senior industry executives drawn from across Canada's ten sovereign capability areas, every region of the country, national and regional associations, and Indigenous groups will advise government on defence industrial priorities, investment needs, and barriers to growth. Membership will rotate. The forum will be co-chaired by the Minister of National Defence, the Minister of Industry, and the Secretary of State for Defence Procurement. The inaugural meeting is expected in September 2026.

Unlike many defence procurement announcements, the majority of these measures are described as already in effect rather than forthcoming. The ITB modernisation, the Strategic Partnership Framework, and the Defence Concierge Service are all operational as of May 27. The Defence Advisory Forum, with its solicitation of interest opening June 1, is the mechanism through which industry will have a formal seat at the table to hold government to account on delivery. For a procurement system that has historically moved slowly, the test now is implementation.

At its core, the investment is about visibility—ensuring Canada can see, understand, and respond to activity in an increasingly contested orbital environment.

By 2028, MDA Space will establish three remotely operated telescope sites across Alberta, Manitoba, and New Brunswick. These installations will provide persistent, reliable surveillance of objects in orbit, forming a critical component of Canada’s evolving space surveillance architecture.

The ground-based optical systems will operate in tandem with existing space-based sensors, creating a more resilient and comprehensive capability for monitoring space activity. This layered approach enhances Canada’s ability to detect, track, and characterize objects in orbit—whether they are satellites, debris, or potential threats.

Lieutenant-General Jamie Speiser-Blanchet, Commander of the Royal Canadian Air Force, emphasized the operational significance of the capability:

“The delivery of the ground-based optical capability represents a significant advancement in Canada’s ability to monitor and safeguard the space domain. These advanced telescopes will provide persistent, reliable, ground-based surveillance and will operate in tandem with our space-based sensors under Surveillance of Space 2. Space-based systems are vital to the daily lives of Canadians and to the success of joint missions with our allies. Enhancing our space awareness directly strengthens our commitments to NORAD and to our partners as we continue to ensure the security of Canadians.”

The importance of space-based systems extends far beyond military operations. Everyday activities—from banking and communications to navigation, agriculture, and weather forecasting—depend on secure and reliable satellite infrastructure. Recognizing this, the Government of Canada is positioning space as a cornerstone of both national security and economic resilience.

The Honourable David J. McGuinty, Minister of National Defence, highlighted the broader implications of the project:

“Canada’s security and prosperity depend on our ability to understand and protect the space domain. The Surveillance of Space 2 project represents a major step forward in strengthening our sovereignty, modernizing our space capabilities, and safeguarding critical satellite infrastructure that Canadians rely on every day.”

Beyond its strategic value, the contract is expected to deliver tangible economic benefits. The project will create or support close to 80 jobs annually and contribute approximately $9 million to Canada’s GDP each year over the next six years. It also reinforces Canada’s position within a rapidly expanding global space economy, projected to reach approximately $2 trillion by 2040. With Canada’s space sector already contributing an estimated $3.4 billion to GDP, investments like SofS 2 are designed to ensure Canadian companies remain competitive on the world stage.

The Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence, pointed to the regional and industrial impact:

“Projects like Surveillance of Space 2 demonstrate how Canadian expertise, right here in British Columbia, pushes the boundaries of what we will achieve in space and defence. Supported by the Defence Investment Agency and guided by Canada’s Defence Industrial Strategy, this investment will both create highly skilled jobs in the region and will modernize Canada’s space capabilities for the challenges of tomorrow.”

The Surveillance of Space 2 contract also reflects a shift in how Canada delivers defence capabilities. By leveraging streamlined processes and existing approval authorities, the DIA was able to move the procurement forward more quickly than under traditional models. This approach is central to the government’s broader effort to modernize defence procurement—reducing delays, centralizing expertise, and accelerating the delivery of mission-critical equipment to the Canadian Armed Forces.

The Honourable Stephen Fuhr underscored the dual focus on capability and industrial growth:

“Canada’s security depends on the space-based systems that enable everything from communications and navigation to weather forecasting and emergency response. Today’s contract award to MDA Space will deliver the capabilities the Canadian Armed Forces need while growing Canada’s world-class space sector and creating good-paying jobs. With the Defence Investment Agency and our Defence Industrial Strategy, we are streamlining procurements and building the sovereign capabilities that will ensure Canada remains a leader in this crucial domain.”

Canada’s investment in space surveillance is not occurring in isolation. The capabilities delivered through SofS 2 will contribute directly to key international partnerships, including the North American Aerospace Defense Command (NORAD) and Multinational Force – Operation Olympic Defender. These alliances rely on shared data and coordinated awareness of the space domain to ensure collective security. By enhancing its own capabilities, Canada strengthens its role as a trusted partner in these networks.

Mike Greenley, Chief Executive Officer of MDA Space, reflected on the broader operational context:

“As space becomes more contested, congested and competitive, persistent surveillance and space domain awareness provide the Canadian Armed Forces and trusted allies with a better understanding of what is happening in a complex environment they can’t otherwise see. With decades of proven expertise providing defence and security, MDA Space is honoured to once again be selected as a trusted mission partner to Canada and to the Department of National Defence .”

The Surveillance of Space 2 project sits within a larger transformation of Canada’s defence ecosystem. Through the Defence Industrial Strategy and the establishment of the Defence Investment Agency, the government is aligning long-term defence spending with domestic industrial capability.

The goal is clear: build sovereign capabilities, strengthen supply chains, create high-value jobs, and ensure the Canadian Armed Forces are equipped to meet emerging threats.

As space becomes an increasingly contested and indispensable domain, Canada’s latest investment signals a long-term commitment—not only to protecting what lies above, but to securing the prosperity and safety that depend on it.