Look, I need to address something upfront: this is another defence-heavy edition. I genuinely tried to diversify. I scoured municipal RFPs, dug through provincial announcements, checked in on healthcare IT. But the reality is that defence is where the action is right now, and it would be journalistic malpractice to pretend otherwise.

To contractors outside the defence sector reading this: I apologize. But also, maybe take this as your sign. When 1,221 procurement opportunities drop in a single six-month period, when the new Defence Investment Agency is publicly disclosing billion-dollar project portfolios, when Bombardier lands $753 million for aircraft and MDA kicks off Arctic satellite work in the same week... the supply chain needs more than the usual suspects. Vehicle components, marine equipment, construction services, IT systems, testing equipment. There's room at the table if you're willing to position for it.

For everyone else: the DIA is officially open for business, and this week gave us our clearest picture yet of what that means.

Here's your essential briefing.

DIA Reveals First Eight Major Defence Projects Source: CBC News, Parliament of Canada records | Date: December 5, 2025

What's Happening: The Defence Investment Agency has disclosed its initial portfolio of eight major procurements, each exceeding $100 million. The projects were revealed through parliamentary documents following a research request from Conservative MP Scott Anderson. CEO Doug Guzman (former Royal Bank deputy chair) and Secretary of State Stephen Fuhr are leading the agency's mandate to transform defence procurement.

The Portfolio Includes:

• Next-generation submarine fleet for the Royal Canadian Navy

• Arctic over-the-horizon radar system

• Early warning and control surveillance aircraft fleet

• CC-130J Hercules in-service support and software upgrades

• Satellite communications procurements (connected to ESCP-P)

• Additional strategic acquisitions with classified details pending

What It Means For You:

• Centralized procurement authority removes duplicate approval layers that historically extended acquisition timelines by years

• Strategic alignment with UK, Australia, and France opens doors for joint defence purchases and interoperability work

• Earlier industry engagement phases will enable more realistic cost and timeline assessments while building domestic industrial capacity

• Contractors should anticipate accelerated timelines compared to historical defence procurement norms

Between Us: The DIA's emergence as the primary vehicle for major defence spending represents a fundamental shift in how Canada buys military equipment. Whether the agency can actually deliver on its promise of faster, smarter procurement remains to be seen, but the portfolio disclosure suggests serious intent to move quickly on capability gaps.

Defence Procurement Surge: Q3–Q4 2025 Activity Report

Source: Publicus Data Analysis
Date: December 2025

What’s Happening

Defence procurement activity hit its highest levels of the year in the second half of 2025. Across the Department of National Defence (DND), Defence Construction Canada (DCC), and Defence Research and Development Canada (DRDC), a total of 1,221 procurement opportunities were issued between July and December.

The pace accelerated sharply as the year progressed. Q3 saw 491 contracts issued, while Q4 jumped to 730, representing a 48.7% quarter-over-quarter increase. November was the single busiest month on record with 318 procurement actions, followed by October (257) and September (215).

By the Numbers

Procurement Activity by Organization (Q3–Q4 2025)

Procurement Distribution by Category (All Defence Organizations)

What It Means for You

Vehicle Fleet Programs

• CHER Concentration: The Common Heavy Equipment Replacement (CHER) program dominated Q3, with Bundles 1, 2, 3, 4, 7, and 8 all issued in September alone, plus Bundle 6 appearing in both August and September.

• LUVW Sustainment: Light Utility Vehicle Wheeled (LUVW) repair and overhaul contracts filled Q4 calendars, including engines, alternators, and starters in October, followed by transmissions, containers, axles, and brake shoes in December.

• Supplier Entry Points: This clustering signals comprehensive fleet maintenance cycles with multiple entry points for specialized component suppliers.

Naval Sustainment

• Recurring Fleet Spares: Halifax-class and Victoria-class submarine spares appeared consistently across both quarters, covering valves, filters, pumps, and hoses.

• Specialized Marine Hardware: Procurements included the Naval Remotely Operated Vehicle (ROV) System (October), Controllable Pitch Propellers (November), and Torpedo Dolly Replacement Parts (October).

• Predictable Demand: Firms with marine equipment expertise should note the steady, repeatable nature of demand in this category.

Major Infrastructure Projects (DCC)

• Early-Stage Focus: DCC’s 98 contracts were heavily weighted toward early-stage planning and design work, typically signaling construction awards 12–24 months out.

• Strategic Radar & Comms: Key projects included Arctic Over-The-Horizon Radar Infrastructure (September) and Modernization of the Tactical Control Radar Infrastructure (November).

• Base Facilities: Activity covered new Health Centres at CFB Bagotville (August, September), the Armoured Combat Support Vehicle facility in Edmonton (October), and the 427 SOAS Hangar Replacement Project (November).

• Peak Month: DCC activity peaked in November with 16 construction contracts and 18 services contracts.

Emerging Technology (DRDC)

• Limited but Focused Volume: DRDC issued 18 opportunities across Q3–Q4, with 11 concentrated in Q4.

• AI and Cyber Focus: December saw targeted procurements for AI-enabled software development and software reverse engineering for IoT firmware analysis.

• Advanced Testing Needs: Additional requirements included EMC Shielded Test Enclosures (November), Specialized Sonar systems (October), and Quantum Optics Lab Equipment (October).

• Forward Signal: Firms with AI, cybersecurity, or advanced testing capabilities should monitor DRDC closely heading into 2026.

Monthly Activity Breakdown

Our Take

The 48.7% surge from Q3 to Q4 reflects year-end budget execution rather than a fundamental shift in defence priorities. Much of the volume comes from recurring maintenance programs—notably LUVW and Halifax/Victoria-class sustainment—alongside long-planned infrastructure investments managed through DCC.

For contractors, the key takeaway is the predictable, repeatable nature of defence spending beneath the headline contracts. Firms positioned within established supply chains for vehicle sustainment, naval components, or base infrastructure will continue to see consistent opportunity flow. DRDC activity, while smaller in volume, signals growing investment in AI and cyber capabilities that will be worth watching into 2026.

Telesat and MDA Begin Arctic Satellite Communications Work Source: Canada.ca | Date: December 9, 2025

What's Happening: Telesat Corporation and MDA Space have received an initial $2.92 million contract for engineering and options analysis on the Enhanced Satellite Communications Project - Polar (ESCP-P). The DIA-led procurement aims to advance Canada's sovereign satellite communications capabilities for Arctic operations.

What It Means For You:

• Initial contract signals multi-billion-dollar investment trajectory in Arctic communications infrastructure

• Strategic partnership model aims to reduce delivery timelines compared to traditional procurement

• ITB Policy requirements include commitments to small and medium business involvement

• Positions domestic firms for NATO-aligned secure communications opportunities

Industry Minister Mélanie Joly emphasized the stakes: "This strategic partnership will advance Canada's sovereign satellite communications capabilities, which are vital for reliable Arctic operations and national security."

Our Take: MDA continues to accumulate wins in the space and defence sectors. Very few Canadian companies can deliver large-scale projects in space, communications, and defence simultaneously. MDA is one of them, and their partnership positioning suggests more contracts will follow as Arctic sovereignty investments accelerate.

F-35 Procurement Under Review as Saab Re-Enters Competition Source: Global News | Date: December 5, 2025

What's Happening: The federal government is reviewing its 2022 decision to purchase 88 Lockheed Martin F-35 fighter jets. Prime Minister Carney ordered the procurement review in March 2025 amid U.S. trade tensions, reassessing whether Canada is receiving sufficient economic benefits from the approximately $19 billion deal. Swedish aerospace firm Saab has responded by proposing to build its Gripen fighter in Canada, claiming the program would create "around 9,000 to 10,000 direct and indirect jobs for decades."

What It Means For You:

• Businesses in the existing F-35 supply chain face potential disruption if Canada shifts course

• The government is using competitive pressure to extract better industrial benefit terms from Lockheed Martin

• Defence contractors should proactively enhance industrial benefit proposals (job creation, technology investment) in all major bids

• "Buy Canadian" procurement criteria emphasizing domestic economic impact will likely intensify across federal procurement

Industry Minister Joly stated the government's position directly: "The industrial benefits are not enough. There needs to be more jobs created out of the F-35 contract."

Between Us: Defence experts have dismissed Saab's 10,000 jobs figure as unrealistic, noting it exceeds Saab's entire workforce in Sweden. But the political dynamics matter more than the arithmetic here. The review gives Ottawa leverage to demand better terms from Lockheed Martin, whether or not a Gripen purchase was ever seriously on the table. The fact that they continue to ‘review’ the F-35 purchase looks terrible on the government. Decisiveness is important, especially when billions of dollars in investment from corporations is on the line. While there may be short-term political and economic gains through continued pressure, the overall impact on prime contractors' trust in the Canadian government is negative. 

CMHC Embeds Accessibility Requirements in Procurement Source: CMHC-SCHL.gc.ca | Date: December 11, 2025

What's Happening: Canada Mortgage and Housing Corporation has updated its procurement directive to require explicit consideration of accessibility in all procurements. Business owners must either document accessibility requirements in their procurement activities or explain why they don't apply. Implementation, including new checklists and templates, is targeted for completion by end of 2027. The directive connects to CMHC's Vendor Diversity Program, which targets businesses owned by people with disabilities.

What It Means For You:

• Contractors bidding on CMHC projects must incorporate accessibility considerations to meet new evaluation criteria

• Updated checklists and templates will standardize how accessibility is assessed in proposals

• The policy may expand to other federal agencies as part of Accessible Canada Act compliance

• Construction and housing contractors should review their accessibility expertise and partnerships

Our Take: This represents a broader trend toward embedding social criteria in federal procurement. Contractors in the construction and housing space should pay particular attention to how accessibility requirements will affect bid evaluations. Those who build accessibility expertise now will have an advantage as these criteria likely expand across government.

Bombardier Lands $753M Multi-Role Aircraft Contract Source: Bombardier | Date: December 12, 2025

What's Happening: Bombardier has secured a $753 million contract to deliver six Global 6500 aircraft for the Royal Canadian Air Force. The Defence Investment Agency led procurement on behalf of RCAF, with first delivery expected by summer 2027 and initial operational capability by year's end. The aircraft will support humanitarian missions, medical evacuations, and national security operations.

What It Means For You:

• Over 900 direct and indirect jobs will flow primarily through Quebec and Ontario supply chains, creating immediate subcontracting opportunities

• The award signals continued prioritization of domestic manufacturing in defence procurement, particularly for aerospace

• Small and medium enterprises should position now for Industrial and Technological Benefits Policy obligations that Bombardier will need to fulfill

• Sustainability requirements including alternative fuels and eco-friendly design featured in evaluation criteria, setting expectations for future defence bids

Minister Joël Lightbound framed the decision clearly: "By choosing a Canadian-built fleet, we're putting our industry, our workers, and our incredible aerospace talent front and centre."

Our Take: This contract reinforces how quickly Canada can deploy significant capital on capability gaps when domestic options exist. The Global 6500 platform isn't cutting-edge new technology, but it addresses real fleet replacement needs. For contractors, the key insight is how the DIA's streamlined process moved this from requirement to award faster than traditional PSPC timelines would suggest.

The Bottom Line

The DIA is officially open for business, and they're actually buying things. The early signals suggest serious intent to move quickly on capability gaps.

Key Takeaways:

• The Bombardier contract moved from requirement to award faster than traditional PSPC timelines would suggest. The DIA's streamlined authority is real, not just a rebranding exercise.

• Q4's 48.7% surge over Q3 reflects year-end budget execution, but the sustained volume in LUVW maintenance, Halifax/Victoria spares, and base infrastructure points to predictable, recurring demand heading into 2026.

• Eight disclosed DIA projects exceeding $100 million each (submarines, Arctic radar, surveillance aircraft, satellite communications) will define defence procurement for the next decade. Position now.

• DRDC's Q4 focus on AI-enabled software and cybersecurity testing signals where emerging technology investment is heading. Smaller contract volume, but strategic importance.

• Industrial and Technological Benefits requirements aren't going away. If anything, the F-35 review shows Ottawa is willing to use competitive pressure to extract more domestic economic impact from major procurements.

What To Do About It:

If you're already in defence supply chains, the opportunity flow is steady. If you're looking to enter, the concentration of activity in specific programs gives you clear targets for capability statements and teaming arrangements. The usual players can't absorb 1,200+ opportunities in six months. There's room.

Publicus helps government contractors find, qualify, and win more contracts with less effort. Our AI-powered platform monitors every opportunity across all government levels, with analytics on pricing and competition so you can understand your market like never before.