The federal government intends to turn the Defence Investment Agency (DIA) into a Crown corporation. Two federal sources told CBC News that making the year-old agency an independent body is intended to speed up the purchase of military equipment.
Procurement Minister Joël Lightbound placed the bill on the House of Commons notice paper on 2 October under the title “An Act respecting production, procurement and investment in relation to national defence and national security.” Two sources told The Globe and Mail the legislation would be tabled on 6 October.
The DIA is led by Chief Executive Officer Doug Guzman and currently functions as a special operating agency within Public Services and Procurement Canada (PSPC). The agency was established in October 2025 to accelerate major military purchases valued at more than $100 million.
The first statute proposed for the agency is still being considered by Parliament. Bill C-31, the budget implementation bill introduced on 6 May, cleared second reading on 3 June and remains at committee stage in the House of Commons. Division 16 would enact a Defence Investment Agency Act, establishing the agency in law under a designated minister.
That division also amends the Defence Production Act to give the minister presiding over the agency, with certain exceptions, exclusive authority to purchase supplies and services related to national defence and national security for federal departments and agencies.
Under the spring bill, the exceptions allowing the normal procurement process to be set aside would increase from four to as many as 14, including procurements of national interest. Economic security would also become a pillar of the agency’s mandate.
Details of the new legislation have not yet been released publicly. The Crown corporation is nevertheless expected to have its own board, chief executive, corporate plan and workforce, and to report to an associate minister of defence for public accountability purposes.
National Defence already uses this model through Defence Construction Canada. Established under the Defence Production Act in 1951, the Crown corporation procures and manages infrastructure contracts for the department. Under Bill C-31, the government would put the corporation under the authority of the minister responsible for the DIA.
It remains undisclosed how the powers proposed in Bill C-31 would transfer to the Crown corporation, or whether the new body would receive powers beyond those already proposed. The Prime Minister’s Office declined to comment on legislation before it is tabled.
Three sources told The Globe and Mail the restructuring would substantially increase the decision-making authority of both the agency and Guzman. In a separate email to staff, Guzman said he intends to stay on as chief executive.
In April, the government announced plans for a minister of defence procurement cabinet position to direct purchasing. Stephen Fuhr currently handles the portfolio as Secretary of State for Defence Procurement and has not been appointed to that position.
The change follows the Defence Industrial Strategy issued in February. In that strategy, the government set out plans to legislate the DIA into a standalone entity, serving as the single point of contact for defence-related investment and procurement.
Minister of National Defence David McGuinty and Fuhr are due to answer reporters’ questions on 6 October. Senate committees conducting advance examinations of Bill C-31, including the committee responsible for Division 16, are due to report by 9 October.
Related coverage: The DIA is advancing the Canadian Patrol Submarine Project. Project-level status for Canada’s other major purchases is in the Anvil North program guides.