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.
Rewiring the ITB Policy
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.
Strategic partnerships
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.
Finding the front door
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.
Industry voice
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.