Democratizing Defence Procurement Is Worth Imagining

May 25, 2026

Share:

As published in the Hill Times, an English-only outlet.

Imagine you run a Canadian services company, and you want to participate in this country’s new and growing defence industry. One day, a federal procurement opportunity appears: ‘The military is seeking approximately 10 contractors over two years to augment its internal operations.’ How long do you think that request for proposal (RFP) is?

Did you guess 83 pages?

Not 83 pages including appendices and supporting material, but 83 pages before bidders even begin reviewing the additional online requirements, mandatory criteria, and legal conditions attached to the process. A typical industry response to such an RFP will often exceed 100 pages. If 15 companies submit bids, government officials may ultimately review and score more than 1,500 pages of technical material before hiring 10 contractors on an as-needed basis, most of whom are from vendors already pre-qualified to work with the Government of Canada.

What company actually has the time, personnel, and expertise to prepare a 100-page proposal for a relatively modest contract opportunity while simultaneously running day-to-day operations and pursuing other business? For many firms, but particularly for the small firms (with fewer than 100 employees) that make up 98% of all businesses, the answer is they don’t.

Building relationships and obtaining the clearances necessary to participate in federal defence procurement can already take years. Once eligible, companies often spend weeks — sometimes months — preparing highly technical submissions that require specialized procurement expertise, legal review, and dedicated staff resources with no guarantee of success. Those costs do not disappear. They are ultimately absorbed somewhere in the system, including in the prices the government pays for goods and services on other contracts.

After a proposal is submitted, companies can wait months for a decision, and months more before work begins. For innovative Canadian firms attempting to enter the defence sector, that uncertainty and administrative burden can be prohibitive. Many organizations, big and small, will decide the process is not worth pursuing.

At the same time, the government faces its own resource challenge. Public servants at Public Services and Procurement Canada must review, validate, and score thousands of pages of submissions, often for relatively small procurements. The process consumes enormous administrative capacity on both sides while delaying the delivery of services and capabilities the Canadian Armed Forces (CAF) need.

As the new Defence Investment Agency is getting underway, it is critical to start on the right foot, and not overlook opportunities to streamline the purchasing process used for the vast majority of CAF contracts. It is these contracts where the wider Canadian industry can really make a difference.

At the Canadian Chamber of Commerce, with almost 200,000 members across our entire national network, we’re hearing about these challenges in real time. We are also hearing clear examples of our procurement system that is narrowing — rather than expanding — the pool of capable bidders.

Time is also of the essence. Thank heavens the government is using budget-enabling legislation to stand up the Defence Investment Agency. This once-in-a-generation opportunity to broaden defence sector participation across communities in virtually every region of the country is mutually beneficial for the sector and the CAF. However, we risk squandering it if we continue to use procurement structures and systems designed for another era. We have a short window to get this right, and we applaud the government for using every tool in its toolbox to move prudently and efficiently to achieve that objective.

Of course, we are not here to just howl at the moon. Some answers are relatively straightforward, for example: Introducing separate standard boilerplate terms and conditions from project-specific requirements, reducing the size and complexity of RFPs. Don’t require extensive reassessments of vendors that have already undergone lengthy qualifications. Adjust the risk profile of assessments to focus on the company, rather than its resources for smaller projects. Let’s set page limits, commit to decision in 30 days, and commit further to a clear date when the project will get underway. With these, and many other long-discussed changes, Canadian defence procurement will become attractive to a much wider group of homegrown companies.

Our allies have this right. From south of the border to Europe and beyond, the defence industry is seen a regional economic driver, growing virtually every community, leveraging small, medium, and large-sized businesses. Canada needs to replicate this democratized system, solidifying a healthy and vibrant defence sector that is not at the whims of the political winds of the day. Without meaningful reform and thinking from the perspective of the businesses living this maze-like procurement process, Canada risks missing this massive opportunity.

David Pierce, Vice President, Government Relations, Canadian Chamber of Commerce

Visit the Defence & Security Committee to learn more about the Canadian Chamber’s advocacy.