Ottawa is launching a new federal procurement agency designed to overhaul and centralize military equipment purchasing.
Secretary of State for Defence Procurement Stephen Fuhr, who will oversee the new Defence Investment Agency, told The Canadian Press the agency will deliver equipment to the Canadian Armed Forces at a faster pace that meets its needs.
"We cannot be trapped outside the technology cycle with procurement. If we deliver stuff late, then it's irrelevant and we don't want to be there," he said.
"So … we're going to move at the speed of relevance to meet the moment."
Fuhr insists the new agency will not amount to another layer of bureaucracy that could further slow the process.
"We're not adding anything. We're actually consolidating things into one spot," he said. "Fragmented oversight goes away because now you have one-stop shopping. Duplication of effort is curtailed because, again, everyone's working in one location, not spread out all over Ottawa."
Fuhr also said the new agency will deal with all purchases above $100 million and will have the authority to enter into contracts without being bogged down by a complex approvals process.
"We don't have to go to the Treasury Board a million times. We can just do it," he said.
The Liberal government is appointing former Royal Bank of Canada executive and former Goldman Sachs manager Doug Guzman as the CEO of the new agency, which will be housed within Public Services and Procurement Canada.
Prime Minister Mark Carney campaigned in the spring election on a promise to reform defence procurement by streamlining the system to cut down on lengthy delays.
The Liberals had committed to standing up a new defence procurement agency in 2019, but abandoned those plans as a priority when the COVID-19 pandemic hit.
Canada has promised its NATO allies that it will spend the equivalent of two per cent of its GDP on national defence every year — spending levels not seen since the Cold War.
The government is also expected to produce a new defence industrial policy in the coming months.
Picture Courtesy: THE CANADIAN PRESS/Justin Tang
