Canada introduced Bill C-40 to convert the Defence Investment Agency from a special operating agency into a Crown corporation within the National Defence portfolio. Its legal name would be the Canadian Corporation for Defence Investment, while it would continue using the DIA name publicly.

The proposed structure would place major procurement, production and strategic investment work within one organization and create an Associate Minister of National Defence for Procurement. The armed forces, National Defence and the Canadian Coast Guard would continue defining operational needs and acceptance criteria.

Government materials say the arm’s-length model is intended to reduce handoffs, consolidate commercial expertise and make contracting decisions more quickly. The corporation would have a board and additional operating flexibility while remaining subject to ministerial direction, audits, reporting requirements and parliamentary oversight.

The proposal also anticipates joint procurement with allies, including European security initiatives. Bill C-40 must still pass through the legislative process, so the final authorities, implementation schedule and organizational transition are not yet settled.