MLT AIKINS LLP | MLTAIKINS.COM
Defence
Through Budget 2025, the Federal government committed $81.8 billion over five years to rebuild, rearm and reinvest in the Canadian Armed Forces, including $6.6 billion to strengthen Canada’s defence industry under the Defence Industrial Strategy. That investment is creating new opportunities for manufacturers, construction companies, technology developers, contractors and suppliers – both domestic and foreign.
Canada’s Defence Industrial Strategy aims to award 70% of defence purchases to Canadian firms, using a “Build–Partner–Buy” approach:
- Build in Canada where Canadian firms have the capability
- Partner with trusted allies and global companies where Canada can’t build it alone
- Buy from allies only where neither works, with conditions requiring reinvestment in Canada
In practice, Federal buyers are expected to look first at whether a requirement can be met by Canadian industry before turning to foreign suppliers.
Defence spending will extend to projects traditionally thought of as Defence such as combat training, aerospace and the development and deployment of weapons systems as well as other projects not immediately associated with Defence such as drones and construction or upgrading of infrastructure on Canadian armed forces bases.
Domestic suppliers will be expected to demonstrate their Canadian content and will be encouraged to include Indigenous participation and content within their bids.
Foreign suppliers will be judged on what they contribute to Canada’s domestic defence industrial base. Foreign contractors that identify credible Canadian partners, suppliers or investment opportunities early, even before a contract is won, will be better positioned to fit within the Build and Partner streams rather than competing solely as an off-the-shelf purchase. Foreign suppliers will have to meet the requirements of the Investment Canada Act (Canada) and Competition Act (Canada) as well as ensure they are properly setup to do business in Canada.
In addition, to Canadian and Indigenous content requirements, all suppliers will have to meet a strict set of guidelines and regulations to bid on defence contracts including:
- Registration requirements with the Department of National Defence (DND)
- Security clearances for the supplier and the individuals assigned to the bid and the work based on the sensitivity of the procurement
- Cybersecurity clearance and certifications
- Controlled goods registrations and controls
- Import/export permits required where defence technology is imported into or exported from Canada
How we help
We can advise clients on how to: compete for and win work within Federal and other government procurement systems; meet Canadian and Indigenous content requirements; meet the necessary guidelines and regulations to be eligible to bid on defence work; protect their technology through patents, trademarks and other intellectual property rights; and establish or acquire a defence business in Canada, including meeting foreign investment requirements.
With lawyers based across Western Canada and in Ottawa, our team works where Federal procurement decisions are made and where defence suppliers operate. We offer practical, actionable advice to contractors, manufacturers, technology companies, Indigenous-owned businesses and Nations, as well as investors and international companies pursuing opportunities in Canadian defence. Since registrations and security clearances take time to obtain, we encourage clients to engage with us early so they are ready to bid or participate in a defence procurement when the opportunity arises.
The MLT Aikins Defence practice area assists:
- Domestic bidders and subcontractors: Canadian organizations as they prepare to enter the defence sector to meet specific defence requirements identified above, as well as employment, intellectual property, corporate and tax advice.
- Foreign companies: Foreign organizations on getting setup to do business in Canada, and to meet the defence requirements for a foreign supplier.
- Startups and emerging businesses: Startup organizations on completing registrations, securing funding and meeting regulatory compliance needs, as well as any other broader requirements for new entrants to the sector.
- Indigenous Nations and organizations: Indigenous Nations on ensuring consultation requirements and other Treaty rights are met, and Indigenous-owned companies on specific defence requirements and partnering, structuring and bidding for defence contracts, including under Federal Indigenous procurement commitments. Our office at Muskeg Lake Cree Nation reflects our long-standing commitment to working with Indigenous clients.
Our lawyers have extensive experience with government procurements and Federal regulatory requirements.
Learn more about our Procurement practice and our Competition/Antitrust, Investment and Trade practice.
The Federal government’s defence strategy relies on a “Build–Partner–Buy” approach to defence procurement, creating opportunities for foreign organizations from trusted and allied nations. Our lawyers have extensive experience assisting organizations to get ready to do business in Canada including corporate structuring and tax advice.
Learn more about our Corporate and Commercial and Competition/Antitrust, Investment and Trade practices.
Pursuing opportunities in a new sector typically comes with changes to workforce structure and employment needs.
In addition to general employment counsel, our lawyers advise on the remote hiring of Canadian employees for foreign employers and on immigration and visa arrangements for international employees.
Learn more about our Immigration and Labour and Employment practices.
Our lawyers advise organizations developing their own proprietary technology on how to protect their intellectual property and technology and Defence-specific cybersecurity rules.
Learn more about our Technology, Intellectual Property and Privacy practice.
With the widespread adoption of remotely piloted aircraft, drones and other emerging technologies, the aviation industry is going through a period of evolution.
In addition to offering strategic solutions across the aviation industry, our lawyers advise drone manufacturers and programmers on navigating the specific rules and regulatory regime that apply to the manufacture, sale and use of drones.
Learn more about our Aviation, Drones & Advanced Air Mobility (AAM) practice.
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