The Canadian Army is facing mounting criticism from domestic defence companies over a major new equipment initiative valued at nearly half a billion dollars. Industry officials allege the program is being deliberately structured to favour American suppliers, directly contradicting Prime Minister Mark Carney's public commitment to decrease Canada's reliance on U.S. military hardware.
Program Details and Exclusive U.S. Pathway
The initiative in question is the Joint Fires Modernization program, with an estimated cost between $250 million and $499 million. Its goal is to acquire modern hardware and software to digitally share targeting data and coordinate artillery fire between Canadian Army units and allied forces.
However, a draft request for proposals reveals the technology will be acquired exclusively through the U.S. government's Foreign Military Sales (FMS) process. This mechanism allows for direct purchases from American defence contractors via Washington but notably excludes Canadian and European firms from bidding. Crucially, the FMS process does not mandate any industrial or technological benefits for Canada, a standard requirement in most domestic defence contracts.
Industry Backlash and Political Tensions
Multiple defence industry officials have confidentially expressed their frustration to the Ottawa Citizen, stating that the program's specifications effectively lock out non-U.S. companies. They point to specific requirements within the draft documents that mandate the use of American-made systems.
One key requirement states that software must work with the Advanced Field Artillery Tactical Data System (AFATDS), which is only available to Canada via a Foreign Military Sale. Furthermore, the program specifies the use of radios operated by the U.S. Marine Corps and U.S. Army, which are solely accessible through American suppliers, bypassing standard Canadian military radio systems.
Industry sources, who spoke on condition of anonymity for fear of jeopardizing future government contracts, accuse Army commander Lt. Gen. Michael Wright and Defence Minister David McGuinty of sidelining domestic and European firms for this and other upcoming major equipment projects.
Contradiction with Federal Policy
This approach appears to be at odds with the federal government's stated direction. Prime Minister Mark Carney has publicly emphasized the need for Canada's military to reduce its dependence on American suppliers and bolster domestic defence industrial capabilities.
The exclusive use of the FMS route for the Joint Fires Modernization program signals a potential policy disconnect, raising questions about the implementation of Carney's vision at the departmental level. The move has sparked concerns about the long-term health of Canada's sovereign defence industry and its ability to compete for crucial military modernization contracts.
As of the publication date of December 1, 2025, neither Lt. Gen. Michael Wright, the Canadian Army, nor Defence Minister David McGuinty had responded to requests for comment on the allegations. The controversy highlights the ongoing tension between operational military requirements, procurement efficiency, and the government's economic and industrial policy goals for the defence sector.
