Canada's New Defence Investment Agency to Hire 400, May Tap Private Sector
Defence Investment Agency Hiring 400, May Use Private Sector

Canada's Defence Investment Agency Expands to 400 Employees, Considers Private Sector Expertise

The federal government's newly established Defence Investment Agency (DIA) is set to significantly increase its workforce, aiming to reach approximately 400 employees. Currently, the agency operates with 85 staff members, as confirmed by CEO Doug Guzman during a recent House of Commons committee meeting on government operations.

Private Sector Involvement Deemed Beneficial for Procurement Innovation

Doug Guzman, a former investment banker and ex-colleague of Prime Minister Mark Carney at Goldman Sachs, highlighted the potential value of incorporating external expertise. He stated that bringing in a small number of private sector workers would make "good sense" to enhance the agency's procurement systems. Guzman emphasized that many large corporations possess complex procurement frameworks that could inform improvements in the government's processes.

"There is room for external expertise to come into the picture," Guzman remarked in response to inquiries from Bloc Québécois MP Marie-Hélène Gaudreau. He added that the agency's mandate is to innovate and streamline defence procurement, which has historically been criticized for inefficiencies.

Current Staffing and Future Plans for Agency Growth

To date, the DIA has drawn its employees from three federal departments: Public Services and Procurement Canada (PSPC), Innovation, Science and Economic Development Canada (ISED), and the Department of National Defence (DND). These transfers have included existing procurement files, though they reduce capacity in the original departments without altering the overall public service headcount.

Initially, services such as quality control and risk management will be handled by PSPC on behalf of the DIA. However, Guzman indicated that the agency plans to gradually absorb these functions as it expands. The long-term vision involves supplementing the internal team with external hires to foster innovation and efficiency.

Canada's Position in Global Defence Procurement

Secretary of State Stephen Fuhr noted at the committee meeting that Canada is "last to the party" among its allies in creating a dedicated defence procurement organization. He argued that decentralized procurement systems are too slow and inadequate for current demands, underscoring the urgency behind the DIA's establishment.

The agency's growth strategy reflects a broader effort to modernize military acquisitions and address longstanding delays. As the DIA builds toward its full staff complement, the integration of private sector insights could play a crucial role in transforming Canada's defence procurement landscape.