Defence Investment Agency announces new contract for Surveillance of Space 2 project
March 18, 2026 – Richmond, British Columbia
The world is changing rapidly. The international rules‑based order is under strain, and technological change is expanding the fields of conflict, including into space. That’s why the Government of Canada, through the Defence Industrial Strategy, is focusing on rebuilding, rearming and reinvesting in the Canadian Armed Forces (CAF) to meet these emerging challenges.
Today, the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), announced that the Defence Investment Agency has awarded a $32‑million contract to MDA Space of Richmond, British Columbia, to deliver ground-based optical capability for the Surveillance of Space 2 project. The contract is expected to create or support close to 80 jobs annually and contribute approximately $9 million to Canada’s gross domestic product annually over the next six years.
Through this contract, by 2028, MDA Space will establish three remotely operated telescope sites in Alberta, Manitoba and New Brunswick. These telescopes will provide persistent, reliable space surveillance from the ground, and are an important component of Canada’s broader space‑surveillance architecture.
Space-based assets are critical to all Canadians. From banking to communications, navigation, agriculture and weather monitoring, we rely on secure, protected space-based capabilities every day.
This investment demonstrates how the Defence Investment Agency is advancing Canada’s Defence Industrial Strategy by leveraging Canadian innovation and expertise to deliver advanced capabilities for the CAF, while strengthening the broader defence industrial ecosystem.
The procurement was streamlined through a well‑designed competitive process that leveraged existing internal approval authorities, enabling the project to advance more quickly than under a traditional procurement approach.
Canadian innovation and expertise in space-related infrastructure are essential in defending and protecting Canadian space capabilities, while providing vital data to our allies through shared networks. This infrastructure represents a significant contribution to Canada’s partnership in the North American Aerospace Defense Command (NORAD) and reinforces Canada’s role as a founding member of Multinational Force – Operation Olympic Defender, a coalition of like-minded nations committed to space domain awareness and protect-and-defend mission sets.
Canada’s space sector continues to experience strong growth, contributing an estimated $3.4 billion to Canada’s GDP in 2023. The value of the global space economy is projected to reach approximately $2 trillion by 2040. Investing in sovereign capabilities in this domain will ensure that Canadian businesses are well positioned to benefit from this growth for decades to come.
As part of a long‑term, whole‑of‑government approach to security and economic resilience, Canada is strengthening its defence industrial base through its first-ever Defence Industrial Strategy. By aligning long‑term defence investments with Canadian industrial capability, the Strategy supports domestic supply chains, creates good‑paying jobs and will deliver equipment to the CAF faster.
The Defence Investment Agency is modernizing defence procurement by streamlining decisions, centralizing expertise and accelerating the delivery of mission-critical equipment.
Together, the Defence Investment Agency and the Defence Industrial Strategy are making generational investments in Canada’s defence ecosystem, transforming how Canada equips its military, strengthening our defence industrial base, and ensuring the CAF has the equipment it needs to keep Canada safe and sovereign.