Canada wants to bolster its military satellite communications capabilities in the Arctic with the first procurement out of the new Defence Investment Agency.
The Arctic has been a key geographic focus for Canadian defence as melting ice reveals new trading routes that place continued control over the region into question.
The nascent federal agency announced Tuesday that it has partnered with Brampton-based spacetech manufacturer MDA Space and Ottawa-based satellite firm Telesat to forward the Enhanced Satellite Communications Project – Polar (ESCP-P).
Canada has awarded a nearly $3-million contract to the firms to conduct initial engineering and options analysis work for the project, which aims to provide reliable wideband and narrowband connectivity to support domestic and continental operations in the Arctic.
“By investing in cutting-edge satellite communications, we are providing the Canadian Armed Forces with secure, resilient, and modern capabilities–allowing them to safeguard our airspace, respond quickly to emerging threats, and support communities throughout the Arctic and the North,” Minister of National Defence David McGuinty said in a statement.
The Defence Investment Agency launched in October to overhaul the traditionally slow military procurement process by centralizing contract review and approval, and removing redundant steps to speed up the process, the Prime Minister’s Office said when it launched. The agency oversees procurements valued at or above $100 million, while smaller contracts go through standard processes.
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Despite the agency’s high procurement price tag, the government said that the Industrial and Technological Benefits (ITB) Policy will apply to ESCP-P to “foster innovation and strengthen Canada’s domestic space and defence sectors.” The ITB Policy contractually requires companies awarded defence procurement contracts to undertake business activity in Canada equal to the value of the contracts they have won, meaning the partnership will involve more of the Canadian space ecosystem, including small and medium-sized businesses.
The Defence Investment Agency is part of Canada’s push to fortify its sovereign and military capabilities, including efforts to spend two percent of its gross domestic product (GDP) on defence, hitting NATO’s target as part of a big jump after years of lower investment in the sector.
The Arctic has been a key geographic focus for Canadian defence as melting ice reveals new trading routes that place continued control over the region into question.
Prime Minister Mark Carney’s first budget earmarked nearly $82 billion over five years to help “rebuild, rearm, and reinvest” in the Canadian Armed Forces, including almost $7 billion to build Canada’s defence industrial base under the forthcoming Defence Industrial Strategy. Last week, the feds unveiled nearly $358 million to strengthen the country’s defence supply chain through its new Regional Defence Investment Initiative.
Feature image courtesy Public Services and Procurement Canada via LinkedIn.