Defence Investment Agency announces new contract for Surveillance of Space 2 project

Canada NewsWire

RICHMOND, BC, March 18, 2026

RICHMOND, BC, March 18, 2026 /CNW/ - 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.

Quotes

"Canada's security depends on the space‑based systems that enable everything from communications and navigation to weather forecasting and emergency response. Today's contract award to MDA Space will deliver the capabilities the Canadian Armed Forces need while growing Canada's world‑class space sector and creating good-paying jobs. With the Defence Investment Agency and our Defence Industrial Strategy, we are streamlining procurements and building the sovereign capabilities that will ensure Canada remains a leader in this crucial domain."

The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)

"Canada's security and prosperity depend on our ability to understand and protect the space domain. The Surveillance of Space 2 project represents a major step forward in strengthening our sovereignty, modernizing our space capabilities, and safeguarding critical satellite infrastructure that Canadians rely on every day."

The Honourable David J. McGuinty
Minister of National Defence

"Projects like Surveillance of Space 2 demonstrate how Canadian expertise, right here in British Columbia, pushes the boundaries of what we will achieve in space and defence. Supported by the Defence Investment Agency and guided by Canada's Defence Industrial Strategy, this investment will both create highly skilled jobs in the region and will modernize Canada's space capabilities for the challenges of tomorrow."

The Honourable Jill McKnight
Minister of Veterans Affairs and Associate Minister of National Defence

"The Surveillance of Space 2 project leverages world-class, secure digital technologies to support operational advantage. By evolving how we manage and protect critical space information, we're delivering the resilient, interoperable digital capabilities our forces need to operate effectively with allies and partners, and to protect Canada's interests."

Ross Ermel
Assistant Deputy Minister (Digital Services) and Defence Chief Digital Officer, National Defence

"The delivery of the ground-based optical capability represents a significant advancement in Canada's ability to monitor and safeguard the space domain. These advanced telescopes will provide persistent, reliable, ground-based surveillance and will operate in tandem with our space-based sensors under Surveillance of Space 2. Space-based systems are vital to the daily lives of Canadians and to the success of joint missions with our allies. Enhancing our space awareness directly strengthens our commitments to NORAD and to our partners as we continue to ensure the security of Canadians."

Lieutenant-General Jamie Speiser-Blanchet
Commander of the Royal Canadian Air Force

"As space becomes more contested, congested and competitive, persistent surveillance and space domain awareness provide the Canadian Armed Forces and trusted allies with a better understanding of what is happening in a complex environment they can't otherwise see. With decades of proven expertise providing defence and security, MDA Space is honoured to once again be selected as a trusted mission partner to Canada and to the Department of National Defence ."

Mike Greenley
Chief Executive Officer, MDA Space

Quick facts

The Surveillance of Space 2 project is a follow-on to National Defence's Sapphire satellite project, launched in 2013 as Canada's first military satellite contributing to space domain awareness.
The contract with MDA Space includes ground-based optical capability and the acquisition, delivery and integration of the Sensor Tasking and Reporting System (STARS). Delivery of the three sensor sites is expected by June 2028.
The contract also includes an additional three years of in-service support that will end in June 2031. There are two one-year option periods for in-service support that can be exercised at Canada's discretion. The total duration of the contract (including acquisition and in-service support) will be 64 months, plus the two option years.
The Surveillance of Space 2 project is an investment in Canada's future. It supports national priorities such as economic development and technological innovation by sustaining high-tech Canadian jobs while bolstering Canada's contribution to space innovation and allied data sharing.
On October 2, 2025, the Prime Minister announced the establishment of the Defence Investment Agency to accelerate and streamline defence procurement. It represents a significant step in transforming Canada's defence procurement system to rebuild, rearm and reinvest in the CAF to respond to evolving global threats and meet operational demands.
The Surveillance of Space 2 project supports Canada's Defence Industrial Strategy by sustaining high‑tech Canadian jobs, strengthening domestic industrial capacity, and enhancing Canada's contribution to allied space domain awareness.

Associated links

SOURCE Public Services and Procurement Canada