DND seeks U.S. help for $400-million Canadian Forces space project

The Department of National Defence is looking to the U.S. military as it sets the stage for a new Canadian Forces space project that could cost up to $400 million.

The department has contacted the U.S. Space Systems Command as part of the early stages for Canada’s proposed Space Command and Control (Space C2) project.

“Space Systems Command received a Letter of Request for services including investigation of capabilities and Pricing and Availability from a Partner Nation regarding a potential Foreign Military Sales,” noted the recent posting from the U.S. command.

Canada was named as the partner nation.

“Request for Information is for market research purposes to obtain price, delivery, or capabilities for planning purposes,” the notice added.

There is no guarantee there will be a contract at this point, according to the document.

“Vendors are invited to provide information on existing or planned solutions that could support Space C2 requirements,” added the U.S. Space Systems Command.

The Space Command and Control project was originally estimated to cost $200 million, according to an April 2025 briefing for Canadian defence industry officials that was obtained by the Ottawa Citizen.

But now the cost range has increased to between $200 million and $400 million, DND confirmed. The department did not explain why the estimated price tag has climbed.

The system is expected to be operational starting in 2031.

The system will gather a variety of space data, from Canadian, allied and commercial sensors, and combine that information for use in Canadian operations and for protecting the North American continent. The new system would also make use of automation and artificial intelligence to improve efficiency and speed up decision-making for military commanders.

The request on how the U.S. could contribute to the new project comes in the midst of an effort by Prime Minister Mark Carney to provide more business to Canadian space companies.

On Dec. 9, it announced an alliance with Telesat in Ottawa and MDA, both high-profile Canadian space companies, to work on a new DND satellite system. Various cabinet ministers, including Defence Minister David McGuinty, were on hand to praise the Canadian space industry’s expertise, which is considered among the best in the world.

“The more we buy from ourselves, the more confidence we show in our own companies, the more others want to follow up and (purchase from Canada),” Stephen Fuhr, secretary of state for defence procurement, said at the event. “We haven’t been particularly good at that, but we are going to get much better, much faster.”

Despite the specific wording of the U.S. space command’s message to companies, DND spokesperson Andrée-Anne Poulin stated in an email that the department “is not seeking Price and Availability for equipment/services that can be acquired through an FMS (Foreign Military Sales) case.”

She noted that Canada currently has a contract with the U.S. to conduct preliminary research and provide engineering expertise for the new project. The U.S. notice reflects that initiative. Poulin did not explain why the DND did not use a Canadian firm for such a job.

McGuinty did not provide comment.

Poulin stated that a formal request for information is expected to be issued in 2026.

During a June 9 speech, Carney repeated his earlier promise that Canada would cut back on using its defence dollars to purchase U.S. military equipment. The U.S. has become increasingly hostile to Canada, with President Donald Trump continuing with his economic efforts to punish Canada and push for this country to become the 51st state.

But there has been growing frustration among some Canadian defence firms that the Canadian military is ignoring Carney’s call to decrease reliance on U.S. suppliers. Canadian military leaders are extremely close to their U.S. counterparts and, despite the prime minister’s direction, have advocated for increased ties to the Americans.

Canadian industry officials have pointed to a series of recent purchases for the Canadian Forces that were sole-sourced from the Americans, despite alternatives being available. There is the recent sole-source purchase of the U.S. High Mobility Artillery Rocket System, or HIMARS, at a cost of $2.4 billion.

In addition, concerns have been raised about the Canadian Army’s desire for the use of American-only equipment for what is being called the Joint Fires Modernization program. That Canadian Army project could be worth around $500 million.

The Ottawa Citizen also reported Nov. 19 that the Canadian Trade Tribunal issued a recommendation to reboot a $100-million Canadian Army project to buy night-vision equipment in the wake of allegations the proposed purchase was designed to favour U.S. manufacturers.

Public Works and Procurement Canada has not yet provided information on whether it will restart the process or continue with the parameters that would focus only on U.S.-provided equipment.

The Liberal government is also in the midst of examining whether to proceed with the purchase of additional F-35s from the U.S.

Canada has on order 16 of the fighter jets and was set to proceed with acquiring a total of 88 F-35s before Carney ordered a review of the purchase. That review was prompted by Trump’s threats to cripple the Canadian economy and annex the country.

Critics have also raised concerns the U.S. controls all software upgrades for the aircraft and owns the parts for the planes. That did not matter previously since the U.S. was considered a reliable ally of Canada. But now some former military officers have said the recent actions of the Americans show that country can no longer be trusted.

Some defence analysts have noted that Canada should still co-operate with the U.S. as it is the world’s major military power and Canada’s closest ally. But others have raised concerns that the newly released U.S. security strategy is pushing an “America First” agenda in which Canada is seen as a subordinate or vasal state.

David Pugliese is an award-winning journalist covering Canadian Forces and military issues in Canada. To support his work, including exclusive content for subscribers only, sign up here: ottawacitizen.com/subscribe