# Canada Expands Domestic Defence Procurement

Canada’s defence-spending expansion and goal of increasing domestic procurement are creating potential openings for Canadian defence-technology firms in autonomy, Arctic communications and unmanned systems. Ottawa-based Dominion Dynamics has secured about $1 million in small government contracts, including two undisclosed Army deals, while pursuing larger development work. A tentative agreement reported November 3, 2026, would integrate the firm’s AuraNet software with Tencore uncrewed ground vehicles, with potential Canadian manufacturing and deployment. The opportunity is tempered by procurement inertia, security-clearance burdens and limited access to capital, which can make it difficult for new entrants to scale. A separate planned drone development effort has an estimated cost of about $500 million when fully developed and a targeted two-year development timeline.

- Canadian defence buyers and primes may find domestic suppliers for autonomy, Arctic communications and unmanned-system capabilities; the Tencore arrangement is tentative, not a confirmed award.
- Dominion Dynamics’ roughly $1 million in existing government work shows a route to early defence business, while the cited clearance and financing barriers highlight challenges for smaller firms seeking larger programs.
- Contractors pursuing Canadian defence work can evaluate teaming and local-manufacturing opportunities, including the proposed AuraNet–uncrewed ground vehicle integration, while accounting for the procurement and security-clearance hurdles described.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Digital Infrastructure
**Published:** November 03, 2026

### Government Entities
- Government of Canada
- Canadian Armed Forces (CAF)
- Canadian Army Reserve
- North Atlantic Treaty Organization (NATO)

### Vendors
- Dominion Dynamics (Awardee of small Canadian government contracts)
- Tencore LLC (Proposed integration counterparty for AuraNet software and uncrewed ground vehicles)
- Anduril Industries Inc. (Prime contractor)
- Lockheed Martin Corp. (Incumbent contractor)

### Key Quotes
> A good idea will get you partway into the room, but it won’t necessarily seal the deal if people aren’t prepared to take some risk.
> — Mark Norman, former vice-chief of defence of the Canadian Armed Forces

> I don’t really care about the company; I care about changing the country.
> — Eliot Pence, Chief Executive Officer of Dominion Dynamics

### Sources
- [This Canadian is home to rebuild Canada's war machine](https://financialpost.com/economy/defence/canadian-home-build-canada-war-machine) - Financial Post