Federal News
Canada Awards Colt $307M Rifle Contract
March 19, 2026
The Canadian federal government awarded Colt Canada a $307 million contract on March 19, 2026, to supply 30,000 new Canadian Modular Assault Rifles (CMAR) to the Canadian Army, replacing the aging C7 and C8 rifles. Deliveries are expected to begin in early 2027, with an option to procure an additional 35,000 rifles after the initial three-year contract period. This procurement emphasizes domestic industrial benefits, with approximately 80% Canadian content, supporting job creation and contributing an estimated $10 million annually to Canada's GDP. The contract is part of a broader defense investment exceeding $93 billion, reflecting a strategic modernization of the Canadian Armed Forces' small arms capabilities and accelerated acquisition timelines through special procurement procedures.
- Why this matters: Procurement professionals should note the prioritization of domestic manufacturing and industrial benefits, which may influence future Canadian defense contracts.
- The contract supports significant job growth in Ontario, particularly at the Colt Canada factory in Kitchener, and strengthens Canada's defense industrial base.
- The phased procurement approach, with options for additional rifles, indicates ongoing modernization opportunities for suppliers and contractors.
- Organizations involved in defense manufacturing and supply chains should evaluate potential partnerships or subcontracting opportunities with Colt Canada and related entities.
Canadian investment, and you know, buying Canadian enables them to scale in a way that they have the capacity, not only to provide for us and our needs here in Canada, but the capacity to export to our allies.
— Stephen Fuhr, Secretary of State (Defence Procurement)
Rifles remain foundational to soldier effectiveness in the field, and this development brings over 40 years of technology evolution to Canada's fighting forces.
— Lt.-Gen. Mike Wright, Commander of the Army
Agencies
Government of Canada, Canadian Army, Canadian Armed Forces, Department of National Defence, Defence Investment Agency
Vendors
Colt Canada, Colt CZ Group, ThyssenKrupp Marine Systems, Hanwha Ocean
Contracts
$307 million, $307 million, Between $500 million and $1 billion (estimated overall program)
Locations
Sources
- Canada spending $307M to buy new modular army rifles from Colt - Castanet.net · Castanet · Mar 19
- Canada spending $307M to buy new army rifles from Colt - Athabasca, Barrhead & Westlock News · TownAndCountryToday.com · Mar 19
- Government awards $307-million contract to Colt Canada to manufacture over 65,000 rifles for the Canadian Armed Forces | National Post · National Post · Mar 19
- Canada fast-tracks army rifle upgrade with $307M initial order | CBC News · CBC · Mar 19
- Ottawa Awards $307M Colt Canada Contract for Army Rifles – Azat TV · Azat TV · Mar 19