The bill enacts the Canadian Corporation for Defence Investment Act. The Corporation, which may also carry on activities as the Defence Investment Agency, is a corporation that is an agent of His Majesty, subject to a power of the Governor in Council to declare otherwise for specified activities. Its mandate includes carrying out production, procurement and investment activities in respect of national defence for the Canadian Forces or the Department of National Defence and, on the Minister’s direction, for an associated government. It may also advise federal ministers and carry out other activities assigned by the Governor in Council.

The Corporation may exercise specified powers under the Defence and National Security Production and Procurement Act, make loans and advance payments, guarantee financial obligations, and acquire or dispose of shares and other financial instruments, subject to the approvals set out in the Act. Payments from the Consolidated Revenue Fund for specified powers are subject to an aggregate limit of $1 billion. The Corporation is governed by a board consisting of, among others, an Executive Chairperson, a Chief Executive Officer and directors appointed by the Governor in Council.

Part 2 amends the Defence Production Act, which is renamed the Defence and National Security Production and Procurement Act. It expands the concepts of defence supplies, defence services and defence projects to cover national security and gives the Minister of Public Works and Government Services authority to acquire supplies and services for federal departments, boards and agencies. It provides for information requests, stockpiling, loans and advance payments, and gives the Minister exclusive authority over specified acquisitions and construction, subject to the Canadian Corporation for Defence Investment Act.

Contracts within the specified scope must generally be subject to a competitive procurement process. Exceptions include urgent operational requirements, military operations, national security, sensitive technology and contracts that only one person can perform. A person may be excluded where the person, a related person or proposed equipment poses a risk to national defence, national security or public safety. Part 2 also amends the Access to Information Act, the National Defence Act, the Salaries Act, the Financial Administration Act, the Public Service Superannuation Act and the Customs Tariff, and makes terminology changes in specified regulations and legislative texts. It authorizes an administrative monetary penalties scheme with a maximum penalty of $2,000,000; other offences may result in a fine of up to $25,000, imprisonment for up to 12 months, or both.

The transitional provisions transfer the Agency’s rights, property, obligations, contracts, employees and unexpended appropriations to the Corporation. Up to $30 million may be paid to the Corporation from the Consolidated Revenue Fund within 180 days after the relevant provisions come into force. A review must begin within five years after the applicable subsection comes into force, with a report to be tabled in both Houses of Parliament. All provisions other than sections 2 and 47 come into force by order of the Governor in Council.