The Canadian Defence Investment Agency (DIA) has awarded a contract to Colt Canada for up to 65,402 assault rifle systems under the Canadian Modular Assault Rifle (CMAR) programme.
The contract was announced by Secretary of State for defence procurement Stephen Fuhr and National Defence Minister David J. McGuinty on 19 March 2026.
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As per the announcement, the CMAR project will proceed in two distinct phases.
In the initial phase, authorities expect to purchase 30,000 General Service rifles over three years, with an estimated cost of C$307m ($223m), inclusive of taxes.
The optional second phase, anticipated to begin in the fourth year, would involve acquiring an additional 19,207 General Service rifles and 16,195 Full Spectrum rifles, along with related accessories.
The new rifles will replace the C7 and C8 models, which have been in service for more than three and a half decades.
According to the DIA, the rifles will improve the “awareness, protection, and reliability” of Canadian Armed Forces (CAF) personnel deployed on operations.
The contract also covers system integration and engineering support as part of the upgrade.
This investment is estimated to contribute approximately C$10m each year to Canada’s GDP over the next five years and create employment opportunities, emphasising Colt Canada’s intention to source at least 80% of content from within Canada.
Authorities also anticipate further economic benefits through the Industrial and Technological Benefits Policy, which requires defence procurements to generate sustained investments domestically.
This initiative is among the first major defence procurements undertaken by the Defence Investment Agency since its establishment.
The agency works to involve industry early in procurement processes and aligns defence spending with long-term goals outlined in Canada’s Defence Industrial Strategy.
According to the Defence Investment Agency, authorities chose a direct acquisition approach for replacing current service rifles and utilised a Risk Based Approach for procurement as part of measures intended to streamline processes and expedite delivery.
Minister of National Defence David J. McGuinty stated: “Today’s announcement reflects our government’s ongoing commitment to ensuring the Canadian Armed Forces have the capabilities they need to protect Canadians and contribute to global security.
“The Canadian Modular Assault Rifle project is an important step in modernizing the equipment our service members rely on every day. By investing in modern, reliable tools and working with a trusted Canadian partner, we are supporting the operational readiness of our Armed Forces while strengthening Canada’s defence industry and the skilled workforce behind it.”
Recently, the Defence Minister announced a commitment of C$1.4bn to increase the country’s ammunition production capacity.
