Canadian Defence Industry Resilience (CDIR) Program

Insider Tip

CDIR is relationship-first — DND identifies companies it wants to engage before issuing a CFP. If you are a Canadian defence manufacturer not yet on DND's radar, engage with the Canadian Association of Defence and Security Industries (CADSI) and attend CANSEC. Having an existing production contract with the Canadian Armed Forces is the strongest qualification signal. For SMEs, the practical path is to become a certified subcontractor to a prime that has secured a CDIR agreement — the prime then flows some investment benefit to the supply chain. The April 2026 $1.4B ammunition investment demonstrates the program is actively deploying capital.

Success Profile

A Canadian defence prime contractor or tier-1 supply chain company with existing DND contracts, facility-level manufacturing capability, and the management depth to execute a multi-year production scale-up. Companies in munitions, armoured vehicle components, naval systems, or dual-use precision manufacturing are the highest-priority targets. Mid-market manufacturers ($50M+ revenue) with a track record of DND contract delivery are the primary beneficiaries.

Evaluation Criteria

DND evaluates CDIR proposals against sovereign production gap priority lists, strategic importance of the production capability, the company's demonstrated industrial competence, and the credibility of the production scale-up plan. Commercial demand evidence (existing contracts, allied nation Letters of Intent) significantly strengthens proposals. The April 2026 $1.4B ammunition investment confirms the program is actively deploying capital in priority areas.

Application Steps

Required Documents 8

Eligible Expenses 6

• Facility construction, expansion, or renovation for defence production
• Capital equipment for production capacity (CNC machines, forging lines, specialized tooling)
• Workforce development and training for production scale-up
• Supply chain hardening investments (dual-sourcing, domestic component substitution)
• Quality and security certification costs for production contracts
• Engineering and design costs for production-ready manufacturing processes

Ineligible Expenses 5

• R&D or prototype costs (covered by other programs — NRC, IDEaS, DI Assist)
• Working capital and operating expenses
• Commercial product development unrelated to defence contracts
• Export marketing or trade show costs
• Refinancing of existing debt

Intake Periods

No fixed annual intake. DND issues targeted CFPs as sovereign production priorities are identified — typically 1–4 per year. Monitor CanadaBuys (buyandsell.gc.ca) for notices.

Deadline Notes

CDIR does not operate on a fixed open-window basis. DND issues targeted CFPs aligned with specific sovereign production capability gaps — typically 1–4 CFPs per year in different capability areas. Monitor canada.buyandsell.gc.ca (CanadaBuys) for CDIR-related notices. The most recent major investment was announced March–April 2026 ($1.4B in domestic ammunition production).

Open Application Portal →

Ineligible Organizations

• Foreign-owned companies without Canadian manufacturing presence
• Companies without or unable to obtain required security clearances
• Non-defence companies with no supply chain connection to DND or allies
• Non-profit organizations
• Companies with outstanding compliance or audit issues with federal programs

Compatible Programs

Clawback Risk

High Risk

Forgiveness conditions are tied to production milestones and employment targets. Failure to meet milestones converts forgiven amounts to repayable debt. DND retains audit rights and can trigger repayment for material misrepresentation or failure to maintain required production capability.