MDA Space has been contracted by Canada’s Defence Investment Agency (DIA) to deliver three Ground-Based Optical (GBO) observatories as part of the Surveillance of Space 2 space domain awareness program to the Department of National Defence (DND). Valued at approximately $32 million, as part of the contract MDA Space will also operate and provide in-service support to ensure long-term sustainment of the ground stations.

Surveillance of Space 2 project: MDA Space awarded $32 million contract By DND

The DND is modernizing Canada’s continental defence capabilities to address new and emerging threats to critical space infrastructure. Once delivered, the new GBO observatories will provide additional defence capabilities to Canada’s existing Sapphire satellite which currently enables the Canadian Armed Forces (CAF) to detect, track, characterize and monitor objects in deep space.

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Through this contract, by 2028, MDA Space will establish three remotely operated telescope sites in Alberta, Manitoba and New Brunswick. These telescopes will provide persistent, reliable space surveillance from the ground, and are an important component of Canada’s broader space‑surveillance architecture. The contract is expected to create or support close to 80 jobs annually and contribute approximately $9 million to Canada’s gross domestic product annually over the next six years.

Canadian innovation and expertise in space-related infrastructure are essential in defending and protecting Canadian space capabilities, while providing vital data to our allies through shared networks. This infrastructure represents a significant contribution to Canada’s partnership in the North American Aerospace Defense Command (NORAD) and reinforces Canada’s role as a founding member of Multinational Force – Operation Olympic Defender, a coalition of like-minded nations committed to space domain awareness and protect-and-defend mission sets.

Canada’s space sector continues to experience strong growth, contributing an estimated $3.4 billion to Canada’s GDP in 2023. The value of the global space economy is projected to reach approximately $2 trillion by 2040. Investing in sovereign capabilities in this domain will ensure that Canadian businesses are well positioned to benefit from this growth for decades to come.

The Defence Investment Agency is modernizing defence procurement by streamlining decisions, centralizing expertise and accelerating the delivery of mission-critical equipment.

Together, the Defence Investment Agency and the Defence Industrial Strategy are making generational investments in Canada’s defence ecosystem, transforming how Canada equips its military, strengthening  our defence industrial base, and ensuring the CAF has the equipment it needs to keep Canada safe and sovereign.

READ: Defence Investment Agency to engage Canadian industry on future submarine fleet sustainment

“As space becomes more contested, congested and competitive, persistent surveillance and space domain awareness provide the Canadian Armed Forces and trusted allies with a better understanding of what is happening in a complex environment they can’t otherwise see. With decades of proven expertise providing defence and security, MDA Space is honoured to once again be selected as a trusted mission partner to Canada and to the Department of National Defence .”

Mike Greenley
Chief Executive Officer, MDA Space

“Canada’s security depends on the space‑based systems that enable everything from communications and navigation to weather forecasting and emergency response. Today’s contract award to MDA Space will deliver the capabilities the Canadian Armed Forces need while growing Canada’s world‑class space sector and creating good-paying jobs. With the Defence Investment Agency and our Defence Industrial Strategy, we are streamlining procurements and building the sovereign capabilities that will ensure Canada remains a leader in this crucial domain.”

The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)

“Canada’s security and prosperity depend on our ability to understand and protect the space domain. The Surveillance of Space 2 project represents a major step forward in strengthening our sovereignty, modernizing our space capabilities, and safeguarding critical satellite infrastructure that Canadians rely on every day.”

The Honourable David J. McGuinty
Minister of National Defence

“Projects like Surveillance of Space 2 demonstrate how Canadian expertise, right here in British Columbia, pushes the boundaries of what we will achieve in space and defence. Supported by the Defence Investment Agency and guided by Canada’s Defence Industrial Strategy, this investment will both create highly skilled jobs in the region and will modernize Canada’s space capabilities for the challenges of tomorrow.”

The Honourable Jill McKnight
Minister of Veterans Affairs and Associate Minister of National Defence

“The Surveillance of Space 2 project leverages world-class, secure digital technologies to support operational advantage. By evolving how we manage and protect critical space information, we’re delivering the resilient, interoperable digital capabilities our forces need to operate effectively with allies and partners, and to protect Canada’s interests.”

Ross Ermel
Assistant Deputy Minister (Digital Services) and Defence Chief Digital Officer, National Defence

“The delivery of the ground-based optical capability represents a significant advancement in Canada’s ability to monitor and safeguard the space domain. These advanced telescopes will provide persistent, reliable, ground-based surveillance and will operate in tandem with our space-based sensors under Surveillance of Space 2. Space-based systems are vital to the daily lives of Canadians and to the success of joint missions with our allies. Enhancing our space awareness directly strengthens our commitments to NORAD and to our partners as we continue to ensure the security of Canadians.”

Lieutenant-General Jamie Speiser-Blanchet
Commander of the Royal Canadian Air Force

ADDITONAL INFO

• The Surveillance of Space 2 project is a follow-on to National Defence’s Sapphire satellite project, launched in 2013 as Canada’s first military satellite contributing to space domain awareness.
• The contract with MDA Space includes ground-based optical capability and the acquisition, delivery and integration of the Sensor Tasking and Reporting System (STARS). Delivery of the three sensor sites is expected by June 2028.
• The contract also includes an additional three years of in-service support that will end in June 2031. There are two one-year option periods for in-service support that can be exercised at Canada’s discretion. The total duration of the contract (including acquisition and in-service support) will be 64 months, plus the two option years.
• The Surveillance of Space 2 project is an investment in Canada’s future. It supports national priorities such as economic development and technological innovation by sustaining high-tech Canadian jobs while bolstering Canada’s contribution to space innovation and allied data sharing.  
• On October 2, 2025, the Prime Minister announced the establishment of the Defence Investment Agency to accelerate and streamline defence procurement. It represents a significant step in transforming Canada’s defence procurement system to rebuild, rearm and reinvest in the CAF to respond to evolving global threats and meet operational demands.
• The Surveillance of Space 2 project supports Canada’s Defence Industrial Strategy by sustaining high‑tech Canadian jobs, strengthening domestic industrial capacity, and enhancing Canada’s contribution to allied space domain awareness.