Canada has signed two contracts worth nearly $66 million with MDA Space to deliver Uncrewed Aircraft Systems (UAS) to the Royal Canadian Navy.
Under the deal, the Halifax-class frigates will receive up to six new Class-2 uncrewed systems. An initial acquisition contract for two systems is valued at $39 million, while the initial five-year in-service support contract is valued at $27 million. Both figures include taxes, and the support contract could be extended up to 20 years.
The deal marks the first time the Navy will operate and maintain Class-2 UAS platforms. These systems will expand the Navy’s ability to carry out long-range surveillance, targeting, and threat detection operations.
The UAS project is part of Canada’s broader ISTAR (Intelligence, Surveillance, Target Acquisition, and Reconnaissance) program, with initial operational capability expected in 2028 and full capability by 2032.
The long-term investment is also expected to support the Canadian economy. According to government estimates, the contracts could contribute $18 million annually to GDP and sustain or create around 145 jobs each year for the next two decades.
The systems will operate alongside existing maritime surveillance assets such as the CH-148 Cyclone helicopter.
MDA Space, the contract recipient, will be required to match the contract value in domestic industrial activity as per Canada’s Industrial and Technological Benefits Policy.