Ottawa awards contract to replace Canadian Armed Forces assault rifles

The federal government has awarded a major defence contract to Colt Canada to replace the aging assault rifles used by the Canadian Armed Forces.

Under the agreement, Colt Canada will supply up to 65,402 rifle systems through the Canadian Modular Assault Rifle program. The project will replace the current C7 and C8 rifles, which have been in service for more than 35 years.

The procurement will be carried out in two phases. The first phase includes the purchase of 30,000 general service rifles over three years, with an estimated cost of $307 million, including taxes. A second, optional phase would begin in the fourth year and cover the remaining rifles, including both general service and full spectrum variants, along with related equipment.

Officials say the new rifles are expected to improve operational effectiveness by enhancing awareness, protection and reliability for deployed personnel. The project also includes engineering support and system integration.

The government says the contract will also provide economic benefits, including support for Canada’s defence industry and job creation. The deal is expected to contribute about $10 million annually to Canada’s gross domestic product over the next five years. Colt Canada has committed to ensuring at least 80 per cent Canadian content, which is expected to generate work for suppliers across the country.

The contract is among the first major procurements led by the Defence Investment Agency, which was established to streamline defence purchasing and strengthen ties with industry. The initiative aligns with Canada’s Defence Industrial Strategy and aims to accelerate the delivery of equipment while supporting domestic innovation.