Canada’s military spent nearly $300 million on outside transport contractors over three years because it lacks enough ships, aircraft and vehicles to move its own personnel and equipment, according to an internal Department of National Defence audit.Blacklock's Reporter says the report, Audit Of Contracted Transportation Services, found $280 million was paid out between 2022 and 2025 under 203 separate contracts for air, sea, ground and rail transport.“The defence team uses contracted transportation services to move personnel and material in support of Canadian Armed Forces operations and exercises when Armed Forces transport capability cannot satisfy the transportation requirements,” the audit stated.Auditors said contractors were hired “quickly and efficiently when needed without the usual constraints of standard contracting limits.”Shortfalls were particularly acute in air and sea lift capacity. “Transportation services are contracted out as the Canadian Armed Forces does not have sufficient airlift resources to support ally exercises nor their own ships that are able to move cargo,” auditors wrote.A spot check of contracts raised further concerns. Of 22 transportation agreements reviewed at random, 20 were missing or contained incomplete documentation..The findings follow a 2022 review by the federal Procurement Ombudsman that warned military purchasing was vulnerable to favouritism and insider advantages. “Suppliers that are aware of any advantage they possess have the ability to leverage it in terms of charging the Department of National Defence higher prices knowing there is limited competition,” said the Procurement Practice Review Of The Department Of National Defence.Reliance on contractors extends to routine operations. A 2024 audit of Operation Nanook — the annual Arctic sovereignty exercise conducted by the Canadian Armed Forces — found that of the $9.9 million budgeted each year, $6.5 million, or 66%, went to outside suppliers.“Nanook funds are being expended on contracted airlifts and equipment rental,” said the earlier report, Arctic Operations, adding the exercises could not proceed without private-sector assistance.Infrastructure limitations in the North compound the problem. Of 102 Arctic airfields, fewer than 48% can accommodate the CC-130 Hercules, while only 13% are suitable for the larger CC-177 Globemaster. Most restrictions stem from short or gravel runways that cannot handle heavier aircraft.
