Overview

• Government of Canada has awarded MDA Space two contracts worth C$39 million for the initial purchase of two UAS plus C$27 million for five-year in-service support with options to procure up to six aircraft under the ISTAR-UAS programme.
• The ISTAR-UAS project will equip Halifax-class frigates with all-weather VTOL Class-2 UAS featuring electro-optical/infrared sensors and maritime radar for extended surveillance and targeting operations.
• The programme marks the Royal Canadian Navy’s first operation and support of Class-2 uncrewed aircraft, with initial operational capability scheduled for 2027 and full capability by 2032.
• Selection of domestic firm MDA Space over U.S. competitor Shield AI underscores Ottawa’s push to strengthen Canada’s defence industrial base and reduce reliance on foreign suppliers.
• The contracts are projected to contribute C$18 million annually to Canada’s GDP and sustain 145 jobs per year over a 20-year period.