skepticism arises around the actual impact
Ah, the sweet aroma of bureaucracy—where everything is simultaneously moving and standing still. I've only just dipped my toes into this deep, murky pool of industrial obligations, defense contracts, and government audits, and let me tell you, the view down here is about as clear as a puddle in a rainstorm. It’s almost as if a cover-up isn’t even necessary, because the fog of audits, vague reports, and half-complete data is doing all the work for them.
It’s like being invited to a dinner party where the host promises steak and fine wine but serves you tap water and stale crackers instead. Sure, on paper, everything looks like it's accounted for—projects marked as “completed” and “in progress,” obligations fulfilled down to the last cent—but when you start asking the tough questions, it’s suddenly crickets.
I mean there’s a quiet beauty in the way things come together—ideas, people, projects. It’s not the grand gestures that make a mark, but the small, deliberate moves that slowly shift the landscape, unnoticed until the work is done.
In this space, there’s no need for noise. Real progress doesn’t announce itself—it just is, like the sun rising each day, slowly chasing shadows. We’ve walked a long road, not to be seen, but to create. And there’s art in that, in the way substance grows in silence, in the patient cultivation of something meaningful, something lasting.
Maybe you see it too. Maybe you don’t. The path stretches on regardless?
The Industrial and Technological Benefits (ITB) Policy, as administered by Innovation, Science and Economic Development (ISED) Canada, aims to leverage defense and Coast Guard procurements to foster economic growth, create jobs, and promote innovation across Canada. Under this policy, contractors awarded defense contracts are required to invest an amount equivalent to their contract value back into the Canadian economy. The idea is that these investments should support the growth of Canadian businesses, particularly in defense-related sectors, enhance R&D, and increase the international competitiveness of Canadian firms.
critical point: while large defense contractors like Lockheed Martin and Irving Shipbuilding frequently face public scrutiny, they often make visible efforts toward compliance and transparency, particularly when their name is constantly in the spotlight. They’ve been forced to at least appear more accountable, as they’re too big to avoid public attention altogether. These companies publish reports, hold press conferences, and try to respond to the public outcry for more corporate responsibility, particularly in terms of economic contributions under policies like the Industrial and Technological Benefits (ITB) Policy.
However, the smaller or less-publicized contractors can often evade this scrutiny more easily. These companies benefit from a kind of networked shielding, as mentioned in other writings on xawat, where the system allows them to operate under the radar. The lack of visibility and the complexity of defense contracting mean that their unfulfilled obligations or questionable practices don’t attract the same public or governmental attention.
In the stillness, the noise dies down, the grand gestures fade, single step—quiet, deliberate—way forward. The world asks for more. But sometimes, more is silence, is knowing. And knowing? Knowing doesn’t need to explain.Here’s the reality: you don’t even need to cover anything up when the system is built to shrug off scrutiny. The audits are there, sure, but they’re so nebulous and fragmented that by the time you try to piece them together, you’ve forgotten what you were even looking for. It's like playing hide and seek where no one is really hiding—they’re just blending into the fog, perfectly content knowing you’ll never find them. Bold move, but not exactly admirable.
The Risks of Network Shielding
Unaccountability: While major contractors like Lockheed may be forced to account for every dollar, smaller firms with less public attention can navigate loopholes. They can delay fulfilling obligations and rely on indirect transactions that are harder to trace, offering less economic value than direct investments would.
Lack of Transparency: The very fact that obligations like the $8.3 billion remain "to be identified" speaks to a system that doesn't demand immediate transparency. Many smaller contractors can get away with vague promises of future investment, pushing the fulfillment further down the road.
Shielding by Association: Smaller contractors might also benefit from their relationships with large, more visible companies. When Lockheed or Irving is the face of a massive project, smaller subcontractors don’t feel the same pressure to disclose their actions.
Is Reform Happening?
There’s a growing public and governmental demand for corporate social responsibility, and some major contractors are stepping up, likely due to the sheer pressure they face. For instance:
Lockheed Martin and Irving Shipbuilding both regularly make announcements about their contributions under the ITB Policy, likely understanding that public opinion has shifted towards favoring companies that appear to invest in national interests.
There’s a focus on R&D and small and medium-sized enterprises (SMEs) in many recent contracts, showing an effort to distribute the benefits of major procurements across more segments of the economy(Government of Canada Publications).
As of January 2023, the ITB program showed the following key figures:
Total obligations: Over $48.1 billion
Completed obligations: Around $33.8 billion
In progress: Approximately $7.45 billion
Unidentified obligations: Around $6.9 billion
The crown jewel of this fog is the “to be identified” category, which essentially means: "Yeah, we’ve committed to spending this money, but… where? When? On what? Who knows!" It’s the contractor equivalent of “I’ll get back to you on that.” Billions of dollars are floating around in this category, promising to one day do something economically magical for Canada—but for now, they’re just vibes.
And here’s the kicker: these are the obligations that no one, from the top-tier contractors down to the bureaucratic bean counters, can clearly explain. It’s almost charming how Lockheed Martin and Irving Shipbuilding make a show of progress, while their subcontractors play a quieter, more covert game, slipping through unnoticed, shrouded by the vagueness of “to be identified.”
It gets spicy with the in-progress category—projects that are still dangling in the air, like promises waiting to be broken. Take AirBoss Defense Group and their CBRN Respirator support project. It’s still hanging in the “in-progress” zone, with $1.38 million left to fulfill. Will they come through? Or will it sit there indefinitely, gathering dust like your uncle’s unused gym membership?
And here’s where it gets personal. Over at Black Dragon Defense, we’re sitting on applied science solutions that would make Boeing blush. We’re not just talking theoretical dreams—we’ve got the real stuff ready to go. But can we get a meeting with serious Canadian investors? Absolutely not. Instead, it’s been a circus of jokers more interested in acting like degenerate frat boys than investing in actual innovation.
Is this perspective biased? Possibly. But my focus is on rational, effective solutions, not on who’s connected to whom in the industry. My team and I are keenly aware of the challenges that come with gaining recognition and securing investment. That's precisely why I am actively sharing our vision—because we have innovative solutions that could change the game.
We're not just looking for investors; we are looking for true partners—forward-thinking individuals who are passionate about building a safer, more inclusive world. We believe in our "secret sauce," that unique approach we have developed, and are excited to collaborate with those who are not only about capital but are committed to genuine progress and innovation.
Meanwhile, firms with far less on the table seem to float by on network connections and vague promises. It’s almost like there’s an unspoken rule: if you’re not playing the game, you’re not invited to the party. And by the game, I mean the kind where you can promise the world but deliver crumbs, knowing no one’s really watching anyway.
It’s especially aggravating when you consider that major contractors like Lockheed Martin and Irving Shipbuilding are at least trying to be transparent—or pretending to be, anyway. They’ve learned that if you’re big enough, the public and the government are always watching, so you’d better look the part. They roll out reports, hold press conferences, and assure everyone that the dollars are going where they’re supposed to. Do we always believe them? Maybe not—but at least they’re trying to make a show of it.
But the smaller contractors? It’s a different story. They’re operating under a cozy veil of network shielding, where they can evade the same scrutiny. The system practically invites them to slip through the cracks—whether it’s in their “to be identified” obligations or projects that somehow stall out in bureaucratic purgatory.
And here we are, Black Dragon, armed with real, tangible innovations, sitting on the sidelines like the nerds who didn’t get invited to prom, while the system rewards connections over competence. It’s enough to make anyone think twice about where this game is heading.
So while this looks promising on the surface, skepticism arises around the actual impact of these obligations. A significant portion of obligations is still categorized as either "in progress" or "unidentified," suggesting there might be delays or gaps in identifying meaningful business activities. The policy does mandate annual reporting from contractors, which is verified over a six-month period, but the lack of public transparency in specific cases makes it hard to evaluate how well these investments are translating into tangible economic benefits.
Several instances of contractor fraud have been identified in recent years, reflecting vulnerabilities within Canada's federal procurement system. In 2024, three cases involving fraudulent billing schemes by IT sub-contractors were referred to the RCMP. These schemes involved billing multiple departments for the same work between 2018 and 2022, with an estimated $5 million in fraudulent claims. The government responded by revoking security clearances and launching an investigation, but the names of the contractors remain undisclosed to protect the ongoing investigation(Global News).
This fraud highlights systemic issues, raising concerns about oversight in the broader Industrial and Technological Benefits (ITB) Policy, where similar opportunities for abuse might exist. Although transparency measures are being improved, access to detailed audits remains challenging. You can investigate specific contractor obligations via Access to Information Requests or follow ongoing audits through public channels like Public Services and Procurement Canada.
The Industrial and Technological Benefits (ITB) Policy requires contractors, awarded major defense procurement contracts, to invest an equivalent value back into the Canadian economy. This policy was designed to drive economic growth, innovation, and job creation, while ensuring that large contracts support Canadian industries.
Reports on Contractor Obligations: ISED publishes a Breakdown of Current Obligations by Contractor, which outlines how contractors are meeting their commitments. You can review this information publicly, but much of the detail is generalized. For instance, as of recent reports, contractors like Lockheed Martin and General Dynamics show completed and in-progress commitments, but some obligations remain unidentified, raising concerns about transparency(Canada.ca)(Canada.ca).
So here I am, standing at the crossroads of innovation and disillusionment, wondering when we’ll see a shift from lip service to real investment in the ideas that will shape our future. The journey I’ve been on, both professionally and personally, has been anything but conventional—and maybe that’s the point.
It’s clear to me that Black Dragon Defense offers real, actionable solutions, but in a landscape where connection and who-you-know often seem to outweigh what-you-can-actually-do, it’s easy to feel like an outsider. But maybe being on the outside is exactly where I need to be. After all, it’s from the outside that you can see the full picture—and ask the hard questions.
As I continue to write about this journey, my goal isn’t just to highlight the flaws in the system (though I’m certainly not shy about that). It’s also about opening doors to those who actually care about innovation, who aren’t just looking to check off a box but want to build something real.
There’s something to be said about moving quietly, letting the work speak for itself. In the world of applied science and defense innovation, bold claims often drown out real progress. But those who know the game understand that the loudest noise often covers the quietest moves—the ones that make the real impact.
Black Dragon Defense has never been about spectacle or quick wins, we never been about that. We’re building something lasting, the kind of work that doesn’t need to shout for attention. After all, “Opportunities multiply as they are seized,” and we’ve been seizing them quietly, making moves where it matters most. The rest? Well, it tends to fall away when you’re focused on what really matters.
Maybe the right people see that. Maybe they don’t. But either way, the path is clear for those who are ready to walk it.
