(Ottawa) An Israeli defence company is suing the Canadian government, alleging it was disqualified from bidding for a multi-million dollar military equipment contract without explanation.
Elbit Security Systems claims in a motion filed in Federal Court last month that Public Services and Procurement Canada refused to explain its “alleged disqualification” from a contract for handheld laser rangefinders for the Canadian Armed Forces.
Elbit argues that the government’s refusal to provide reasons before awarding the contract prevents the company from having “a full and fair opportunity to compete.”
The company argues that it cannot “meaningfully participate” in the procurement process because the federal government is “improperly withholding” information about why it disqualified Elbit’s bid.
Elbit has been the target of protesters in Canada, including at Scotiabank’s Giller Prize ceremony last year. Protesters opposing the bank’s investment in Elbit took to the stage at the event in November, holding signs that read: “Scotiabank Funds Genocide.”
The legal team at Toronto-based Fasken declined to comment on the application filed June 20 in Ottawa.
In a statement, Public Services and Procurement Canada said the federal government “uses open, fair and transparent procurement processes.”
Elbit notes that the contract is potentially worth tens of millions of dollars and was supposed to have been awarded late last month, but the Public Services and Procurement Canada statement said the procurement process “is ongoing and a contract is expected to be awarded later this summer.”
The ministry said it would not comment on Elbit’s case as the matter is before the court.
Disqualification deemed “unfair”
Elbit claims in its application for judicial review that the disqualification was “procedurally unfair, improper and unreasonable”.
“It also undermines the integrity of government procurement and Canada’s obligations under trade agreements to ensure fair and open access to government procurement opportunities through a transparent and effective framework,” the request states.
The company claims that its exclusion from the race placed Elbit “at a significant competitive disadvantage.” […] and caused economic loss.”
The company is a long-time supplier to the Department of National Defense, with previous contracts for night vision equipment worth millions.
The contract in question was first floated in January, but the company says it was informed in May that its bid did not meet “mandatory industrial and technological advantages,” as required by an Innovation, Science and Economic Development Canada policy.
The policy “contractually requires that companies awarded defence procurement contracts undertake business activity in Canada equal to the value of the contracts they have won,” says the Innovation, Science and Economic Development Canada website.
Elbit wants explanations
Canada’s refusal to further explain why the company was disqualified left it with “grave concern that Canada may have applied undisclosed evaluation criteria, which is contrary to the principles of fundamental justice, transparency and equality in government procurement.”
He said the failure to disclose the reasons represents a “flagrant violation of the law by Canada in its conduct of the public procurement.”
The company wants the Federal Court to overturn the disqualification decision and suspend the award of the contract pending the outcome of the trial. It also wants the government to disclose the reasons for Elbit’s disqualification.
“The applicant has the right to expect that Canada will follow its processes and apply the laws, regardless of the origin of the supplier,” Elbit’s application states.