Israeli Defense Firm Sues Canada Over Military Contract Disqualification
Elbit Security Systems Ltd., an Israeli defense contractor, is taking legal action against the Canadian government after being disqualified from a multimillion-dollar military equipment contract. The firm claims that Public Services and Procurement Canada (PSPC) has not provided an explanation for its removal from the competition for hand-held laser rangefinders for the Canadian Armed Forces.
In a judicial review application filed in Federal Court, Elbit argues that the lack of transparency from PSPC prevents it from having a fair chance to compete. The company’s legal team asserts that the government’s refusal to disclose the reasons for disqualification until after the contract is awarded is “procedurally unfair, incorrect, and unreasonable,” potentially violating Canada’s trade agreements and procurement principles.
The contract, worth tens of millions of dollars, was expected to be awarded last month. However, PSPC indicated that the procurement process is ongoing and a contract will be awarded later this summer. Elbit is seeking to overturn the disqualification decision, halt the contract award until the court case is resolved, and obtain an explanation for its exclusion.
Elbit has a history of supplying equipment to Canada’s Department of National Defence, including night-vision devices. The company was informed in May that its bid did not meet the mandatory industrial and technological benefits required by Innovation, Science and Economic Development Canada, which mandates business activities in Canada equivalent to the contract’s value.
The court case underscores ongoing tensions between Elbit and Canadian activists, who have protested against the firm’s involvement in defense contracts, citing ethical concerns. The Canadian government has stated it uses open, fair, and transparent procurement processes but has declined to comment further due to the ongoing litigation.