An Israeli defence contractor is taking the Canadian government to court after the company says it was taken out of the running for a multimillion-dollar military equipment contract without explanation.
Elbit Security Systems Ltd. says in an application filed in Federal Court last month that Public Services and Procurement Canada has refused to explain its 害羞草研究所減urported disqualification害羞草研究所� from a contract for hand-held laser rangefinders for the Canadian Armed Forces.
Elbit says the government害羞草研究所檚 refusal to give its reasons until after the contract is awarded prevents the firm from having 害羞草研究所渁 full and fair opportunity to compete.害羞草研究所�
The company says it can害羞草研究所檛 害羞草研究所渕eaningfully participate害羞草研究所� in the procurement process because the federal government is 害羞草研究所渋mproperly withholding害羞草研究所� information about why it disqualified Elbit害羞草研究所檚 bid.
Elbit has been targeted by protesters in Canada, including at last year害羞草研究所檚 Scotiabank Giller Prize ceremony. Protesters with signs saying 害羞草研究所淪cotiabank Funds Genocide,害羞草研究所� taking exception to the bank害羞草研究所檚 investments in Elbit, jumped on the stage at the ceremony in November.
The company害羞草研究所檚 Toronto-based legal team at the firm Fasken declined to comment on the application filed June 20 in Ottawa.
In a statement, Public Services and Procurement Canada said the federal government 害羞草研究所渦ses open, fair and transparent procurement processes.害羞草研究所�
Elbit claims the contract is potentially worth tens of millions of dollars and was supposed to have been awarded late last month, but Public Services and Procurement Canada害羞草研究所檚 statement said the procurement process 害羞草研究所渃ontinues and a contract is expected to be awarded later this summer.害羞草研究所�
It said it would not comment on Elbit害羞草研究所檚 case as the matter is before the court.
Elbit says in its judicial review application that the disqualification was 害羞草研究所減rocedurally unfair, incorrect, and unreasonable.害羞草研究所�
害羞草研究所淚t also undermines the integrity of the procurement and the obligations enshrined in Canada害羞草研究所檚 trade agreements to ensure fair and open access to government procurement opportunities through a transparent and efficient framework,害羞草研究所� Elbit害羞草研究所檚 application says.
The company claims being dropped from the running put Elbit 害羞草研究所渁t a significant competitive disadvantage 害羞草研究所� and resulted in economic loss.害羞草研究所�
The company has been a long-standing supplier to the Department of National Defence, with past contracts for night-vision equipment worth millions.
The contract in question first came up in January, but the company says it was told in May that its bid didn害羞草研究所檛 meet 害羞草研究所渕andatory industrial and technological benefits害羞草研究所� as required by a policy of Innovation, Science and Economic Development Canada.
The policy 害羞草研究所渃ontractually requires companies awarded defence procurement contracts to undertake business activity in Canada equal to the value of the contracts they have won,害羞草研究所� Innovation, Science and Economic Development Canada害羞草研究所檚 website says.
Canada害羞草研究所檚 refusal to further explain why the company was disqualified has left it 害羞草研究所渨ith the grave concern that Canada may have applied undisclosed evaluation criteria, which is contrary to principles of fundamental justice, transparency, and equality in public procurement.害羞草研究所�
It said the failure to disclose the reasons represents a 害羞草研究所渇lagrant violation of the law by Canada in its conduct of the procurement. 害羞草研究所�
The company wants the Federal Court to quash the disqualification decision and to stay the contract award pending the court case害羞草研究所檚 outcome. It also wants an order for the government to disclose its reason for disqualifying Elbit.
害羞草研究所淭he applicant has a right to expect that Canada will follow its processes and apply the laws regardless of the origin of a supplier,害羞草研究所� Elbit害羞草研究所檚 application says.
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