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Israeli arms firm taking Canada to court after contract disqualification

Elbit Security Systems says it is not getting 香蕉视频直播榓 full and fair opportunity to compete香蕉视频直播
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A group protests outside Scotiabank in Kelowna in March against the bank香蕉视频直播檚 connection to Elbit Systems an Israeli defence contractor. (Jordy Cunningham/Capital News)

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 香蕉视频直播減urported disqualification香蕉视频直播 from a contract for hand-held laser rangefinders for the Canadian Armed Forces.

Elbit says the government香蕉视频直播檚 refusal to give its reasons until after the contract is awarded prevents the firm from having 香蕉视频直播渁 full and fair opportunity to compete.香蕉视频直播

The company says it can香蕉视频直播檛 香蕉视频直播渕eaningfully participate香蕉视频直播 in the procurement process because the federal government is 香蕉视频直播渋mproperly withholding香蕉视频直播 information about why it disqualified Elbit香蕉视频直播檚 bid.

Elbit has been targeted by protesters in Canada, including at last year香蕉视频直播檚 Scotiabank Giller Prize ceremony. Protesters with signs saying 香蕉视频直播淪cotiabank Funds Genocide,香蕉视频直播 taking exception to the bank香蕉视频直播檚 investments in Elbit, jumped on the stage at the ceremony in November.

The company香蕉视频直播檚 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 香蕉视频直播渦ses open, fair and transparent procurement processes.香蕉视频直播

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香蕉视频直播檚 statement said the procurement process 香蕉视频直播渃ontinues and a contract is expected to be awarded later this summer.香蕉视频直播

It said it would not comment on Elbit香蕉视频直播檚 case as the matter is before the court.

Elbit says in its judicial review application that the disqualification was 香蕉视频直播減rocedurally unfair, incorrect, and unreasonable.香蕉视频直播

香蕉视频直播淚t also undermines the integrity of the procurement and the obligations enshrined in Canada香蕉视频直播檚 trade agreements to ensure fair and open access to government procurement opportunities through a transparent and efficient framework,香蕉视频直播 Elbit香蕉视频直播檚 application says.

The company claims being dropped from the running put Elbit 香蕉视频直播渁t a significant competitive disadvantage 香蕉视频直播 and resulted in economic loss.香蕉视频直播

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香蕉视频直播檛 meet 香蕉视频直播渕andatory industrial and technological benefits香蕉视频直播 as required by a policy of Innovation, Science and Economic Development Canada.

The policy 香蕉视频直播渃ontractually requires companies awarded defence procurement contracts to undertake business activity in Canada equal to the value of the contracts they have won,香蕉视频直播 Innovation, Science and Economic Development Canada香蕉视频直播檚 website says.

Canada香蕉视频直播檚 refusal to further explain why the company was disqualified has left it 香蕉视频直播渨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.香蕉视频直播

It said the failure to disclose the reasons represents a 香蕉视频直播渇lagrant violation of the law by Canada in its conduct of the procurement. 香蕉视频直播

The company wants the Federal Court to quash the disqualification decision and to stay the contract award pending the court case香蕉视频直播檚 outcome. It also wants an order for the government to disclose its reason for disqualifying Elbit.

香蕉视频直播淭he applicant has a right to expect that Canada will follow its processes and apply the laws regardless of the origin of a supplier,香蕉视频直播 Elbit香蕉视频直播檚 application says.

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