The federal government is being told to reboot a $100-million Canadian Forces project to buy night-vision equipment in the wake of allegations the proposed purchase was designed to favour U.S. manufacturers. Read MoreThe Canadian International Trade Tribunal recommended the government revise the project after receiving a complaint from Cadex Inc.
The Canadian International Trade Tribunal recommended the government revise the project after receiving a complaint from Cadex Inc.
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The federal government is being told to reboot a $100-million Canadian Forces project to buy night-vision equipment in the wake of allegations the proposed purchase was designed to favour U.S. manufacturers.
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The Canadian International Trade Tribunal issued the recommendation on Nov. 17 after receiving a complaint from a Canadian defence firm Cadex Inc. of Quebec and Photonis, a French company.
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Bids for the contract to buy night-vision binoculars were to have been submitted on May 2. But last-minute changes in specifications for the image intensifier tubes that were at the heart of the binoculars all but limited those to systems built by U.S.-firms. That, in turn, meant the parts would be covered under U.S.-arms export regulations, allowing the United States to control the flow of those critical parts, defence industry representatives told the Ottawa Citizen.
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The tribunal found the federal government did not provide a “sufficiently transparent or intelligible justification” for the changes and it recommended Public Services and Procurement Canada (PSPC) revise and reissue the solicitation for the night-vision binoculars.
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The government is aware of the tribunal decision “and is determining next steps,” PSPC spokesperson Michèle LaRose stated in an email.
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“We welcome the Canadian International Trade Tribunal’s recent decision that validates our argument regarding the Binocular Night Vision Devices (BNVD) program,” Frédéric Guilhem, Photonis’ chief commercial officer for night vision, told the Ottawa Citizen. “We look forward to participating in a revised tender process with fair, transparent criteria to provide the Canadian Armed Forces with the best possible BNVD technology.”
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There has been growing frustration among some Canadian defence firms that the Canadian military has ignored Prime Minister Mark Carney’s call to decrease reliance on U.S. suppliers and instead diversify contracts to focus on Canadian firms or European companies. Canadian military leaders are extremely close to their U.S. counterparts and despite the prime minister’s direction have advocated for increased ties to the Americans.
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Photonis, which develops and manufactures high-tech electro-optical systems, is based in France and its products are distributed in Canada by Cadex Defence.
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Many NATO nations use Photonis image intensifier tubes in their night-vision equipment, including Germany, Belgium, the United Kingdom, Spain, Sweden, Netherlands, Finland and Poland. French and Australian forces also use Photonis systems.
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Unlike the U.S.-built image intensifier tubes, there are no export restrictions on the Photonis systems or other European-built night-vision equipment, according to industry representatives.
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Concern over U.S. control of Canadian military equipment and systems has been growing since the election of U.S. President Donald Trump, who has upended the international order and has threatened Canada and some NATO nations. He has claimed Canada isn’t viable as a country and has suggested it become the 51st state. The U.S. has also hit Canada with tariffs, leading to Canadian job loss.
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Carney has called for a shift away from economic reliance on the U.S. and a move to strengthen trade and defence links with other nations.
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The technical requirements for the night-vision binoculars tender were unexpectedly amended upon release of the final request for quotes issued on March 4.
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Companies complained about the change, according to government documents discussing the procurement. In a series of written responses to the government, the companies noted the change “restricts the procurement of tubes to those sourced exclusively from the United States. By removing European tubes from consideration, which will result in limited competition, and, given the uncertainty surrounding tariffs between Canada and the United States, this limitation could lead to a significant increase in the overall cost.”
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Companies asked if the requirements could be set back to what was originally outlined for the procurement, but the Department of National Defence and PSPC denied that request.
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In addition, the companies were told that the level of Canadian content in equipment to be tested would not be taken into consideration during the evaluation of systems.
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David Pugliese is an award-winning journalist covering Canadian Forces and military issues in Canada. To support his work, including exclusive content for subscribers only, sign up here: ottawacitizen.com/subscribe
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