Last-minute changes on a $100-million purchase of night-vision equipment for the Canadian Army have excluded European firms and now favours U.S. manufacturers, defence company representatives say.
The move is raising questions about Prime Minister Mark Carney’s promises to decrease reliance on U.S. suppliers and to boost defence alliances with European nations.
The project involves the purchase of new night-vision binoculars for the Canadian military at an estimated cost of $100 million.
Bids for the contract are to be submitted on May 2.
But recent changes in specifications for the image intensifier tubes that are the heart of the binoculars have all but limited those to systems built by U.S.-firms. That, in turn, means 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 say.
“We are surprised that the technical requirements of Canada’s Binocular Night Vision Devices procurement exclude industry-leading European manufacturers of component parts,” Frederic Guilhem, a top official at Photonis, said in a statement to the Ottawa Citizen. “As a result, the small number of bidders who might meet this unusual criteria are favoured, rather than prioritizing best possible technical capability for the end user — the Canadian Armed Forces.”
Photonis, which develops and manufactures high-tech electro-optical systems, is based in France. It’s products are distributed in Canada by Cadex Defence, a Quebec firm.
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.
Unlike the U.S.-built image intensifier tubes, there are no export restrictions on the Photonis systems or other European-built night-vision equipment.
Public Services and Procurement Canada did not provide comment.
DND did not provide comment.
Concern over U.S. control of Canadian military equipment and systems has been growing since the election of U.S. President Donald Trump.
Trump has upended the international order, rewarding Russia and threatening allies, including Canada. He has claimed Canada isn’t viable as a country and has suggested it become the 51st state.
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.
Foreign Affairs Minister Mélanie Joly told The Canadian Press news service on March 19 that Canada needed to diversity its alliances. “We need new partnerships,” she said. “We have an over-reliance on American procurement, particularly in the defence sector.”
The technical requirements for the night-vision binoculars tender were unexpectedly amended upon release of the final request for quotes issued on March 4.
Companies complained about the change, according to federal government documents discussing the procurement. In a series of written response 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.”
Companies asked if the requirements could be set back to what was originally outlined for the procurement, but DND and PSPC denied that request.
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.
A number of defence industry executives have complained that Canadian military leaders appear tone deaf to the threat that Trump poses to Canada. They have called for the Canadian Forces to acquire more equipment from Canadian sources.
The Ottawa Citizen
reported on March 13
that Canada’s military leadership was pushing for yet another sole source deal for U.S. equipment despite Trump’s vow to economically damage this country.
The Canadian Forces wants the Liberal government to purchase the U.S.-built High Mobility Artillery Rocket System or HIMARS. The plan being proposed by the Canadian Forces senior leadership would see the purchase of a number of HIMARS built by Lockheed Martin. The sole-source deal could be handled through a Foreign Military Sale in which Canada would receive the equipment directly from the U.S. government.
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
