The federal government has been instructed to restart a major $100 million procurement project for night-vision equipment for the Canadian Forces. This directive comes after a trade tribunal found the initial process was allegedly structured to favour American manufacturers, sidelining Canadian and European firms.
Trade Tribunal Rules in Favour of Canadian Firm
The Canadian International Trade Tribunal issued its recommendation on November 17, 2025, following a formal complaint. The complaint was launched by Cadex Inc., a defence firm based in Quebec, and Photonis, a French company. The tribunal concluded that the government failed to provide a sufficiently transparent or intelligible justification for last-minute changes to the contract's technical specifications.
Bids for the contract to supply advanced night-vision binoculars were originally due on May 2. However, shortly before the deadline, the requirements for the image intensifier tubes at the core of the devices were altered. Industry representatives argued that these changes effectively limited the contract to systems built by U.S. firms.
Concerns Over U.S. Export Control and Sovereignty
The controversial specification changes meant the critical components would fall under strict U.S. arms export regulations. This would grant the United States government significant control over the supply and maintenance of these essential parts for the Canadian military, raising concerns about national sovereignty and supply chain security.
This case has highlighted a growing tension within Canada's defence sector. There is increasing frustration that despite Prime Minister Mark Carney's public calls to decrease reliance on U.S. suppliers and diversify procurement, Canadian military leaders continue to advocate for closer ties with American defence contractors.
Government Response and Next Steps
In response to the tribunal's decision, a spokesperson for Public Services and Procurement Canada (PSPC), Michèle LaRose, stated that the government is aware of the ruling and is determining next steps.
Frédéric Guilhem, Photonis' chief commercial officer for night vision, welcomed the decision. He said the company looks forward to a revised tender process with fair, transparent criteria to provide the Canadian Armed Forces with the best available technology.
The tribunal's key recommendation is for PSPC to revise and reissue the solicitation for the night-vision binoculars, ensuring a more open and competitive bidding process that does not unfairly exclude non-U.S. companies.
