An Israeli defense contractor has filed a lawsuit against the Canadian government after the company claimed it was excluded from bidding on a multi-million dollar military equipment contract without explanation.

Elbit Security Systems Ltd. stated in a request submitted to the federal court last month that Public Services and Procurement Canada refused to explain its "alleged ineligibility" for the contract for portable laser rangefinders for the Canadian Armed Forces.

Elbit claims that the government's refusal to provide its reasons even after the contract was awarded prevents the company from having a "full and fair opportunity to compete."

The company states that it cannot "meaningfully participate" in the procurement process because the federal government is "improperly withholding" information regarding the reasons for excluding Elbit's bid.

Elbit has been targeted by protesters in Canada, including during last year's Scotiabank Giller Prize ceremony. Protesters carrying signs that read "Scotiabank funds genocide" jumped onto the stage at the event held in November, highlighting the bank's investments in Elbit.

Elbit's legal team, based in Toronto at Fasken, declined to comment on the request submitted on June 20 in Ottawa.

Public Services and Procurement Canada stated in a release that the federal government "uses open, fair, and transparent procurement processes."

Elbit claims that the contract could be worth tens of millions of dollars and was supposed to be awarded late last month, but the statement from Public Services and Procurement Canada indicated that the procurement process is "ongoing and the contract is expected to be awarded later this summer."

It said it would not comment on the Elbit matter as it is before the court.

Elbit confirmed in its judicial review request that the exclusion was "procedurally unfair, incorrect, and unreasonable."

Elbit's request stated: "It also undermines the integrity of the procurement and the commitments laid out in Canadian trade agreements to ensure fair and open access to government procurement opportunities through a transparent and effective framework."

The company claims that its exclusion from the race put Elbit "at a significantly disadvantageous competitive position... and resulted in an economic loss."

The company has long been a supplier to the Department of National Defence, with previous contracts for night vision equipment worth millions.

The contract in question was first tendered in January, but the company says it was informed in May that its bid did not meet the "mandatory industrial and technological benefits" as required by Canada’s Innovation, Science and Economic Development policy.

The Canadian Innovation, Science and Economic Development website explains that this policy "requires companies awarded defense procurement contracts to conduct business in Canada equal to the value of the contracts they have won."

The refusal of Canada to provide further clarification for the company’s exclusion has left it "deeply concerned that Canada may have applied undisclosed evaluation criteria, which is contrary to fundamental principles of fairness, transparency, and equality in public procurement."

It stated that the lack of disclosure of reasons represents a "gross violation of the law by Canada in managing the procurement process."

The company wants the federal court to overturn the ineligibility decision and halt the awarding of the contract pending the outcome of the court case. It also seeks an order requiring the government to disclose the reasons for excluding Elbit.

The request from Elbit stated: "The applicant is entitled to expect that Canada will follow its processes and apply the laws regardless of the origin of the supplier."