A $100M Canadian defence contract may favour a U.S. firm, raising questions about Ottawa’s pledge to diversify defence procurement beyond American suppliers.
Procurement Criteria Raises Concerns of Favouritism
A federal tender for military-grade night-vision binoculars, worth over $100 million, is drawing scrutiny for allegedly favouring a single American company—despite Prime Minister Mark Carney’s repeated calls to diversify Canada’s defence procurement away from U.S. dependence. The bid is set to close Tuesday at 2 p.m.
Industry critics say the technical specifications included in the request for proposals (RFP) are so narrow that they effectively exclude all but one supplier.
European Supplier Flags Barriers to Competition
Photonis, a France-based night-vision technology manufacturer and longtime NATO supplier, claims the Canadian government’s requirement for a specific signal-to-noise ratio in image intensifier tubes is unique and restrictive. Frédéric Guilhem, chief commercial officer for the company’s night-vision division, said Photonis has repeatedly attempted to engage with Canadian officials but received no meaningful response.
“This approach clearly contradicts Prime Minister Carney’s pledge to work more closely with European allies on defence integration,” Guilhem said in a formal statement.
Carney’s Diversification Pledge Under Scrutiny
The controversy comes just weeks after Prime Minister Carney signed a new defence cooperation agreement with the European Union. In public remarks, Carney has emphasized the need for Canada to reduce reliance on the United States, stating, “That dominance is a thing of the past.”
Despite this, the binoculars contract could further entrench Canada’s procurement ties to U.S. suppliers, many of whom fall under the U.S. State Department’s arms export controls—potentially limiting Canada’s flexibility in future deployments and technology sharing.
Repeated Tender Reposts Deepen Concerns
The tender has been reissued six times, beginning before the last federal election. Critics say this pattern further suggests a lack of effort to broaden eligibility or consult with international partners. Neither the Department of National Defence (DND) nor Public Services and Procurement Canada provided comment when asked about the rationale behind the stringent specifications.
Defence Minister David McGuinty said he was unaware of the contract details but promised to look into the matter.
Structural Dependency on U.S. Defence Industry
Dave Perry, president of the Canadian Global Affairs Institute, said the situation reflects deeper structural issues. “We didn’t arrive at spending 75 cents of every defence dollar in the U.S. by accident,” Perry explained. He cited decades of strategic alignment between the Canadian and American militaries as a driving factor.
Perry added that while Carney’s goals are clear, shifting away from American suppliers will require more than political will—it demands systemic procurement reform and deeper cooperation with European defence partners.
Future Procurement Reviews May Offer Change
The federal government is currently reviewing its purchase plan for U.S.-built F-35 fighter jets, with a decision expected by late summer. While the optics contract may seem minor compared to fighter jet acquisitions, it serves as a litmus test for Canada’s stated intent to diversify.
If Ottawa proceeds with awarding the contract under the current terms, observers say it could undercut confidence in Canada’s commitment to building more balanced and sovereign defence partnerships.
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