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Criminal Case (Jerusalem) 54589-02-17 State of Israel v. Oshri Sharon - part 62

May 31, 2026
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From these words of significant competition, up to the later stages and at the point in time after the publication of the CBM, and in any case after the start of the pilot and the establishment of the laboratory, at the very least, there is a concern about possible competition, while emphasizing the need to deal with a competing proposal because of the inherent uncertainty involved.  At the very least, the feasibility of competition increases.  This description of the state of affairs – by Oshri and Shachar – is inconsistent with the claims now that the project had chosen a wai long earlier, that this was how the loan was promised, and that afterwards, when the matter was transferred to the procurement process, there was no competition, but only a fictitious proceeding and competition on the face of it.

  1. In addition, contrary to claims that Kandelstein and the project promised an escort during the pilot stage and the establishment of the lab that the invitation would be sent to an escort, Oshri testified elsewhere that Kandelstein told him, "We want you, do the work, we will take care of you, but know that you are in the competition ... " Subsequently, Oshri confirmed that Wei knew that the win was "not in her pocket" (p. 4915, s. 17 - p. 4916, s. 9, underline added, with reference to a point in time close to the publication of the Balam and after the launch of the pilot, paras. 8-9 there).  Kandelstein himself testified that if there was a significant price difference between the price proposals, the project would have worked with a supplier other than Wee (p. 831, paras. 19-24; it is clear that the $50,000 gap mentioned in his testimony shortly before is irrelevant to the project here in view of the sums of the bids, but the principle that arose from Kandelstein's words stands in contrast to the claim of fictitious pricing).  These words also undermine the argument that in view of Wee's early activity with the project and the establishment of a pilot, there was no feasibility of competition in our case, and that we are dealing with competition for the sake of appearance.
  2. The testimonies of the procurement personnel also indicate that there was value in the competitive process. Indeed, it emerged from the testimony of Knitork that from his point of view, the procurement process was not optimal because the procurement personnel were not involved from the beginning (p. 370, paras. 18-22, p. 371, paras. 18-19).  At the same time, it was clear from his testimony that even in this state of affairs, there is no reason to close the door on the possibility of competition by the procurement entities.  As he testified, even when work of the project was done with the supplier before the matter was transferred to the procurement process, the procurement took into account additional considerations, such as framework agreements, opinions about the supplier from other projects, and other considerations (p. 371, para. 18 - p. 373, para. 2).  In other words, even in this state of affairs, this is not a fictitious competition or a façade.

These things fit well with the relative advantage of each of the parties in the case before us.  Wei claimed an advantage due to its expertise and experience in VMware technology and in view of its foothold vis-à-vis the project in carrying out the pilot.  Harel had the agreement that had recently been made regarding the purchase, maintenance and support of VMware software, by virtue of which it believed that a civil appeal was obligated against it (P/44; see also Oshri himself's testimony in which he explained that on the basis of the agreement, Harel hoped that she would be able to present an attractive enough offer, p. 4522, s. 13 - p. 4523, s. 8).  In his testimony, Knitork explained that this state of affairs put ELTA Procurement in a better position and enabled it to compete between the suppliers in order to achieve the optimal result and price for ELTA (p. 399, paras. 17-21; p. 489, pp. 9-16).  This, too, undermines the claims of competition for the sake of appearance.  In any event, it is clear that the procurement sought to receive genuine offers and not coordinated futile offers.

  1. The testimonies of the procurement personnel – including Knitork and Peretz – showed that there was  some tension between the project personnel who preferred Wei and some of the procurement personnel.  Among the procurement personnel, Peretz was of the opinion that in light of the framework agreement between the civil appeal and Harel regarding the VMware software (N/44), Harel should be contacted.

Knitork testified that Peretz told him that in light of the agreement signed between the civil appeal and Harel, the order should be issued to Harel or Harel should be contacted for a price quote; Because Harel also pressed to accept the invitation; and that in the end it was decided to issue a request for bids so that whoever would offer the best price would take it (p. 388, paras. 6-30; as may be recalled, Harel even claimed in her summaries that she tried to win the project, para. 294 there).

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