Following protest: NYPD backs out of deal with Israeli company

The New York Police Department (NYPD) has decided to abandon plans to enter into a sole-source agreement with Israeli defense technology company Cognyte for the acquisition of an advanced system to locate and identify cell phones. This shift in policy came after protests from civil rights organizations and progressive politicians who raised concerns about potential privacy infringements and the company's ties to controversial surveillance practices abroad.

According to the New York Daily News, an NYPD spokesperson stated that the planned contract did not meet the necessary criteria for a sole-source purchase, prompting the department to move to a competitive procurement process. However, this decision does not entirely rule out the possibility of procuring Cognyte's products in the future.

The Israeli firm will still be allowed to submit a bid and compete against other vendors for the contract, which was originally planned for three years and could have been worth up to $750,000.

The system the NYPD aimed to acquire, called FalcoNet, is a mobile solution designed for locating and identifying cellular devices. It functions by mimicking a cellular network base station, enabling the system to identify nearby devices and determine their location through the analysis of cellular signals. The technology can be installed in vehicles, unmanned aerial vehicles, or operated using handheld equipment like backpacks.

Cognyte, based in Herzliya, Israel, specializes in developing investigative analytics and intelligence solutions for various entities, including law enforcement agencies, intelligence organizations, and security groups globally.

The decision to abandon the sole-source contract was met with opposition from civil rights groups and New York City Council members, including those aligned with Mayor Zohran Mamdani's administration. Critics argued that the technology could potentially enable mass surveillance of citizens without suspicion of wrongdoing and sought to prevent the expansion of police surveillance capabilities.

The Surveillance Technology Oversight Project (STOP), a New York-based civil liberties organization, released a statement condemning the proposed deal, warning that such technologies could be used to monitor protesters and violate freedom of speech. STOP called for New York State lawmakers to enact legislation prohibiting police use of these systems.

The controversy surrounding Cognyte's potential involvement with the NYPD extends beyond this specific procurement. In December 2022, Norway's sovereign wealth fund divested its investment in the company due to concerns about the potential for human rights violations. However, the fund's decision alone does not constitute evidence of wrongdoing.

The NYPD maintains that its use of cell base station simulation systems is intended for investigative purposes, such as locating suspects, missing persons, and individuals in life-threatening situations, and typically requires a judicial warrant, with specific exceptions outlined by law and procedure. The department clarifies that these systems are not designed to capture the content of calls or text messages.

At this juncture, it remains uncertain whether the NYPD will ultimately proceed with procuring the FalcoNet system. What has clearly changed, however, is the procurement pathway: The Israeli company, which had initially been awarded the contract without competition, will now be required to compete against other vendors, potentially opening up the opportunity for a more transparent and fair acquisition process. As of now, Cognyte has not responded to the developments.