CTV Ottawa has learned Mitel lost the bid for a multi-million dollar telephone contract with the City of Ottawa even though the company submitted the lowest bid.

The contract is worth up to $7 million to replace the city's dated telephone system with Voice over Internet Protocol (VoIP) technology.

"I'm a taxpayer in the city as well and I believe this is about having a process that is not tilted from the get-go," Mitel CEO Don Smith told CTV Ottawa on Monday.

A city report released in early June recommended the city proceed with a joint bid from Bell Canada and Cisco Systems for a large Internet phone contract.

Smith and Mitel co-founder Terry Mathews have both publicly charged that the city's procurement process is flawed.

Smith said Mitel was not treated fairly during the procurement process and maintains he's not trying to get any special treatment for his company.

"We're not looking for a home-team advantage. We're just looking for a process that's fair," he said.

The company's next move is expected to be unveiled when a city committee deals with the issue on July 7.