Well, try to remember that Israel wasn't in any condition to help out with the Korean War in 1950. Israel didn't exist until 1948, and she was surrounded by enemies and the Mediteranian Sea on all sides. Plus, don't forget the talk from those enemies, which eventually led to the "Six Day War," in 1956.
Mark
Israel is not "reselling" American technology (well atleast not in this case).The PHALCON is an Israeli system which has a number of American sub-systems.Which is the case with many weapon systems now.
About taking bids with from everyone,well the best way to get a good bargain is to promote competition even if it is skewed in nature.