Bundler can't find win32-service gem even thought it appears in gem list

Question

I'm trying to use bundler in a 2.3.4 rails app and am having problems with the win32-service gem. The gem was installed by issueing 'gem install win32-service --platform mswin32'. I installed it outside of bundler as bundler always tries to compile from source which fails miserably.

Output of 'gem list'

win32-service (0.7.1 x86-mswin32-60)

Output of 'bundle install'

Your Gemfile doesn't have any sources. You can add one with a line like 'source :gemcutter'
Could not find gem 'win32-service (>= 0, runtime)' in any of the gem sources.

I tried using source :gemcutter but as noted above bundler tries to use the source package that does not build.

I have also tried using older versions of the gem (0.5.1) and had the same problem.

Any ideas?