Border Security Contracts with Nuctech
Date: July 22, 2020
Classification: Unclassified
Branch/Agency: FCMB/CBSA
Issue:
Recent media attention around border security contracts with Nuctech which are valued at $6.5 million.
Proposed Response:
- The safety and security of Canada is a top priority for the CBSA.
- Public Services and Procurement Canada (PSPC) is the contracting authority for the Government of Canada.
- The CBSA works closely with PSPC on large contracts and relies on their expertise to address any security risks related to those contracting activities. These security assessments are undertaken by PSPC’s Industrial Security Program.
- In advance of any procurement, a standard security Requirements Checklist is completed for contracts, outlining any specific security requirements for clearance levels and access to sites or information.
- Any time unscreened personnel require access to CBSA facilities or equipment, they are under escort, at all times, by CBSA employees.
- Decisions to award a contract undergo a thorough review and are made in accordance with established Government of Canada guidelines. The CBSA is bound by these guidelines.
If pressed:
- The CBSA is currently reviewing this matter and will work with PSPC and Global Affairs Canada to address any potential security issues.
- All of the systems are stand-alone devices and none of them are connected to the CBSA network.
Background:
As stated in Global News’s article, “Canada’s minister of foreign affairs has promised to review Ottawa’s purchasing of security equipment as details emerge of five contracts awarded to a controversial high-tech company that is connected to the highest levels of the Chinese Communist Party”.
The CBSA currently has four (4) active contracts with Nuctech Co. Ltd for X-ray machines. These machines are used across Canada, but all are stand-alone devices and none of them are connected to the CBSA network. All four (4) contracts were competitively tendered and they were all issued by PSPC, on behalf of the CBSA.
In regards to the security concerns surrounding all four (4) contracts: all of these systems are stand-alone devices and none of them are connected to the CBSA network.
The CBSA works with PSPC’s specialist Industrial Security Program to address any security risks related to the contracting activities. The work involved in clearing Nuctech Co. Ltd, as well as any particular supplier, is done by PSPC’s Industrial Security Program. The CBSA, as a client of PSPC, provides the requirements for the contract, as it would for any other contract, in the Statement of Work. Once the vendor has been cleared and the contract is awarded by PSPC, the CBSA is responsible for security screening of any contractors who require unrestricted access to CBSA’s premises or information.
CBSA has four (4) active contracts with Nuctech Co. Ltd:
- Contract A (value $2.54m) commenced on October, 30 2017 for the purchase of a Pallet / Large Scale Imaging System – [Redacted] and is used to X-ray palletized goods offloaded from marine containers.
- Contract B (value $1.01m) commenced on November, 7 2017 for the purchase of 19 Warehouse X-Ray Systems – these have been installed in a number of facilities across Canada and are used to X-ray commercial goods offloaded from marine containers and air courier transports.
- Contract C (value $0.48m) commenced on January, 2 2019 for the purchase of 15 Low Conveyor X-Ray Systems – these have been installed in a number of facilities across Canada and are used to X-ray passenger baggage in secondary operations.
- Contract D (value $4.00m) commenced on November, 12 2019 for the purchase of a Mobile Large Scale Imaging System – this unit is due to be delivered later this year and will be used to X-ray fully loaded marine containers, commercial trucks and vehicles.
Contacts:
Approved by: Jonathan Moor, Vice President, FCMB, 613-948-8604
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