Sensitive National Security Procurement

Date: 20201 02 16

Classification: Unclassified

Proposed Response:


Nuctech standing offer

In December 2019, Public Services and Procurement Canada issued a competitive request for the supply of two types of security screening equipment—conveyor-style X-ray machines and walkthrough metal detectors. This standing offer, which is not a contract, would be for Global Affairs Canada and other federal departments.

In early April 2020, Nuctech was awarded the standing offer, as it was the qualifying supplier with the lowest evaluated price. Nuctech is headquartered in Beijing, PRC, and reportedly has close and high-level ties to the Chinese Communist Party. A few days later, Global Affairs Canada mandated a review of the standing offer by Deloitte Canada. The contract was ultimately not awarded to Nuctech.

Of note, China can compel its private citizens and firms anywhere in the world to assist intelligence efforts under the PRC’s 2017 National Intelligence Law.

OGGO study

During the House of Commons’ Committee on Government Operations’ study entitled “Nuctech Security Equipment Contract”, the Official Opposition Critic for Public Safety and Emergency Preparedness asked the Communications Security Establishment’s (CSE) Director General, Partnerships and Risk Mitigation, about CSIS’ role in reviewing the standing offer to Nuctech, specifically whether CSIS had given CSE “any reports or advice” on Nuctech or otherwise contacted CSE about national security issues regarding the Nuctech standing offer. The Director General answered that this had not been the case.


Prepared by: N/A

Approved by: Tricia Geddes, Deputy Director Policy and Strategic Partnerships, [Redacted]

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