Question Period Note: Sinclair Technologies RCMP Radio Communications Standing Offer

PSPC’s award of a Standing Offer to Sinclair Technologies in 2021 to provide radio frequency filtering equipment and related technical assistance to the RCMP.

• The RCMP’s use of the Standing Offer with Sinclair Technologies is suspended pending a review.

• While the equipment provided by Sinclair poses no security concerns, the RCMP is reviewing to determine if further action is required.

• Radio Frequency filtration equipment does not have the capability to access RCMP radio communications. RCMP radio communications are protected by end-to-end encryption.

• The Government’s top priority is to protect our national security when awarding contracts.

All radios create, and are susceptible to, radio frequency (RF) interference. At radio sites, RF filters stand between antennas on the tower and two-way radios in the shelter, rejecting interference from nearby transmitters and passing only the correct frequencies to RCMP radios. Most RF filters are unpowered assemblies of tin cans, metal rods, magnetic ferrite blocks and coaxial cables. Some incorporate transistor-based amplifiers to boost faint incoming signals. The rods allow the cans to be tuned to precise frequencies and are used in equipment such as broadcast radio, wireless communications, and television. This equipment is used to optimize radio system performance and reduce impact on nearby services like cellphone, pager and satellite operations. Once installed and tuned, they typically remain in place for decades.

RF filters exchange no data with other equipment and are used to filter out unwanted signals. RF filtration equipment does not have the capability to access RCMP radio communications and poses no security concerns. RCMP radio communications are protected with end-to-end encryption.

The Request for Standing Offer was tendered on the Government Electronic Tendering System on May 31, 2021, and closed on July 16, 2021. A Standing Offer is a procurement tool that allows Canada to purchase goods and/or services, as and when requested, through the use of a Call-up. A standing offer itself is not a contract. A separate contract is formed each time a Call-up is made against a Standing Offer. A Standing Offer was issued to Sinclair Technologies on October 6, 2021, for a period of three years until March 31, 2024. There are two 1-year option periods to extend use of the Standing Offer until March 31, 2026. The total estimated value of the Standing Offer is $549,637. The RCMP followed all federal government procurement policies and regulations, and applicable trade agreements, commensurate with the low level of risk identified for this specific Standing Offer.

Prior to issuing the Standing Offer, PSPC performed the integrity verification on Sinclair Technologies, based on the Government of Canada Integrity Regime. The Integrity Regime ensures that the Government of Canada does business with ethical suppliers in Canada and abroad. The result on Sinclair Technologies came back negative (no match – no flags).

The RCMP has issued three (3) Call-ups against the Standing Offer with Sinclair Technologies to provide RF filtering equipment and related technical assistance to the RCMP totaling $55,072.95, including tax. Separately, there were eleven (11) Call-ups against a now expired Standing Offer to provide a variety of antennas totaling $188,981.58 including tax. The Call-ups have been issued to Norsat International – Operating as Sinclair Technologies Inc. The RCMP is in the process of confirming the details of any other contracts that have been issued to Sinclair/Norsat outside of the Standing Offer.

Sinclair Technologies is a division of Norsat International, a Vancouver company purchased by China’s Hytera Communications Corp. in 2017. According to media reports, the Chinese government owns approximately 10 per cent of Hytera Communications through an investment fund.

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