Question Period Note: Security in contracting

In Fall 2020 there was media attention over the security role of Public Services and Procurement Canada (PSPC) on Global Affairs Canada’s (GAC) procurement of security screening equipment for use in non-operational areas in Canadian missions abroad. PSPC issued two National Master Standing Offers (NMSOs) for x-ray machines and walk-through metal detectors that did not include a security requirement. A NMSO for x-ray machines was initially issued to Nuctech Company Limited of Beijing, China.

• The security of government contracts is a paramount priority for the government
  • Public Services and Procurement Canada’s Contract Security Program is committed to safeguarding protected and classified information assets, and securing sites associated with Government of Canada contracts
  • Public Services and Procurement Canada is working closely with Public Safety Canada to develop a tool to increase the awareness of potential security threats that can be associated with an acquisition
  • Public Services and Procurement Canada provides guidance to departments when our department is the contracting authority and provides the appropriate security clauses to be included in each contract based on the information provided by the client department
  • The Contract Security Program then ensures that contractors comply with the security requirements provided by the client department for safeguarding, transmitting, disclosing, destroying, removing and modifying government sensitive information/assets

If pressed on the security role of Public Services and Procurement Canada and Nuctech Inc.:

• Public Services and Procurement Canada has a framework of laws, regulations and policies in place to protect the integrity of the federal procurement system
• Client departments are responsible for identifying security requirements that need to be considered as part of the definition for the good, service or construction procurement requirement
• Global Affairs Canada did not purchase equipment from Nuctech Company Limited under the standing offer

The Treasury Board Policy on Government Security provides the framework for departments to effectively manage government security controls in support of the delivery of Government of Canada programs and services and in support of the protection of information, individuals and assets. A key objective of the Policy on Government Security, as it pertains to contracting, is to ensure that sensitive information and assets of the government are properly protected when entrusted to industry.

Each federal department is responsible for protecting sensitive information and assets under its control not only in its own operations but also throughout the bidding, negotiating, awarding, carrying out, and terminating of any contracts it manages. Federal departments are also responsible for identifying security concerns associated with their procurements and determining if their suppliers will require access to protected and/or classified information and assets or to secure sites.

Before entering into a contractual agreement with a private sector organization, government departments must identify any contract security requirements (i.e., determine whether the supplier will require access to protected or classified information, assets, or sites).

If the contract has security requirements and is being awarded by PSPC, the government department is required to make use of PSPC’s Contract Security Program to ensure that the supplier and their personnel receive the appropriate security clearances before accessing sensitive information/assets and/or secure sites.

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