Last December, the RCMP suspended a contract for Sinclair Technologies to supply it with specialized radio frequency filtering equipment when media outlets, particularly Radio-Canada, revealed that the company in question had ties to China.

Sinclair’s parent company Norsat International has been owned by the Chinese telecommunications company Hytera since 2017. The Chinese government holds a 10% stake in Hytera through an investment fund.

As part of the internal review, RCMP technical experts determined that the equipment included in the tender won by Sinclair posed a low risk to national security because it cannot access RCMP radio communications.

Additionally, the RCMP’s recently released internal audit report indicates that the Federal Police followed applicable policies and procedures when the procurement department prepared the standing offer.

However, the review by the RCMP’s internal audit department found “opportunities for improvement” and the RCMP said it has increased the level of contract monitoring to ensure adequate controls are in place.

The Federal Communications Commission of the United States banned the use of Hytera technology for public safety, government security and critical infrastructure monitoring in 2021 when it was deemed a national security risk.

The RCMP conducted an inspection and engineering tests on a recently purchased Sinclair radio frequency filter system and found “no safety issues,” the inspection report said.

The RCMP’s Departmental Security Branch also consulted with the Communications Security Establishment, Canada’s cyber-espionage agency, which said the filtering devices would not compromise encrypted RCMP communications.

Improvements need to be made

The evaluators concluded that the RCMP had indeed considered security as part of the procurement process. But they say improved guidance and possibly controls would be helpful to ensure RCMP-specific security requirements are included in contract documents.

Consultations between the RCMP and the purchasing department determined there were no safety requirements for the standing offer because none of the options on a checklist were applicable to device filtration.

The checklist form “does not capture some of the intricacies of RCMP security processes as it is used by all government departments,” the report said, which also noted that interviews found that form to be outdated.

Six Sinclair contractors were issued permits in the event work was needed on RCMP property, the report said. However, the requirement for RCMP surveillance to be in place was not included in the standing offer.

“This can increase the risk that appropriate security measures will not be implemented. Including all security requirements in the contract documents would clarify security expectations for RCMP personnel and the vendor,” the report said.

The document highlights that policies and processes related to public procurement and security involve various departments outside of the RCMP. “Therefore, comprehensive government cooperation is required to modernize existing laws, policies and tools to facilitate future acquisitions that could impact national security,” it is proposed.

In a management response included in the review, the RCMP says it will work with other government agencies to improve security of supply.

In addition, the police say they have “increased control over contracts” as an interim measure. The RCMP also plans to introduce additional controls and guidance as necessary to address gaps in the existing checklist form.

An RCMP briefing note issued as part of the Access to Information Act notes that Commissioner Mike Duheme approved the review report and management plan.

The RCMP had no immediate information Monday about the current status of the standing offer with Sinclair.