A15_-_LSD_Chainalysis.pdf

LIMITED SOURCES DOCUMENTATION (DEC 2018)

Required for Limited Source Acquisitions Over $10,000 but not Exceeding $250,000

Acquisitions that do not allow for competition to the maximum extent practicable must be documented in accordance with Federal Acquisition Regulations (FAR) 13.106-3(b} for open market purchase orders or FAR 8.405-6(0 for Federal Supply Schedule (GSA) orders. Limited source documentation is required in the following circumstances: (1) when soliciting fewer than the minimum number of sources (at least three sources) required by FAR 13.104(b}, 8.405-1 (c}, or 8.405-2(c}(2}, whichever is applicable; and (2) when using brand name only specifications.

This template may be used for the documentation described in FAR 8.405-6(b}(2}(i} or 13.106-1(b)(1 }. The customer shall provide the following information:

Purchase Request Number:

Brand Name Only Description:

0YES ONO

Estimated Amount (inclusive of options):

$134,970.00

Recurring Requirement:

DYES 0 NO

Brief description of supplies or services required and the intended use:

Delivery Date or Period of Performance:

09/30/2019 - 09/29/2020

FSS Contract Number (if applicable}:

Cryptocurrency analytical tool used to help identify drug traffickers and trace their assets. This tool will be used by analysts in OSI and OSS to support field investigat i ons that involve the use of cryptocurrency . It will enhance other tools and techniques being currently used in OSS and OSI by helping to deanonyrnize the target and identify cryptocurrency exchanges the person is using .

Unique characteristics that limit availability to only one source, and any justification that no other supplies or services can be used or that urgent and compelling circumstances exist - include all critical delivery or performance dates and impact to the government if dates are not met:

Chainalysis has charting capabilities that have been used to show investigators how Bitcoin transactions are conducted and how they can be used as a tool to identify targets, the Bitcoin Exchanges they are using , and how to subpoena the exchanges for personally identifying information and bank information of targets . The identification of the wallets allows investigators to identify the level of trafficking conducted by the target , as well as the assets that can be seized when a search warrant takes place .

Chainalysis is currently being u sed to track targets in Canada , China , United Kingdom , and within the United States.

Chainalysis will also continue to be used to identify and target money l aundering means/methods being conducted with Bitcoin , as well as breakdown financial transactions that occur within an exchange that can be further exploited by investigators .

Describe in detail any market research conducted . Include results and state whether any vendors expressed interest:

The research that was conducted for Chainalysis shows that the system is unique in their products and capabilities . It will help in day to day investigations by assisting investigators in locating the targets on virtual currency exchanges , which often possess the legitimate names of the people involved . Chainalysis is un i quely able to associate Internet Protocol (IP) addresses with virtual currency wallets . The number of DEA investigations that involve IP addresses is growing significantly every year and as an agency we are constantly looking for tools that will assist in exploiting the I P information . No other vendors can associate IP addresses to virtual currency wallets .

The Contracting Officer hereby certifies that:

A. Only one source is reasonably available;

B. An order for the supplies or services will not be placed unless the price is determined to be fair and reasonable; and

C. If brand name specifications are used for the basis of this determination and the acquisition exceeds $25,000, this Limited Source Documentation will be made available together with the solicitation in the Governmentwide Point of Entry (FedBizOpps) in accordance with FAR 5.102(a}(6), on GSA e-Buy in accordance with FAR 8.405-6(d}, or on the NASA SEWP V Quote Request Tool pursuant to 40 U.S.C. 11302/e}. - "

Signature and title of custome( \/'v Office Code Telephone Number Date

...... ~ OS

Signature and title of contract speci~ Office Code Telephone Number Date

Signature of contracting officer Office Code Telephone Number Date

FACI

FACI

202-307-7987

202-598-8109