JA_-_Chainalysis_-_FBO.pdf

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

STATION PLACE

100 F STREET, NE

WASHINGTON, DC 20549

OFFICE OF

AQUISITIONS

Justification for an Exception to Fair Opportunity: 2017-0070

Solicitation: SECHQ1-17-Q-0070

1. The Agency and Contracting Activity is:

U.S. Securities and Exchange Commission (SEC) Office of Acquisitions 100 F Street, NE Washington, DC 20549

2. Nature and Description of Action Being Approved.

The SEC intends to award a contract to fulfill its requirement for annual license for Chainalysis. This is a new contract action.

3. Description of the supplies or services required to meet the needs of the SEC and the estimated value.

The SEC has a requirement for brand name procurement for 1 concurrent license which includes:

Normal Investigation License and Geolocation License of the Chainalysis product.

The SEC has researched the products used to track transactions in the Cryptocurrency Market, specifically in Bitcoin/Blockchain transactions. Chainalysis is a web-based investigative tool to be used by the Enforcement Division for tracing Bitcoin transactions via blockchain analysis. The Chainalysis tool provides insight into the source of funds of a particular Bitcoin transaction and follows the money from hacks, ransomware, and other malicious activity. The tool performs real time calculations regarding the relationships between different entities in the bitcoin network and the data are kept live, displaying the latest information about recent transactions. It follows traces of Bitcoin transactions to find the services that cyber criminals are using to convert Bitcoin into cash or other digital currencies.

The estimated contract value for this procurement is $201,496.87, with $39,561.67 for the base year, which will use FY17 funds.

4. Identification of the exception to fair opportunity and the supporting rationale.

In accordance with FAR 16.505(b)(2)(i)(C), the SEC is restricting consideration to an item peculiar to one manufacturer. Due to licensing, warranty, and compatibility issues it would not be possible for another vendor to provide compatible software maintenance and support capable of meeting the SEC’s requirements.

5. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer, by signature on this document, hereby determines that the anticipated cost to the government will be fair and reasonable.

6. Other supporting facts.

None.

7. Actions, if any, the agency may take to remove or overcome any barriers to competition that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

The OIT continues to research new products as they come on the market with the intent of improving the SEC IT infrastructure and to promote competition.