Financial Conduct Authority: CON-21-141 Cryptoasset Blockchain Analysis Platform

UK-London: Financial information systems.

Section I: Contracting Authority

   I.1) Name, Addresses and Contact Point(s):
       Financial Conduct Authority
       12 Endeavour Square, London, E20 1JN, United Kingdom
       Tel. +44 2070661000, Email: isprocurement@fca.org.uk
       Contact: Tim Mitchell
       Main Address: www.fca.org.uk
       NUTS Code: UKI4

   I.2) Joint procurement:
      The contract involves joint procurement: No          
      In the case of joint procurement involving different countries, state applicable national procurement law: Not Provided
      The contract is awarded by a central purchasing body: No

   I.4)Type of the contracting authority:
      Other type:: Financial Regulator

   I.5) Main activity:
      Other activity: Financial Regulation

Section II: Object Of The Contract

   II.1) Scope of the procurement

      II.1.1) Title: CON-21-141 Cryptoasset Blockchain Analysis Platform            
      Reference number: CON-21-141

      II.1.2) Main CPV code:
         48812000 - Financial information systems.


      II.1.3) Type of contract: SUPPLIES

      II.1.4) Short description: On 10th January 2020 the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for firms carrying out certain in scope cryptoasset activity in the UK. The FCA is required under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) to approve and register firms conducting in scope cryptoasset activities and ensure that these firms are effectively monitored to secure compliance with these regulations.
As the supervisor of in scope cryptoasset activity in the UK, the FCA requires access to specialist services to support the analysis of cryptoasset blockchain data. The FCA is seeking the services of a third-party firm specializing in this area who can provide access to a platform that can support the robust and efficient analysis of cryptoasset blockchain data and provide training and ongoing support in the use of this platform.

      II.1.6) Information about lots
         This contract is divided into lots: No
            
      II.1.7) Total value of the procurement (excluding VAT)
          Value: 399,204
                  
         Currency:GBP            

   II.2) Description

      II.2.2) Additional CPV code(s):
      Not Provided

      II.2.3) Place of performance
      Nuts code:
      UKI4 - Inner London – East
   
      Main site or place of performance:
      Inner London – East
             

      II.2.4) Description of the procurement: On 10th January 2020 the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for firms carrying out certain in scope cryptoasset activity in the UK. The FCA is required under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) to approve and register firms conducting in scope cryptoasset activities and ensure that these firms are effectively monitored to secure compliance with these regulations.

Under these regulations in scope cryptoasset firms are required to establish and maintain policies, controls and procedures to mitigate and manage effectively the risks of money laundering and terrorist financing.

The FCA is required to secure that any application for registration meets the relevant requirements of the MLRs and effectively monitor firms for which it is the supervisory authority. The FCA must take necessary measures for the purpose of securing compliance by firms with the requirements of the regulations. Relevant persons who contravene the requirements of the MLRs may be guilty of an offence under regulation 86 and liable to summary conviction or indictment.
A cryptoasset is a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically. One application of this distributed ledger technology is seen in the use of public blockchains which underpin popular cryptoassets such as bitcoin. For the purpose of this document the term cryptoasset blockchain data will refer to data that is recorded on the public distributed ledgers of cryptoassets.

As the supervisor of in scope cryptoasset activity in the UK, the FCA requires access to specialist services to support the analysis of cryptoasset blockchain data. The FCA is seeking the services of a third-party firm specializing in this area who can provide access to a platform that can support the robust and efficient analysis of cryptoasset blockchain data and provide training and ongoing support in the use of this platform.

The analysis of cryptoasset blockchain data is an essential aspect of the FCA toolkit when approaching its duties as supervisor of firms carrying out certain cryptoasset activity in the UK. The development of this capability is closely aligned with operational objectives of the FCA and has applications in the prevention of harm to consumers, in enhancing the integrity of the UK financial system and in promoting competition.

The FCA seeks a blockchain analysis solution which enhances our capability to:
- Perform analysis of cryptoasset blockchain data associated with in scope cryptoasset activity.
- Identify and respond to risks identified through the analysis of cryptoasset blockchain data.
- Use cryptoasset blockchain data to support the effective supervision of in scope cryptoasset activity, to support the development of intelligence and enforcement investigations as required.

The scope of this procurement exercise is to secure a platform that provides:
- The capability to visualize, review and export cryptoasset blockchain data to support FCA functions.
- Applies robust analytical techniques to support the efficient review of cryptoasset blockchain data including clustering and the aggregation of blockchain data.
- Provides data on attribution of cryptoasset addresses across a wide range of cryptoassets and blockchains.
- Supports users of the platform with training and specialist support on an ongoing basis.

      II.2.5) Award criteria:
      Quality criterion - Name: Technical - Functional / Weighting: 70
      Quality criterion - Name: Non-Functional (Business related) / Weighting: 5
      Quality criterion - Name: Non-Functional (Technical) / Weighting: 5
                  
      Cost criterion - Name: Total Cost of Ownership / Weighting: 20
            

      II.2.11) Information about options
         Options: No
         

      II.2.13) Information about European Union funds
         The procurement is related to a project and/or programme financed by European Union funds: No
         

      II.2.14) Additional information: To respond to this opportunity please click here: https://fca.delta-esourcing.com/respond/35HK868YD8

This contract may be subject to extensions up to a further 24 months


Section IV: Procedure

IV.1) Description

   IV.1.1)Type of procedure: Open


   IV.1.3) Information about a framework agreement or a dynamic purchasing system
      The procurement involves the establishment of a framework agreement: No       
      

   IV.1.6) Information about electronic auction
      An electronic auction has been used: No

   IV.1.8) Information about the Government Procurement Agreement (GPA)
      The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

   IV.2.1) Previous publication concerning this procedure
       Notice number in the OJEU: 2021/S 000-028498
      
   

   IV.2.9) Information about termination of call for competition in the form of a prior information notice
      The contracting authority will not award any further contracts based on the above prior information notice: No

Section V: Award of contract

Award Of Contract (No.1)

   Contract No: CON-21-141    
   Lot Number: Not Provided    
   Title: Cryptoasset Blockchain Analysis Platform

   A contract/lot is awarded: Yes


   V.2) Award of contract

      V.2.1) Date of conclusion of the contract: 01/07/2022

      V.2.2) Information about tenders
         Number of tenders received: 9
         Number of tenders received from SMEs: Not Provided          
         Number of tenders received from tenderers from other EU Member States: Not Provided          
         Number of tenders received from tenderers from non-EU Member States: Not Provided          
         Number of tenders received by electronic means: 9

      V.2.3) Name and address of the contractor

      The contract has been awarded to a group of economic operators: No
         
         Contractor (No.1)
             Chainalysis Inc, N/A
             228 Park Avenue, New York, United States
             NUTS Code: UKI4
            The contractor is an SME: No

      V.2.4) Information on value of the contract/lot (excluding VAT)
         Initial estimated total value of the contract/lot: 339,204          
         Total value of the contract/lot: 339,204
         Currency: GBP

      V.2.5) Information about subcontracting
         The contract is likely to be subcontracted: No
         
Section VI: Complementary information

   VI.3) Additional information: The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement.
To view this notice, please click here:
https://fca.delta-esourcing.com/delta/viewNotice.html?noticeId=705183725

   VI.4) Procedures for review

      VI.4.1) Review body
          Financial Conduct Authority
          12 Endeavour Square, London, E20 1JN, United Kingdom

      VI.4.3) Review procedure
         Precise information on deadline(s) for review procedures: Not Provided

      VI.4.4) Service from which information about the review procedure may be obtained
         Not Provided

   VI.5) Date of dispatch of this notice: 12/07/2022