Image credit: Shutterstock
Chainalysis Government Solutions is challenging a $94.66 million blockchain analytics contract that US Immigration and Customs Enforcement awarded to rival TRM Labs without open competition.
The dispute is heading to oral arguments on September 2 in the US Court of Federal Claims. Chainalysis wants the court to block the TRM contract and require ICE to conduct a full and open procurement.
ICE Awarded TRM a One-Year $94.66M Sole-Source Contract
ICE awarded contract 70CMSD26C00000005 to TRM on July 1 for forensic software and analytical support tied to Homeland Security Task Force investigations.
The contract runs through June 30, 2027, and covers work involving scams, cybercrime, and other investigations requiring blockchain tracing. Federal procurement records classify the award as sole source, with TRM listed as the only offerer.
Before the award, ICE issued a market-research request on May 28 containing 18 questions about capabilities including scam databases, AI-assisted investigations, automated asset-freeze notifications and relationships with stablecoin issuers.
Chainalysis Says ICE Relied on Undisclosed Requirements
ICE later published a notice stating that it intended to award the work to TRM while allowing other vendors to demonstrate that they could meet the agency’s needs. Potential competitors were given three days to submit capability statements limited to one page. Chainalysis says it was the only alternative provider to respond.
Its lawsuit argues ICE rejected that submission partly by relying on criteria from the earlier market-research exercise that were not included in the final Statement of Need competitors were told to address.
Chainalysis says several requirements closely matched TRM products and commercial relationships. It also argues ICE did not ask follow-up questions before concluding that only TRM could meet the agency’s needs.
ICE determined on June 12 that no alternative supplier could satisfy all of its operational, technical and data requirements.
September 2 Hearing is Next Step in $94.66M Contract Challenge
Chainalysis first protested the procurement through the Government Accountability Office in July before withdrawing that challenge and filing in federal court on July 27.
Its complaint raises seven claims, including allegations that ICE failed to meaningfully consider its capabilities and used unnecessarily restrictive requirements. TRM has intervened to defend the contract alongside the government. The court has not ruled that ICE acted improperly, and the allegations remain contested.
Oral arguments are scheduled for September 2, when the court will consider Chainalysis’ challenge and its request to block the TRM award and require a new competition.
