SEC Spends $36M on Palantir's COTS Data Analytics Solution via BPA Call

Contract Overview

Contract Amount: $36,070,466 ($36.1M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2015-06-19

End Date: 2020-06-18

Contract Duration: 1,826 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS PROVIDE AND IMPLEMENT A COTS SOLUTION FOR THE AGENCY'S ENTERPRISE DATA ANALYTICS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $36.1 million to PALANTIR TECHNOLOGIES INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS PROVIDE AND IMPLEMENT A COTS SOLUTION FOR THE AGENCY'S ENTERPRISE DATA ANALYTICS Key points: 1. Palantir Technologies Inc. secured a significant contract for enterprise data analytics. 2. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type helps manage cost certainty for the agency. 4. The spending falls within the Software Publishers NAICS code.

Value Assessment

Rating: fair

The $36 million contract over five years for a COTS solution appears to be within a reasonable range for enterprise data analytics platforms, though specific feature comparisons are needed. Benchmarking against similar government procurements for advanced analytics software would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, though the specific impact on this contract's final price is not detailed.

Taxpayer Impact: Taxpayers are funding a critical data analytics capability for the SEC, with the expectation of improved operational efficiency and decision-making.

Public Impact

Enhances SEC's ability to analyze large datasets for regulatory oversight. Potential for improved fraud detection and market surveillance. Supports agency-wide digital transformation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in with COTS solutions.
Limited insight into the specific COTS solution's capabilities.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract provides cost certainty.
Addresses a critical agency need for data analytics.

Sector Analysis

The Securities and Exchange Commission operates in the financial services sector, increasingly reliant on advanced data analytics for market oversight and enforcement. Spending on software publishers (NAICS 511210) is common across government agencies for IT modernization.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award to Palantir Technologies Inc., a large firm, suggests that small businesses were likely not primary awardees for this specific contract, though they may be subcontractors.

Oversight & Accountability

The contract was awarded via a BPA Call, which implies a pre-competed agreement is in place. Further oversight would involve monitoring contract performance, adherence to terms, and ensuring the solution meets evolving agency needs.

Related Government Programs

Software Publishers
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Lack of detailed technical specifications.
Potential for vendor lock-in.
Limited information on performance metrics.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $36.1 million to PALANTIR TECHNOLOGIES INC.. IGF::OT::IGF FOR OTHER FUNCTIONS PROVIDE AND IMPLEMENT A COTS SOLUTION FOR THE AGENCY'S ENTERPRISE DATA ANALYTICS

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $36.1 million.

What is the period of performance?

Start: 2015-06-19. End: 2020-06-18.

What specific features and capabilities of the COTS solution were prioritized, and how do they align with the SEC's unique data analysis needs?

The provided data lacks specifics on the COTS solution's features. However, given the SEC's mission, prioritized capabilities likely include advanced data processing, machine learning for pattern recognition, visualization tools, and secure data handling. Alignment would be assessed by how effectively these features support regulatory compliance, enforcement actions, and market analysis.

What are the potential long-term risks associated with relying on a single COTS provider for enterprise data analytics, particularly regarding adaptability and future costs?

Long-term risks include vendor lock-in, where switching providers becomes prohibitively expensive or complex. Adaptability may be limited by the vendor's roadmap, potentially lagging behind evolving SEC requirements. Future costs could escalate through price increases, mandatory upgrades, or the need for additional modules not initially procured.

How effectively has this data analytics solution improved the SEC's operational efficiency and decision-making processes since its implementation?

The provided data does not contain metrics to assess the effectiveness of the solution in improving operational efficiency or decision-making. A thorough evaluation would require analyzing performance reports, user feedback, and quantifiable improvements in areas like case processing times, fraud detection rates, or market analysis accuracy.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1530 PAGE MILL RD, PALO ALTO, CA, 94304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,703,857

Exercised Options: $41,890,466

Current Obligation: $36,070,466

Actual Outlays: $721,999

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $50,043,150,714

Parent Contract

Parent Award PIID: SECHQ115A0025

IDV Type: BPA

Timeline