VA awards Palantir $30.3M for National Center for Veterans Analysis and Statistics Platform

Contract Overview

Contract Amount: $30,283,057 ($30.3M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $83.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL CENTER FOR VETERANS ANALYSIS AND STATISTICS PLATFORM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.3 million to PALANTIR TECHNOLOGIES INC. for work described as: NATIONAL CENTER FOR VETERANS ANALYSIS AND STATISTICS PLATFORM Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The fixed-price contract type aims to control costs and provide predictability. 3. The duration of 364 days indicates a focused project scope. 4. The award is a delivery order, suggesting it's part of a larger contract vehicle. 5. The platform supports data analysis for veterans, aligning with VA's core mission. 6. The contract value is moderate, indicating a specific need rather than a broad program.

Value Assessment

Rating: good

The contract value of $30.3 million for a one-year period for a data analytics platform appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale data platform development and maintenance contracts for federal agencies suggests this is within expected cost ranges. The firm fixed-price structure provides cost certainty for the VA, and the absence of significant reported issues in the past for Palantir's work with the government indicates a potentially good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of 4 bidders (no is 4) suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The VA's decision to use full and open competition implies confidence in the market's ability to meet their needs effectively.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the best possible value for their investment. This approach helps prevent overpayment and encourages innovation among contractors vying for government work.

Public Impact

Veterans will benefit from improved data analysis capabilities, leading to better-informed policy decisions and service delivery. The National Center for Veterans Analysis and Statistics will be enhanced with a robust platform for data management and insights. The services delivered will support research and analysis related to veteran demographics, health, and benefits. The primary geographic impact is national, supporting the VA's nationwide operations. Workforce implications include potential needs for data scientists, analysts, and IT professionals to manage and utilize the platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the platform becomes highly customized and integrated.
Reliance on a single vendor for critical data analytics infrastructure could pose long-term risks.
Ensuring data security and privacy for sensitive veteran information is paramount.

Positive Signals

Palantir has a track record of working with government agencies on complex data challenges.
The use of a firm fixed-price contract provides cost predictability.
Awarding via full and open competition suggests a well-vetted selection process.

Sector Analysis

The contract falls within the Software Publishers (NAICS 511210) sector, specifically focusing on data analytics platforms. This sector is characterized by rapid technological advancements and significant investment in cloud computing, artificial intelligence, and big data solutions. The market size for government IT services, particularly data analytics and platform development, is substantial, with agencies increasingly relying on such tools to manage vast amounts of information and improve decision-making. This contract represents a specific investment in enhancing the VA's analytical capabilities, aligning with broader government trends towards data-driven governance.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss is false, sb is false). As a delivery order under a larger contract vehicle, the initial competition may have included small business participation, but this specific award is to Palantir Technologies Inc. Further analysis would be needed to determine if subcontracting opportunities for small businesses are mandated or likely to arise from this award, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified services within the agreed budget. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veterans Health Administration IT Modernization
VA Data Modernization Initiative
Federal Big Data Analytics Programs
Department of Defense Data Analytics Platforms

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Performance and integration challenges
Long-term cost-effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.3 million to PALANTIR TECHNOLOGIES INC.. NATIONAL CENTER FOR VETERANS ANALYSIS AND STATISTICS PLATFORM

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $30.3 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is Palantir Technologies Inc.'s track record with the Department of Veterans Affairs and other federal agencies regarding similar data platform contracts?

Palantir Technologies Inc. has a significant history of engaging with federal agencies, including the Department of Veterans Affairs (VA) and the Department of Defense (DoD), on complex data integration and analysis projects. Their work often involves developing platforms that can ingest, manage, and analyze large, disparate datasets. For the VA, Palantir has been involved in projects aimed at improving veteran care and benefits through data insights. Their track record includes both successes and scrutiny, with discussions often centering on the cost-effectiveness and scope of their solutions. The company's experience suggests a capability to handle the technical demands of the National Center for Veterans Analysis and Statistics Platform, but past performance reviews and cost-benefit analyses from prior engagements would be crucial for a comprehensive assessment.

How does the $30.3 million award compare to historical spending on similar data analytics platforms by the VA or other large federal agencies?

The $30.3 million award for a one-year period for the National Center for Veterans Analysis and Statistics Platform is a substantial but not unprecedented figure for specialized federal IT projects. Large federal agencies, particularly those managing vast datasets like the VA, often invest tens to hundreds of millions of dollars in data analytics infrastructure, software, and services over multiple years. For instance, similar data modernization or platform development initiatives within agencies like the DoD or HHS can range significantly based on scope, duration, and technology stack. When compared to the average cost of enterprise data warehousing or advanced analytics solutions for government, this award appears to be in a moderate to high range, reflecting the critical nature of veteran data and the complexity of the required analytical capabilities. A direct comparison would require identifying contracts with identical service scopes and durations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential cost overruns if the scope expands beyond the initial fixed-price agreement, although the fixed-price nature mitigates this to some extent. Another significant risk is vendor lock-in, where the VA becomes heavily reliant on Palantir's proprietary technology, making future transitions difficult and potentially expensive. Data security and privacy are paramount risks given the sensitive nature of veteran data; any breach could have severe consequences. Performance risk, where the platform may not meet the VA's analytical needs or performance expectations, is also present. Mitigation strategies typically involve robust contract management, clear performance metrics, regular security audits, and contingency planning for data migration or alternative solutions. The competitive award process itself serves as a risk-reduction measure by selecting a vendor deemed capable.

How effective is the National Center for Veterans Analysis and Statistics Platform expected to be in improving veteran services and policy outcomes?

The effectiveness of the National Center for Veterans Analysis and Statistics Platform is expected to be high, provided it is implemented and utilized optimally. By providing advanced analytical capabilities, the platform should enable the VA to gain deeper insights into veteran demographics, health trends, benefit utilization, and service gaps. This data-driven approach can lead to more targeted and effective policy development, resource allocation, and service delivery improvements. For example, better analysis of healthcare data could identify underserved populations or emerging health crises among veterans, allowing for proactive interventions. Similarly, understanding employment trends or educational needs can inform better support programs. The ultimate effectiveness hinges on the quality of data inputs, the analytical tools' sophistication, and the VA's ability to translate insights into actionable strategies.

What are the historical spending patterns for data analytics platforms and related services at the Department of Veterans Affairs?

The Department of Veterans Affairs has historically allocated significant funding towards IT infrastructure, data management, and analytics capabilities to support its vast mission. Spending patterns reveal a consistent and often increasing investment in modernizing systems and leveraging data for improved veteran care and benefits administration. This includes substantial outlays for electronic health records, data warehousing, business intelligence tools, and specialized analytical platforms. Over the past decade, the VA has undertaken several major data modernization initiatives, reflecting a strategic priority to become more data-centric. While specific figures for 'data analytics platforms' can vary depending on categorization, the overall IT budget and specific project awards indicate a substantial and growing commitment to harnessing data analytics, with Palantir being one of several key technology partners in this domain.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 518 17TH ST STE 1015, DENVER, CO, 80202

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

Financial Breakdown

Contract Ceiling: $385,395,089

Exercised Options: $30,283,057

Current Obligation: $30,283,057

Actual Outlays: $4,583,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0086U

IDV Type: FSS

Timeline