FAA awards Palantir $2.6M for Safety Data Transformation, utilizing full and open competition

Contract Overview

Contract Amount: $2,595,810 ($2.6M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-12-23

End Date: 2026-06-10

Contract Duration: 534 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PALANTIR LICENSES AND SERVICES IN SUPPORT OF THE FAA SAFETY DATA TRANSFORMATION CHALLENGE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.6 million to PALANTIR TECHNOLOGIES INC. for work described as: PALANTIR LICENSES AND SERVICES IN SUPPORT OF THE FAA SAFETY DATA TRANSFORMATION CHALLENGE. Key points: 1. Palantir Technologies Inc. secured a $2.6M contract for software and services. 2. The contract supports the FAA's Safety Data Transformation Challenge. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract duration is 534 days, ending in June 2026. 5. The primary sector is IT, specifically Software Publishers.

Value Assessment

Rating: fair

The contract value of $2.6M for software licenses and services appears reasonable given the specialized nature of data transformation and Palantir's established role in government data analytics. Benchmarking against similar large-scale data platform contracts is difficult without more granular cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition awards.

Taxpayer Impact: The $2.6M expenditure represents taxpayer investment in enhancing aviation safety through advanced data analytics, with the expectation of improved safety outcomes and potentially more efficient operations.

Public Impact

Enhances aviation safety through advanced data analytics. Supports a critical FAA initiative for data transformation. Leverages cutting-edge software and services for safety improvements. Potential for improved operational efficiency within the FAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for services vs. licenses.
Potential for vendor lock-in with specialized data platforms.
Dependence on a single vendor for critical safety data transformation.

Positive Signals

Awarded under full and open competition.
Supports a high-priority government safety initiative.
Clear contract end date and duration.

Sector Analysis

The Information Technology sector, specifically Software Publishers (NAICS 513210), is characterized by rapid innovation and significant government reliance for data management and analytics. Spending benchmarks for similar data transformation projects vary widely based on scope and complexity.

Small Business Impact

The contract was awarded to Palantir Technologies Inc., a large business. There is no indication of subcontracting opportunities for small businesses within this specific award notice, which is common for large, specialized software and service contracts.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The FAA's contracting office and program managers are responsible for ensuring performance and adherence to contract terms. The fixed-price nature provides some cost control.

Related Government Programs

Software Publishers
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for high cost if services are extensive.
Reliance on a single vendor for critical safety data.
Lack of transparency on specific deliverables and cost allocation.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.6 million to PALANTIR TECHNOLOGIES INC.. PALANTIR LICENSES AND SERVICES IN SUPPORT OF THE FAA SAFETY DATA TRANSFORMATION CHALLENGE.

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-12-23. End: 2026-06-10.

What is the specific breakdown of costs between software licenses and professional services, and how does this align with industry standards for similar data transformation projects?

The award notice does not provide a specific cost breakdown between software licenses and professional services. Palantir's business model often involves significant service components for implementation and customization. A detailed analysis would require access to the contract's line-item details to compare against industry benchmarks for data analytics and platform integration projects, which can vary significantly.

What are the key performance indicators (KPIs) for the Safety Data Transformation Challenge, and how will the success of Palantir's contribution be measured?

The award notice focuses on the procurement aspect and does not detail the specific KPIs for the Safety Data Transformation Challenge. Success measurement would likely involve metrics related to data quality improvements, enhanced predictive capabilities for safety events, faster incident analysis, and overall impact on aviation safety metrics. These KPIs are typically defined in the contract's statement of work.

Given Palantir's role, what is the strategy to ensure data interoperability and avoid vendor lock-in for future FAA data initiatives?

Ensuring data interoperability and mitigating vendor lock-in often involves contract clauses mandating data portability, adherence to open standards, and clear exit strategies. The FAA likely has internal policies and technical requirements to address these concerns. Future strategies may include phased transitions, competitive re-procurement, or integration with other data systems using standardized APIs.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 17TH STREET, 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: $2,595,810

Exercised Options: $2,595,810

Current Obligation: $2,595,810

Actual Outlays: $2,595,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA24D004L

IDV Type: FSS

Timeline