DHS awards $43.6M for software and IT support to Palantir Technologies Inc

Contract Overview

Contract Amount: $43,565,619 ($43.6M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-25

End Date: 2022-09-25

Contract Duration: 1,096 days

Daily Burn Rate: $39.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AMB # 15547 APFS P2019045458- NEW ICM LICENSES, HOSTING, HELPDESK, AND O&M SUPPORT; OVERALL POP: 9/26/2019 - 3/25/2023-COR/POC: MAURICE LEE,(202) 732-7603, MAURICE.LEE@ICE.DHS.GOV

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.6 million to PALANTIR TECHNOLOGIES INC. for work described as: AMB # 15547 APFS P2019045458- NEW ICM LICENSES, HOSTING, HELPDESK, AND O&M SUPPORT; OVERALL POP: 9/26/2019 - 3/25/2023-COR/POC: MAURICE LEE,(202) 732-7603, MAURICE.LEE@ICE.DHS.GOV Key points: 1. Contract awarded for essential software licenses, hosting, helpdesk, and operations & maintenance. 2. Palantir Technologies Inc. is the sole awardee for this delivery order. 3. The contract duration is approximately three years, ending in September 2022. 4. This award falls under the Software Publishers NAICS code. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. The overall population for this contract is not explicitly defined but implies a significant user base.

Value Assessment

Rating: fair

The total award amount of $43.6 million for a three-year period for software licenses, hosting, helpdesk, and O&M support appears to be within a reasonable range for enterprise-level IT services. However, without specific details on the software's criticality, user base size, or the scope of O&M, a precise value-for-money assessment is challenging. Benchmarking against similar comprehensive IT support contracts for federal agencies would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The data does not specify the number of bidders, but a full and open competition generally promotes a competitive environment that can lead to better pricing and service offerings for the government. The existence of a single delivery order under this competition implies that Palantir Technologies Inc. was selected as the most advantageous offer.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overspending that could occur with less competitive procurement methods.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) personnel benefit from enhanced software capabilities and IT support. Services include critical software licenses, hosting, helpdesk assistance, and ongoing operations and maintenance. The contract is geographically located in the District of Columbia. The contract supports the operational efficiency of ICE's IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor performance beyond contract completion.
The specific nature of the software and its criticality to ICE operations is not detailed, posing a potential risk if support is inadequate.
Limited information on the scope of 'O&M support' could lead to unforeseen costs or service gaps.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm Fixed Price contract type provides cost certainty for the government.
Contract duration of three years allows for stable IT support and planning.

Sector Analysis

This contract falls within the Software Publishers sector, which is a critical component of the broader Information Technology industry. The IT sector is characterized by rapid innovation and a constant demand for specialized software, cloud services, and technical support. Federal agencies like DHS rely heavily on such contracts to maintain and upgrade their complex IT systems, which are essential for national security and law enforcement operations. Spending in this sector is substantial, with agencies continually investing in solutions that enhance data analysis, cybersecurity, and operational efficiency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on a large, established technology provider capable of meeting the complex needs of ICE.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) or Point of Contact (POC) listed in the contract details, Maurice Lee. The Department of Homeland Security's Office of Inspector General (OIG) also provides oversight for federal contracts to ensure efficiency, effectiveness, and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, where basic details of the contract are publicly available.

Related Government Programs

ICE IT Modernization Programs
DHS Software Licensing Agreements
Federal Cloud Computing Services
IT Operations and Maintenance Support Contracts

Risk Flags

Potential for high cost associated with specialized software and support.
Lack of detailed performance metrics.
Contractor's technology is often subject to public scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.6 million to PALANTIR TECHNOLOGIES INC.. AMB # 15547 APFS P2019045458- NEW ICM LICENSES, HOSTING, HELPDESK, AND O&M SUPPORT; OVERALL POP: 9/26/2019 - 3/25/2023-COR/POC: MAURICE LEE,(202) 732-7603, MAURICE.LEE@ICE.DHS.GOV

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $43.6 million.

What is the period of performance?

Start: 2019-09-25. End: 2022-09-25.

What is the specific software being licensed and supported under this contract?

The provided data does not specify the exact software being licensed and supported. However, given the contractor is Palantir Technologies Inc., it is highly probable that the contract pertains to Palantir's data analytics and software platforms, such as Palantir Gotham or Palantir Foundry. These platforms are known for their capabilities in data integration, analysis, and visualization, often used by government agencies for intelligence, law enforcement, and national security purposes. The 'NEW ICM LICENSES' might refer to a specific module or a new implementation of Palantir's core offerings tailored for U.S. Immigration and Customs Enforcement (ICE) operations.

How does the pricing of this contract compare to similar IT support contracts awarded by DHS or other federal agencies?

A direct comparison of pricing is difficult without knowing the specific services and software included. However, Palantir's contracts have historically been subjects of scrutiny regarding their cost. The $43.6 million over three years averages to approximately $14.5 million per year. This figure needs to be benchmarked against the number of users, the criticality of the software, the scope of hosting and helpdesk services, and the complexity of O&M. Similar large-scale enterprise software and support contracts for agencies like the FBI or DoD can range from several million to tens of millions annually, depending on the vendor and services. Further analysis would require detailed service level agreements and feature comparisons.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for software licenses, hosting, helpdesk, and O&M support, SLAs would cover aspects such as software uptime, response times for helpdesk tickets, resolution times for issues, and availability of hosting services. The absence of this information in the summary data makes it challenging to quantitatively assess the contractor's performance and the value delivered. These details would normally be found in the contract's statement of work or performance work statement.

What is Palantir Technologies Inc.'s track record with the Department of Homeland Security and similar agencies?

Palantir Technologies Inc. has a significant track record with the Department of Homeland Security (DHS) and its components, including U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), as well as other federal agencies like the Department of Defense (DoD) and intelligence community. They are known for providing advanced data analytics platforms used for a variety of missions, including border security, counterterrorism, and law enforcement investigations. While their technology is often praised for its capabilities, their contracts have also faced public and congressional scrutiny regarding cost, transparency, and the scope of their use.

What is the historical spending trend for similar software and IT support services at ICE or DHS?

Historical spending on software and IT support services at ICE and DHS is substantial and generally increasing, driven by the need for advanced data analytics, cybersecurity, and modernization of legacy systems. While specific historical data for this exact type of 'ICM Licenses, Hosting, Helpdesk, and O&M Support' is not provided, ICE and DHS have awarded numerous contracts for software, IT infrastructure, and related services to various vendors over the years. Palantir, in particular, has received significant funding from DHS components. Trends indicate a continued investment in sophisticated data platforms and cloud-based solutions to manage large datasets and support complex operational requirements.

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

Solicitation ID: 70CTD019R00000010

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: $43,565,619

Exercised Options: $43,565,619

Current Obligation: $43,565,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0086U

IDV Type: FSS

Timeline