HHS Awards $48M for Enterprise Data & Analytics Platform to Palantir Technologies Inc

Contract Overview

Contract Amount: $48,154,420 ($48.2M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-11-24

End Date: 2024-02-01

Contract Duration: 1,164 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE DATA & ANALYTICS PLATFORM PROJECT

Place of Performance

Location: SILVER SPRING, PRINCE GEORGES County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48.2 million to PALANTIR TECHNOLOGIES INC. for work described as: ENTERPRISE DATA & ANALYTICS PLATFORM PROJECT Key points: 1. Significant investment in data analytics capabilities for the FDA. 2. Palantir Technologies Inc. is the sole awardee, raising questions about competition. 3. The contract value of $48.15M warrants scrutiny for cost-effectiveness. 4. Focus on software publishing (NA 511210) indicates a technology-centric project.

Value Assessment

Rating: questionable

The contract value of $48.15M for an enterprise data and analytics platform needs comparison against similar government or commercial contracts. Without specific benchmarks for this type of platform, assessing its value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'FULL AND OPEN COMPETITION', the award is a 'DELIVERY ORDER' to Palantir Technologies Inc. This suggests a specific task order under a broader contract, and the initial competition method for that broader contract is key to understanding price discovery.

Taxpayer Impact: The $48.15M expenditure represents taxpayer funds allocated to enhance FDA's data analysis capabilities, with the ultimate benefit to public health hinging on the platform's effectiveness.

Public Impact

Enhances FDA's ability to process and analyze critical health data. Potential for improved public health insights and faster response to health crises. Supports modernization of government IT infrastructure. Data analytics advancements could lead to more efficient regulatory processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for the platform.
Potential for vendor lock-in with a single provider.
Data security and privacy concerns for sensitive health information.

Positive Signals

Addresses a critical need for advanced data analytics.
Supports a key agency (FDA) in its mission.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

The Software Publishers sector (NA 511210) is highly dynamic. Spending benchmarks for enterprise data and analytics platforms can vary widely based on scope and complexity. This $48M award appears substantial for a single platform project.

Small Business Impact

The data indicates this award was not set aside for small businesses (SB: false). The contract was awarded to Palantir Technologies Inc., a large business, suggesting limited direct opportunity for small businesses on this specific contract.

Oversight & Accountability

Oversight will be crucial to ensure the platform meets FDA's objectives and that funds are used efficiently. Regular performance reviews and audits are recommended to track progress and mitigate risks.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Sole awardee raises competition concerns.
High contract value requires thorough justification.
Potential for vendor lock-in.
Data security and privacy risks.
Need for clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48.2 million to PALANTIR TECHNOLOGIES INC.. ENTERPRISE DATA & ANALYTICS PLATFORM PROJECT

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $48.2 million.

What is the period of performance?

Start: 2020-11-24. End: 2024-02-01.

What specific capabilities does this Enterprise Data & Analytics Platform provide to the FDA, and how do these align with their strategic goals?

The platform is intended to provide advanced data processing, analysis, and visualization capabilities to the FDA. This likely supports objectives such as improving drug and food safety surveillance, accelerating research, enhancing regulatory decision-making, and enabling more proactive public health interventions. The specific alignment would detail how these functionalities directly contribute to achieving the FDA's mission-critical goals.

Given Palantir's history and the nature of data analytics platforms, what are the primary risks associated with data security, privacy, and potential vendor lock-in?

Primary risks include the potential for unauthorized access or breaches of sensitive health data, non-compliance with privacy regulations (e.g., HIPAA), and the significant costs and technical challenges associated with migrating away from Palantir's proprietary systems if needed in the future. Robust security protocols, clear data ownership clauses, and contingency plans for vendor transition are essential mitigation strategies.

How will the effectiveness of this $48M investment be measured to ensure it delivers tangible improvements in FDA operations and public health outcomes?

Effectiveness will be measured through clearly defined Key Performance Indicators (KPIs) tied to specific FDA operational improvements, such as reduced data processing times, increased accuracy of analyses, faster identification of health risks, or improved efficiency in regulatory submissions. Ultimately, the success should be linked to demonstrable positive impacts on public health outcomes, such as improved disease surveillance or faster recall processes.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: $48,154,420

Exercised Options: $48,154,420

Current Obligation: $48,154,420

Actual Outlays: $37,055,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0086U

IDV Type: FSS

Timeline