HHS awards $421M BPA Task Order to Palantir Technologies Inc. for ACF Discover software

Contract Overview

Contract Amount: $4,214,317 ($4.2M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HHS SHARE BPA TASK ORDER FOR ACF DISCOVER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.2 million to PALANTIR TECHNOLOGIES INC. for work described as: HHS SHARE BPA TASK ORDER FOR ACF DISCOVER Key points: 1. Significant contract value of $421.4 million awarded to a single vendor. 2. Palantir Technologies Inc. is a well-known entity in data analytics and AI. 3. Potential risk associated with a large sole-source-like award for a critical system. 4. Software Publishers sector sees substantial investment in data management and analysis tools.

Value Assessment

Rating: questionable

The contract value of $421.4 million is substantial. Benchmarking against similar large-scale software development and data analytics contracts is difficult without more specific scope details. The pricing appears high given the duration, suggesting a need for detailed cost justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a BPA Call, which implies a pre-competed agreement. However, the specific task order was awarded to Palantir Technologies Inc. The impact on price discovery depends on the competitiveness of the underlying BPA and the specific call process.

Taxpayer Impact: Taxpayer funds are being used for this significant software development and data analytics contract. The value suggests a substantial investment, and ensuring cost-effectiveness is crucial for responsible stewardship of public funds.

Public Impact

Enhances the capabilities of the Administration for Children and Families (ACF) through advanced data analytics. Supports critical government functions related to child welfare and family services. Potential for improved data-driven decision-making within HHS. Raises questions about vendor lock-in and long-term cost implications for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value concentrated with one vendor.
Potential for limited competition on task orders.
Lack of transparency on specific deliverables and performance metrics.

Positive Signals

Utilizes a pre-competed BPA vehicle.
Focus on critical government functions.
Awarded to a company with established expertise in data analytics.

Sector Analysis

The Software Publishers sector is characterized by rapid innovation and significant investment in data management, AI, and analytics. This contract aligns with trends in government agencies seeking advanced technological solutions to process and analyze large datasets for improved service delivery.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Palantir Technologies Inc., a large corporation. There is no indication of small business participation in this specific task order.

Oversight & Accountability

Oversight will be critical to ensure Palantir Technologies Inc. delivers on the contract's objectives within budget and on schedule. Regular performance reviews and audits are necessary to ensure accountability and taxpayer value.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Financial Resources Programs

Risk Flags

High contract value.
Single vendor award.
Potential for vendor lock-in.
Lack of detailed scope in provided data.
Complexity of software and data analytics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.2 million to PALANTIR TECHNOLOGIES INC.. HHS SHARE BPA TASK ORDER FOR ACF DISCOVER

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 (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What specific functionalities does the ACF Discover system provide, and how does this contract ensure value for money given the high cost?

The ACF Discover system likely provides advanced data analytics and visualization capabilities for the Administration for Children and Families. Ensuring value for money requires a detailed breakdown of the software's functionalities, the specific problems it solves, and a comparison of its cost against alternative solutions or in-house development, considering long-term operational costs and benefits.

What are the risks associated with awarding a large task order to a single vendor like Palantir, particularly concerning data security and potential vendor lock-in?

Awarding a substantial contract to a single vendor like Palantir carries risks of vendor lock-in, making it difficult and costly to switch providers later. Data security is paramount, requiring stringent contractual clauses and oversight to protect sensitive ACF data. Dependence on proprietary technology could also limit future flexibility and innovation.

How will the effectiveness of the ACF Discover system be measured, and what metrics will be used to assess its impact on ACF's mission?

Effectiveness will be measured through clearly defined Key Performance Indicators (KPIs) tied to ACF's mission objectives. This could include metrics related to improved data analysis turnaround times, enhanced decision-making accuracy, cost savings through process efficiencies, and the successful implementation of new data-driven programs. Regular performance reporting and independent evaluations will be crucial.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $5,167,035

Exercised Options: $4,214,317

Current Obligation: $4,214,317

Actual Outlays: $3,340,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00122A00010

IDV Type: BPA

Timeline