Palantir Technologies awarded $13.1M contract for database support and integrated care management by HHS

Contract Overview

Contract Amount: $13,185,744 ($13.2M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-08-04

End Date: 2026-08-04

Contract Duration: 365 days

Daily Burn Rate: $36.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATABASE SUPPORT AND INTEGRATED CARE AND CASE MANAGEMENT (ICCM)

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.2 million to PALANTIR TECHNOLOGIES INC. for work described as: DATABASE SUPPORT AND INTEGRATED CARE AND CASE MANAGEMENT (ICCM) Key points: 1. Contract value of $13.1M for a 1-year period suggests a significant investment in data management and care coordination. 2. The award to Palantir Technologies, a company known for its advanced data analytics platforms, indicates a focus on sophisticated software solutions. 3. The contract's duration of one year with a potential for extension warrants monitoring of performance and future funding needs. 4. Firm Fixed Price contract type provides cost certainty for the government, aligning contractor incentives with project delivery. 5. The use of a Blanket Purchase Agreement (BPA) Call indicates a streamlined procurement process for existing government-wide agreements. 6. The specific NAICS code 511210 (Software Publishers) aligns with the nature of the services, focusing on software development and support.

Value Assessment

Rating: good

The contract value of $13.1 million for a one-year duration for database support and integrated care management appears reasonable given the specialized nature of Palantir's technology. Benchmarking against similar large-scale data management and analytics contracts within federal health agencies would provide further context. The firm fixed-price structure helps control costs, but the overall value proposition depends heavily on the successful implementation and adoption of the ICCM system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was a BPA Call implies that the initial competition occurred at the BPA level, and this call represents a specific task order. The number of bidders for this specific call is not provided, but the initial full and open competition at the BPA level generally promotes competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions being considered, ensuring the government receives the best value for its investment.

Public Impact

Beneficiaries include federal health agencies within HHS, aiming to improve the efficiency and effectiveness of care management. Services delivered will focus on robust database support and the implementation or enhancement of an Integrated Care and Case Management (ICCM) system. The geographic impact is primarily national, supporting federal health initiatives across the United States. Workforce implications may include the need for skilled IT professionals to manage and utilize the new or enhanced ICCM system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the ICCM system becomes highly customized to Palantir's platform.
Dependence on a single vendor for critical data management and care coordination functions.
Scalability challenges if the system's requirements grow beyond initial projections.
Data security and privacy risks associated with sensitive health information.
Integration complexities with existing HHS IT infrastructure.

Positive Signals

Palantir's proven track record in handling complex data integration and analytics for government agencies.
The use of a firm fixed-price contract provides cost predictability.
The ICCM system has the potential to significantly improve healthcare delivery and patient outcomes.
Full and open competition at the BPA level suggests a competitive environment for the initial award.
The contract duration allows for a reasonable implementation and stabilization period.

Sector Analysis

The federal IT sector, particularly within healthcare, is characterized by significant spending on software development, data analytics, and system integration. Companies like Palantir Technologies operate in a market segment focused on providing advanced data platforms for complex organizational needs. This contract fits within the broader trend of federal agencies seeking to modernize their IT infrastructure and leverage data for improved decision-making and service delivery. Comparable spending benchmarks for similar large-scale health IT projects can range from tens to hundreds of millions of dollars annually.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, Palantir Technologies, may engage small businesses for subcontracting opportunities related to specialized services or components. The overall impact on the small business ecosystem would depend on the extent to which subcontracting goals are established and met.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Assistant Secretary for Administration (ASA) within HHS, which is the contracting agency. Accountability measures will be tied to the performance metrics defined in the contract statement of work and the firm fixed-price terms. Transparency is generally facilitated through federal procurement databases like FPDS.gov, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Health Information Technology Services
Federal Health Data Analytics
Case Management Software
Department of Health and Human Services IT Modernization

Risk Flags

Potential for vendor lock-in
Data security and privacy risks
Integration complexity with existing systems
Dependence on specialized technology provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.2 million to PALANTIR TECHNOLOGIES INC.. DATABASE SUPPORT AND INTEGRATED CARE AND CASE MANAGEMENT (ICCM)

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 Administration).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2025-08-04. End: 2026-08-04.

What is Palantir Technologies' track record with the Department of Health and Human Services (HHS) and similar federal health agencies?

Palantir Technologies has a history of working with various U.S. federal agencies, including defense and intelligence. While specific details of their past contracts with HHS might require deeper investigation into federal procurement databases, their broader experience includes developing and deploying complex data integration and analysis platforms for government entities. Their work often involves handling sensitive data and providing advanced analytical capabilities. For HHS, their involvement could range from supporting public health initiatives to managing large datasets for healthcare programs. Assessing their performance on previous HHS contracts, if any, would involve reviewing past performance evaluations and contract completion reports to gauge their reliability, technical proficiency, and adherence to timelines and budgets.

How does the $13.1 million contract value compare to similar database support and integrated care management contracts within the federal government?

The $13.1 million contract value for a one-year duration for database support and integrated care management is substantial, reflecting the complexity and scope typically associated with such systems. To benchmark this value, one would compare it to other federal contracts for similar services, particularly those awarded by agencies like the Department of Veterans Affairs (VA) or the Centers for Medicare & Medicaid Services (CMS), which also manage vast amounts of healthcare data and patient information. Contracts for enterprise-level data management platforms, advanced analytics software, and integrated care solutions can range from several million to hundreds of millions of dollars over their lifecycle. The firm fixed-price nature of this award suggests a defined scope, which aids in direct comparison. However, the specific functionalities and scale of the ICCM system will ultimately determine if this price represents excellent, good, or fair value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential vendor lock-in due to Palantir's proprietary technology, challenges in integrating the ICCM system with existing HHS infrastructure, data security and privacy concerns given the sensitive nature of health data, and the risk of cost overruns if the scope expands beyond the initial fixed-price agreement. Mitigation strategies likely involve robust contract management by HHS, clearly defined performance metrics, stringent data security protocols, and phased implementation plans. The firm fixed-price structure itself acts as a cost mitigation tool. Furthermore, the full and open competition process aims to ensure that the chosen solution is technically sound and competitively priced, reducing the risk of selecting an inadequate or overpriced system.

What is the expected program effectiveness and impact of the Integrated Care and Case Management (ICCM) system?

The expected effectiveness of the ICCM system is to significantly enhance the coordination of care and management of patient cases within HHS. This could lead to improved patient outcomes through better-informed clinical decisions, reduced duplication of services, and more efficient resource allocation. For case managers, the system should provide a unified view of patient information, streamlining workflows and enabling more proactive interventions. The impact could be substantial, potentially leading to cost savings through optimized care delivery and a higher quality of service for beneficiaries. Successful implementation hinges on user adoption and the system's ability to accurately capture and analyze critical health data.

How does this contract align with historical spending patterns for database support and health IT within HHS?

This contract aligns with historical spending patterns within HHS, which consistently allocates significant resources to IT modernization, data management, and health information systems. HHS has a long-standing need for robust platforms to manage the vast amounts of data generated by its various programs, including Medicare, Medicaid, and public health initiatives. Spending in areas like electronic health records, data analytics, and care coordination software has been a priority for years. The $13.1 million award for an ICCM system is consistent with the agency's ongoing efforts to improve healthcare delivery through technology. Analyzing historical spending trends for similar IT projects within HHS would reveal a pattern of substantial investment in solutions designed to enhance operational efficiency and patient care.

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: 1

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: $19,778,616

Exercised Options: $13,185,744

Current Obligation: $13,185,744

Actual Outlays: $6,592,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00122A00010

IDV Type: BPA

Timeline