Palantir Technologies Awarded $91M for SAFER Project Execution Task Order by Department of Energy
Contract Overview
Contract Amount: $90,967,789 ($91.0M)
Contractor: Palantir Technologies Inc.
Awarding Agency: Department of Energy
Start Date: 2021-04-01
End Date: 2026-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SAFER (SAFETY ANALYTICS, FORECASTING & EVALUATION REPORTING) PROJECT EXECUTION TASK ORDER SUPPORTING NA-50
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $91.0 million to PALANTIR TECHNOLOGIES INC. for work described as: SAFER (SAFETY ANALYTICS, FORECASTING & EVALUATION REPORTING) PROJECT EXECUTION TASK ORDER SUPPORTING NA-50 Key points: 1. Contract value of $90.97 million over a 5-year period suggests a significant investment in software and analytics capabilities. 2. The contract was awarded using full and open competition, indicating a broad market solicitation. 3. The fixed-price contract type aims to control costs, but performance monitoring is crucial for value realization. 4. The duration of 1825 days (5 years) allows for sustained support and development. 5. The primary NAICS code (511210 - Software Publishers) aligns with the nature of the services provided. 6. The contract's focus on 'SAFER' (Safety Analytics, Forecasting & Evaluation Reporting) points to critical safety and risk management applications.
Value Assessment
Rating: good
The contract value of approximately $91 million over five years for software publishing and execution task order support appears reasonable given the scope of safety analytics and forecasting. Benchmarking against similar large-scale software development and data analytics contracts would provide further context. The firm fixed-price structure suggests an expectation of cost control by the Department of Energy. However, without specific details on deliverables and performance metrics, a definitive value-for-money assessment is challenging.
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 Palantir Technologies Inc. was selected indicates they offered the most advantageous proposal based on the evaluation criteria. The level of competition, while broad, does not inherently guarantee the lowest price, but it does provide a basis for price discovery and ensures a wide range of potential solutions were considered.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open solicitation process. This approach aims to ensure that the government receives the best value by considering offers from the entire market, rather than being limited to a select few vendors.
Public Impact
The Department of Energy benefits from enhanced safety analytics, forecasting, and evaluation reporting capabilities. This contract supports critical functions related to safety and risk management within the agency. The services delivered are expected to improve decision-making processes related to operational safety. The contract's impact is primarily within the federal government, specifically the Department of Energy, with potential downstream effects on public safety. Workforce implications may include the need for specialized data scientists, analysts, and software engineers to support the SAFER project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized platforms.
- Ensuring data security and privacy given the sensitive nature of safety data.
- Scalability of the solution to meet evolving agency needs.
- Integration challenges with existing agency IT infrastructure.
- Reliance on a single vendor for critical safety analytics functions.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Firm fixed-price contract type can provide cost certainty.
- Long-term contract duration allows for sustained development and support.
- Focus on safety analytics addresses a critical government function.
- Palantir Technologies has a track record in data analytics and intelligence platforms.
Sector Analysis
The software publishing industry is a large and dynamic sector. This contract falls within the enterprise software and data analytics sub-sector, which is characterized by significant investment in research and development and a focus on providing specialized solutions for government and commercial clients. The Department of Energy's spending on such services is crucial for maintaining operational integrity and safety across its diverse facilities. Comparable spending benchmarks would involve analyzing other large federal contracts for data analytics, predictive modeling, and safety management software.
Small Business Impact
This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Palantir Technologies Inc., is responsible for managing subcontracting opportunities. It is unclear from the provided data whether small businesses will be significantly involved in fulfilling the requirements of this task order. The impact on the small business ecosystem will depend on Palantir's subcontracting strategy and the specific needs of the SAFER project.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including deliverables, milestones, and quality standards. Transparency is facilitated through contract award announcements and public contract databases. The Inspector General for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Energy IT Modernization Initiatives
- Federal Data Analytics Programs
- National Security Software Contracts
- Safety Management Systems
- Predictive Analytics for Government Operations
Risk Flags
- Potential for vendor lock-in
- Data security and privacy concerns
- Performance and scalability risks
- Integration with existing systems
Tags
department-of-energy, software-publishing, data-analytics, safety-management, firm-fixed-price, full-and-open-competition, task-order, federal-contract, palantir-technologies, district-of-columbia, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $91.0 million to PALANTIR TECHNOLOGIES INC.. SAFER (SAFETY ANALYTICS, FORECASTING & EVALUATION REPORTING) PROJECT EXECUTION TASK ORDER SUPPORTING NA-50
Who is the contractor on this award?
The obligated recipient is PALANTIR TECHNOLOGIES INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $91.0 million.
What is the period of performance?
Start: 2021-04-01. End: 2026-03-31.
What is Palantir Technologies Inc.'s track record with the Department of Energy and similar federal agencies for data analytics and safety-related projects?
Palantir Technologies Inc. has a significant history of working with various U.S. federal agencies, including the Department of Defense, intelligence agencies, and the Department of Health and Human Services, on complex data integration, analysis, and software platform development. Their work often involves handling large, sensitive datasets for applications ranging from national security to public health. While specific project details with the Department of Energy prior to this award are not detailed here, their broader federal experience suggests a capacity to manage large-scale, critical projects. Their platforms are known for their ability to fuse data from disparate sources and provide analytical insights, which aligns with the stated goals of the SAFER project. However, the scale and specific nature of their prior work with DOE would be a key factor in assessing their suitability and performance risk for this particular contract.
How does the $91 million contract value compare to similar federal contracts for safety analytics and forecasting software?
The $91 million contract value over five years for the SAFER project execution task order is substantial, reflecting the complexity and duration of the services. To benchmark this value, one would compare it to other large federal contracts awarded for enterprise-level data analytics platforms, predictive modeling software, and specialized safety management systems. For instance, contracts for similar capabilities within agencies like the Department of Defense or NASA, which also deal with high-risk environments, could serve as comparators. The average annual value of approximately $18.2 million needs to be assessed against the scope of work, including software development, implementation, training, and ongoing support. Without detailed statements of work for comparable contracts, it's difficult to definitively state if this represents a premium or a standard rate, but the firm fixed-price nature suggests an effort to contain costs within this budget.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks associated with this contract include potential cost overruns if the fixed-price structure is not adequately managed against scope creep, performance issues if the software does not meet the demanding requirements of safety analytics and forecasting, and potential vendor lock-in due to the specialized nature of Palantir's platforms. Data security and privacy are also significant risks, given the sensitive nature of safety data. Mitigation strategies likely involve robust contract oversight by the Department of Energy, clearly defined performance metrics and deliverables, regular progress reviews, and stringent data security protocols. The firm fixed-price contract itself is a risk mitigation tool for the government, shifting some financial risk to the contractor. However, the success of these mitigation efforts hinges on effective program management and contractor performance.
How effective is the SAFER project expected to be in improving safety outcomes within the Department of Energy?
The expected effectiveness of the SAFER project hinges on its ability to accurately forecast potential safety risks, provide actionable insights for preventative measures, and improve the evaluation of existing safety protocols. If the platform successfully integrates diverse data sources (e.g., incident reports, operational data, environmental factors) and employs sophisticated analytical models, it could significantly enhance the Department of Energy's proactive safety management capabilities. This could lead to a reduction in accidents, improved resource allocation for safety initiatives, and better compliance with regulatory standards. The ultimate effectiveness will be measured by key performance indicators related to incident reduction rates, improved forecasting accuracy, and the demonstrable impact of data-driven safety decisions.
What are the historical spending patterns of the Department of Energy on similar software and data analytics services?
The Department of Energy, like many large federal agencies, has historically invested significantly in information technology, data management, and analytical capabilities to support its complex mission, which includes managing nuclear facilities, energy research, and environmental cleanup. Spending on software licenses, development, and related services is a consistent part of their budget. Analyzing historical spending patterns would involve examining contract awards for IT services, software development, data warehousing, and business intelligence tools over the past several fiscal years. This would reveal trends in technology adoption, vendor relationships, and the overall investment in data-driven decision-making. The SAFER project represents a specific, albeit substantial, allocation within this broader IT and analytics spending framework.
What are the implications of using a firm fixed-price contract for a project of this nature?
A firm fixed-price (FFP) contract is generally preferred by the government when the scope of work is well-defined and the risks are manageable. For the SAFER project, an FFP contract provides cost certainty for the Department of Energy, meaning the contractor, Palantir Technologies Inc., is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This shifts the risk of cost overruns to the contractor. However, for complex software development and analytics projects, there's a risk that the FFP structure could incentivize the contractor to cut corners on quality or scope if unforeseen challenges arise, or conversely, lead to disputes if the government perceives scope creep. Effective management and clear communication are crucial to ensure the FFP contract delivers value without compromising performance or innovation.
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
Solicitation ID: 89233121FNA400352
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: $90,967,789
Exercised Options: $90,967,789
Current Obligation: $90,967,789
Actual Outlays: $84,266,277
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0086U
IDV Type: FSS
Timeline
Start Date: 2021-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-04-01 00:00:00
Last Modified: 2025-06-11
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