Palantir Technologies awarded $6.27M for Air Force Personnel Center data support, extending to February 2027

Contract Overview

Contract Amount: $6,265,076 ($6.3M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-13

End Date: 2027-02-12

Contract Duration: 729 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REQUIREMENTS SOURCING TOOL (RST) + DATA ONTOLOGY SUSTAINMENT AND MAINTENANCE SUPPORT IN SUPPORT OF AIR FORCE PERSONNEL CENTER (AFPC) FORCE GENERATION OPERATIONS AND READINESS DIVISION (AFPC/DPMW) IAW ATTACHED PERFORMANCE WORK STATEMENT (PWS).

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to PALANTIR TECHNOLOGIES INC. for work described as: REQUIREMENTS SOURCING TOOL (RST) + DATA ONTOLOGY SUSTAINMENT AND MAINTENANCE SUPPORT IN SUPPORT OF AIR FORCE PERSONNEL CENTER (AFPC) FORCE GENERATION OPERATIONS AND READINESS DIVISION (AFPC/DPMW) IAW ATTACHED PERFORMANCE WORK STATEMENT (PWS). Key points: 1. Contract focuses on sustaining and maintaining critical data ontology for Air Force personnel readiness. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm-fixed-price contract type aims to control costs and provide predictable spending. 4. Performance period of approximately two years indicates a medium-term support requirement. 5. The contract supports the Air Force Personnel Center's Force Generation Operations and Readiness Division. 6. Palantir Technologies Inc. is the sole awardee for this specific delivery order.

Value Assessment

Rating: good

The contract value of $6.27 million over two years appears reasonable for specialized software sustainment and data ontology support. Benchmarking against similar contracts for complex data management and software maintenance for large government organizations suggests this pricing is within an expected range. The firm-fixed-price structure provides cost certainty for the government, mitigating risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the open competition is a positive sign for price discovery and potentially achieving a competitive price. This approach allows the government to solicit proposals from a wide range of qualified vendors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for the services rendered.

Public Impact

The primary beneficiaries are the Air Force Personnel Center and its Force Generation Operations and Readiness Division, who will receive sustained data support. Services delivered include the maintenance and sustainment of a critical data ontology, essential for personnel readiness tracking. The geographic impact is primarily within the Air Force's operational command structure, supporting readiness across various units. Workforce implications may involve specialized IT and data management professionals employed by Palantir Technologies Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the data ontology becomes highly proprietary and difficult to transition.
Reliance on a single vendor for critical data infrastructure could pose risks if the vendor faces operational challenges.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting a competitive process.
Supports a critical function for Air Force personnel readiness.

Sector Analysis

This contract falls within the Software Publishers industry, specifically supporting government IT infrastructure and data management. The market for specialized data ontology and sustainment services is competitive, with several large and niche players. The value of this contract is modest within the broader context of federal IT spending, but significant for the specific support function it provides to the Air Force Personnel Center.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific delivery order, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Further analysis would be needed to determine if subcontracting opportunities exist or are mandated through the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Air Force. Performance monitoring against the PWS and delivery schedule would be key accountability measures. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Air Force Personnel Management Systems
Defense Readiness Reporting Systems
DoD Data Strategy Initiatives
Air Force IT Modernization Programs

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical data infrastructure
Cybersecurity risks associated with sensitive data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to PALANTIR TECHNOLOGIES INC.. REQUIREMENTS SOURCING TOOL (RST) + DATA ONTOLOGY SUSTAINMENT AND MAINTENANCE SUPPORT IN SUPPORT OF AIR FORCE PERSONNEL CENTER (AFPC) FORCE GENERATION OPERATIONS AND READINESS DIVISION (AFPC/DPMW) IAW ATTACHED PERFORMANCE WORK STATEMENT (PWS).

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2025-02-13. End: 2027-02-12.

What is Palantir Technologies Inc.'s track record with similar Air Force or DoD data sustainment contracts?

Palantir Technologies Inc. has a significant history of contracts with the Department of Defense, including the Air Force, often involving complex data integration, analytics, and software sustainment. They are known for their work on platforms like Gotham and Foundry, which are designed to manage and analyze large, disparate datasets. While specific details of past performance on similar sustainment contracts for the Air Force Personnel Center are not provided in this data snippet, their broader experience suggests a capability to handle such requirements. Past performance evaluations, often found in more detailed contract files or agency reports, would offer a clearer picture of their success in meeting technical requirements, delivery schedules, and cost targets on previous engagements.

How does the $6.27 million value compare to other federal contracts for data ontology sustainment?

The $6.27 million value for approximately two years of support for data ontology sustainment is within a reasonable range for specialized IT services supporting a major federal agency like the Air Force. Contracts for similar services, especially those involving complex data architectures, security requirements, and integration with existing systems, can range from hundreds of thousands to tens of millions of dollars annually, depending on the scope and criticality. Given that this is a delivery order under a larger contract vehicle (implied by 'delivery order'), its value should be assessed in context. However, for a dedicated sustainment and maintenance effort for a specific division's data ontology, this figure suggests a focused, albeit important, requirement rather than a massive enterprise-wide overhaul.

What are the primary risks associated with this contract for the Air Force?

The primary risks associated with this contract include potential vendor lock-in, where the Air Force becomes heavily reliant on Palantir's proprietary technology and expertise, making future transitions difficult or costly. There's also a risk related to the continuity of operations if Palantir faces financial instability or strategic shifts. Performance risk is another factor; ensuring the contractor consistently meets the demanding requirements of data ontology sustainment and maintenance is crucial for Air Force readiness operations. Finally, cybersecurity risks are inherent in any contract involving sensitive government data, requiring robust security protocols and continuous monitoring.

How effective is the 'full and open competition' approach for ensuring value in specialized software sustainment contracts?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including specialized software sustainment. It maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For specialized areas like data ontology sustainment, this approach allows the government to identify vendors with the most suitable technical capabilities and competitive pricing. However, the effectiveness is contingent on the clarity of the solicitation (PWS), the evaluation criteria, and the government's ability to adequately assess complex technical proposals. In some highly niche markets, the number of truly capable competitors might be limited, potentially reducing the competitive pressure.

What are the historical spending patterns for data ontology sustainment within the Air Force Personnel Center?

Historical spending patterns for data ontology sustainment within the Air Force Personnel Center (AFPC) are not detailed in the provided data. However, the recurring need for sustainment and maintenance suggests that this is an ongoing operational requirement. Agencies typically budget for such services annually, often through multi-year contracts or task orders against indefinite-delivery/indefinite-quantity (IDIQ) vehicles. The value of this specific $6.27 million delivery order, spanning two years, can be seen as a snapshot of current spending. To understand historical patterns, one would need to examine prior contract awards for similar services to AFPC/DPMW or related AFPC functions over several fiscal years.

What are the implications of the firm-fixed-price (FFP) contract type for this data sustainment effort?

The firm-fixed-price (FFP) contract type is generally advantageous for the government in situations where the scope of work is well-defined and risks of cost overruns are manageable. For data ontology sustainment and maintenance, an FFP contract provides cost certainty, meaning the contractor assumes most of the financial risk. This structure incentivizes the contractor to perform efficiently and control their costs, as any overruns come out of their profit margin. It simplifies financial management for the government, as the total price is fixed. However, if unforeseen technical challenges arise that significantly alter the scope, contract modifications might be necessary, potentially impacting the initial cost certainty.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: $16,358,864

Exercised Options: $6,265,076

Current Obligation: $6,265,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA24D004L

IDV Type: FSS

Timeline