DoD's DCSA Awards Palantir $14.1M for DCIAS Cloud Sustainment

Contract Overview

Contract Amount: $14,099,137 ($14.1M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-09

End Date: 2026-03-08

Contract Duration: 545 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEFENSE COUNTERINTELLIGENCE AND SECURITY AGENCY (DCSA) COUNTERINTELLIGENCE ANALYTICAL SYSTEM (DCIAS) CLOUD SUSTAINMENT

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to PALANTIR TECHNOLOGIES INC. for work described as: DEFENSE COUNTERINTELLIGENCE AND SECURITY AGENCY (DCSA) COUNTERINTELLIGENCE ANALYTICAL SYSTEM (DCIAS) CLOUD SUSTAINMENT Key points: 1. Palantir Technologies Inc. secured a $14.1M contract for cloud sustainment of the DCIAS. 2. The contract is a delivery order under an existing contract, indicating a specific need. 3. The award is for a firm-fixed-price contract, providing cost certainty for the government. 4. The Software Publishers sector (NAICS 513210) is highly competitive, but specific capabilities may limit options.

Value Assessment

Rating: good

The $14.1M award for cloud sustainment appears reasonable given the specialized nature of intelligence systems. Benchmarking against similar complex software sustainment contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, it implies a pre-existing contract vehicle was utilized, which may have had its own competition.

Taxpayer Impact: The firm-fixed-price contract aims to control costs, but the total value of $14.1M represents taxpayer funds allocated to national security software sustainment.

Public Impact

Enhances national security by ensuring the operational readiness of critical counterintelligence analytical systems. Supports the Department of Defense's mission in safeguarding sensitive information and personnel. The sustainment of advanced analytical tools is crucial for effective threat detection and response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software sustainment.
Reliance on a single vendor for critical system maintenance.
Ensuring long-term cost-effectiveness of cloud sustainment.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded under full and open competition, suggesting market research was conducted.
Supports a critical national security function.

Sector Analysis

This contract falls within the IT sector, specifically software publishing and cloud services. Spending in this area is substantial across the federal government, with significant investment in secure and advanced analytical platforms for defense and intelligence agencies.

Small Business Impact

The data indicates this contract was not awarded to a small business. While large prime contractors often utilize small business subcontractors, this specific award does not highlight direct small business participation.

Oversight & Accountability

The award is a delivery order under an existing contract, suggesting prior oversight. Continued oversight will be necessary to ensure performance, cost control, and adherence to security protocols for the DCIAS.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Counterintelligence and Security Agency Programs

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical system
Ensuring long-term cost-effectiveness
Data security and access controls

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to PALANTIR TECHNOLOGIES INC.. DEFENSE COUNTERINTELLIGENCE AND SECURITY AGENCY (DCSA) COUNTERINTELLIGENCE ANALYTICAL SYSTEM (DCIAS) CLOUD SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2024-09-09. End: 2026-03-08.

What is the specific scope of 'cloud sustainment' for the DCIAS, and how does it compare to industry standards?

Cloud sustainment for the DCIAS likely encompasses maintaining the operational integrity, security, and performance of the analytical system hosted in a cloud environment. This includes software updates, patching, performance monitoring, incident response, and potentially infrastructure management. Industry standards vary, but key aspects involve ensuring uptime, data security compliance (e.g., FedRAMP), and efficient resource utilization. A detailed scope would clarify the specific services provided by Palantir.

What are the key risks associated with relying on Palantir for sustainment of a sensitive counterintelligence system?

Key risks include potential vendor lock-in due to the specialized nature of Palantir's platform, making future transitions difficult or costly. There's also a risk related to data security and access, given the sensitive nature of counterintelligence data. Ensuring continuous availability and performance is critical, and any disruption could impact national security operations. Furthermore, long-term cost management needs careful monitoring as sustainment costs can escalate over time.

How effectively does this contract contribute to the DCSA's overall mission of counterintelligence and security?

This contract is crucial for the DCSA's mission as it ensures the operational readiness and effectiveness of the DCIAS, a vital tool for analyzing counterintelligence threats. By maintaining the cloud infrastructure and software, the contract directly supports the agency's ability to process and act upon intelligence. Effective sustainment prevents system degradation or failure, thereby enabling timely decision-making and safeguarding national security interests.

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: $24,891,748

Exercised Options: $14,099,137

Current Obligation: $14,099,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA24D004L

IDV Type: FSS

Timeline