DHS Awards $39.3M to Palantir for Falcon O&M and System Enhancement

Contract Overview

Contract Amount: $39,340,901 ($39.3M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-05-28

End Date: 2018-05-27

Contract Duration: 1,095 days

Daily Burn Rate: $35.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FALCON OPERATIONS AND MAINTENANCE (O&M), SYSTEM ENHANCEMENT SUPPORT SERVICES FOR PALANTIR GOVERNMENT

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94301

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.3 million to PALANTIR TECHNOLOGIES INC. for work described as: IGF::OT::IGF FALCON OPERATIONS AND MAINTENANCE (O&M), SYSTEM ENHANCEMENT SUPPORT SERVICES FOR PALANTIR GOVERNMENT Key points: 1. Palantir Technologies Inc. secured a $39.3 million contract for critical system support. 2. The contract was awarded on a 'not competed' basis, raising questions about price discovery. 3. This spending falls within the Software Publishers NAICS code, indicating a focus on data analytics and software services. 4. The contract duration of 1095 days suggests a long-term need for these specialized services.

Value Assessment

Rating: questionable

The contract value of $39.3 million for three years of support is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized software support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for these essential software services.

Public Impact

Supports critical operations for U.S. Immigration and Customs Enforcement (ICE). Enhances system capabilities for data analysis and operational support. Potential for increased efficiency in immigration and customs enforcement activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award

Positive Signals

Supports critical government functions
Long-term contract indicates sustained need

Sector Analysis

This contract falls under the Software Publishers sector, specifically for data analytics and system enhancement services. Benchmarks for similar specialized software support contracts are difficult to establish without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large, established technology firm.

Oversight & Accountability

Oversight of this contract will be crucial, especially given the lack of competition. ICE and DHS should ensure performance metrics are met and that the pricing remains justifiable throughout the contract term.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Non-competitive award
Potential for cost overruns
Lack of transparency in pricing
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.3 million to PALANTIR TECHNOLOGIES INC.. IGF::OT::IGF FALCON OPERATIONS AND MAINTENANCE (O&M), SYSTEM ENHANCEMENT SUPPORT SERVICES FOR PALANTIR GOVERNMENT

Who is the contractor on this award?

The obligated recipient is PALANTIR TECHNOLOGIES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $39.3 million.

What is the period of performance?

Start: 2015-05-28. End: 2018-05-27.

What is the justification for awarding this contract on a non-competitive basis?

The justification for a non-competitive award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. For Palantir, this often relates to their specialized data analytics platforms and the deep integration required for specific government operations like those at ICE.

What are the risks associated with a sole-source contract for critical software support?

The primary risks include inflated pricing due to the absence of market competition, potential vendor lock-in, and reduced incentive for the vendor to innovate or improve service quality. There's also a risk that alternative, potentially more cost-effective solutions might be overlooked.

How does this contract contribute to the overall effectiveness of ICE operations?

This contract directly supports the operational and system enhancement needs of ICE, likely involving data analysis, case management, or intelligence gathering. Effective execution of this contract should lead to improved efficiency, better decision-making, and enhanced capabilities in fulfilling ICE's mission.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSCETC-15-Q-00010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 HAMILTON AVE STE 300, PALO ALTO, CA, 94301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,340,901

Exercised Options: $39,340,901

Current Obligation: $39,340,901

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline