Palantir Technologies Inc. awarded $35.75M for annual support and maintenance of IGF software by the Department of the Navy

Contract Overview

Contract Amount: $35,750,000 ($35.8M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2020-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANNUAL SUPPORT AND MAINTENANCE IGF::OT::IGF

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to PALANTIR TECHNOLOGIES INC. for work described as: ANNUAL SUPPORT AND MAINTENANCE IGF::OT::IGF Key points: 1. The contract value represents a significant investment in maintaining critical software infrastructure. 2. Competition dynamics for this contract were full and open, suggesting a potentially competitive bidding process. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. The contract duration of three years (1095 days) indicates a medium-term commitment for software support. 5. The software publishers NAICS code suggests a focus on commercial off-the-shelf or licensed software solutions. 6. The award was made under a BPA Call, indicating it was part of a pre-negotiated agreement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the IGF software's functionality and user base. However, the annual cost of approximately $11.9 million for software support and maintenance appears substantial. Comparing this to industry averages for similar enterprise software support contracts would be necessary for a more precise value assessment. The firm-fixed-price nature provides cost certainty, but the overall value depends on the criticality and performance of the supported software.

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 specific number of bidders is not provided, but the open competition suggests a healthy market for the software support services. This approach is generally favored to ensure the government receives the best possible pricing and terms through market forces.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the value of federal dollars.

Public Impact

The Department of the Navy benefits from continued operational support for its IGF software. This contract ensures the availability and functionality of critical software used by naval personnel. The geographic impact is likely concentrated where the IGF software is deployed within the Navy's infrastructure, primarily in California based on the award location. Workforce implications may include IT support personnel and potentially specialized roles for maintaining the IGF system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the support provided.
The total contract value of $35.75M over three years warrants scrutiny to ensure it aligns with actual support needs.
Without details on the IGF software's criticality, it's hard to gauge the risk associated with potential support disruptions.

Positive Signals

The contract was awarded through full and open competition, indicating a robust bidding process.
The firm-fixed-price contract type provides cost predictability for the government.
The award was made under a BPA Call, suggesting a streamlined procurement process within an existing framework.

Sector Analysis

The Information Technology sector, specifically software publishers and support services, is a significant area of federal spending. This contract falls within the broader category of IT services, which includes maintenance, support, and licensing for various software applications critical to government operations. The market for enterprise software support is competitive, with many vendors offering specialized services. Federal spending in this area is driven by the need to maintain legacy systems and adopt new technologies to support diverse agency missions.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of enterprise software support, it is possible that larger, specialized firms are the primary providers. Subcontracting opportunities for small businesses may exist if Palantir Technologies Inc. utilizes them for specific support functions, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring Palantir Technologies Inc. to deliver specified support services. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Software Maintenance Contracts
Enterprise Resource Planning (ERP) Support
Information Technology Infrastructure Support
Naval Software Systems

Risk Flags

Vendor Lock-in Risk
Potential for Price Escalation
Dependence on Single Vendor Performance
Alignment with Modernization Goals

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to PALANTIR TECHNOLOGIES INC.. ANNUAL SUPPORT AND MAINTENANCE IGF::OT::IGF

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 Navy).

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2017-09-28. End: 2020-09-27.

What is the specific function and criticality of the IGF software being supported under this contract?

The provided data does not specify the exact function or criticality of the 'Information Governance Framework' (IGF) software. However, given it is supported by the Department of the Navy and awarded a contract of this value, it is likely a mission-critical system. Such systems often manage vast amounts of data, ensure regulatory compliance, or support core operational processes for naval forces. Without further details, its precise role remains speculative, but its importance can be inferred from the investment in its ongoing support and maintenance.

How does the annual cost of $11.9 million compare to industry benchmarks for similar enterprise software support contracts?

Directly comparing the $11.9 million annual cost to industry benchmarks is difficult without knowing the specific IGF software, its complexity, the number of users, and the scope of support (e.g., 24/7 support, specific service level agreements). Generally, enterprise software support can range from 15-25% of the initial software license cost annually. If the IGF software had a substantial upfront cost, this annual maintenance fee might be within a typical range. However, for a three-year contract totaling $35.75 million, a detailed cost-benefit analysis and comparison with similar government or commercial contracts would be essential to validate its value for money.

What was the competitive landscape like for this 'BPA CALL' award, and how many bids were received?

The contract was awarded under 'FULL AND OPEN COMPETITION' via a 'BPA CALL'. A Blanket Purchase Agreement (BPA) is a simplified way to fill anticipated repetitive needs for supplies or services. A 'BPA CALL' signifies an order placed against an existing BPA. While 'full and open competition' indicates that all responsible sources were allowed to compete for the underlying BPA, the specific competition for this particular call order is not detailed. The number of bids received for this specific call order is not provided in the data, making it impossible to assess the intensity of competition for this particular task.

What is Palantir Technologies Inc.'s track record with the Department of Defense and similar software support contracts?

Palantir Technologies Inc. is known for its work with government agencies, particularly in data analytics and software platforms, including significant contracts with the Department of Defense. Their track record often involves complex data integration and analysis solutions. While this specific contract is for 'annual support and maintenance,' Palantir's broader engagement with the DoD suggests they possess the technical capabilities and security clearances necessary for such work. However, a detailed review of their past performance on similar maintenance contracts, including customer satisfaction and adherence to schedules and budgets, would be needed for a comprehensive assessment.

What are the potential risks associated with relying on a single vendor, Palantir Technologies Inc., for the support and maintenance of critical IGF software?

Relying on a single vendor like Palantir Technologies Inc. for critical software support introduces several risks. These include vendor lock-in, where switching providers becomes difficult and costly. There's also the risk of price increases upon contract renewal, as competitive pressure might be reduced. Furthermore, the government's operational continuity could be jeopardized if the vendor faces financial difficulties, undergoes significant restructuring, or experiences internal issues affecting service delivery. Dependence on one vendor can also limit the adoption of potentially superior or more cost-effective solutions from other providers.

How does this contract align with the Department of the Navy's broader IT modernization and software strategy?

This contract for annual support and maintenance of IGF software suggests a continued reliance on existing systems, which may or may not align with aggressive IT modernization strategies. While maintaining current systems is crucial for operational stability, significant investment in legacy system support can sometimes divert resources from adopting newer, cloud-native, or more agile technologies. The Navy's strategy likely involves a balance between maintaining essential current capabilities and investing in future-proof solutions. Understanding the IGF software's role in the Navy's overall digital architecture would clarify how this maintenance contract fits into the larger modernization picture.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523617R0300

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1530 PAGE MILL RD, PALO ALTO, CA, 94304

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

Financial Breakdown

Contract Ceiling: $35,750,000

Exercised Options: $35,750,000

Current Obligation: $35,750,000

Parent Contract

Parent Award PIID: N0010413AZF34

IDV Type: BPA

Timeline