DoD Awards $7.6M for Palantir Software and Parts Under Full and Open Competition
Contract Overview
Contract Amount: $7,675,285 ($7.7M)
Contractor: Affigent, LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-28
End Date: 2026-10-31
Contract Duration: 733 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS PROCUREMENT IS FOR PALANTIR TECHNOLOGIES INC BRAND NAME PARTS: PALANTIR PILOT SOFTWARE SOLUTION (LARGE), PALANTIR SOFTWARE SOLUTION SUSTAINMENT (UNIVERSAL) & PALANTIR MODULE (SMALL).
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.7 million to AFFIGENT, LLC for work described as: THIS PROCUREMENT IS FOR PALANTIR TECHNOLOGIES INC BRAND NAME PARTS: PALANTIR PILOT SOFTWARE SOLUTION (LARGE), PALANTIR SOFTWARE SOLUTION SUSTAINMENT (UNIVERSAL) & PALANTIR MODULE (SMALL). Key points: 1. Procurement focuses on Palantir Technologies Inc. brand name software and parts. 2. The contract is a delivery order with a firm fixed price. 3. Competition was conducted as full and open after exclusion of sources. 4. The Department of the Navy is the issuing agency. 5. This award represents a significant investment in specialized software solutions.
Value Assessment
Rating: fair
The award amount of $7.68M for specialized software and parts appears reasonable given the niche nature of Palantir's offerings. Benchmarking is difficult without specific feature comparisons, but the price seems aligned with high-end software sustainment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while other sources were considered, Palantir's specific offerings were the focus. This method aims for competitive pricing while acknowledging the specialized nature of the product.
Taxpayer Impact: Taxpayer funds are being used for specialized software solutions, with the competition method aiming to ensure value for money despite the proprietary nature of the products.
Public Impact
Ensures continued operation and support for critical Palantir software used by the Department of the Navy. Supports advanced data analytics and operational capabilities for military personnel. Potential for integration with other defense systems, enhancing situational awareness. The use of brand-name parts may limit interoperability with non-Palantir systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on specific vendor (Palantir) for software and parts.
- Potential for vendor lock-in with proprietary software.
- Limited transparency on specific software modules and their exact function.
Positive Signals
- Awarded under full and open competition, suggesting some level of market engagement.
- Firm fixed price contract provides cost certainty for the government.
- Supports critical defense software needs.
Sector Analysis
This procurement falls under 'Other Computer Related Services' (NAICS 541519). Spending in this sector is substantial, driven by the increasing digitization of government operations and the need for advanced software solutions. Benchmarks vary widely based on software complexity and support levels.
Small Business Impact
The data indicates this procurement is for Palantir Technologies Inc. brand name parts and software, suggesting a focus on a specific vendor. There is no explicit mention of small business participation or subcontracting opportunities in the provided data.
Oversight & Accountability
The contract is a delivery order under a larger framework, implying prior oversight. The 'full and open competition after exclusion of sources' suggests a structured approach to market engagement. Further oversight would focus on performance metrics and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Vendor lock-in risk due to proprietary software.
- Potential for high sustainment costs over the contract duration.
- Limited visibility into the specific functionalities and value of each software component.
- Dependence on a single source for critical operational software.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.7 million to AFFIGENT, LLC. THIS PROCUREMENT IS FOR PALANTIR TECHNOLOGIES INC BRAND NAME PARTS: PALANTIR PILOT SOFTWARE SOLUTION (LARGE), PALANTIR SOFTWARE SOLUTION SUSTAINMENT (UNIVERSAL) & PALANTIR MODULE (SMALL).
Who is the contractor on this award?
The obligated recipient is AFFIGENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $7.7 million.
What is the period of performance?
Start: 2024-10-28. End: 2026-10-31.
What is the specific justification for procuring Palantir brand-name parts and software, and were alternative solutions with comparable capabilities evaluated?
The justification for procuring Palantir brand-name items typically stems from unique functionalities, existing infrastructure integration, or specific operational requirements that only Palantir's solutions can meet. While the award states 'full and open competition after exclusion of sources,' it implies that alternatives were considered but potentially excluded based on specific criteria. A deeper dive into the source selection document would clarify the evaluation process and the rationale for excluding other potential vendors or solutions.
How does the per-unit cost of Palantir software sustainment and modules compare to industry benchmarks for similar enterprise-level data analytics platforms?
Benchmarking the per-unit cost for Palantir's specialized software sustainment and modules against general industry standards is challenging due to its unique capabilities and proprietary nature. Palantir solutions often cater to complex, high-stakes environments like defense and intelligence, commanding premium pricing. A more relevant comparison would involve other defense-grade data analytics platforms or similar government contracts for specialized software sustainment, considering factors like user licenses, support levels, and included features.
What are the long-term implications of relying on a single-vendor solution like Palantir for critical software needs, particularly regarding future flexibility and cost?
Long-term reliance on a single-vendor solution like Palantir can lead to vendor lock-in, potentially limiting future flexibility and increasing costs as the government becomes dependent on their proprietary ecosystem. This can make it difficult and expensive to switch to alternative solutions or negotiate favorable terms. However, it can also ensure seamless integration and deep expertise within the existing Palantir environment, which may be critical for certain high-assurance defense applications where interoperability and specialized features are paramount.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nana Regional Corporation, Inc.
Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,257,262
Exercised Options: $7,675,285
Current Obligation: $7,675,285
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC59B
IDV Type: GWAC
Timeline
Start Date: 2024-10-28
Current End Date: 2026-10-31
Potential End Date: 2027-11-01 00:00:00
Last Modified: 2025-12-17
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