DoD awards $16.4M for IFAP software to Palantir Technologies Inc. under full and open competition
Contract Overview
Contract Amount: $16,374,794 ($16.4M)
Contractor: Palantir Technologies Inc.
Awarding Agency: Department of Defense
Start Date: 2010-12-21
End Date: 2013-12-09
Contract Duration: 1,084 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IFAP
Place of Performance
Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94301
Plain-Language Summary
Department of Defense obligated $16.4 million to PALANTIR TECHNOLOGIES INC. for work described as: IFAP Key points: 1. Palantir Technologies Inc. secured a significant contract valued at over $16 million. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The primary risk appears to be the concentration of award to a single vendor. 4. The sector is Software Publishers, indicating a focus on digital solutions.
Value Assessment
Rating: good
The contract value of $16.4 million for IFAP software appears reasonable given the duration of over 1000 days. Benchmarking against similar software development contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within this competition are not detailed.
Taxpayer Impact: The competitive award process is designed to maximize taxpayer value by ensuring fair pricing for the software services provided.
Public Impact
Citizens benefit from advanced software solutions potentially enhancing defense capabilities. The use of competitive bidding aims to ensure taxpayer funds are used efficiently. Transparency in government contracting allows for public scrutiny of spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor Lock-in Potential
- Scope Creep Risk
- Data Security Concerns
Positive Signals
- Competitive Pricing Achieved
- Clear Contract Duration
- Use of Firm Fixed Price
Sector Analysis
The Software Publishers sector is critical for modern defense operations, providing essential tools for data analysis and command. Spending benchmarks vary widely based on software complexity and vendor.
Small Business Impact
This contract does not appear to have specific set-asides for small businesses, indicating a focus on large, established vendors capable of fulfilling complex software requirements.
Oversight & Accountability
The award was made via a delivery order under a larger contract, suggesting existing oversight mechanisms. Further review of the parent contract and delivery order specifics is recommended for full accountability.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on a single supplier
- Data security and privacy concerns
- Long-term sustainment costs
Tags
software-publishers, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to PALANTIR TECHNOLOGIES INC.. IFAP
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 Army).
What is the total obligated amount?
The obligated amount is $16.4 million.
What is the period of performance?
Start: 2010-12-21. End: 2013-12-09.
What specific capabilities does the IFAP software provide, and how do they align with current defense needs?
The IFAP software likely provides critical data analysis, intelligence processing, or operational support capabilities for the Department of the Army. Its alignment with defense needs would depend on the specific functionalities, such as threat assessment, logistics management, or battlefield visualization, which are crucial for maintaining operational superiority and informed decision-making in complex environments.
What are the potential risks associated with relying on a single vendor, Palantir Technologies Inc., for this critical software?
Relying on a single vendor like Palantir can lead to vendor lock-in, making future transitions difficult and potentially more expensive. It also concentrates risk; if Palantir faces financial instability, technical issues, or changes its business strategy, the government's access to and support for the IFAP software could be jeopardized, impacting critical defense operations.
How effectively does the firm fixed price contract structure ensure value for money over the contract's duration?
A firm fixed price contract is generally effective in controlling costs as the contractor assumes the risk of cost overruns. For value for money, it depends on the initial pricing accuracy and the contractor's efficiency. If the initial price was well-negotiated and the scope clearly defined, it ensures predictable spending. However, if the scope changes or unforeseen complexities arise, the government might not achieve optimal value without contract modifications.
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: W911QX11T0021
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1530 PAGE MILL RD, PALO ALTO, CA, 94304
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $18,552,794
Exercised Options: $16,374,794
Current Obligation: $16,374,794
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0086U
IDV Type: FSS
Timeline
Start Date: 2010-12-21
Current End Date: 2013-12-09
Potential End Date: 2013-12-09 00:00:00
Last Modified: 2022-04-13
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