DoD awards $45.9M for Palantir software and support under existing Enterprise Software Initiative BPA

Contract Overview

Contract Amount: $45,908,507 ($45.9M)

Contractor: Palantir Technologies Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2024-06-05

Contract Duration: 156 days

Daily Burn Rate: $294.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BLANKET PURCHASE AGREEMENT (BPA) CALL ORDER FOR PALANTIR LICENSES AND LICENSE SUPPORT SERVICES, ISSUED UNDER DEPARTMENT OF DEFENSE ENTERPRISE SOFTWARE INITIATIVE (ESI) BPA MASTER AGREEMENT N6600119A0044.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.9 million to PALANTIR TECHNOLOGIES INC. for work described as: BLANKET PURCHASE AGREEMENT (BPA) CALL ORDER FOR PALANTIR LICENSES AND LICENSE SUPPORT SERVICES, ISSUED UNDER DEPARTMENT OF DEFENSE ENTERPRISE SOFTWARE INITIATIVE (ESI) BPA MASTER AGREEMENT N6600119A0044. Key points: 1. Contract awarded under a pre-existing Blanket Purchase Agreement (BPA) for software licenses and support. 2. The award represents a significant investment in data analytics capabilities for the Department of the Army. 3. Palantir Technologies Inc. is the sole contractor for this specific BPA call order. 4. The contract duration is approximately 5 months, indicating a focused, short-term need. 5. Pricing is on a Firm Fixed Price basis, providing cost certainty for the government. 6. The contract was competed under Full and Open competition, suggesting a broad initial solicitation. 7. This award falls under the Software Publishers industry NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this specific BPA call order is challenging without detailed service breakdowns and comparison to similar Palantir deployments. The total award amount of $45.9 million for a 5-month period suggests a high per-month expenditure. However, as it's a call order under an existing Enterprise Software Initiative (ESI) BPA, the initial competition and pricing structure were established at the BPA level. The firm fixed-price nature provides cost predictability, but the overall value for money depends on the effective utilization and impact of the Palantir software and support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was issued as a BPA Call Order under a Department of Defense Enterprise Software Initiative (ESI) BPA Master Agreement. The ESI program aims to leverage the government's buying power for software. While the initial BPA was likely competed broadly, this specific call order is placed against that existing agreement. The 'Full and Open Competition' designation suggests that the underlying BPA allowed for multiple vendors to compete, and this specific order was placed in a manner consistent with that competition.

Taxpayer Impact: The full and open competition at the BPA level is intended to ensure competitive pricing and access to a range of software solutions for the government, ultimately benefiting taxpayers by potentially lowering costs and increasing options.

Public Impact

The Department of the Army is the primary beneficiary, gaining access to advanced data analytics capabilities. Services delivered include software licenses and essential license support. The geographic impact is likely concentrated within the Department of the Army's operational areas, potentially worldwide. Workforce implications may include training and integration of personnel with the new software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software platforms.
High cost of enterprise software licenses and support can strain budgets.
Effectiveness is contingent on successful user adoption and integration with existing systems.

Positive Signals

Leverages existing Enterprise Software Initiative (ESI) BPA for streamlined procurement.
Firm Fixed Price contract provides cost certainty.
Awarded under Full and Open competition, indicating initial market vetting.

Sector Analysis

This contract falls within the Software Publishers sector, characterized by companies that develop, publish, and distribute software. The market is highly competitive, with major players offering sophisticated data analytics and enterprise solutions. The Department of Defense is a significant customer for such software, often requiring specialized capabilities for intelligence, logistics, and operational planning. Spending benchmarks for enterprise software licenses and support can vary widely based on the vendor, scope of services, and duration, but multi-million dollar awards are common for large government agencies.

Small Business Impact

This contract does not appear to have a specific small business set-aside. As it is a BPA call order for Palantir software, which is typically associated with larger enterprise solutions, it is unlikely to involve significant subcontracting opportunities for small businesses directly related to the core software provision. However, the Department of the Army's broader contracting activities may include set-asides for other services related to software implementation or support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a BPA call order, it is governed by the terms of the underlying DoD ESI BPA Master Agreement. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Enterprise Software Initiative (ESI)
Palantir Technologies Inc. Contracts
Software Licenses and Support Services
Data Analytics Software Procurement

Risk Flags

Potential for vendor lock-in
High cost of enterprise software
Dependence on proprietary technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to PALANTIR TECHNOLOGIES INC.. BLANKET PURCHASE AGREEMENT (BPA) CALL ORDER FOR PALANTIR LICENSES AND LICENSE SUPPORT SERVICES, ISSUED UNDER DEPARTMENT OF DEFENSE ENTERPRISE SOFTWARE INITIATIVE (ESI) BPA MASTER AGREEMENT N6600119A0044.

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 $45.9 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-06-05.

What is the historical spending by the Department of Defense on Palantir Technologies Inc. software and services?

Historical spending data for the Department of Defense (DoD) on Palantir Technologies Inc. is substantial and spans several years and various contract vehicles. Palantir's platforms, such as Palantir Gotham and Palantir Foundry, are utilized across multiple military branches and intelligence agencies for data integration, analysis, and operational support. While specific aggregate figures can fluctuate based on reporting periods and contract types (e.g., sole-source vs. competed, R&D vs. operational use), publicly available data indicates billions of dollars in contracts awarded to Palantir by the DoD and other federal agencies over the past decade. This particular $45.9 million award is one component of that larger spending trend, placed under an existing ESI BPA.

How does the per-unit cost of this Palantir software license compare to other government or commercial procurements?

Determining a precise per-unit cost comparison for this Palantir BPA call order is difficult without specific details on the number and type of licenses procured, as well as the included support services. Palantir's pricing models are often complex and tailored to specific agency needs. However, enterprise software licenses, especially for advanced data analytics platforms used by large organizations like the DoD, are generally high-value items. The $45.9 million award over approximately 5 months suggests a significant investment per month. Benchmarking would require access to Palantir's standard commercial price lists or data from similar government ESI BPA call orders, which are not readily available in the public domain for direct comparison.

What are the key performance indicators (KPIs) used to measure the success of this Palantir software deployment?

Key Performance Indicators (KPIs) for a Palantir software deployment within the Department of the Army would typically focus on the platform's ability to ingest, integrate, analyze, and disseminate data effectively to support decision-making. Specific KPIs might include data processing speed and volume, the number of actionable insights generated, the reduction in time required for data analysis tasks, user adoption rates, system uptime and reliability, and the successful integration with other critical defense systems. The effectiveness of the software is ultimately measured by its contribution to mission objectives, such as improved situational awareness, enhanced intelligence gathering, or optimized logistical operations.

What is the track record of Palantir Technologies Inc. in delivering similar software solutions to the Department of Defense?

Palantir Technologies Inc. has a well-established and extensive track record of delivering data analytics and software solutions to the Department of Defense and other U.S. federal agencies. The company has been a significant contractor for many years, providing platforms used for intelligence analysis, counter-terrorism, military operations planning, and logistics. While specific contract details and performance reviews are often classified or proprietary, Palantir's continued awards from the DoD, including this BPA call order, suggest a perceived ability to meet the complex and demanding requirements of military and intelligence operations. Their solutions are known for their power in integrating disparate data sources.

What are the potential risks associated with relying on a single vendor like Palantir for critical data analytics capabilities?

Relying on a single vendor like Palantir for critical data analytics capabilities presents several potential risks. Foremost is the risk of vendor lock-in, where the government becomes heavily dependent on Palantir's proprietary technology, making it difficult and costly to switch to alternative solutions in the future. This can reduce negotiating leverage and potentially lead to escalating costs over time. There's also the risk associated with the vendor's financial stability, future product development roadmap, and potential changes in their business strategy. Furthermore, reliance on a single source can limit access to innovative solutions from other market players. Ensuring robust contract management and exploring interoperability options are key mitigation strategies.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QX24R0007

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

Financial Breakdown

Contract Ceiling: $45,908,507

Exercised Options: $45,908,507

Current Obligation: $45,908,507

Actual Outlays: $36,343,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600119A0044

IDV Type: BPA

Timeline