Palantir awarded $22.2M for software to support State Department's medical and patient portals

Contract Overview

Contract Amount: $22,190,646 ($22.2M)

Contractor: Palantir USG Inc

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2027-09-29

Contract Duration: 1,094 days

Daily Burn Rate: $20.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BPA CALL FOR THE MED PROVIDER PORTAL (MPP) AND PATIENT PORTAL (P2)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of State obligated $22.2 million to PALANTIR USG INC for work described as: BPA CALL FOR THE MED PROVIDER PORTAL (MPP) AND PATIENT PORTAL (P2) Key points: 1. Contract awarded to Palantir USG Inc. for software development and support. 2. The contract is a BPA Call, indicating it's part of a larger pre-negotiated agreement. 3. The duration of the contract is approximately three years, ending in September 2027. 4. The contract type is Firm Fixed Price, which sets a ceiling on costs. 5. The award was not competed under SAP, suggesting a non-standard procurement process. 6. The primary NAICS code is 511210 (Software Publishers).

Value Assessment

Rating: questionable

Benchmarking the value of this specific BPA Call is challenging without access to the parent BPA's terms and pricing. However, the $22.2 million award for software development and support over three years warrants scrutiny. Given the 'NOT COMPETED UNDER SAP' designation, it raises questions about whether the State Department secured the most competitive pricing. Further analysis would require comparing the per-unit costs and service levels to similar software development contracts within the federal government and the private sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a BPA Call and was 'NOT COMPETED UNDER SAP'. This suggests that the procurement was likely conducted under an existing Blanket Purchase Agreement (BPA), which may have had limited competition at the BPA creation stage. The specific details of how this call was competed, or if it was competed at all, are not provided. A limited competition approach can sometimes lead to higher prices compared to full and open competition.

Taxpayer Impact: The limited competition for this contract means taxpayers may not have benefited from the lowest possible prices that could have been achieved through a broader bidding process.

Public Impact

The Department of State is the primary beneficiary, receiving software services for its medical and patient portals. These portals are critical for managing health information and services for State Department personnel and potentially their dependents. The software is expected to enhance the efficiency and effectiveness of healthcare delivery and information management within the department. The contract supports the operational needs of a federal agency, indirectly impacting the health and well-being of its workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency in the competition process for this BPA Call.
Potential for inflated costs due to limited or no competition.
Uncertainty regarding the specific functionalities and performance metrics of the software being procured.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
The contract is for essential software supporting critical health services.
The vendor, Palantir USG Inc., is a known entity in government contracting for data analytics and software solutions.

Sector Analysis

The software publishing industry (NAICS 511210) is a significant sector within the federal IT landscape. This contract falls under software development and support services, a common area of federal spending. The market for specialized software solutions for government agencies, particularly those dealing with sensitive data like health information, is robust. Comparable spending benchmarks would typically involve analyzing other contracts for similar portal development and maintenance, considering factors like user base size, complexity of features, and data security requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Palantir USG Inc., is a large business. Analysis of subcontracting opportunities would depend on Palantir's own subcontracting plans, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a BPA Call, oversight might also be influenced by the terms and oversight mechanisms of the parent BPA. Transparency is limited by the 'NOT COMPETED UNDER SAP' designation, making it difficult to assess the full extent of oversight and accountability measures without further documentation. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Medical Services
Federal Health IT Contracts
Software Development Services
Blanket Purchase Agreements (BPAs)
Patient Portal Systems

Risk Flags

Limited Competition
Lack of Transparency in Procurement
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.2 million to PALANTIR USG INC. BPA CALL FOR THE MED PROVIDER PORTAL (MPP) AND PATIENT PORTAL (P2)

Who is the contractor on this award?

The obligated recipient is PALANTIR USG INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-09-29.

What is the track record of Palantir USG Inc. in delivering similar software solutions to federal agencies, particularly concerning medical or patient portals?

Palantir USG Inc. has a significant track record with federal agencies, primarily known for its data analytics platforms like Palantir Gotham and Foundry. While they have been involved in various government contracts, including those with defense and intelligence agencies, their specific experience with developing and maintaining dedicated 'medical provider portals' and 'patient portals' for civilian agencies like the Department of State requires closer examination. Their work often involves complex data integration and analysis, which could be relevant to health data management. However, the success and cost-effectiveness of their past projects can vary, and a detailed review of past performance metrics, user satisfaction, and adherence to timelines for similar health-related software projects would be necessary to fully assess their capability for this specific contract.

How does the $22.2 million cost compare to similar software development contracts for federal health portals?

Comparing the $22.2 million cost for this three-year BPA Call requires context regarding the scope and complexity of the Medical Provider Portal (MPP) and Patient Portal (P2) for the Department of State. Without detailed specifications on user numbers, feature sets (e.g., appointment scheduling, record access, telehealth integration), and data security requirements, a direct cost comparison is difficult. However, federal IT contracts for portal development can range widely. Smaller, less complex portals might cost a few million dollars, while comprehensive, large-scale systems for agencies with extensive user bases could run into tens or hundreds of millions over several years. Given this contract was 'NOT COMPETED UNDER SAP,' it raises a flag that the pricing might not be as competitive as it could be under a fully competed scenario. Benchmarking against other State Department IT contracts or similar health IT procurements by agencies like HHS or VA would provide a more informed perspective on value for money.

What are the primary risks associated with a 'NOT COMPETED UNDER SAP' procurement for critical software like the MPP and P2?

A 'NOT COMPETED UNDER SAP' designation, especially when coupled with a limited competition approach like a BPA Call, presents several risks. The most significant risk is the potential for reduced price competition, which can lead to the government paying a premium compared to what might be achieved through a full and open competition. This lack of competition can also reduce the incentive for the contractor to innovate or provide the most cost-effective solutions. Furthermore, without a broad solicitation, there's a risk that alternative, potentially superior, or more cost-effective solutions from other vendors might be overlooked. Transparency is also diminished, making it harder for oversight bodies and the public to ascertain if fair value was obtained. Finally, reliance on a single or limited set of vendors can create vendor lock-in and reduce flexibility in future procurements.

What is the expected effectiveness and performance of the Palantir software in managing sensitive health data for Department of State personnel?

The expected effectiveness and performance of Palantir's software for the Department of State's Medical Provider Portal (MPP) and Patient Portal (P2) hinges on Palantir's ability to tailor its platform to the specific requirements of health data management within a federal agency context. Palantir's core strength lies in data integration, analysis, and visualization, which can be beneficial for managing complex datasets. However, healthcare data is highly sensitive and subject to stringent regulations (like HIPAA, though federal agencies have their own frameworks). Key performance indicators would likely include data security, system uptime, ease of use for both providers and patients, accuracy of information, and efficiency in data retrieval and reporting. The effectiveness will depend on rigorous testing, adherence to security protocols, and user training. Without specific performance metrics outlined in the contract, assessing its ultimate effectiveness remains speculative.

How does this $22.2 million award fit into the historical spending patterns for software and IT services at the Department of State?

This $22.2 million award represents a component of the Department of State's broader spending on IT services and software. The Department, like other large federal agencies, consistently invests significant funds in maintaining and upgrading its technological infrastructure, including software for various operational needs. Awards of this magnitude for specialized software solutions are not uncommon. To understand its place in historical patterns, one would need to analyze the Department's total IT budget, the proportion allocated to software development and maintenance, and the frequency and value of similar contracts awarded over the past several fiscal years. This specific contract's value should be viewed relative to the overall IT spending and the criticality of the MPP and P2 systems to the Department's mission.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19AQMM22R0331

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Palantir Technologies Inc.

Address: 635 WAVERLEY ST, 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: $33,096,642

Exercised Options: $33,096,642

Current Obligation: $22,190,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM22A0249

IDV Type: BPA

Timeline