HHS awards $998K for Palantir COVID-19 data access, raising questions on competition and value

Contract Overview

Contract Amount: $9,982,560 ($10.0M)

Contractor: I3 Federal LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-21

End Date: 2022-04-20

Contract Duration: 364 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HEALTH AND HUMAN SERVICES ? OFFICE OF THE CHIEF INFORMATION OFFICER (HHS-OCIO) COVID-19 PALANTIR HHS CARES LICENSE ACCESS TO SECURE DATA ECOSYSTEM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.0 million to I3 FEDERAL LLC for work described as: HEALTH AND HUMAN SERVICES ? OFFICE OF THE CHIEF INFORMATION OFFICER (HHS-OCIO) COVID-19 PALANTIR HHS CARES LICENSE ACCESS TO SECURE DATA ECOSYSTEM. Key points: 1. Contract awarded for secure data ecosystem access via Palantir's platform. 2. Competition method involved exclusion of sources, potentially impacting price discovery. 3. Risk of high per-unit cost due to limited competition. 4. Sector: IT/Healthcare, with significant CARES Act funding.

Value Assessment

Rating: questionable

The contract value of $998,256 for a 364-day period is difficult to benchmark without specific usage metrics. Given Palantir's typical pricing models and the limited competition, the value proposition warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a non-standard competitive process. This method may limit price discovery and potentially lead to higher costs compared to a truly open competition.

Taxpayer Impact: Taxpayer funds are being used for critical data access, but the efficiency and cost-effectiveness are uncertain due to the limited competitive environment.

Public Impact

Enables secure access to sensitive COVID-19 data for HHS. Supports critical public health initiatives funded by the CARES Act. Potential for data analytics to inform policy and response efforts. Raises concerns about the long-term cost and vendor lock-in.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for high cost
Lack of clear performance metrics for value

Positive Signals

Supports critical COVID-19 data analysis
Utilizes CARES Act funding for public health

Sector Analysis

This contract falls within the IT and Healthcare sectors, specifically related to data management and analytics for public health. Spending benchmarks for similar secure data ecosystem access contracts are highly variable and depend on the specific platform and services.

Small Business Impact

The contract was not awarded to a small business. There is no indication of small business participation or subcontracting requirements in the provided data.

Oversight & Accountability

The award was made by HHS-OCIO, suggesting internal oversight. However, the limited competition and the nature of the vendor raise questions about the robustness of external oversight and accountability for this specific award.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Limited competition raises cost concerns.
Potential for vendor lock-in with proprietary software.
Lack of transparency in the source exclusion justification.
High per-unit cost potential without clear benchmarks.
Reliance on CARES Act funding, which may be time-limited.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.0 million to I3 FEDERAL LLC. HEALTH AND HUMAN SERVICES ? OFFICE OF THE CHIEF INFORMATION OFFICER (HHS-OCIO) COVID-19 PALANTIR HHS CARES LICENSE ACCESS TO SECURE DATA ECOSYSTEM.

Who is the contractor on this award?

The obligated recipient is I3 FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2021-04-21. End: 2022-04-20.

What specific data analytics capabilities does this Palantir license provide, and how do they directly contribute to COVID-19 response efforts beyond basic data access?

The license grants access to a secure data ecosystem, implying capabilities for data integration, analysis, and visualization. For COVID-19 response, this could translate to enhanced disease surveillance, resource allocation optimization, and predictive modeling. However, the precise functionalities and their direct impact on actionable insights require further clarification beyond the general description of 'secure data ecosystem access'.

Given the 'exclusion of sources' clause, what justification was provided for not pursuing a broader competitive solicitation, and what steps were taken to ensure a fair price?

The justification for excluding sources typically involves factors like unique capabilities, urgent need, or existing infrastructure compatibility. Without the specific justification document, it's impossible to detail the rationale. However, 'exclusion of sources' inherently limits price discovery, making it crucial to verify if a thorough market research or price analysis was conducted to ensure the negotiated price was fair and reasonable.

How will the effectiveness and value of this Palantir license be measured over its 364-day term to justify potential future investments or renewals?

Measuring effectiveness requires defining Key Performance Indicators (KPIs) tied to specific COVID-19 response objectives. This could include metrics like the speed of data integration, the accuracy of predictive models, or the impact of data-driven decisions on resource allocation. Value assessment would involve comparing the cost against the quantifiable benefits derived from these improved capabilities, ensuring alignment with public health goals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: OS275805

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12030 HENDERSON RD, CLIFTON, VA, 20124

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,982,560

Exercised Options: $9,982,560

Current Obligation: $9,982,560

Actual Outlays: $9,982,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline