DoD Awards $52M Task Order to Palantir for Custom Computer Programming Services

Contract Overview

Contract Amount: $51,997,500 ($52.0M)

Contractor: Palantir USG Inc

Awarding Agency: Department of Defense

Start Date: 2025-08-20

End Date: 2026-09-30

Contract Duration: 406 days

Daily Burn Rate: $128.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FORSCOM TASK ORDER 1

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 million to PALANTIR USG INC for work described as: FORSCOM TASK ORDER 1 Key points: 1. Significant award to a single vendor, Palantir USG Inc. 2. Focus on custom computer programming services within the Department of the Army. 3. Contract duration of 406 days suggests a substantial, ongoing need. 4. Lack of competition raises questions about potential cost efficiencies.

Value Assessment

Rating: questionable

The award amount of $51,997,500 for custom computer programming services is substantial. Without competitive bidding, it is difficult to assess if this price is optimal compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant contract value means taxpayers may not be receiving the best possible price for these services.

Public Impact

Impacts the Department of the Army's operational capabilities through custom software. Potential for Palantir to further entrench its position within DoD. Raises concerns about the government's ability to secure competitive pricing on future procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Specific service requirement met
Clear end date

Sector Analysis

This award falls under IT services, specifically custom computer programming. The benchmark for IT services can vary widely, but large sole-source contracts often warrant scrutiny for cost-effectiveness.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature further limits opportunities for small business participation in this specific procurement.

Oversight & Accountability

The non-competitive nature of this award warrants close oversight to ensure the services are delivered effectively and at a reasonable cost, and to understand the justification for not competing.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
Sole-source award justification
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 million to PALANTIR USG INC. FORSCOM TASK ORDER 1

Who is the contractor on this award?

The obligated recipient is PALANTIR USG 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 $52.0 million.

What is the period of performance?

Start: 2025-08-20. End: 2026-09-30.

What is the specific justification for awarding this task order on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details on the specific requirements of FORSCOM TASK ORDER 1, it's difficult to ascertain the precise reason. However, agencies must provide documentation supporting the sole-source determination to ensure accountability and transparency in the procurement process.

How does Palantir's pricing for this contract compare to its previous contracts or industry benchmarks for similar custom programming services?

A direct comparison is challenging without access to detailed pricing structures and specific service deliverables. However, given the sole-source nature, a thorough review by the agency's contracting officers and potentially an independent cost analysis would be crucial to validate the pricing against internal data and available market intelligence for custom computer programming.

What are the key performance indicators (KPIs) and metrics used to measure the effectiveness of the custom computer programming services provided under this task order?

Effective oversight requires clearly defined KPIs and metrics tied to the specific objectives of the custom programming. These could include software functionality, performance benchmarks, user adoption rates, bug resolution times, and adherence to project timelines. Regular reporting and performance reviews are essential to ensure the services meet the Army's needs and deliver intended value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $51,997,500

Exercised Options: $51,997,500

Current Obligation: $51,997,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W519TC25D0039

IDV Type: IDC

Timeline