DoD awards $36.7M for Army software, training, and support to Palantir USG Inc

Contract Overview

Contract Amount: $36,658,071 ($36.7M)

Contractor: Palantir USG Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-15

End Date: 2023-03-15

Contract Duration: 393 days

Daily Burn Rate: $93.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS DELIVERY ORDER IS TO PROCURE THE FOLLOWING ITEMS IN SUPPORT OF THE ARMY CAPABILITY DROP 2: SUPPORT FOR AUTHORIZATION, CERTIFICATION, TRAINING, FIELD SERVICE, AND CONFIGURATION AS WELL AS A SOFTWARE LICENSE.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to PALANTIR USG INC for work described as: THIS DELIVERY ORDER IS TO PROCURE THE FOLLOWING ITEMS IN SUPPORT OF THE ARMY CAPABILITY DROP 2: SUPPORT FOR AUTHORIZATION, CERTIFICATION, TRAINING, FIELD SERVICE, AND CONFIGURATION AS WELL AS A SOFTWARE LICENSE. Key points: 1. Palantir USG Inc. secured a significant contract for essential Army support services. 2. The contract covers authorization, certification, training, field service, and configuration. 3. A software license is also included in the procurement. 4. The total value of the delivery order is over $36.6 million. 5. This award falls under the 'Software Publishers' industry.

Value Assessment

Rating: good

The contract value of $36.7M appears reasonable for the scope of services including software licensing, authorization, certification, training, field service, and configuration for a major defense program. Benchmarking against similar complex software and support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and identify the most capable vendor for the required services.

Taxpayer Impact: Taxpayer funds are being utilized for critical Army modernization efforts, with the expectation of value derived from competitive procurement.

Public Impact

Enhances Army's capability drop 2 with essential software and support. Supports critical functions like authorization, certification, and training. Ensures operational readiness through field service and configuration. Software license acquisition is key to technological advancement.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized.
Clear scope of work defined.
Supports critical defense capabilities.

Sector Analysis

This contract falls within the Information Technology sector, specifically software publishing and related services. The $36.7M award is substantial and reflects the complexity and importance of supporting advanced military capabilities.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee is Palantir USG Inc., a large defense contractor. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for oversight. The use of a delivery order under a larger contract framework suggests existing oversight mechanisms are in place.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of specific software details.
No mention of small business participation.
Potential for vendor lock-in with specialized software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to PALANTIR USG INC. THIS DELIVERY ORDER IS TO PROCURE THE FOLLOWING ITEMS IN SUPPORT OF THE ARMY CAPABILITY DROP 2: SUPPORT FOR AUTHORIZATION, CERTIFICATION, TRAINING, FIELD SERVICE, AND CONFIGURATION AS WELL AS A SOFTWARE LICENSE.

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 $36.7 million.

What is the period of performance?

Start: 2022-02-15. End: 2023-03-15.

What is the specific software being licensed and how does it contribute to Army Capability Drop 2?

The specific software is not detailed in the provided data. However, it is procured in support of Army Capability Drop 2, which implies it is integral to enhancing the Army's operational capabilities. This could range from data analytics platforms to mission command systems, crucial for modernizing military operations and decision-making processes.

What are the key performance indicators (KPIs) for the field service and configuration support to ensure effectiveness?

Key performance indicators for field service and configuration support would likely include system uptime, response times for technical issues, successful implementation of configurations, and user satisfaction rates. Ensuring these are clearly defined and monitored is crucial for the effective deployment and ongoing operation of the procured software and systems.

How does the pricing compare to industry benchmarks for similar software licenses and support services?

Without specific details on the software and the exact nature of the support services, a precise benchmark is difficult. However, given Palantir's typical contract values and the scope of services (including authorization, certification, training, and field service), the $36.7M price point warrants comparison with other large-scale government IT procurements for complex systems and ongoing support.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $36,658,071

Exercised Options: $36,658,071

Current Obligation: $36,658,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56KGY20D0005

IDV Type: IDC

Timeline