Army Awards $35.2M for Field Service Engineers and Software Licenses to Palantir USG Inc

Contract Overview

Contract Amount: $35,203,407 ($35.2M)

Contractor: Palantir USG Inc

Awarding Agency: Department of Defense

Start Date: 2024-03-16

End Date: 2025-03-15

Contract Duration: 364 days

Daily Burn Rate: $96.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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: FIELD SERVICE ENGINEER SUPPORT AND SOFTWARE SOLUTION LICENSES.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.2 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: FIELD SERVICE ENGINEER SUPPORT AND SOFTWARE SOLUTION LICENSES. Key points: 1. Significant award for critical Army capability drop. 2. Palantir USG Inc. is a key player in data analytics and software solutions. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans one year, indicating a focused, short-term need.

Value Assessment

Rating: good

The award amount of $35.2 million for a one-year period appears reasonable given the scope of field service engineer support and software licenses. 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with pricing driven by market forces rather than sole-source limitations.

Public Impact

Enhances Army's operational capabilities through advanced software and expert support. Supports critical defense initiatives and technological modernization. Potential for follow-on work based on successful performance. Impacts the defense technology sector by awarding a significant contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope expands beyond initial requirements.
Dependence on a single vendor for critical software and support.
Ensuring effective knowledge transfer from field service engineers.

Positive Signals

Awarded through full and open competition.
Clear definition of deliverables (support and licenses).
Fixed-price contract type limits cost uncertainty.

Sector Analysis

This contract falls within the IT and Software Publishers sector, specifically supporting defense applications. Spending in this area is driven by the need for technological superiority and modernization within military branches.

Small Business Impact

While Palantir USG Inc. is a large business, the contract's full and open competition structure allows for potential subcontracting opportunities for small businesses within the IT and support services ecosystem.

Oversight & Accountability

The Department of the Army's oversight will be crucial to ensure the successful delivery of field service engineer support and software licenses, meeting the specified requirements and performance standards within the contract period.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for vendor lock-in with specialized software.
Reliance on contractor personnel for critical support functions.
Need for robust oversight to ensure performance and value.
Unclear long-term sustainment and upgrade path for software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to PALANTIR USG INC. THIS DELIVERY ORDER IS TO PROCURE THE FOLLOWING ITEMS IN SUPPORT OF THE ARMY CAPABILITY DROP 2: FIELD SERVICE ENGINEER SUPPORT AND SOFTWARE SOLUTION LICENSES.

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 $35.2 million.

What is the period of performance?

Start: 2024-03-16. End: 2025-03-15.

What specific software solutions are being procured, and how do they align with current Army modernization goals?

The data specifies 'Software Solution Licenses' without naming the exact software. To assess value, it's crucial to understand if these licenses are for established platforms or new developments, and how they directly contribute to the Army's Capability Drop 2 objectives and broader modernization strategy. This information is key to determining if the investment aligns with strategic priorities and offers long-term benefits beyond immediate deployment.

What are the key performance indicators (KPIs) for the Field Service Engineer support, and how will their effectiveness be measured?

Effectiveness of the Field Service Engineer (FSE) support is paramount for successful implementation and utilization of the software solutions. KPIs should focus on aspects like system uptime, issue resolution time, user training effectiveness, and contribution to operational readiness. Clear, measurable metrics are essential for the Army to track performance, ensure value for money, and hold the contractor accountable for delivering the expected level of support.

What is the long-term strategy for the procured software licenses and associated support beyond the initial one-year delivery order?

This delivery order is for one year, raising questions about the government's long-term plan for these software licenses and support. Understanding if this is a pilot program, a bridge to a larger procurement, or a standalone solution is vital. Without a clear long-term strategy, there's a risk of vendor lock-in, inefficient spending, or the need for costly replacements if the software doesn't scale or integrate well with future systems.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $35,203,407

Exercised Options: $35,203,407

Current Obligation: $35,203,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56KGY20D0005

IDV Type: IDC

Timeline