DoD awards $292.7M Task Order to Palantir for Maven Smart System UI/UX Prototype

Contract Overview

Contract Amount: $292,680,689 ($292.7M)

Contractor: Palantir USG Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-18

End Date: 2026-05-31

Contract Duration: 712 days

Daily Burn Rate: $411.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: TASK ORDER #1 FOR MAVEN SMART SYSTEM - USER INTERFACE/USER EXPERIENCE (UI/UX) PROTOTYPE

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $292.7 million to PALANTIR USG INC for work described as: TASK ORDER #1 FOR MAVEN SMART SYSTEM - USER INTERFACE/USER EXPERIENCE (UI/UX) PROTOTYPE Key points: 1. Significant investment in advanced AI/ML interface development. 2. Palantir's established role in defense tech suggests strong capabilities. 3. Risk of cost overruns or scope creep in R&D projects. 4. Focus on R&D sector, specifically advanced engineering.

Value Assessment

Rating: questionable

The total award of $292.7M for a UI/UX prototype appears high, especially considering the contract type and duration. Benchmarking against similar R&D interface development contracts is difficult due to the specialized nature of the Maven system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs than a competitive process might yield. The justification for sole-source is critical.

Taxpayer Impact: Taxpayer funds are being used for a significant R&D investment without competitive pressure to ensure the best value.

Public Impact

Enhances user interaction with advanced defense systems. Potential for improved operational efficiency through better interfaces. Supports cutting-edge research and development in AI/ML applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value for prototype
Sole-source award

Positive Signals

Focus on critical defense technology
Potential for significant technological advancement

Sector Analysis

This award falls within the Research and Development sector, specifically for advanced engineering and software development. The $292.7M value is substantial for a UI/UX prototype, even within this high-investment area.

Small Business Impact

The contract was awarded to Palantir USG Inc., a large defense contractor. There is no indication of small business participation in this specific task order.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the funds are used effectively and the project stays within scope and budget. Robust reporting and milestone tracking are essential.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
High dollar value for a prototype
Potential for cost overruns
Sole-source award justification required
Limited transparency on pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $292.7 million to PALANTIR USG INC. TASK ORDER #1 FOR MAVEN SMART SYSTEM - USER INTERFACE/USER EXPERIENCE (UI/UX) PROTOTYPE

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 $292.7 million.

What is the period of performance?

Start: 2024-06-18. End: 2026-05-31.

What is the specific justification for awarding this significant contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or critical national security needs that only one contractor can meet. For this contract, the Department of Defense would need to provide a detailed justification. To ensure fair pricing, mechanisms like cost analysis, independent government cost estimates, and rigorous negotiation strategies are employed, though the absence of competition inherently limits price discovery.

How will the effectiveness of the UI/UX prototype be measured, and what are the key performance indicators for this R&D effort?

Effectiveness will likely be measured through user testing, feedback sessions with military personnel, and adherence to predefined usability metrics. Key performance indicators could include task completion rates, reduction in user error, improved situational awareness, and overall user satisfaction scores. The prototype's ability to translate complex data into intuitive interfaces will be paramount.

What is the long-term strategy for the Maven Smart System, and how does this UI/UX prototype fit into the broader acquisition plan?

This UI/UX prototype is likely a foundational step towards a larger system integration or upgrade for the Maven Smart System. The long-term strategy would involve iterating on the prototype based on testing and feedback, potentially leading to full-scale development and deployment. This task order's success could influence future funding and development phases for the entire system.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

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: $328,877,148

Exercised Options: $328,877,148

Current Obligation: $292,680,689

Actual Outlays: $1,718,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QX24D0012

IDV Type: IDC

Timeline