DoD Awards $15.1M for Palantir's AMC Weapons System 360

Contract Overview

Contract Amount: $15,137,867 ($15.1M)

Contractor: Palantir USG Inc

Awarding Agency: Department of Defense

Start Date: 2025-10-02

End Date: 2026-10-01

Contract Duration: 364 days

Daily Burn Rate: $41.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HQ AMC WEAPONS SYSTEM 360

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to PALANTIR USG INC for work described as: HQ AMC WEAPONS SYSTEM 360 Key points: 1. Significant award to Palantir for a critical weapons system. 2. Limited competition raises questions about price discovery. 3. Potential for high taxpayer impact due to sole-source nature. 4. IT sector spending benchmark for custom programming services.

Value Assessment

Rating: questionable

The $15.1M award for a 364-day contract appears high for custom computer programming services. Benchmarking against similar large-scale software development contracts is difficult without more detail on scope, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.

Taxpayer Impact: The sole-source nature of this large contract raises concerns about whether taxpayers are receiving the best possible value for their investment.

Public Impact

Impacts the Department of the Army's operational capabilities. Potential for future follow-on contracts and increased spending. Highlights reliance on specific vendors for advanced defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Supports critical defense systems
Clear end date

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending in this area can vary widely based on complexity, but large-scale defense system development often involves significant investment.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that future procurements are appropriately competed.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value for a single year
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to PALANTIR USG INC. HQ AMC WEAPONS SYSTEM 360

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 $15.1 million.

What is the period of performance?

Start: 2025-10-02. End: 2026-10-01.

What specific capabilities does the AMC Weapons System 360 provide to justify the $15.1M price tag without competition?

Without detailed documentation on the AMC Weapons System 360's specific functionalities, threat mitigation capabilities, and integration requirements, it is impossible to definitively justify the $15.1M price tag. The lack of competition prevents a comparative analysis of alternative solutions or vendor pricing models, making it difficult to assess if the cost aligns with the delivered value and market rates for similar advanced software development.

What are the risks associated with awarding a sole-source contract for a critical weapons system like AMC Weapons System 360?

The primary risks of a sole-source award for a critical weapons system include inflated costs due to the absence of competitive bidding, potential for vendor lock-in limiting future flexibility, and reduced incentive for the contractor to innovate or optimize performance. There's also a risk that the government may not be aware of or have access to more cost-effective or technologically superior solutions available elsewhere.

How effective is the current procurement strategy in ensuring long-term technological advantage and cost-efficiency for the Department of Defense?

The current strategy of awarding sole-source contracts for critical systems like the AMC Weapons System 360 raises concerns about long-term cost-efficiency. While it may ensure immediate access to specific capabilities, it bypasses competitive processes that typically drive down prices and foster innovation. Over-reliance on sole-source awards could hinder the DoD's ability to adapt to evolving threats and secure the best value for taxpayer funds in the future.

Industry Classification

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

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

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: $15,137,867

Exercised Options: $15,137,867

Current Obligation: $15,137,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W519TC25D0039

IDV Type: IDC

Timeline