Award Context and Insight

05/03/2021 5:19 AM

Palantir's $32.5 Million Award Expands Current Air Force Projects

The $32.5 million, seven-month contract awarded to Palantir on April 30 extends work on two existing projects and appears to expand their scope under a new consolidated agreement. The contract, announced by the Pentagon on Friday, involves data integration related to the Air Force's COVID-19 response as well as work on a system to track objects in space.

The Air Force allocated $16.9 million at the time of signing, and expects to spend the full $32.5 million over the seven-month period of performance.

While the award is a renewal, it likely adds incremental revenue. Palantir previously had contracts for the Air Force's COVID response that generated a combined $12 million since October 2020 and expired April 30. The company has been working on the space situational awareness system, also called Kobayashi Maru, since April 2020. The value of the initial contract for the space program was not disclosed, though it was said to be about $10 million for a one-year prototype phase.