The Army is consolidating 75 contracts into a single enterprise agreement with Palantir that will last for 10 years and have a ceiling of up to $10 billion.
This pact announced Thursday covers 15 prime contracts and 60 related contracts, a move the Army says will accelerate deliveries of commercial software to operators and remove contract and reseller pass-through fees.
“This enterprise agreement represents a pivotal step in the Army’s commitment to modernizing our capabilities while being fiscally responsible,” Leo Garciga, the Army’s chief information officer, said in a release. “By streamlining our procurement processes and leveraging enterprise-level discounts, we are not only enhancing our operational effectiveness but also maximizing our buying power.”
The Army and Palantir set up the agreement to allow for purchases of goods and services as needed and also to take advantage of volume discounts.
According to solicitation documents, the Army will reassess the agreement every 18-to-24 months to ensure optimal performance and and innovation.
Army leaders value Palantir’s software for how it connects disparate databases and automates the analysis of that data, freeing up operators to focus on interpretation. Palantir designed its software to enable greater use of artificial intelligence because of how it organizes and cleans data.
The military generates massive amounts of data from sensors, communications and intelligence sources. The need for data integration and AI-enabled analysis also is growing as the U.S. works to counter threats from Russia and China.
The agreement with Palantir “establishes a comprehensive framework for the Army’s future software and data needs,” the Army said in a statement. “The EA will enhance military readiness and drive operational efficiency while delivering significant cost efficiencies.”
This is the newest in a growing list of agreements Trump administration has signed with commercial software providers to leverage the government’s buying power to establish deep discounts.
Other agreements include those the General Services Administration signed with Google, Microsoft, Uber and Adobe as part of GSA’s OneGov initiative.
