Army CIO Leo Garciga. Garciga said the new agreement enhances the Army's operational effectiveness

Army Awards Palantir Potential $10B Agreement for Commercial Software

Palantir has secured an enterprise agreement, or EA, from the U.S. Army to provide commercial software to warfighters. The EA consolidates 75 contracts into a single deal to ensure that required capabilities are delivered as soon as possible and to eliminate contract and reseller pass-through fees, the Army said Thursday.

Palantir’s 10-Year Army EA

The agreement gives the government the flexibility to purchase products and services whenever needed. Moreover, it provides volume-based discounts available not just for the Army but also for other Department of Defense components.

The EA has an ordering period of 10 years and a maximum potential value of $10 billion.

“This enterprise agreement represents a pivotal step in the Army’s commitment to modernizing our capabilities while being fiscally responsible,” commented Leo Garciga, the service’s chief information officer and a two-time Wash100 Award winner. “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 EA covers the purchase of data integration and analytics and artificial intelligence tools.

More Army EAs in the Future

Garciga, in a conversation with reporters, shared that the Army is in negotiation with other vendors to enter similar deals. He said that the service has numerous big software packages that it has purchased over the years to support different program offices and commands.

Danielle Moyer, executive director of Army Contracting Command, also told reporters that the service would not be restricted to purchasing goods and services from just one vendor. The Army, she explained, would still have competition for future programs.

“So, for example, if on all these ELAs — name the vendor — if we’re specifically talking about Palantir, if Palantir chooses to compete on, you know, whatever program or weapon system in there, the chosen awardee they happen to be at, then we would obviously leverage this agreement [to get] economies of scale discounts, buys, right, that makes the volume,” she Moyer added.

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