Palantir Technologies Inc. v. United States

128 Fed. Cl. 21, 2016 U.S. Claims LEXIS 1200, 2016 WL 4506108
CourtUnited States Court of Federal Claims
DecidedAugust 22, 2016
Docket16-784C
StatusPublished
Cited by5 cases

This text of 128 Fed. Cl. 21 (Palantir Technologies Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Palantir Technologies Inc. v. United States, 128 Fed. Cl. 21, 2016 U.S. Claims LEXIS 1200, 2016 WL 4506108 (uscfc 2016).

Opinion

Pre-Award Bid Protest; Motion to Dismiss; Lack of Subject Matter Jurisdiction; Standing; Waiver.

OPINION

HORN, Judge

In this court, protestors, Palantir Technologies Inc. (Palantir Technologies) and Palan-tir USG, Inc., (Palantir USG) filed a pre-award bid protest on June'27, 2016, challenging the Department of the Army, Army Contracting Command, Aberdeen Proving Group’s (the agency) Request for Proposals No. W56KGY-16-R-0001 (the solicitation). Protestor Palantir Technologies “is a corpo *24 ration incorporated under the laws of the State of Delaware, having its principal place of business in Palo Alto, California,” and “is the holder of the Palantir GSA schedule and many of Palantir’s government contracts.” Protestor Palantir USG “is a corporation incorporated under the laws of the State of Delaware, having its principal place of business in Palo Alto, California.” Protestors note that Palantir Technologies “owns one hundred percent of the stock of PUSG [Palantir USG].” Protestors filed suit in this court after the Government Accountability Office (GAO) denied Palantir USG’s GAO protest. See, generally, Palantir USG, Inc., B-412746, 2016 WL 3035029 (Comp.Gen. May 18, 2016).

As indicated at the GAO, “[t]he solicitation seeks a single contractor to be the system data architect, developer, and integrator of DCGS-A2 [Army’s Distributed Common Ground System-Army Increment 2], which is the second increment of the DCGS-A DCGS-A is the Army’s primary system for the processing and dissemination of multi-sensor intelligence and weather information to the warfighter.” Id. at *1.

Protestors believe the Army was arbitrary and' capricious to offer the solicitation as issued because protestors contend “Palantir[ 2 ] has developed a technology that solves the needs of DCGS.” Protestors claim that the data management platform that protestors have to offer, also called the Palantir Gotham Platform, was “initially developed between 2004 and 2009 with the help of an investment from [sic], and a partnership with, the venture capital arm of the Central Intelligence Agency,” and since “2010, Palantir has successfully provided the Palantir Gotham Platform to numerous customers, including federal and local law enforcement agencies, the United States Marine Corps, ,the United States Special Operations Command (‘SO-COM’), the Defense Intelligence Agency, and numerous other government agencies (as well as numerous private sector companies).” Protestors argue that, as written, “[t]he Solicitation for DCGS-A2 makes it impossible for Palantir to offer its Data Management Platform as a commercial or nondevelopmen-tal item to satisfy the Army’s requirements.”

FINDINGS OF FACT

The Army has explained that:

DCGS-A is a program to combine all intelligence software/hardware capabilities within the Army into one program with the ability to access and be accessed by, not only Army intelligence and command components, but also the other members of the DCGS enterprise. It is composed of many software products, commercial, government, and open source, as well as software integration that allows all the different products and components to communicate and operate seamlessly.

The Performance Work Statement for the solicitation at issue noted that “DCGS-A is the Army’s primary system for processing and dissemination of multi-sensor intelligence and weather information to the Warfighter. It is deployed worldwide in support of intelligence operations, including all Theaters of Operation. DCGS-A must remain interoperable and compatible with the Joint Command System infrastructure and mission applications.” 3 The Performance Work Statement also noted that the requirements of DCGS-A2 included the “development of new data architecture, standards based enhanced visualization and analytical tools, cloud computing and ‘big data’ analytic capabilities; cyber analytics and data integration, visualization capabilities, Cyber Operations, Interoperability, Counter Intelligence/Human Intelligence (HUMINT), Signals Intelligence (SIGINT), *25 Weather, Geospatial Intelligence (GEOINT) and Sensor Management,” and that “[t]hese efforts include Software Development, Capability Enhancements, Integration, Limited Fielding and Training support, Maintenance, and Support for logistics development, for a period of performance of six years from contract award.”

On August 13, 2014, the Army issued a Request for Information, which was “conducted to assess the level of relevant competition and capabilities in the market place and elicit indu'stry feedback to assist the Program Office in developing the Acquisition Plan,” 4 and “request[ed] respondents’ corporate overview information and basic qualifications in managing software development projects that are similar iii scope and process to the DCGS-A program.” The August 13, 2014 Request for Information indicated that the “[p]roposed contract types under consideration for this effort are cost-plus-incentive fee (CPIF) or cost-plus-fixed-fee (CPFF), with an estimated value of $80-$100M for development efforts over three to four years.” 5 Regarding the August 13, 2014 Request for Information, the Army indicated that the “[v]ast majority of respondents support hiring a contractor as the Lead Systems Integrator (LSI) due to efficiencies in industry decision making and resource-marshaling processes.” Palantir USG responded 6 to the August 13, 2014 Request for Information and stated: “The Government does not need to build Increment 2 functionality; the Government can buy the core functionality from the commercial market and integrate any number of additional applications.” (emphasis in original). Palantir USG further suggested that the Army issue a fixed-price contract for any solicitation in the future.

On December 5, 2014, the Army issued a second Request for Information, which “was issued to determine ability of individual companies to act as the prime contractor for the DCGS-A development effort.” As in the first Request for Information, the second Request for Information “requested] respondents’ specific answers regarding the basic qualifications in managing software development projects that are similar in scope and process to the DCGS-A program.” Palantir USG again responded, 7 to try to explain the value of the commercial approach:

We continue to believe that the success of Increment 2 requires a proven commercial solution to ensure the delivery of a work-' ing capability on time and within budget. We are concerned that the present RFI, DCGS-A_INC2_RFI2, is focused on collecting information on each respondent’s capability to conduct a services-based, large-scale, and custom software engineering effort. Several questions are designed to assess vendor experience with major software development projects, rather than *26 to assess existing software capabilities applicable to Increment 1 capability gaps.

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Bluebook (online)
128 Fed. Cl. 21, 2016 U.S. Claims LEXIS 1200, 2016 WL 4506108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palantir-technologies-inc-v-united-states-uscfc-2016.