22

DLUHC extended Palantir contract despite concerns about non-competitive initial pro-bono arrangement.

Conclusion
In February 2023, the Government’s Chief Commercial Officer wrote to Palantir noting his concern about the practice of offering services to public sector customers for a zero or nominal cost to gain a commercial foothold, contrary to the principles of public procurement which usually require open competition. The Chief Commercial Officer’s advice was copied to senior digital and procurement officials in government alongside confirmation that free trial contracts should be avoided by government customers and only used in exceptional circumstances. Given a number of challenges, including those of migrating to a new system, in September 2023, DLUHC extended the contract with Palantir for a further 12 months, valued at £5.5 million, excluding VAT, i.e. £10 million for a 30 month provision.36
Government Response

A response document is linked to this report, dated 3 May 2024. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 2.6 yrs
Report published 23 Feb 2024