Ministry of Defence: Palantir

The Ministry of Defence (MOD) let the Palantir Enterprise Agreement contract in accordance with the Procurement Act 2023. The contract was direct awarded under the justifications outlined in Section 41, Schedule 5.The Direct award justifications were as follows:

- Paragraph 6:

o The following conditions are met in relation to the public contract—

(a)due to an absence of competition for technical reasons, only a particular supplier can supply the goods, services or works required, and

(b)there are no reasonable alternatives to those goods, services or works.

- Paragraph 7:

o The public contract concerns the supply of goods, services or works by the existing supplier which are intended as an extension to, or partial replacement of, existing goods, services or works in circumstances where—

(a)a change in supplier would result in the contracting authority receiving goods, services or works that are different from, or incompatible with, the existing goods, services or works, and

(b)the difference or incompatibility would result in disproportionate technical difficulties in operation or maintenance.

The MOD can confirm that no Ministers and former officials with prior links to Palantir were involved at any stage of that process. The decision to award this contract was the Secretary of State for Defence’s.

The MOD conducts continuous conflict-of-interest assessments for all individuals involved in commercial activity of any manner.

The MOD conducts comprehensive due diligence upon the notification of any business appointments that may lead to concern. MOD holds a Business Appointments Policy under JSP 492 that outlines the processes and guidelines for assessing these situations. Should an appointment create a concern MOD can place conditions upon that individual that can include:

- Restricting the sharing of information

- Prohibition of lobbying for a set period of time

- Restrictions on advising on ongoing commercial activity

- Seeking clearance of ongoing commissions

The conditions and associated timeframes for them are set based upon the seniority of the individual involved and the nature of the appointment. MOD continues to work diligently to ensure this is appropriately managed and enforced.