What Happened
Defense Department Memo Directs Sole-Source Funding For AI Data Analysis
The US Department of Defense has drafted a memo directing the purchase of up to $243.9 million in services from Palantir, an AI-enabled data analytics company, without a competitive bidding process. The contract aims to support the improvement of efficiencies in the defense industrial base, particularly in the production and maintenance of munitions and vehicles. The deal has not been finalized, and the memo’s lack of reference to justifying the exception to competitive contracting practices has raised concerns. This development was first reported by The Register.