October 1, 2020 | International, Land, C4ISR, Security
Frank Bajak, The Associated Press
BOSTON — Seventeen years after it was born with the help of CIA seed money, the data-mining outfit Palantir Technologies is finally going public in the biggest Wall Street tech offering since last year's debut of Slack and Uber.
Never profitable and dogged by ethical objections for assisting in the Trump administration's deportation crackdown, Palantir has forged ahead with a direct listing of its stock, which is set to begin trading Wednesday. In its stock offering, the company isn't selling newly minted shares to raise money; it's simply listing existing shares for public trading.
The low-key strategy may not generate the enthusiasm many technology offerings do. But it's in character for a secretive company long reliant on spies, cops and the military as customers — and whose founders are holding onto voting control of the company.
The big question for both investors and company management: Can Palantir successfully transition from a business built on the costly handholding of government customers to serving corporate customers at scale? The company is a hybrid provider of software and consulting services that often embeds its own engineers with clients.
Analysts say its future depends on selling multinationals on its tools for gathering disparate data from an ever-expanding data universe and using artificial-intelligence technology to find previously undetectable patterns. Those can theoretically guide strategic decisions and identify new markets much as they have aided in tracking terrorists and sorting military intelligence.
The company sets itself apart from most U.S. technology providers, and just moved its headquarters to Denver from Silicon Valley. Palantir colors itself patriotic and belittles other tech firms that won't unquestionably support U.S. dominance in war fighting and intelligence.
“Our software is used to target terrorists and to keep soldiers safe,” CEO Alex Karp wrote in a letter accompanying Palantir's offering prospectus. While Karp acknowledged the ethical challenge of building software that “enables more effective surveillance by the state,” Palantir's prospectus touts its work helping U.S. soldiers counter roadside bombings and fight the Islamic State group.
The iconoclastic entrepreneur and PayPal co-founder endorsed President Donald Trump in 2016, worked on his transition team and holds the largest chunk of Palantir stock. Thiel already exerts tremendous power from the board of Facebook, which dominates global media and seeks to create a digital currency.
In its IPO prospectus, Palantir paints a dark picture of faltering government agencies and institutions in danger of collapse and ripe for rescue by a “central operating system” forged under Thiel's auspices. As the offering is structured, Thiel will be the dominant voice among the Palantir co-founders who will retain voting control.
“Is that someone who you want deciding how a component of the (national) security apparatus is designed?” asked New York University business professor Scott Galloway. “If you believe that power corrupts and checks and balances are a good idea, this is just from the get-go a really bad idea.”
Earlier in September, BuzzFeed reported that Thiel hosted a known white nationalist, Kevin DeAnna, at a 2016 dinner party, citing emails it obtained and published whose authors refused to talk to the online news outlet. Thiel declined through a spokesman to discuss the report with The Associated Press. Critics say he shares the blame for Facebook's incomplete removal of toxic disinformation disseminated by the pro-Trump far-right fringe.
Then there are Palantir's fundamentals, which Galloway considers lousy. The company has just 125 customers in 150 countries, including Airbus, Merck, Credit Suisse and the Danish National Police. Slightly less than half its 2019 revenues were from government agencies, and three clients — which Palantir did not name — accounted for almost a third of revenues.
“They're massively unprofitable and they've never been able to figure it out,” Galloway said, noting that it took Google three years to earn a profit, and Amazon seven. Over a much longer span, Palantir has accumulated $3.8 billion in losses, raised about $3 billion and listed $200 million in outstanding debt as of July 31.
Palantir, named for the mystical all-seeing stones from Tolkien's “Lord of The Rings,” has recently been deepening its relationship with Uncle Sam, including winning a modest contract early in the COVID-19 pandemic for helping the White House gather data on the virus' impact.
Senior emerging technology analyst Brendan Burke of Pitchbook says he isn't worried that Thiel's association with Trump will hurt the company if Trump loses the election.
“The political connections don't appear to be the main driver of their recent substantial contract wins,” he said, although he noted that government contracts can be more volatile than corporate ones, where Palantir's foothold is less firm.
Palantir offers two software platforms. Foundry is designed to link disparate and largely incompatible data sources into a central operating system. It's the company's primary hope for broadening its business.
An earlier product, Gotham, has been used by defense and intelligence analysts and police departments to identify patterns deep within datasets. But the value of “predictive policing” tools developed with the platform have been questioned for their potential to unfairly target people of color. The New Orleans and New York City police departments, once customers, have used it.
A 2017 research paper by University of Texas sociologist Sarah Brayne, who studied the Los Angeles Police Department's use of Gotham, found the software could lead to a proliferation of unregulated personal data collected by police from commercial and law enforcement databases.
On Monday, Amnesty International issued a briefing that says Palantir is failing to conduct human rights due diligence around its contracts with Immigration and Customs Enforcement, calling it “deeply ironic” that the company crows about its determination not to work with regimes like China that abuse human rights.
Palantir's ICE contracts involve the maintenance and improvement of two products used in deportation raids. One of them, its web-based Falcon tool, has enhanced data accessible to investigators “involving the illegal movement of people into, within, and out of the United States,” according to documents obtained by The Associated Press, including court records, and by the nonprofit Electronic Privacy Information Center in a freedom-of-information request.
Palantir has acknowledged in its SEC filing that “unfavorable coverage in the media” and from social activists could hurt its business. It also says its contractual obligations might prevent it from being able to defend its actions publicly, although it recently named a former Wall Street Journal reporter to its board.
Negative publicity over ICE contracts may also have hurt company recruitment on college campuses.
December 9, 2023 | International, Aerospace
Hong Kong's Cathay Pacific Airways said on Friday it has placed a firm order to purchase six Airbus A350 freighters with a list price of $2.71 billion, as it replaces its ageing Boeing 747 cargo jets.
July 15, 2022 | International, Naval
But the big prize for the company ' and other shipyards in the U.K. ' is the logistics ships program for the Royal Fleet Auxiliary.
July 20, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
AIR FORCE Lockheed Martin Corp., Marietta, Georgia, has been awarded a $15,000,000,000 indefinite-delivery/indefinite-quantity contract for C-130J development, integration, retrofit and production activities for all C-130J variants. This contract provides flexibility to accommodate the broad enterprise of activities associated with the C-130J program. Work will be performed in Marietta, Georgia, and is expected to be completed July 16, 2030. This contract involves Foreign Military Sales and is the result of a sole-source acquisition. Fiscal 2018 and 2019 aircraft procurement funds in the amount of $3,300,000 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright‐Patterson Air Force Base, Ohio, is the primary contracting activity (FA8625‐20‐D‐3000). Leidos Inc., Arlington, Virginia, has been awarded a ceiling $30,000,000 indefinite-delivery/indefinite-quantity contract for high speed attack munitions research. The first task order will be for a $341,500 award under task order FA8651-20-F-1011. The five-year contract will support research and development, advancing state of the art in weapons airframe research to explore the impacts of complex flight environments on advanced weapon systems. Work will be performed at Eglin Air Force Base, Florida, and is expected to be completed August 2021 for the initial task order. Fiscal 2020 research, development, test and evaluation funds in the amount of $325,000 are being obligated at the time of award. Air Force Research Laboratory, Eglin Air Force Base, Florida, is the contracting activity (FA8651-20-D-0011). DEFENSE LOGISTICS AGENCY Stryker Corp., doing business as Stryker Endoscopy, San Jose, California, has been awarded a maximum $225,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for patient monitoring and capital equipment systems and accessories. This was a competitive acquisition with 52 offers received. This is a five-year base contract with one five-year option period. Location of performance is California, with a July 16, 2025, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-20-D-0011). Stonewin LLC, Miami, Florida, has been awarded a minimum $7,775,696 modification (P00001) to a 54-month contract (SPE605-20-D-4522) with a six-month option period to increase funds for various types of fuel. This is a fixed-price with economic-price-adjustment contract under solicitation SPE605-20-R-0200. This modification increases the contract ceiling from $2,700,575 to $10,476,271. Locations of performance are Arizona, California, Florida, Nevada and Utah, with a Sept. 30, 2024, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. U.S. SPECIAL OPERATIONS COMMAND Collins Aerospace Inc., Cedar Rapids, Iowa, was awarded a $126,000,000 maximum indefinite-delivery/indefinite-quantity, firm-fixed-price, cost-plus-fixed-fee and cost-reimbursable contract (H92241-20-D-0002) in support of U.S. Special Operations Command (USSOCOM) for continued research, development, production and sustainment of the common avionics architecture system, avionics management system and cockpit management system used on Army special operations aircraft. Fiscal 2020 operations and maintenance funds in the amount of $346,082 were obligated at the time of award. The majority of the work will be performed in Cedar Rapids. The contract is a non-competitive award and is in accordance with Federal Acquisition Regulation 6.302.1. USSOCOM, Tampa, Florida, is the contracting activity. NAVY Raytheon Missiles and Defense, Marlborough, Massachusetts, is awarded a $125,881,928 fixed-price, incentive fee modification to previously awarded contract N00024-16-C-5370 to exercise options for the Enterprise Air Surveillance Radar (EASR) low rate initial production (LRIP). Work will be performed in Marlborough, Massachusetts (76%); Andover, Massachusetts (18%); Sudbury, Massachusetts (5%); and Portsmouth, Rhode Island (1%). This option exercise is for the production of six EASR LRIP units; four AN/SPY-6(V)2 (air and missile defense radar) EASR rotator LRIP units; and two AN/SPY-6(V)3 EASR fixed-faced LRIP units. The AN/SPY-6(V)2 EASR rotator LRIP units will be deployed on the USS Bougainville (LHA-8); USS John C. Stennis (CVN-74); USS Richard M. McCool Jr. (LPD-29); and USS Harrisburg (LPD-30). The AN/SPY-6(V)3 EASR fixed-faced LRIP units will be deployed on USS John F. Kennedy (CVN-79); and USS Brooke (FFG-1). Work is expected to be completed by January 2023. Fiscal 2017, 2018 and 2020 shipbuilding and conversion (Navy) funding in the amount of $122,301,170 will be obligated at time of award. Funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Lockheed Martin Corp., Fort Worth, Texas, is awarded a $935,530,602 contract, which consists of an $895,531,143 not-to-exceed cost-plus-incentive-fee, cost-plus-fixed-fee, fixed-price-incentive-firm, firm-fixed-price undefinitized line item; and a $39,999,459 cost-plus-incentive-fee definitized line item. The undefinitized line items procure support equipment, autonomic logistics information system hardware, training systems, site activations and integrated contractor support for the F-35 Lightning II. Additionally, definitized line items on this contract support tasking that will result in improvements to the reliability, availability, maintainability and total ownership cost of the F-35 Lightning II for the Air Force, Marine Corps, Navy, non-Department of Defense (DOD) participants and Foreign Military Sales (FMS) customers. Work will be performed in Orlando, Florida (76%); Fort Worth, Texas (10%); Redondo Beach, California (9%); Owego, New York (4%); and Samlesbury, United Kingdom (1%), and is expected to be completed by March 2026. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $205,656,772; fiscal 2020 aircraft procurement (Air Force) funds in the amount of $153,835,313; non-DOD participant funds in the amount of 279,748,427; and FMS funds in the amount of $62,479,903 will be obligated at time of award. No funds will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-20-C-0032). ARMY Bryan 77 Construction JV, Colorado Springs, Colorado (W912GB-20-D-0004); Framaco International Inc., Rye Brook, New York (W912GB-20-D-0005); Sociedad Espanola De Montajes Industriales SA, Madrid, Spain (W912GB-20-D-0006); Serka Taahhut Insaat Anonim Sirketi, Istanbul, Turkey (W912GB-20-D-0007); SKE SRL, Vicenza, Italy (W912GB-20-D-0008); and Zafer Taahhut Insaat Ve Ticaret Anonim Sirketi, Ankara, Turkey (W912GB-20-D-0009), will compete for each order of the $49,950,000 firm-fixed-price contract to provide design-build and design-bid-build construction services in Bulgaria and North Macedonia. Bids were solicited via the internet with 12 received. Work locations and funding will be determined with each order, with an estimated completion date of July 16, 2025. U.S. Army Corps of Engineers, Wiesbaden, Germany, is the contracting activity. South Dade Air Conditioning and Refrigeration Inc.,* Homestead, Florida, was awarded a $49,877,832 firm-fixed-price contract to provide all plant, labor, materials and equipment to provide road repair and paving in support of Fort Stewart and Hunter Army Airfield, Georgia. Bids were solicited via the internet with nine received. Work locations and funding will be determined with each order, with an estimated completion date of July 19, 2023. U.S. Army 419th Contracting Support Brigade, Fort Stewart, Georgia, is the contracting activity (W9124M-20-D-0007). Savi Technology Inc.,* Alexandria, Virginia, was awarded a $45,805,123 firm-fixed-price contract for active radio frequency identification transponder tags to track equipment worldwide. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of July 16, 2024. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity (W52P1J-20-D-0034). Hughes Construction Services LLC,* Ozark, Alabama, was awarded a $45,000,000 firm-fixed-price contract for rapid-response temporary roofing projects in the continental U.S. coastal regions in the event of an emergency. Bids were solicited via the internet with 16 received. Work locations and funding will be determined with each order, with an estimated completion date of May 31, 2027. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity (W9128F-20-D-0037). General Dynamic Land Systems Inc., Sterling Heights, Michigan, was awarded a $44,415,556 modification (PZ0003) to contract W56HZV-20-F-0060 to procure improved fire control electronics units in support of the Abrams expedited active protection system-trophy. Work will be performed in Tallahassee, Florida, with an estimated completion date of Oct. 1, 2022. Fiscal 2020 weapons and tracked combat vehicles procurement (Army) funds in the amount of $44,415,556 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. Southwest Valley Constructors, Albuquerque, New Mexico, was awarded a $22,303,760 modification (P00015) to contract W912PL-19-C-0015 to modify existing barrier wall electrical attributes, closed circuit television, linear ground detection system and shelters. Work will be performed in Lukeville, Arizona, with an estimated completion date of Sept. 7, 2021. Fiscal 2020 operations and maintenance (Army) funds in the amount of $22,303,760 were obligated at the time of the award. U.S. Army Corps of Engineers, Phoenix, Arizona, is the contracting activity. ESI Contracting Corp.,* Kansas City, Missouri, was awarded an $11,662,196 firm-fixed-price contract for Missouri River levee system repair. Bids were solicited via the internet with two received. Work will be performed in Brunswick, Missouri, with an estimated completion date of Feb. 1, 2022. Fiscal 2020 civil flood control and coastal emergencies funds in the amount of $11,662,196 were obligated at the time of the award. U.S. Army Contracting Command, Kansas City, Missouri, is the contracting activity (W912DQ-20-C-1087). Great Lakes Dredge and Dock Co. LLC,* Oak Brook, Illinois, was awarded an $8,841,345 firm-fixed-price contract for maintenance dredging of the inland waterway C&D Canal federal navigation project. Bids were solicited via the internet with two received. Work will be performed in Chesapeake City, Maryland, with an estimated completion date of Jan. 29, 2021. Fiscal 2020 civil operations and maintenance funds in the amount of $8,841,345 were obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-20-C-0031). DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Lockheed Martin Corp., Rotary and Mission Systems, Riviera Beach, Florida, has been awarded an $11,196,098 cost-plus-fixed-fee contract to support a Defense Advanced Research Projects Agency program. Fiscal 2020 research and development funds in the amount of $5,600,000 are being obligated at the time of award with an estimated completion date of September 2021. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0139). Lockheed Martin Corp., Missiles and Fire Control, Grand Prairie, Texas, was awarded a cost-plus-fixed-fee contract to support the Operational Fires Integrated Weapon System Phase 3 program. This modification exercises the Contract Line Item Number 0005 option (valued at $7,451,558) for the development, building, integration, assembly, testing and checkout of the propulsion components for the Stage 2 section of the missile. Fiscal 2020 research and development funds in the amount of $1,000,000 are being obligated at the time of award. Work will be performed in Camden, Arkansas (50%); Huntsville, Alabama (45%); and Orange, Virginia (5%), with an estimated completion date of January 2022. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0038). (Awarded Jan. 10, 2020) *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2278883/source/GovDelivery/