1 octobre 2020 | International, Terrestre, C4ISR, Sécurité

Secretive, never profitable Palantir makes its market debut

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.

https://www.defensenews.com/industry/2020/09/30/secretive-never-profitable-palantir-makes-its-market-debut/

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5 novembre 2018 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Contract Awards by US Department of Defense - November 2, 2018
ARMY American Mechanical Inc.,* Fairbanks, Alaska (W911KB-19-D-0001); Osborne Construction Co.,* Kirkland, Washington (W911KB-19-D-0002); and Patrick Mechanical LLC,* Fairbanks, Alaska (W911KB-19-D-0003), will compete for each order of the $48,000,000 firm-fixed-price contract for design, construction and repair of various utilidor systems in military family housing on Eielson Air Force Base, Alaska. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 31, 2023. U.S. Army Corps of Engineers, Anchorage, Alaska, is the contracting activity. DynCorp International LLC, Fort Worth, Texas, was awarded an $18,153,589 modification (P00199) to contract W58RGZ-13-C-0040 for aviation field maintenance services. Work will be performed in Afghanistan, Iraq and Germany, with an estimated completion date of Dec. 31, 2018. Fiscal 2019 operations and maintenance funds in the amount of $18,153,589 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. U.S. SPECIAL OPERATIONS COMMAND Boeing Co., Ridley Park, Pennsylvania, has been awarded a $42,835,847 cost-plus-fixed-fee contract modification under delivery order H92241-18-F-0022-P00002 for four new build MH-47G rotary wing aircrafts. The contract modification satisfies an urgent need to sustain U.S. Special Operations Forces heavy assault, rotary wing aircrafts. The contract modification is funded with fiscal 2018 procurement; and aircraft procurement, Army funds. The majority of the work will be performed in Ridley Park. This contract modification is a non-competitive award and is in accordance with Fair Acquisition Regulation 6.302.1. U.S. Special Operations Command, Tampa, Florida, is the contracting activity. AIR FORCE The Boeing Co., St. Louis, Missouri, has been awarded a $14,592,654 firm-fixed-price, cost-plus-fixed-fee, time-and-material contract for the F-15 Royal Saudi Air Force (RSAF) Aircraft Maintenance Debrief System (AMDS). This contract provides administration and support to the RSAF F-15C, D, S and SA aircraft sustainment program at up to six locations throughout the Kingdom of Saudi Arabia. Services acquired under this effort include, but are not limited to, providing fully-trained AMDS personnel to operate, maintain AMDS equipment and to provide AMDS familiarization training to RSAF members that will enable them to safely and efficiently operate all AMDS equipment. Work will be performed in the Kingdom of Saudi Arabia and is expected to be completed Nov. 4, 2023. Foreign military sales in the amount of $8,744,949 are being obligated at the time of award. This award is the result of a sole-source acquisition. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8505-19-C-0001). (Awarded Oct. 31, 2018) NAVY Detyen's Shipyards Inc.,* North Charleston, South Carolina, is awarded an $8,175,517 firm-fixed-price contract for a 59-calendar day shipyard availability for the mid-term availability of USNS Arctic (T-AOE 8). Work will include furnishing general services for the ship, collection holding tank, piping repairs, 4 overhead steel replacement, tank top steel replacements, main switch board cleaning, refurbish unrep saddles, winches, and drive chains, vent systems cleaning, underwater propellers cleaning and generator cleaning. The contract includes options which, if exercised, would bring the total contract value to $8,175,517. Work will be performed in Charleston, South Carolina, is expected to be completed by Jan. 23, 2019. Navy working capital funds in the amount of $8,175,517 are obligated and will not expire at the end of the current fiscal. This contract was a small business set-aside with companies solicited via the Federal Business Opportunities website, with one offer received. The Navy's Military Sealift Command, Norfolk, Virginia, is the contracting activity (N3220519C6001). Raytheon Co., Space and Airborne Systems, McKinney, Texas, is being awarded a $7,676,741 cost-plus-fixed-fee delivery order (N0001919F0270) against a previously issued basic ordering agreement (N00019-15-G-0003). This order provides for completion of Engineering Change Proposal (ECP) 0043 for the Advanced Targeting Forward Looking Infrared Processor and Video Obsolescence Avoidance system upgrade. This ECP productionizes the Input Image Processor Version 2 (I2P2) Circuit Card Assembly (CCA); updates associated support test equipment; and performance of I2P2 CCA qualification to enable future growth and mitigate potential obsolescence issues. Work will be performed in McKinney, Texas, and is expected to be completed in November 2019. Fiscal 2018 aircraft procurement (Navy) funds in the amount of $7,676,741 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1680751/source/GovDelivery/
6 juillet 2020 | International, C4ISR

Norway selects Kongsberg’s NATO Brand IV Tactical Radio Link
July 2, 2020 - Kongsberg Defence & Aerospace AS (KONGSBERG) has signed a contract with the Norwegian Defence Material Agency for a new Flexible High Capacity Radio Link (FHCL) for the Norwegian Armed Forces. Deliveries will start in May 2021. The contract is valued at 128 MNOK and requires the delivery of a complete communications solution with KONGSBERG's RL542A as the core component. The radio platform itself was developed by KONGSBERG and will be the centerpiece of the system that also includes antennas, cables, portable equipment and other accessories adapted to the Norwegian Armed Forces' need for use under demanding conditions. The radio is a NATO Band IV radio link with supreme ECCM capabilities and high data rates providing multiple waveforms for both point-to-point as well as point-to-multi-point operations. KONGSBERG has delivered more than 3,800 radio links to 21 countries worldwide and is considered a leading provider of tactical radio communications. KONGSBERG's radio link systems are a key component of NASAMS and Patriot air defence systems, among others. The deliveries under this contract will contribute to a significant capacity boost for the Norwegian Armed Forces, as well as increase the export opportunities for the product. “KONGSBERG is proud to be selected by the Norwegian Armed Forces for the FHCL program. KONGSBERG is currently providing the NATO Band III radio link to Norway as well as the complete communications network for the KONGSBERG/Raytheon NASAMS ground based air defence system in Norway and numerous international customers. The Band IV radio link provides a highly capable and flexible supplementary communication capability“, says Pål Bratlie, Executive Vice President Kongsberg Defence & Aerospace AS. For more information: Jan Erik Hoff, Group Vice President Investor Relations, Kongsberg Gruppen ASA, tel: (+47) 991 11 916. Ronny Lie, Group Vice President Communications, Kongsberg Gruppen ASA, tel.: (+47) 916 10 798. KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the merchant navy and oil & gas, defence and aerospace industries. KONGSBERG has almost 11,000 employees in 40 countries. Follow us on Twitter: @kongsbergasa View source version on Kongsberg: https://www.kongsberg.com/newsandmedia/news-archive/20202/norway-selects-kongsbergs-nato-band-iv-tactical-radio-link/
8 janvier 2019 | International, C4ISR

Why Microsoft (Not Amazon) Could Win The Pentagon Contract
Beth Kindig Summary The majority of forecasts favor Amazon for the Pentagon contract while overlooking the partnerships that MS has made with the DoD since Nadella became CEO in 2014. By the first quarter of 2019, Azure Government Secret will support "Secret U.S. classified data or Defense Information Systems Agency (DISA) level 6" which is on par with Amazon. The question that remains is if the Pentagon will want to use Amazon for cloud infrastructure while using Microsoft for operating systems and software. In 2019, the biggest cloud customer in the world will be the United States Department of Defense. The DoD is currently reviewing bids to award a single cloud provider a multi-year contract. Obviously, this isn't your typical enterprise IT department, transferring from on-premise servers, or a startup who needs the flexibility of cloud infrastructure to scale. The program is called the Joint Enterprise Defense Initiative, or JEDI, and its purpose is to move the DoD's massive computing systems into the cloud. This one contract is worth $10 billion, or 25% of the current market, which currently stands at $40 billion in annual revenue. Many prognosticators and reporters unanimously believe the contract will go to Amazon Web Services. This belief is so strong that vendors, such as Oracle and IBM, made a rebuttal to Congress, believing the terms of the proposal favored Amazon. However, the majority of these forecasts overlook Microsoft's strength in security and IT, and the alliances Microsoft has been forming with the DoD since Satya Nadella became CEO in 2014. Admittedly, guessing a company other than Amazon will win the Pentagon contract is a pure gamble, however, there are strong indicators for Microsoft that should not be overlooked. Background on JEDI Contract The Pentagon contract will move 3.4 million users and 4 million devices off private servers and into the cloud. The security risks of using servers outside the Pentagon's domain are offset by physically separated government regions and hybrid solutions that extend on-premise servers by adding the cloud where necessary. The benefits of artificial intelligence, deep learning, and other technologies like virtual reality are essential for modern warfare as real-time data will inform missions when soldiers are in the field and also help to prepare them for combat. https://seekingalpha.com/article/4231824-microsoft-amazon-win-pentagon-contract

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