Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Deferred
DLUHC awarded direct contract to Palantir for data system after initial pro-bono period.
Conclusion
At the start of the scheme, DLUHC identified a need to share data between itself, the Home Office and local authorities, including data on the subsequent movement of Ukrainians after their arrival into the UK. DLUHC chose to accept an offer from a company called Palantir to use its data system on a pro-bono basis for the first six months, with Palantir waiving an estimated fee of £3.25 million. In September 2022, following the end of the six-month free trial period, DLUHC directly awarded a 12-month contract to Palantir worth £4.5 million, excluding VAT.35
Government Response Summary
DLUHC is reviewing options for the Palantir contract ahead of its September 2024 expiry, potentially extending it until September 2025, but further details are commercially sensitive. The government reiterates that the initial contract fell under 'exceptional circumstances' due to urgency.
Government Response
Deferred
HM Government
Deferred
6.1 The government agrees with the Committee’s recommendation. Target implementation date: September 2024 6.2 Under the terms of the Palantir contract, the service may run for up to 3 years. This means that the contract can, subject to agreement of both parties, be extended until September 2025. 6.3 DLUHC is undertaking work to review the options available to the department ahead of the expiry of the current Palantir contract in September 2024, including the potential to renew the contract for a final year. As this is commercially sensitive information, the department is unable to provide any further information at this time. 6.4 The Government Chief Commercial Officer’s (GCCO) concerns alluded to by the Committee did not specifically relate to Homes for Ukraine which fell within the ‘exceptional circumstances’ cited by GCCO, including the need for urgency and a robust data platform to be established at pace.