Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Acknowledged
DLUHC extended Palantir contract despite concerns about non-competitive initial pro-bono arrangement.
Conclusion
In February 2023, the Government’s Chief Commercial Officer wrote to Palantir noting his concern about the practice of offering services to public sector customers for a zero or nominal cost to gain a commercial foothold, contrary to the principles of public procurement which usually require open competition. The Chief Commercial Officer’s advice was copied to senior digital and procurement officials in government alongside confirmation that free trial contracts should be avoided by government customers and only used in exceptional circumstances. Given a number of challenges, including those of migrating to a new system, in September 2023, DLUHC extended the contract with Palantir for a further 12 months, valued at £5.5 million, excluding VAT, i.e. £10 million for a 30 month provision.36
Government Response Summary
The government clarified that the Chief Commercial Officer's concerns about zero-cost services did not specifically relate to Homes for Ukraine, which fell under exceptional circumstances due to the urgent need for a robust data platform.
Government Response
Acknowledged
HM Government
Acknowledged
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.