Palantir Secures $1B Single-Source DHS Contract for Surveillance Tech Through 2031
The Department of Homeland Security has awarded Palantir Technologies a $1 billion single-award agreement, effectively shielding the company from competition for ICE and CBP data projects. This procurement maneuver ensures a private corporation holds a proprietary monopoly over federal surveillance data for the next five years.
DHS has granted Palantir a $1 billion monopoly on ICE and CBP surveillance data through 2031 by exploiting a procurement loophole that blocks all competitors.
On February 12, 2026, the Department of Homeland Security (DHS) Procurement Office finalized Blanket Purchase Agreement 70RTAC26A00000001. The deal awards Palantir Technologies Inc. a $1.0 billion ceiling to provide data integration and surveillance analytics for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). Unlike standard federal contracts that encourage bidding to lower costs, this is a single-award vehicle. No other companies can compete for the task orders issued under this $1 billion umbrella through 2031.
To bypass statutory competition requirements, DHS utilized the GSA Multiple Award Schedule 47QTCA24D004L as a foundational vehicle. This allowed the agency to satisfy the letter of the law while narrowing the actual fulfillment to a single vendor. Palantir CEO Alexander Karp has pioneered a business model centered on high-moat 'vendor lock-in.' By deploying proprietary data architectures like Gotham and Foundry, Palantir makes it technically and financially prohibitive for the government to migrate to other vendors. SEC Form 10-K filings indicate that Palantir’s growth is increasingly tethered to these sole-source agreements that escape the scrutiny of competitive market pressures.
Mainstream reporting typically frames these deals as 'modernization' efforts to break down data silos. What these reports omit is that this BPA eliminates the requirement for DHS to perform fresh market surveys for new surveillance tool deployments. Because Palantir’s per-license pricing is shielded from public view as a trade secret, taxpayers have no way of knowing the unit cost of the tools used to track and monitor individuals at the border. The 'revolving door' between DHS procurement offices and major defense firms further complicates the optics of such a massive, non-competitive award.
This contract represents a fundamental shift in government accountability. When the state’s data infrastructure is built on proprietary code that the state does not own, the public loses its ability to audit or challenge the technology. For ordinary citizens, this means more expensive government services and the entrenchment of invasive surveillance systems that operate without the oversight that market competition or open-source transparency would provide.
Summary
The Department of Homeland Security has awarded Palantir Technologies a $1 billion single-award agreement, effectively shielding the company from competition for ICE and CBP data projects. This procurement maneuver ensures a private corporation holds a proprietary monopoly over federal surveillance data for the next five years.
⚡ Key Facts
- DHS awarded Palantir a $1 billion Blanket Purchase Agreement on Feb 12, 2026, with a single-award status.
- The agreement eliminates competition for ICE and CBP software task orders through 2031.
- Palantir utilizes proprietary data structures to create a 'vendor lock-in' effect, making it nearly impossible for DHS to switch vendors.
- The contract uses a GSA schedule loophole to satisfy competition requirements while ensuring only one vendor is selected.
- Per-license pricing for surveillance tools remains hidden from the public under proprietary trade secret claims.
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