Palantir's CDC 5 Year 443M Deal Explained
Another day, another deal for Palantir.
This deal comes as the third in line of recent contracts Palantir has been able to ink. First we had the Lockheed Martin deal, followed shortly by the decade long Cleveland Clinic deal. Now we've got a new deal with CDC for five years worth $443 million. By far the largest of the three.
Now before we dive even deeper into this new partnership, or rather this partnership extension, let's take a look at the relationship Palantir has with the CDC..
So the CDC has been a pretty strong partner when it comes to getting new deals with palantir.
They've been able to implement their platform, they've been able to use their technology, and they've been able to constantly secure new deals and extensions with the CDC. Utilizing their software in different places, showing that the software is pretty powerful.
Palantir being able to get embedded within government organizations, and really get some of these important deals is not to be ignored. At the end of the day, the CDC is picking Palantir over and over again, not Snowflake, Datadog, or Data bricks.
Core KPIs For Palantir
Five-year $443 million contract will include Health and Human Services (HHS) Protect, Administration for Strategic Preparedness and Response (ASPR), Engage, Tiberius, and DCIPHER. These are all different acronyms or different programs that the CDC is working on or involved with. Palantir will develop a singular efficient vehicle so these programs can operate.
This new approach demonstrates the CDC’s leadership in driving interagency public health programs like Health and Human Services HHS. Which is kind of a subsidiary from CDC, is now going to be working with the CDC integrated into Palantir’s technology to form a single source of truth for the organizations.
It's a pretty strong collaboration with Palantir, and it's a heavy partner. At almost $100 million a year, the CDC must really appreciate the value Palantir brings.
You could imagine they're going to extend this for another 5-10 years especially if it makes them more efficient and effective or aids in stopping future potential outbreaks.
There are three key KPIs that the CDC wants to get out of this deal as far as I can tell:
Broad disease surveillance. Obviously COVID flipped the entire world on its edge. Global economies were halted, people's lives were upended, saying it was bad is an understatement. Palantir will be helping to prevent this type of catastrophic damage.
Outbreak response, meaning as soon as we think there's a little bit of an outbreak we can respond using real-time data and predictive modeling
Supply chain resiliency, before the inevitable outbreak does happen again, are we sure supply chains are efficient and effective.
Overall, the goal of a deal like this, which is why they're paying you know close to $500 million, is to make sure that the technology is in place to stop a pandemic from happening.
At the very least, to deal with a pandemic in a more sophisticated manner if it does overwhelm us again. As you know, the world was not prepared, much less the United States, to be able to take on the challenges that COVID presented.
Let's end on this quote from Hirsh Jain, Head of Public Health Federal at Palantir:
“Palantir is extremely proud to continue its partnership with the CDC, ASPR, and HHS to strengthen America's Public Health infrastructure through leading-edge preparedness technology”
“This contract solidifies the important digital advancements in public health made during the pandemic and expands the CDC's capacity to create a sustainable and long-term approach Beyond COVID-19.”
One thing is for certain - not many companies are getting called on by the CDC to lay the infrastructure to protect against the next public health crisis.
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