Palantir, BAE Share $823M Contract Award with Army: GovCon Flash

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The U.S. Army awarded contracts to Palantir Technologies Inc. and BAE Systems Plc on February 26 for commercial software and services to upgrade the analytical capabilities of its version of the Pentagon’s shared battlefield intelligence platform, the Distributed Common Ground System-Army (DCGS-A).

The two companies will compete for orders under the $823 million Capability Drop 2, a contract set to run for seven years. Six companies submitted bids in response to a June 2019 request for proposal.

The Army awarded the $876 million total value Capability Drop 1 contract, which supplied an integrated hardware and software solution for defense intelligence end users, to Palantir Technologies Inc. and Raytheon Co. in March 2019. The award followed a multiyear legal battle initiated by Palantir for the right to compete for work on DCGS-A. Palantir prevailed in federal court, and then beat Raytheon Co. in a 12-month pilot program to win the first Capability Drop 1, task order, which to date has generated $16.3 million.

A parallel program being run by the Air Force, Distributed Common Ground System (DCGS) – Air Force, was awarded to Raytheon Inc. in October 2015. According to Bloomberg Government data, the contract has generated $464 million in spending obligations of a $1.14 billion total value and is set to expire in September 2020.

To contact the analyst: Chris Cornillie in Washington at

To contact the editors responsible for this story: Daniel Snyder at; Jodie Morris at

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