Palantir won £27m government contract without tender

Labour and Conservative ministers call for more scrutiny

The UK government awarded US data firm Palantir a £27 million contract off the back of a personal introduction.

US data mining and analytics company Palantir won a contract with the UK government after a personal introduction from the former head of MI6, according to openDemocracy.

Sir John Sawers, who led the foreign intelligence service from 2009 to 2014, allegedly arranged a meeting between Palantir CEO Alex Karp and John Manzoni, the Cabinet Office permanent secretary, in 2019, when the company was pitching for new business.

The firm went on to win a data deal worth £27 million without a competitive tender.

Labour MP Clive Lewis said the news suggests the "military-industrial-espionage complex is wheedling its way into our public services and our economy."

He also called for more scrutiny over the government's dealings with Palantir:

"We know that sunlight is the best disinfectant. The apparent lack of competition and due diligence in procurement must be immediately reviewed."

Sawers denies lobbying

Documents obtained under a Freedom of Information request confirm the meeting between Karp and Manzoni, showing that Sawers was acting in a "security sector consultancy" role.

Sawers founded a consultancy firm, Newbridge Advisory, after leaving MI6. He told openDemocracy the company "does not undertake lobbying on behalf of its clients."

He instead said he set up the meeting to help the Cabinet Office "digitise government."

Notes from the meeting say Palantir was "looking to diversify their public sector work in the health and fraud spaces."

A month later, the company met Michael Gove - then Chancellor of the Duchy of Lancaster, effectively the highest post in the Cabinet Office excluding the Prime Minister - to lobby for contracts supporting border management post-Brexit.

The government awarded Palantir a £27 million deal to process border and customs data post-Brexit in August 2020, about a year after Karp's meeting with Manzoni.

One hell of a lobbyist

Cori Crider, director of Foxglove Legal, said, "It's amazing how often with this government winning big-money contracts is just about having the right friends. And let's face it, the ex-head of MI6 is a hell of a lobbyist to have in your corner.

"Palantir's lobbying campaign - and their ‘land and expand' strategy of offering free trials or £1 contracts and jacking up the prices later - seems to have worked."

Palantir has used a similar tactic to work its way into the NHS, allegedly charging just £1 to build the Covid-19 data store, before winning further deals.

The company has previously talked about its plan to buy its way into the NHS - which seems to be working, winning a £25 million contract in a closed tender earlier this year.

It is also seen as a leading potential supplier for the £480 million Federated Data Platform.

Conservative MP David Davis told openDemocracy, "Directly awarding contracts to Palantir without competition - or indeed proper public oversight - is a recipe for disaster. That practice must stop.

"With Palantir now wanting a central role in our health service, we must be extraordinarily careful about awarding any such contract."

A Palantir spokesperson said, "The Cabinet Office awarded Palantir the contract through normal procurement processes and on merit."

Meanwhile, the Cabinet Office said, "This contract went through the robust safeguards that exist under the Public Contracts Regulations 2015. These ensure that all government contracts are awarded fairly and transparently."