MOD Confirms Palantir Contract Was Direct Award
•February 18, 2026
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Why It Matters
The ruling validates the use of direct awards for critical defence tech, setting a precedent for future procurement while addressing transparency concerns.
Key Takeaways
- •Direct award justified under Paragraph 6, no competition
- •Paragraph 7 cited to avoid compatibility issues
- •MOD asserts no ministerial conflicts of interest
- •Ongoing due‑diligence governed by JSP 492 policy
- •Decision made by Secretary of State for Defence
Pulse Analysis
The Ministry of Defence’s reliance on the Procurement Act 2023 to fast‑track the Palantir Enterprise Agreement underscores a growing trend in defence procurement: prioritising technical continuity over open competition when alternatives are scarce. Section 41 of the Act empowers agencies to bypass traditional tendering when a single supplier can meet highly specialised requirements, a provision the MOD invoked under Paragraph 6. By framing the award as a necessity rather than a preference, the department sidesteps the lengthy competitive process, ensuring that critical data‑analytics capabilities remain operational without interruption.
Palantir’s platform has become integral to the UK’s defence data ecosystem, interfacing with legacy systems that demand precise compatibility. Switching suppliers would not only entail substantial re‑engineering costs but also risk creating data silos that could impair mission‑critical decision‑making. Paragraph 7 of the Act explicitly addresses such scenarios, allowing extensions or partial replacements of existing services to avoid technical disruption. This rationale reflects a broader industry reality where sophisticated software solutions often lock in users, making vendor continuity a strategic imperative.
Transparency and governance remain focal points, especially given heightened public scrutiny of defence contracts. Minister Luke Pollard’s assurances that no ministers or former officials with Palantir ties influenced the award aim to mitigate perceived conflicts of interest. The MOD’s adherence to the Business Appointments Policy (JSP 492) and continuous conflict‑of‑interest assessments demonstrate an effort to balance swift procurement with accountability. As the UK navigates increasingly complex defence technologies, the Palantir case may serve as a benchmark for how direct awards are justified, monitored, and communicated to both Parliament and the public.
MOD confirms Palantir contract was direct award
The Ministry of Defence has confirmed that its agreement with Palantir Technologies for defence data analytics capabilities was awarded through a direct award process under the Procurement Act 2023, citing a lack of viable alternatives and the need to maintain compatibility with existing systems.
In response to written parliamentary questions from Liberal Democrat MP Martin Wrigley, Defence Minister Luke Pollard said the department let the “Palantir Enterprise Agreement” contract in accordance with the Procurement Act 2023, using direct award powers set out under Section 41, Schedule 5.
Pollard said the MOD relied on two specific justifications.
The first was Paragraph 6, which allows a direct award where “due to an absence of competition for technical reasons, only a particular supplier can supply the goods, services or works required,” and where “there are no reasonable alternatives to those goods, services or works.”
The second was Paragraph 7, which allows a direct award where the contract involves continued supply by an existing supplier, intended either as an extension or partial replacement of existing services, and where changing supplier would create compatibility issues.
Pollard said the justification applied because “a change in supplier would result in the contracting authority receiving goods, services or works that are different from, or incompatible with, the existing goods, services or works,” and that such a change would lead to “disproportionate technical difficulties in operation or maintenance.”
The minister also sought to address concerns over potential conflicts of interest.
Pollard stated that the MOD could confirm “no Ministers and former officials with prior links to Palantir were involved at any stage of that process,” adding that the decision to award the contract was made by the Secretary of State for Defence.
In a separate written response, Pollard said the department conducts continuous conflict-of-interest assessments for all individuals involved in MOD commercial activity.
He added that the MOD also carries out “comprehensive due diligence” when notified of business appointments that may raise concerns, and pointed to the department’s Business Appointments Policy under JSP 492, which sets out the process for assessing such cases.
According to Pollard, where concerns are identified the MOD can impose conditions on individuals, including restricting the sharing of information, prohibiting lobbying activity for a defined period, placing restrictions on advising on ongoing commercial activity, and requiring clearance for any ongoing commissions.
He said the conditions and timeframes applied depend on the seniority of the individual involved and the nature of the appointment, adding that the MOD continues to work to ensure these processes are properly managed and enforced.
The post MOD confirms Palantir contract was direct award first appeared on UK Defence Journal.
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