Palantir’s no-bid pipeline just got bigger

Palantir has secured another lucrative commitment from the Defense Department, with a pledge of up to $243.9 million in funding for the company’s software between now and March 31, 2027.

Deputy Secretary of Defense Steve Feinberg has also directed DOD departments to identify options for more spending on Palantir products from April 1, 2027 and Dec. 28, 2028.

In a memo viewed by WT, Feinberg says Palantir's software is "providing valuable support to improve efficiencies with the defense industrial base." Feinberg highlighted DOD's use of the software to flag delays in munitions and delivery-vehicle production and maintenance.

Feinberg made no mention of specific contracts or vehicles.

The action follows a July award of a 10-year, $10 billion Army agreement that consolidated many of Palantir’s existing contracts into a single pact.

The Feinberg memo appears to be part of a trend in federal contracting, where no-compete contracts are growing as a percentage of all awards. No compete contracts accounted for 14.8% of all awards in the first half of 2026, compared to 12.6% for the same period in 2025.

Federal News Radio reported that DOD said it has issued similar memos involving other companies.

No compete contracts are allowed in the Federal Acquisition Regulation, which gives agencies the process for documenting why a sole-source contract is the best use of federal funds. Reasons for a no-compete contract can include urgency, only one responsible source, critical follow-on work and national security.

Feinberg's memo mentions none of those reasons for directing the spending to Palantir.

Palantir's portfolio of no-compete contracts includes an Agriculture Department award for the One Farmer, One File program. Agriculture also turned to Palantir's software for the department's return-to-the-office initiative.

According to GovTribe data, the company has received $3.2 billion in contract obligations since 2024 and roughly half of those dollars came through no compete contracts.

In Palantir's second quarter earnings release on Aug. 3, the company reported 93% in the second quarter compared to the same quarter a year ago. Total revenue reached $1.9 billion.

U.S. government revenue grew 90% year-over-year to $809 million.

Palantir also is ranked No. 40 on the 2026 Washington Technology Top 100, up 22 spots from the 2025 rankings.