Palantir has secured another lucrative commitment from the Defense Department: a pledge to pay the company up to $243.9 million to use its software through March 31, 2027.
In a memo viewed by Washington Technology, Deputy Defense Secretary Steve Feinberg has directed DOD departments to identify options for more spending on Palantir products from April 1, 2027, and Dec. 28, 2028.
In the memo, Feinberg says Palantir’s software is “providing valuable support to improve efficiencies with the defense industrial base”—for example, by flagging 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, up from 12.6% for the period in 2025.
Federal News Radio reported that DOD said it has issued similar memos involving other companies.
No-compete contracts are allowed by the Federal Acquisition Regulation if agencies properly document 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. The department also used Palantir’s software for its return-to-the-office initiative.
According to GovTribe data, the company has received $3.2 billion in contract obligations since 2024, roughly half through no-compete contracts.
Last week, Palantir reported second-quarter revenues of $1.9 billion, up 93 percent year-over-year. Federal contracts accounted for $809 million of that, up 90 percent from last year.
Palantir is ranked No. 40 on the 2026 Washington Technology Top 100, rising 22 spots in a year.
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