DHS Opens a Billion-Dollar Tab With Palantir

DHS signs $1 billion deal with Palantir

The Department of Homeland Security has signed a new $1 billion purchasing agreement with Palantir. The five-year blanket purchase agreement streamlines software procurement for the entire department.

It allows DHS agencies, including Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE), to buy Palantir products and services without a new competitive bidding process. The deal covers commercial software licenses, maintenance, and implementation.

Internal tensions over ICE work

The contract arrives amid significant internal strife at Palantir over its government work. Employee concerns escalated after the January killing of Minneapolis nurse Alex Pretti, with staff demanding clarity on how company technology aids immigration enforcement.

In response, Palantir updated an internal wiki with limited details and CEO Alex Karp recorded a video for staff. In the video, Karp defended the company's immigration work but did not explain how its tools power ICE, suggesting employees sign NDAs for more information.

Leadership addresses staff concerns

Akash Jain, Palantir's CTO and president of US Government Partners, acknowledged the internal conflict in an email announcing the DHS deal. "I recognize that this comes at a time of increased concern, both externally and internally, around our existing work with ICE," Jain wrote.

He framed the agreement as a sign of trust and suggested it could expand Palantir's work into other DHS agencies. Jain listed several potential new partners:

• The US Secret Service (USSS)
• The Federal Emergency Management Administration (FEMA)
• The Transportation Security Administration (TSA)
• The Cybersecurity and Infrastructure Security Agency (CISA)

Palantir's growing role in immigration enforcement

Palantir's work with ICE has expanded substantially. In April 2023, WIRED reported a $30 million contract for "ImmigrationOS," a system designed to provide "near real-time visibility" on immigrants self-deporting.

The company has since developed a new tool called Enhanced Leads Identification & Targeting for Enforcement (ELITE). This system creates maps of potential deportation targets by pulling data from DHS and the Department of Health and Human Services.

A call for "committed hobbits"

In his email, Jain argued Palantir's software strengthens constitutional protections and enables accountability. Critics, however, contend the company's tools create a surveillance dragnet that threatens civil liberties.

Jain concluded by inviting skeptical employees to work directly on the DHS projects. "The best way to understand the work is to engage on the work directly," he wrote, using the company's internal Lord of the Rings vernacular. "There will be a massive need for committed hobbits to turn this momentum into mission outcomes."

Palantir did not respond to a request for comment on the new agreement.