The Wall Street Journal: Palantir wins suit, could be in line for $200 million Army contract

Data-mining software firm Palantir Technologies Inc. prevailed in a lawsuit against the U.S. Army that means the company could be eligible for a $200 million contract.

A federal judge in the U.S. Court of Federal Claims issued an oral ruling in the case Monday, siding with Palantir in its contention that the Army didn’t comply with a 1994 law that requires government agencies to research commercially available products before trying to build what they need from scratch.

Companies often sue the government after losing out on a contract, but Palantir filed its lawsuit because it said it wasn’t considered for the contract, as would be required under the 1994 law. The contract involves the Army’s Distributed Common Ground System, or DCGS, a 15-year-old intelligence-gathering system that collects and analyzes surveillance information and other data to help soldiers in the battlefield.

Palantir’s lawsuit alleges that DCGS has “failed,” that its own software meets the Army’s needs, but that it wasn’t allowed to bid when the Army recently went looking for contractors to improve the system. Palantir wants to be eligible for a portion of future DCGS work, a portion its lawyer said could be in the “region” of $200 million.

An expanded version of this report appears on WSJ.com.

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