# UK Ministry of Defence Awards Palantir Contract

The UK Ministry of Defence awarded Palantir a **£240 million** contract in December 2023 without a competitive tender, contributing to the company's total **£670 million** in UK government contracts. Palantir's tax practices, including transfer pricing that shifts profits to the US, have drawn scrutiny from unions and may influence future procurement policy for multinational tech vendors. This development highlights ongoing debates about transparency, value for money, and ethical standards in public sector technology procurement.

- **Why this matters:** The contract award process and Palantir's tax arrangements are under review, which could impact eligibility criteria and evaluation for future government IT contracts in the UK
- Procurement professionals should monitor potential changes to public sector tendering rules, especially regarding tax compliance and multinational vendor selection
- Contractors may face increased scrutiny on tax practices and transparency requirements when bidding for UK government contracts
- Organizations should assess the implications for competitive tendering and compliance standards in upcoming technology procurement opportunities

**Jurisdictions:** federal
**Industries:** Information Technology, Defense & Military
**Topics:** Regulatory Compliance, Contracting Vehicles
**Published:** August 05, 2026

### Government Entities
- Ministry of Defence (MoD)
- National Health Service (NHS)

### Vendors
- Palantir (prime contractor)

### Key Quotes
> Palantir's US commercial revenue alone rose 149 per cent in the second quarter, with worldwide revenue forecast to nearly double this year to $8 billion (£5.95bn).
> — Alex Karp, Chief Executive Officer, Palantir

> Systems that enable tax to be shirked on an industrial scale clearly have to change... Ministers shouldn't award contracts to run public services to firms that are starving them of cash.
> — Andrea Egan, General Secretary, Unison

### Sources
- [Palantir Paid Just £2.1m UK Corporation Tax in 2024 While Holding £670M in Government Contracts | IBTimes UK](https://www.ibtimes.co.uk/palantir-tax-practices-uk-contracts-1812695) - International Business Times UK