Following the backlash on the NHS for awarding Palantir a £330 million contract, Science Minister Patrick Vallance has vowed to review technology procurement processes.

Backlash on appointing Palantir has ranged from ethical and security concerns, to the impact on local suppliers and the economy of utilising overseas providers. 

The controversy relates to the NHS Federated Data Platform being awarded to Palantir, which sparked data governance questions, transparency concerns and issues over the long-term implications of entrusting sensitive citizen data to the organisation. 

Others have pointed to a lack of support for the tech sector in the UK, to which this contract could have added economic value. 

In response, Vallance has suggested the government needs to rethink how it manages tech procurement, committing to prioritise support for local organisations. He stated he has “a very different way of doing contracts” with plans for “procuring innovation here.”

Whilst it seems unlikely that there will be U-turn on the Palantir contracts, some have pressured the Department of Health and Social Care (DHSC), who the Palantir deal was agreed with, to seek an early break in contract. 

A shift in government procurement to prioritise local partnerships aligns with broader goals. Supporting local tech companies is expected to encourage economic growth, create skilled jobs and support further innovation for the UK – allowing the country to create, retain and attract tech expertise. 

However, the NHS retorts that robust processes were in place. Palantir was selected “via a rigorous, competitive procurement process in line with government procurement legislation”.

This prompts the question, was there not a UK based alternative supplier who submitted a competitive bid? 

It is not public knowledge who the unsuccessful bidders were for the NHS Federated Data Platform contract. However, large international companies often have scale and resources which UK business may not have, potentially allowing them to innovate with lower costs. 

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Freedom of information requests to the government have been denied, restricting information shared about multiple government and Palantir deals and meetings which took place between the two organisations representatives.

Regardless of the Palantir contract outcome, the situation has prompted wider public interest in the transparency and decision making behind how major government technology procurement processes are assessed and awarded.