But a review of public documents and interviews with key players
shows the company is no stranger to Beltway politics and influence. Its
lobbying expenditures more than tripled to more than $1 million in a few
short years as it enlisted lawmakers such as Republican Sens.
of Arkansas to help it compete against established players like
Raytheon and Northrop Grumman. Now, about 40 percent of Palantir’s
business comes from government clients, and it appears to be winning a
fight with the Army over a $3 billion program to build a new battlefield
intelligence network.
“The other companies were asleep at the switch,” said an industry consultant who works for one of Palantir's competitors
, speaking on condition he not be identified.
“It’s a company that couldn’t win a contract and now doesn’t want
another company to win,” added a congressional aide who has seen the
operation up close but is not permitted to speak publicly. “It happens
all the time. They’re just being more aggressive about it than normal.”
Palantir, which has repeatedly declined to speak publicly, got an
inside track soon after its inception in 2004. (Its name comes from the
magical crystal balls in the “Lord of the Rings” trilogy.) Thiel, the
co-founder of PayPal, got the Central Intelligence Agency to invest $2
million through In-Q-Tel, the agency’s venture capital arm. That granted
Palantir access to the inner workings of government contracting — and
it quickly learned how the game is played.
Palantir hired a series of power players in 2010: At lobbying firm
Patton-Boggs, they included former Sens. John Breaux (D-La.) and Trent
Lott (R-Miss.) and a group of their former congressional aides who
lobbied on “funding for intelligence analysis
tools” and defense appropriations bills and advocated before a variety of agencies.
Also hired to influence the defense appropriations process was
Alexander Silbey of ATS Communications, who spent several years on
Capitol Hill, including as a senior policy adviser to Rep.
James Clyburn (D-S.C.),
a member of the House Democratic leadership. At Kadesh and Associates
LLC, it was Mark Kadesh, former chief of staff to Sen.
Dianne Feinstein (D-Calif.), and Christian Kierig, who was a legislative assistant for Feinstein.
While still a fraction of what the Pentagon’s biggest contractors
spend, Palantir’s lobbying expenditures grew from $300,000 in 2010 to
over $1 million by 2015.
The company’s federal business also steadily grew. Since 2009, the
company has landed contracts worth at least $1.2 billion from the Marine
Corps, Defense Intelligence Agency, Department of Justice, FBI, State
Department, CIA, Internal Revenue Service, Immigration and Customs
Enforcement, Department of Homeland Security and the National Center for
Missing and Exploited Children, according to a former lobbyist for the
firm....
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