The mayor of London Sir Sadiq Khan has blocked a £50 million deal between the Metropolitan Police and controversial US technology company Palantir.
Scotland Yard had been in talks about using Palantir’s artificial intelligence technology to automate intelligence analysis in criminal investigations, the Guardian reported in April.
The company, founded by tech magnate Peter Thiel, a prominent donor to US President Donald Trump, holds contracts with other UK public sector bodies, including the NHS and the Ministry of Defence.
On Thursday, the mayor’s office for policing and crime (MOPAC) said Palantir was the only supplier the Met had seriously considered for the proposed contract.
The force failed to present its procurement strategy to MOPAC for approval, in a “clear and serious breach” of procedure despite the requirement being “specifically emphasised” to the Met.
This meant City Hall was unable ensure value for money.
Deputy mayor for policing and crime Kaya Comer-Schwartz told Met Commissioner Sir Mark Rowley: “To date, I have not been provided with any acceptable explanation for this failure.”
The process the force followed has not “provided a reasonable process of competition or market testing in respect of the services being procured”, she added.
It is understood that Sir Sadiq expects to speak to the Government about whether a company’s ethics should be considered in procurement processes.
He expects Londoners would want public funding issued to companies that share the city’s values, the Press Association understands.
The mayor’s office was originally told the contract would cost between £15 million and £25 million per annum and the term would be two years, Ms Comer-Schwartz said.
After negotiating with Palantir, the Met increased the contract to the upper end of the range at £25 million.
MOPAC was not satisfied that that cost could be paid for both years without risking “unacceptable” tolls on other budgets.
Extending the contract – a not uncommon request for the Met – would increase the risks and concerns, the deputy mayor for policing and crime added.
She told Sir Mark: “I appreciate that my decision will be disappointing. To be clear, I continue to support MPS (Metropolitan Police Service) taking effective and timely action to source and procure technology and related services that can support and improve the effective delivery by the MPS of its operational functions.
“However, I believe that this can, and must, be done in a manner that incorporates reasonable, effective, arrangements to ensure the achievement of value for money.”
