
“The BPA will include a one-year base period, with two (2) one-year option periods for a total potential ordering period of three (3) years. The estimated BPA ceiling is $300 million.” This is all in support of the National Farm Security Action Plan (which includes combating fraud in SNAP, along with a ton of other things)
Their entire justification for this is that Palantir is the only accredited provider that has experience with USDA systems, and any other contractor would need to do significant work, leading to delays. And they want to do a blanket agreement because individual contracts would be too fragmented and wouldn’t be good for negotiation
Ah ok. USDA FNS is saying the fraud rate is 1%, so approx $1B by their stats. Obviously all fraud is bad, but keep in mind the scale of SNAP: there are 42M people on it. Small errors here add up very quickly. Compared to other government programs like Medicare, SNAP is pretty good. Medicare has $54B in “improper payments”, although that’s more than fraud and also includes duplicate payments, underpayments, overpayments, and other issues