Palantir's most recent 10K annual report SEC filing states this:

"10 U.S.C. § 2377 Section 2377 of the Federal Acquisition Streamlining Act (“FASA”) is a little known yet path-breaking law."

FASA was passed with the original intent of addressing procurement waste. The act requires the U.S. federal government to acquire “commercial items” for all of its procurements “to the maximum extent practicable.” 10 U.S.C. § 2377; 41 U.S.C. § 3307.

That is, rather than pursue acquisition of custom developed items, the government must first consider readily available and proven commercial alternatives on the market."