Honeywell Inc. awarded $28M for HVAC equipment maintenance, with a significant portion for facilities support

Contract Overview

Contract Amount: $27,963,912 ($28.0M)

Contractor: Honeywell Inc

Awarding Agency: Department of Defense

Start Date: 2001-06-05

End Date: 2014-04-01

Contract Duration: 4,683 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200109!000088!5700!GM20 !DET 8 AFRL/PKO !F2965099D0001 !A!N!*!Y!000203 !20010605!20201026!039380407!039380407!139691877!N!HONEYWELL INC !3660 TECHNOLOGY DR !MINNEAPOLIS !MN!55418!43000!053!27!MINNEAPOLIS !HENNEPIN !MINNESOTA !+000000287000!N!N!000000000000!J041!MAINT & REPAIR OF EQ/REFRIGERATION, AIR COND EQUIP!S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !221330!*!*!3!A!S!C!*!*!*!B!*!*!A! !A !N!J!2!004!B! !C!N!Z! ! !Y!C!N! ! ! !A!D!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to HONEYWELL INC for work described as: 200109!000088!5700!GM20 !DET 8 AFRL/PKO !F2965099D0001 !A!N!*!Y!000203 !20010605!20201026!039380407!039380407!139691877!N!HONEYWELL INC !3660 TECHNOLOGY DR !MINNEAPOLIS !MN!55418!43000!053!27!MINNEAPOLIS !HENNE… Key points: 1. Contract value of $27.96M for maintenance and repair of refrigeration, air conditioning, and related equipment. 2. Primarily supports facilities support services, indicating a broad scope of maintenance operations. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. Contract duration spans from 2001 to 2014, indicating a long-term service agreement. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 6. The Product Service Code (PSC) is not specified, limiting detailed analysis of specific equipment types.

Value Assessment

Rating: good

The contract value of $27.96 million for maintenance and repair of HVAC and refrigeration equipment over a 13-year period appears reasonable given the scope. Benchmarking against similar long-term facilities maintenance contracts is challenging without more specific details on the types of equipment and service levels. However, the firm fixed-price nature of the contract suggests that the government has a predictable cost structure for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are military installations and personnel requiring reliable environmental control systems. Services delivered include the maintenance and repair of refrigeration, air conditioning, and related equipment. The contract's geographic impact is centered in New Mexico, as indicated by the state code. Workforce implications include the potential for skilled technicians and support staff employed by Honeywell Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen equipment failures occur beyond the scope of routine maintenance.
Dependence on a single contractor for critical facility support services could pose a risk if performance degrades.
The long contract duration might lead to less incentive for continuous innovation or efficiency improvements over time.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process and potentially competitive pricing.
The contractor, Honeywell Inc., has a significant track record in aerospace and defense, implying experience with complex systems.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a critical component of maintaining operational readiness for government installations. The market for facilities management and maintenance is substantial, with government contracts forming a significant portion. This specific award to Honeywell Inc. for HVAC and refrigeration equipment aligns with the broader trend of outsourcing specialized maintenance services to experienced providers.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The contract was awarded to Honeywell Inc., a large corporation. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided data. The impact on the small business ecosystem is therefore not directly discernible from this award alone.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract, performance is monitored against agreed-upon service levels. The Department of Defense and the Air Force would have oversight responsibilities. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is facilitated by the contract award data being publicly available.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering
Maintenance and Repair Services
Government Facilities Management

Risk Flags

Long contract duration may reduce flexibility and incentive for innovation.
Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on contractor performance for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to HONEYWELL INC. 200109!000088!5700!GM20 !DET 8 AFRL/PKO !F2965099D0001 !A!N!*!Y!000203 !20010605!20201026!039380407!039380407!139691877!N!HONEYWELL INC !3660 TECHNOLOGY DR !MINNEAPOLIS !MN!55418!43000!053!27!MINNEAPOLIS !HENNEPIN !MINNESOTA !+000000287000!N!N!000000000000!J041!MAINT & REPAIR OF EQ/REFRIGERATION, AIR COND EQUIP!S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !221330!*!*!3!A!S!C!*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is HONEYWELL INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2001-06-05. End: 2014-04-01.

What is Honeywell Inc.'s track record with similar federal contracts, particularly in facilities maintenance?

Honeywell Inc. has a substantial history of performing complex maintenance and support services for the federal government, including within the Department of Defense. Their experience spans various domains, from aerospace systems to building technologies. For facilities maintenance, they have been involved in contracts related to HVAC, environmental controls, and general facility upkeep. While this specific contract highlights their capabilities in refrigeration and air conditioning equipment, their broader portfolio suggests a capacity to manage large-scale, long-term service agreements. Analyzing past performance reviews and contract modifications for similar awards would provide a more granular understanding of their reliability and effectiveness in delivering these services.

How does the awarded amount compare to industry benchmarks for similar HVAC maintenance contracts?

Benchmarking this $27.96 million contract against industry standards for HVAC maintenance is complex due to the long duration (2001-2014) and the specific scope which includes refrigeration and air conditioning equipment. General industry estimates for HVAC maintenance can range significantly based on the size and complexity of the facility, the types of systems, and the service level agreements. For large federal installations, such as those likely supported by the Department of the Air Force, costs can be substantial. The firm fixed-price nature suggests a negotiated rate that was deemed competitive at the time of award. Without detailed breakdowns of service hours, parts, and specific equipment covered, a precise comparison to commercial benchmarks is difficult, but the value appears aligned with large-scale, long-term government service contracts.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract include potential cost overruns if unforeseen equipment failures or extensive repairs were required beyond routine maintenance, performance degradation impacting critical facility operations, and the long-term dependency on a single contractor. Mitigation strategies likely included a well-defined scope of work in the contract, performance metrics and service level agreements to ensure quality, and the firm fixed-price structure which shifts some cost risk to the contractor. The competitive bidding process also aimed to select a contractor with a proven ability to manage such risks effectively. Regular performance reviews and potential contract modifications would have been used to address emerging issues throughout the contract's lifespan.

How effective has this contract been in ensuring the operational readiness of the supported facilities?

The effectiveness of this contract in ensuring operational readiness is primarily inferred from its long duration and the fact that it was awarded through full and open competition. A contract spanning over a decade suggests a level of satisfaction with the services provided by Honeywell Inc. to maintain critical HVAC and refrigeration systems. Reliable environmental control is essential for the functionality of many military and government facilities. While specific performance metrics are not detailed here, the continued operation of these systems over such an extended period implies a degree of effectiveness. Further assessment would require access to performance reports and user feedback from the supported installations.

What are the historical spending patterns for facilities support services within the Department of the Air Force?

Historical spending patterns for facilities support services within the Department of the Air Force are substantial and represent a significant portion of their operational budget. These services encompass a wide range of activities, including maintenance, repair, custodial services, groundskeeping, and utility management. The Air Force, like other branches of the military, relies heavily on robust infrastructure, making facilities support critical for mission readiness. Spending in this category has generally trended upwards over the years due to aging infrastructure, increased operational tempo, and the outsourcing of non-core functions to private contractors. Contracts like the one awarded to Honeywell Inc. are typical examples of how the Air Force procures these essential services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc

Address: HONEYWELL PLZ, MINNEAPOLIS, MN, 55408

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F2965099D0001

IDV Type: IDC

Timeline