DoD Awards $32.5M for Inertial Navigation Systems to Honeywell, Full Competition Used
Contract Overview
Contract Amount: $32,512,426 ($32.5M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2010-05-06
End Date: 2011-12-31
Contract Duration: 604 days
Daily Burn Rate: $53.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INERTIAL NAV. SYSTEM - INS
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $32.5 million to HONEYWELL INTERNATIONAL INC. for work described as: INERTIAL NAV. SYSTEM - INS Key points: 1. The contract value of $32.5M for Inertial Navigation Systems (INS) is a significant investment in defense technology. 2. Honeywell International Inc. secured the award through full and open competition, indicating a competitive bidding process. 3. The contract duration of 604 days suggests a substantial project requiring reliable navigation systems. 4. The use of Firm Fixed Price contract type aims to control costs and manage financial risk for the government.
Value Assessment
Rating: good
The contract value of $32.5M for INS appears reasonable given the specialized nature of the equipment and the competitive bidding process. Benchmarking against similar large-scale defense system procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure the government receives the best value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario.
Public Impact
Enhances military operational capabilities through advanced navigation technology. Supports Department of Defense readiness and strategic deployment. Contributes to the aerospace and defense manufacturing sector. Ensures reliable guidance for critical defense assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope changes.
- Dependence on a single supplier for specialized components.
- Long-term sustainment and upgrade costs not detailed.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type for cost certainty.
- Honeywell's established expertise in navigation systems.
Sector Analysis
The aerospace and defense sector, particularly in navigation and guidance systems, is characterized by high R&D costs and stringent performance requirements. Spending benchmarks for similar INS contracts are difficult to ascertain without specific technical details, but $32.5M for a 604-day delivery order is substantial.
Small Business Impact
The data indicates this contract was awarded to a large corporation, Honeywell International Inc. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Standard government oversight processes for contract execution and performance monitoring would apply. The use of delivery orders under a larger contract framework suggests ongoing oversight.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost creep if not managed tightly.
- Dependency on a single prime contractor for critical technology.
- Risk of performance degradation in extreme operational environments.
- Long-term sustainment and maintenance costs are not detailed.
- Potential for schedule delays impacting operational readiness.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.5 million to HONEYWELL INTERNATIONAL INC.. INERTIAL NAV. SYSTEM - INS
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $32.5 million.
What is the period of performance?
Start: 2010-05-06. End: 2011-12-31.
What is the specific technological advancement or capability improvement this INS contract is intended to deliver compared to previous systems?
The provided data does not specify the exact technological advancements or capability improvements this Inertial Navigation System contract is intended to deliver. Further details on the system's specifications, performance metrics, and intended operational use would be needed to assess its comparative advantage over previous systems and its overall value proposition.
What are the key performance indicators (KPIs) used to measure the success and effectiveness of this INS contract during its execution?
The data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for INS contracts, KPIs would focus on accuracy (e.g., drift rate), reliability (e.g., Mean Time Between Failures), environmental resistance (e.g., shock, vibration, temperature), and timely delivery. The government would monitor these against contract requirements.
Are there any identified risks associated with the long-term obsolescence or upgrade path for the inertial navigation systems being procured under this contract?
The provided data does not detail risks related to long-term obsolescence or upgrade paths. However, for advanced defense systems like INS, obsolescence is a common concern. The Department of Defense likely has strategies for managing this, such as incorporating upgrade clauses or planning for future technology refreshes, but these are not evident in the summary data.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: WEAPONS
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 (UEI: 139691877)
Address: 13350 US HIGHWAY 19 NORTH, CLEARWATER, FL, 33764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,512,426
Exercised Options: $32,512,426
Current Obligation: $32,512,426
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN10D0018
IDV Type: IDC
Timeline
Start Date: 2010-05-06
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 12:12:00
Last Modified: 2021-02-17
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