Honeywell International Inc. awarded $20.3M for Facilities Support Services, with a 5-year performance period

Contract Overview

Contract Amount: $20,359,291 ($20.4M)

Contractor: Honeywell Inc

Awarding Agency: Department of Defense

Start Date: 2003-02-18

End Date: 2014-04-01

Contract Duration: 4,060 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200305!000039!5700!GM20 !DET 8 AFRL/PKO !F2965099D0001 !A!N! !Y!000306 !20030218!20030930!001325240!001325240!139691877!N!HONEYWELL INTERNATIONAL INC !2701 4TH AVE S !MINNEAPOLIS !NJ!55422!36300!001!35!KIRTLAND AFB !BERNALILLO !NEW MEXICO!+000000865979!N!N!000000000000!B543!ENERGY STUDIES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !221330!E! !3!A!S!C! ! !99990909!B! ! !A! !A!N!J!2!004!B! !C!N!F! ! !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 $20.4 million to HONEYWELL INC for work described as: 200305!000039!5700!GM20 !DET 8 AFRL/PKO !F2965099D0001 !A!N! !Y!000306 !20030218!20030930!001325240!001325240!139691877!N!HONEYWELL INTERNATIONAL INC !2701 4TH AVE S !MINNEAPOLIS !NJ!55422!36300!001!35!KIRTLAND AFB !BERNA… Key points: 1. Contract value of $20.3M over 5 years suggests a moderate annual spend. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. Performance period extends over 5 years, allowing for sustained service delivery. 4. The contract falls under Facilities Support Services, a common requirement for government installations. 5. The award was made to a single contractor, Honeywell International Inc., for specific services. 6. The North American Industry Classification System (NAICS) code 561210 points to a focus on facilities management.

Value Assessment

Rating: good

The contract value of $20.3 million over approximately 5 years averages to about $4 million annually. This figure appears reasonable for comprehensive facilities support services at a large installation like Kirtland AFB. Benchmarking against similar contracts for facilities maintenance and management at comparable military bases would provide a more precise value-for-money assessment. However, given the duration and scope, the pricing seems within an expected range for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates there were 5 bids received. A competitive process with multiple bidders generally leads to better price discovery and potentially more favorable terms for the government. The presence of five bids suggests a healthy level of interest and competition for this type of service.

Taxpayer Impact: The full and open competition with five bidders is beneficial for taxpayers as it likely drove down costs through competitive pricing and encouraged contractors to offer their best value propositions.

Public Impact

The primary beneficiary is the Department of the Air Force, ensuring the operational readiness and maintenance of facilities at Kirtland AFB. Services delivered include comprehensive facilities support, likely encompassing maintenance, repair, and management of infrastructure. The geographic impact is concentrated at Kirtland AFB in New Mexico, supporting its mission and personnel. Workforce implications may include direct employment by Honeywell and potential subcontracting opportunities within the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate oversight.
Dependence on a single contractor for critical facility operations could pose a risk if performance degrades.
Ensuring consistent service quality across the entire performance period requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The contract has a defined performance period, allowing for structured service delivery and evaluation.
The contractor, Honeywell International Inc., is a well-established entity with experience in government contracting.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide range of services essential for the operation and maintenance of government facilities, including military bases, office buildings, and research centers. Spending in this area is consistently high across various federal agencies. Comparable spending benchmarks would involve looking at other large military installations or federal agency facilities requiring similar comprehensive support contracts.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Honeywell International Inc. The extent of subcontracting to small businesses would depend on the contractor's subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) at the Department of the Air Force. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure accountability and adherence to contract terms. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details might be sensitive.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering Services
Maintenance and Repair Contracts
Logistics and Support Services

Risk Flags

Potential for cost overruns if scope changes are not managed tightly.
Risk of service quality degradation over the 5-year performance period.
Dependence on a single contractor for critical facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to HONEYWELL INC. 200305!000039!5700!GM20 !DET 8 AFRL/PKO !F2965099D0001 !A!N! !Y!000306 !20030218!20030930!001325240!001325240!139691877!N!HONEYWELL INTERNATIONAL INC !2701 4TH AVE S !MINNEAPOLIS !NJ!55422!36300!001!35!KIRTLAND AFB !BERNALILLO !NEW MEXICO!+000000865979!N!N!000000000000!B543!ENERGY STUDIES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !221330!E! !3!A!S!C! ! !99990909!B

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 $20.4 million.

What is the period of performance?

Start: 2003-02-18. End: 2014-04-01.

What is the track record of Honeywell International Inc. in providing facilities support services to the federal government?

Honeywell International Inc. has a substantial track record in providing a wide array of services to the federal government, including facilities support, aerospace, and defense systems. Their experience spans decades, and they are a frequent recipient of large federal contracts. For facilities support specifically, they have managed complex operations at various military installations and government facilities. Analyzing their past performance on similar contracts, including any past performance issues or commendations, would provide deeper insight into their capability to execute this specific award effectively. Government contract databases and past performance reviews often contain information regarding their reliability and quality of service delivery in this domain.

How does the awarded amount of $20.3 million compare to similar facilities support contracts at other Air Force bases?

The awarded amount of $20.3 million over approximately five years, averaging around $4 million annually, is within a typical range for comprehensive facilities support services at a major Air Force installation. However, direct comparisons require careful consideration of the specific scope of work, geographic location, and the size and complexity of the installation. For instance, contracts for base operations support at larger, more complex bases might exceed this amount significantly, while smaller installations could have contracts with lower values. Benchmarking against contracts with similar NAICS codes (e.g., 561210) and contract types (e.g., Firm Fixed Price) at comparable Air Force bases would provide a more accurate assessment of whether this award represents a competitive and value-driven price.

What are the primary risks associated with a 5-year contract for facilities support services?

The primary risks associated with a 5-year contract for facilities support services include potential cost escalation due to inflation or unforeseen maintenance needs, contractor performance degradation over time, and the risk of technological obsolescence in maintenance or management systems. For the government, there's also the risk of becoming overly reliant on a single provider, which could reduce flexibility. Ensuring robust contract management, clear performance metrics, and mechanisms for addressing scope changes or performance issues are crucial to mitigating these risks. Regular performance reviews and market analysis throughout the contract term can help manage these potential downsides.

What is the historical spending trend for Facilities Support Services (NAICS 561210) by the Department of the Air Force?

Historical spending by the Department of the Air Force (DAF) on Facilities Support Services (NAICS 561210) has been substantial and generally consistent, reflecting the ongoing need to maintain and operate numerous installations. Over the past decade, the DAF has consistently allocated billions of dollars annually towards these services across various bases and facilities. Spending patterns are influenced by factors such as base consolidation, infrastructure modernization initiatives, and evolving operational requirements. While specific year-over-year fluctuations occur, the overall trend indicates a sustained and significant investment in ensuring the functionality and readiness of its physical infrastructure. Analyzing detailed historical data would reveal specific trends in contract values, competition levels, and the types of services most frequently procured.

How does the firm-fixed-price contract type impact cost control and risk allocation for this facilities support contract?

A Firm Fixed Price (FFP) contract type, as indicated for this award, places the primary cost risk on the contractor, Honeywell International Inc. This means the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This structure incentivizes the contractor to manage their costs efficiently and effectively. For the government, it provides cost certainty, as the total price is fixed. However, it can also lead to less flexibility if the scope of work needs to change significantly, potentially requiring contract modifications. The government bears the risk if the fixed price is too high relative to the actual work performed, but the competition process is designed to mitigate this by driving the price down to a level reflecting the expected costs and a reasonable profit margin.

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