Honeywell International Inc. awarded $16.4M in engineering services for Defense, with a 912-day duration
Contract Overview
Contract Amount: $16,436,940 ($16.4M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-29
End Date: 2013-03-29
Contract Duration: 912 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87113
Plain-Language Summary
Department of Defense obligated $16.4 million to HONEYWELL INTERNATIONAL INC. for work described as: ENGINEERING SERVICES Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. Full and open competition suggests a robust market for these services. 3. The cost-plus-fixed-fee structure requires careful monitoring of costs to ensure value. 4. Performance period spans over two years, indicating a substantial project scope. 5. The contract is categorized under Engineering Services, a critical support function for defense operations. 6. Awarded by the Defense Contract Management Agency, highlighting its importance within the DoD. 7. The contract was awarded as a delivery order, suggesting it's part of a larger framework agreement.
Value Assessment
Rating: fair
Benchmarking the value of this $16.4 million contract for engineering services is challenging without specific deliverables. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects where costs are uncertain, can lead to higher overall expenditures compared to fixed-price contracts if not managed diligently. The duration of 912 days (approximately 2.5 years) suggests a significant scope of work. Without detailed performance metrics or comparisons to similar engineering service contracts within the Department of Defense, a definitive value-for-money assessment is difficult, but the CPFF structure warrants close cost oversight.
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. This approach typically fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest from the market for these engineering services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive marketplace that can drive down costs and improve the quality of services received by the government.
Public Impact
The primary beneficiaries are the Department of Defense agencies requiring specialized engineering support for their programs. Services delivered likely include design, analysis, testing, and technical consultation related to defense systems. The geographic impact is primarily within New Mexico, where the contract was awarded, and potentially at various DoD installations where the engineering services are applied. Workforce implications include employment opportunities for engineers and technical specialists within Honeywell and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not strictly monitored.
- The long performance period requires sustained oversight to ensure continued alignment with evolving defense needs.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- The contract duration indicates a significant and potentially critical need for these engineering services.
- Honeywell International Inc. is a large, established contractor with a track record in defense.
Sector Analysis
Engineering services form a crucial segment of the professional services market supporting government and defense initiatives. This contract falls within the broader professional, scientific, and technical services sector. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of complex military systems. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar types of technical expertise.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation, the primary impact on small businesses would likely be through subcontracting opportunities. However, without specific subcontracting plans or goals detailed in the award, it's difficult to assess the extent to which small businesses will benefit from this particular contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the contract's terms, including the cost-plus-fixed-fee structure which requires justification of costs. Transparency is generally facilitated through contract reporting mechanisms, although the level of public detail can vary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Support Services
- Professional, Scientific, and Technical Services
- Department of Defense Contract Awards
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Cost-Plus-Fixed-Fee structure requires diligent cost oversight.
- Long contract duration necessitates sustained performance monitoring.
- Potential for cost overruns inherent in CPFF contracts.
Tags
engineering-services, department-of-defense, honeywell-international-inc, full-and-open-competition, cost-plus-fixed-fee, delivery-order, defense-contract-management-agency, new-mexico, professional-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to HONEYWELL INTERNATIONAL INC.. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $16.4 million.
What is the period of performance?
Start: 2010-09-29. End: 2013-03-29.
What is Honeywell International Inc.'s track record with the Department of Defense for engineering services?
Honeywell International Inc. has a long-standing and extensive history of contracting with the Department of Defense across various service and product lines, including engineering services. As a major defense contractor, they have been involved in numerous projects supporting military platforms, systems, and infrastructure. Their track record typically includes a wide range of capabilities, from research and development to sustainment and modernization. Specific performance on past engineering contracts would be detailed in government performance databases (like CPARS), which are not publicly available in this dataset. However, their continued success in securing large DoD contracts suggests a generally positive performance history and a strong understanding of defense requirements.
How does the $16.4 million contract value compare to similar engineering service contracts within the DoD?
The $16.4 million value for this engineering services contract is moderate within the context of large Department of Defense procurements. The DoD frequently awards contracts for engineering support that range from a few million dollars to hundreds of millions, or even billions, depending on the scope, complexity, and duration. This specific contract's value is significant enough to indicate a substantial project but not exceptionally large compared to major system development or sustainment programs. To provide a precise comparison, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) awarded over a comparable timeframe and with similar performance periods and service requirements.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost to the government can escalate if the contractor's actual costs exceed initial estimates. This can occur due to unforeseen technical challenges, scope creep, or less efficient performance. For the government, the risk lies in paying more than initially anticipated. Effective risk mitigation requires robust government oversight, clear definition of allowable costs, stringent change control processes, and regular audits to ensure costs are reasonable and allocable.
How effective is 'full and open competition' in ensuring value for taxpayer money in engineering services contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals that offer the best combination of price, technical approach, and past performance. This competitive pressure incentivizes contractors to propose efficient solutions and realistic pricing. When multiple bidders vie for a contract, the government can select the offer that provides the greatest overall value. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to properly assess proposals.
What are the historical spending patterns for engineering services by the Defense Contract Management Agency (DCMA)?
The Defense Contract Management Agency (DCMA) itself does not typically procure large-scale engineering services for its own operational needs in the same way a major combatant command or service branch might. Instead, DCMA's primary role is to provide contract management services, including oversight of performance, quality, and cost, for contracts awarded by other Department of Defense components. Therefore, historical spending patterns directly attributed to DCMA for engineering services would likely be minimal and related to internal support functions. The $16.4 million contract awarded to Honeywell was likely procured by a different DoD entity, with DCMA providing the contract administration and oversight.
What is the significance of this contract being awarded as a 'Delivery Order'?
The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) is significant because it implies that this contract is not a standalone, new procurement but rather an order placed against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of basic ordering agreement (BOA). IDIQ contracts establish terms and conditions, and allow the government to issue orders for specific quantities of goods or services over a period. A delivery order specifies the exact quantity, delivery schedule, and price for a particular requirement under that larger contract vehicle. This approach provides flexibility for the government to procure needed services as requirements arise, while potentially having pre-negotiated rates and terms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 9201 SAN MATEO BLVD NE, ALBUQUERQUE, NM, 87113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,731,000
Exercised Options: $16,731,000
Current Obligation: $16,436,940
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: H9400304D0008
IDV Type: IDC
Timeline
Start Date: 2010-09-29
Current End Date: 2013-03-29
Potential End Date: 2013-03-29 00:00:00
Last Modified: 2020-01-21
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