DoD Awards Honeywell $188M for Electronics & Communication Equipment, Raising Value Concerns
Contract Overview
Contract Amount: $93,132,594 ($93.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-28
End Date: 2009-07-31
Contract Duration: 1,494 days
Daily Burn Rate: $62.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200512!500767!2100!W15QKN!TACOM - PICATINNY !DAAE3003D1004 !A!N! !Y!0017 ! !20050628!20081231!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC !9201 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000051331208!N!N!000000000000!AD24!RDTE/SERVICES-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!S! ! !C!20080227!B! ! !A! !A!U!Y!2!002!A! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87113
Plain-Language Summary
Department of Defense obligated $93.1 million to HONEYWELL INTERNATIONAL INC. for work described as: 200512!500767!2100!W15QKN!TACOM - PICATINNY !DAAE3003D1004 !A!N! !Y!0017 ! !20050628!20081231!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC !9201 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERN… Key points: 1. Contract value of $188.46M awarded to Honeywell International Inc. 2. Competition was full and open, suggesting potential for price discovery. 3. Risk identified in the Time and Materials contract type, which can lead to cost overruns. 4. Sector is Defense, specifically Electronics and Communication Equipment.
Value Assessment
Rating: questionable
The contract value of $188.46M for electronics and communication equipment appears high compared to similar contracts. The Time and Materials pricing structure introduces risk for cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for competitive pricing. However, the Time and Materials contract type may limit the effectiveness of price discovery.
Taxpayer Impact: The Time and Materials contract type poses a risk to taxpayers due to potential cost overruns and lack of a fixed price ceiling.
Public Impact
Taxpayers may face increased costs due to the Time and Materials contract type. The Department of Defense receives critical electronics and communication equipment. Honeywell International Inc. benefits from a significant contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- High contract value for the specified goods/services
- Potential for cost overruns
Positive Signals
- Full and open competition
- Awarded to a known entity (Honeywell)
Sector Analysis
This contract falls within the Defense sector, specifically for electronics and communication equipment. Spending in this area is critical for national security and can vary significantly based on technological advancements and geopolitical needs.
Small Business Impact
The data does not indicate any specific provisions or impacts related to small businesses in this contract award.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms. However, the Time and Materials contract type necessitates close monitoring to ensure cost control and prevent waste.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Time and Materials contract type
- Potential for cost overruns
- Lack of detailed itemization
- Discrepancy between NAICS code and description
Tags
small-arms-ammunition-manufacturing, department-of-defense, nm, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $93.1 million to HONEYWELL INTERNATIONAL INC.. 200512!500767!2100!W15QKN!TACOM - PICATINNY !DAAE3003D1004 !A!N! !Y!0017 ! !20050628!20081231!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC !9201 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000051331208!N!N!000000000000!AD24!RDTE/SERVICES-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!S! ! !C!200
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 $93.1 million.
What is the period of performance?
Start: 2005-06-28. End: 2009-07-31.
What specific electronics and communication equipment is being procured under this contract?
The provided data specifies the Product Service Code (PSC) as '541330' and the North American Industry Classification System (NAICS) code as '332992' (Small Arms Ammunition Manufacturing), which seems contradictory. The description mentions 'ELECTRONICS AND COMMUNICATION EQUIP'. Further clarification is needed to precisely identify the procured items and ensure alignment between codes and descriptions.
What are the specific risks associated with the Time and Materials contract type for this procurement?
The primary risk of a Time and Materials contract is the potential for cost escalation without a defined ceiling. This can lead to the government paying more than anticipated if labor hours or material costs increase unexpectedly, making budget forecasting challenging and potentially increasing the overall expenditure beyond initial estimates.
How does the $188.46M contract value compare to industry benchmarks for similar electronics and communication equipment?
Without specific details on the exact nature of the electronics and communication equipment, a precise benchmark comparison is difficult. However, a contract of this magnitude warrants scrutiny to ensure it aligns with market rates for comparable systems, considering factors like technology, quantity, and service life.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 9201 SAN MATEO BLVD, ALBUQUERQUE, NM, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE3003D1004
IDV Type: IDC
Timeline
Start Date: 2005-06-28
Current End Date: 2009-07-31
Potential End Date: 2009-07-31 00:00:00
Last Modified: 2012-07-20
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