Honeywell Inc. awarded $13.9M contract for administrative and service buildings construction at Travis AFB

Contract Overview

Contract Amount: $11,698,989 ($11.7M)

Contractor: Honeywell Inc

Awarding Agency: Department of Defense

Start Date: 2002-04-15

End Date: 2019-09-30

Contract Duration: 6,377 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200207!000130!5700!QA12 !60 CONS/LGC !F0462698D0103 !A!N! !N!500201 !20020415!20020930!001325240!001325240!139691877!N!HONEYWELL INC !101 COLUMBIA RD !MORRISTOWN !NJ!07960!80294!095!06!TRAVIS AFB !SOLANO !CALIFORNIA!+000000242532!N!N!000000000000!C111!ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!S!C! !D!20020930!B! ! !A! !A!U!J!2!003!D! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! ! ! !0001!

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to HONEYWELL INC for work described as: 200207!000130!5700!QA12 !60 CONS/LGC !F0462698D0103 !A!N! !N!500201 !20020415!20020930!001325240!001325240!139691877!N!HONEYWELL INC !101 COLUMBIA RD !MORRISTOWN !NJ!07960!80294!095!06!TRAVIS AFB !SOLANO !CALIFORNIA!+000000242532!N!N!000000000000!C111!ADMINISTRATIVE & SERVICE BUI… Key points: 1. Contract awarded for construction services, indicating a need for facility upgrades or new builds. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is substantial, spanning over 17 years, which may indicate a long-term project or multiple phases. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the Department of the Air Force, highlighting a specific defense infrastructure need. 6. The North American Industry Classification System (NAICS) code 541330 suggests engineering services, which may be related to the construction oversight or design.

Value Assessment

Rating: fair

The total award amount of $13.9 million for construction services over a period of 17 years appears to be a significant investment. Without specific details on the scope of work, it is difficult to benchmark against similar contracts. However, the long duration suggests a potentially complex or phased project. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 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 moderate level of competition for this construction project. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but five bidders still provide a reasonable basis for price discovery and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel stationed at Travis Air Force Base, who will gain improved or new administrative and service buildings. The services delivered include construction, likely encompassing the building of new facilities or renovation of existing ones. The geographic impact is localized to Travis Air Force Base in Solano County, California. Workforce implications may include job creation for construction workers, engineers, and project managers involved in the execution of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 17 years) could lead to scope creep or changes in requirements over time, potentially impacting cost and efficiency.
Lack of specific details on the construction scope makes it difficult to assess the true value for money and compare it to industry standards.
The NAICS code 541330 (Engineering Services) is listed, which might indicate a focus on design or engineering aspects rather than pure construction, requiring further clarification.
The contract was awarded in 2002, and the end date is 2019; understanding the performance during this extended period is crucial for evaluating success.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Firm Fixed Price contract type helps control costs by shifting risk to the contractor.
The contractor, Honeywell Inc., is a large and established company with significant experience in various industrial and defense sectors.
The contract was awarded to a single entity, potentially simplifying project management and coordination.

Sector Analysis

This contract falls within the Construction sector, specifically related to administrative and service buildings. The construction industry is a significant part of the US economy, with federal contracts often focusing on infrastructure, military bases, and public facilities. Benchmarking this contract's value would require detailed project specifications and comparison with similar base construction projects, considering factors like square footage, materials, and complexity. The duration suggests a large-scale or multi-phase project.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the prime contractor, Honeywell Inc., is a large corporation. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, large prime contractors often engage small businesses as subcontractors for specialized services or labor, which could provide opportunities within the small business ecosystem. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed price. Transparency is generally facilitated through contract award databases, though specific project details and performance reports may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction Program (MILCON)
Base Realignment and Closure (BRAC) related construction
Department of Defense Facilities Management
Federal Building and Fire Safety

Risk Flags

Long contract duration may increase risk of cost escalation or scope changes.
Lack of detailed scope information hinders comprehensive value assessment.
Potential for contractor financial instability over extended performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to HONEYWELL INC. 200207!000130!5700!QA12 !60 CONS/LGC !F0462698D0103 !A!N! !N!500201 !20020415!20020930!001325240!001325240!139691877!N!HONEYWELL INC !101 COLUMBIA RD !MORRISTOWN !NJ!07960!80294!095!06!TRAVIS AFB !SOLANO !CALIFORNIA!+000000242532!N!N!000000000000!C111!ADMINISTRATIVE & SERVICE BUILDINGS !C2 !CONSTRUCTION !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!S!C! !D!20020930!B! ! !A! !A!U!J!2!003!D! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! !N! ! ! ! !0001!

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 $11.7 million.

What is the period of performance?

Start: 2002-04-15. End: 2019-09-30.

What was the specific scope of work for the construction of administrative and service buildings at Travis AFB under this contract?

The provided data indicates the contract was for 'ADMINISTRATIVE & SERVICE BUILDINGS' and falls under NAICS code 541330 (Engineering Services), with a construction component. However, the specific scope of work, such as the type of buildings, their size, purpose (e.g., offices, barracks, maintenance facilities), and the exact nature of the construction (new build, renovation, expansion), is not detailed in the summary data. This level of detail is crucial for understanding the project's complexity, assessing value for money, and comparing it to other construction contracts. Further review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to ascertain the precise deliverables and requirements.

How did Honeywell Inc.'s past performance and track record influence the award of this contract?

The provided data does not include specific details about Honeywell Inc.'s past performance or track record relevant to this particular contract award. However, as a large and established defense contractor, Honeywell likely has a history of performance on similar government contracts. Federal agencies typically evaluate past performance as a significant factor in source selection, especially for large, long-duration projects. A positive past performance record, demonstrating reliability, quality of work, and adherence to schedule and budget on previous contracts, would have been advantageous for Honeywell. Conversely, a negative record could have led to disqualification or a lower evaluation score. Without access to the source selection documentation, the precise impact of their track record remains unknown.

Can the $13.9 million award value be considered competitive given the 17-year duration and the nature of construction services?

Benchmarking the $13.9 million award value against the 17-year duration and the nature of construction services is challenging without more specific details about the project's scope. A simple division ($13.9M / 17 years ≈ $817,647 per year) doesn't account for inflation, project phasing, or the intensity of work in any given year. Construction costs are highly variable based on location, materials, labor, and project complexity. Given that this is for administrative and service buildings at a military installation, costs could be influenced by specific security, infrastructure, or environmental requirements. The fact that it was awarded under full and open competition with five bidders suggests some level of market competitiveness, but the true competitiveness of the price can only be assessed by comparing it to detailed cost estimates, industry benchmarks for similar facilities, and the actual work performed over the contract's life.

What are the potential risks associated with a firm fixed-price contract of this magnitude and duration?

A firm fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a long-duration contract like this (over 17 years), potential risks include: 1) Contractor underestimation: Honeywell might have underestimated the total costs, leading to financial strain or attempts to cut corners if profit margins erode. 2) Scope creep: If the government's needs evolve significantly over 17 years, managing changes under an FFP contract can be complex and may require contract modifications, potentially negating some FFP benefits. 3) Market fluctuations: Unforeseen increases in material or labor costs over such a long period could severely impact the contractor's profitability. 4) Contractor viability: The longer the duration, the higher the risk that the contractor might face financial difficulties or go out of business, impacting project continuity. However, FFP also provides cost certainty for the government if the scope is well-defined and stable.

How does this contract fit into the broader context of Department of the Air Force infrastructure spending and modernization efforts?

This contract represents a specific investment in facility infrastructure at Travis AFB, contributing to the Department of the Air Force's (DAF) overall spending on maintaining and modernizing its installations. Federal agencies, particularly the DoD, continuously invest in their infrastructure to support operational readiness, enhance quality of life for service members, and ensure compliance with safety and environmental standards. Contracts for administrative and service buildings are essential for providing the necessary workspaces and support facilities. The long duration suggests a strategic, long-term commitment to developing or upgrading facilities at this base, potentially aligning with broader DAF initiatives for base improvements or modernization programs that span multiple years.

What is the significance of the NAICS code 541330 (Engineering Services) being associated with this construction contract?

The association of NAICS code 541330 (Engineering Services) with a contract primarily described as construction for administrative and service buildings is noteworthy. This code typically covers firms that provide architectural, engineering, and related services. Its inclusion suggests that the contract may encompass significant design, planning, engineering, and possibly project management aspects beyond basic physical construction. It could imply that Honeywell was responsible for the design phase, ensuring structural integrity, compliance with building codes, and potentially integrating specialized systems. Alternatively, it might indicate that engineering oversight and consulting were a substantial part of the contract's requirements, even if the primary output was the physical buildings.

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: 7900 WEST PARK DRIVE, MCLEAN, NJ, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,698,989

Exercised Options: $11,698,989

Current Obligation: $11,698,989

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F0462698D0103

IDV Type: IDC

Timeline