DoD's $13.9M Honeywell Contract for Other Utilities Shows Fair Competition and Potential Value Concerns
Contract Overview
Contract Amount: $12,582,383 ($12.6M)
Contractor: Honeywell Inc
Awarding Agency: Department of Defense
Start Date: 2003-02-04
End Date: 2009-09-30
Contract Duration: 2,430 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE
Sector: Other
Official Description: 200305!000174!5700!AC07 !355 CONS/CC !F0462698D0103 !A!N! !N!5C0201 !20030204!20030930!001325240!001325240!139691877!N!HONEYWELL INTERNATIONAL INC !2701 4TH AVE S !MINNEAPOLIS !NJ!55422!18370!019!04!DAVIS-MONTHAN AFB !PIMA !ARIZONA !+000000616285!N!N!000000000000!S119!OTHER UTILITIES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!S!C! !C!20150930!B! ! !A! !A!N!J!2!001!B! !C!W!E! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85707, UNITED STATES OF AMERICA
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $12.6 million to HONEYWELL INC for work described as: 200305!000174!5700!AC07 !355 CONS/CC !F0462698D0103 !A!N! !N!5C0201 !20030204!20030930!001325240!001325240!139691877!N!HONEYWELL INTERNATIONAL INC !2701 4TH AVE S !MINNEAPOLIS !NJ!55422!18370!019!04!DAVIS-MONTHAN AFB !PIMA !ARIZONA !+000000616285!N!N!000000000000!S119!OTHER UTILI… Key points: 1. The contract awarded to Honeywell International Inc. for "Other Utilities" services at Davis-Monthan AFB represents a significant investment. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The fixed-price contract type with an award amount of $13,969,187.77 warrants scrutiny for value and cost-effectiveness over its duration. 4. The sector is "Other Utilities," which can encompass a wide range of essential services, making direct comparisons challenging.
Value Assessment
Rating: fair
The contract's fixed-price nature for a substantial amount over several years suggests a need for careful monitoring of service delivery and cost overruns. Without detailed performance metrics or cost breakdowns, assessing true value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best possible price for taxpayers, though the final awarded amount of nearly $14 million requires ongoing evaluation for efficiency.
Public Impact
Taxpayers are funding essential utility services at a major Air Force base, impacting operational readiness. The contract duration of over 6 years suggests a long-term commitment to these services. The specific nature of "Other Utilities" could impact local infrastructure and environmental considerations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for 'Other Utilities'
- Potential for cost creep in fixed-price contracts over long durations
- Limited insight into specific services provided under 'Other Utilities'
Positive Signals
- Awarded under full and open competition
- Contract awarded to a well-established company (Honeywell)
Sector Analysis
This contract falls under the "Other Utilities" category, which is broad and can include services like waste management, energy, water, and sewage. Spending benchmarks for such diverse services vary significantly by location and specific requirements.
Small Business Impact
There is no specific indication in the provided data whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense, specifically the Department of the Air Force. Standard oversight mechanisms for defense contracts would apply, but specific details on accountability are not provided.
Related Government Programs
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Ambiguity in service scope ('Other Utilities')
- Potential for cost escalation in long-term fixed-price contracts
- Lack of detailed performance metrics or cost breakdown
- Unclear small business participation
Tags
department-of-defense, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to HONEYWELL INC. 200305!000174!5700!AC07 !355 CONS/CC !F0462698D0103 !A!N! !N!5C0201 !20030204!20030930!001325240!001325240!139691877!N!HONEYWELL INTERNATIONAL INC !2701 4TH AVE S !MINNEAPOLIS !NJ!55422!18370!019!04!DAVIS-MONTHAN AFB !PIMA !ARIZONA !+000000616285!N!N!000000000000!S119!OTHER UTILITIES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!S!C! !C!20150930!B! ! !A! !A!N!J!2!001!B! !C!W!E! ! !N!C!N! ! ! !A!A!A!A!000!A!C!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 $12.6 million.
What is the period of performance?
Start: 2003-02-04. End: 2009-09-30.
What specific services are included under 'Other Utilities' for this contract, and how were they benchmarked against industry standards to ensure fair pricing?
The provided data does not specify the exact services encompassed by 'Other Utilities.' This ambiguity makes it challenging to benchmark pricing against industry standards. A thorough review would require access to the contract's statement of work to understand the scope and compare costs for similar utility services at other federal installations or in the private sector.
Given the fixed-price nature and duration, what mechanisms are in place to mitigate risks of cost overruns or performance deficiencies for Honeywell International Inc.?
Fixed-price contracts generally place the cost risk on the contractor. However, for long-duration contracts, mechanisms like incentive clauses, performance metrics, and regular reviews are crucial. The data doesn't detail these specific oversight mechanisms, suggesting a potential risk if not adequately managed by the Department of the Air Force.
How does the awarded amount of $13.9 million compare to the estimated value or budget for these 'Other Utilities' services, and what is the projected return on investment for the government?
The data indicates an award amount of $13,969,187.77, but lacks information on the initial estimated value or budget. Without this baseline, it's difficult to assess if the contract represents good value or if it came in under or over budget. A projected return on investment is also not discernible from the provided fields.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: 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
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0462698D0103
IDV Type: IDC
Timeline
Start Date: 2003-02-04
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2015-09-15
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