Air Force awards $139.7M contract to Honeywell for electric services at Mountain Home AFB

Contract Overview

Contract Amount: $17,348,119 ($17.3M)

Contractor: Honeywell Inc

Awarding Agency: Department of Defense

Start Date: 2002-03-28

End Date: 2017-08-01

Contract Duration: 5,605 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE

Sector: Other

Official Description: 200208!000087!5700!AC28 !366 CONS/CC !F0462698D0103 !A!N! !N!5Z0301 !20020328!20030327!001325240!001325240!139691877!N!HONEYWELL INC !101 COLUMBIA RD !MORRISTOWN !NJ!07960!54820!039!16!MOUNTAIN HOME AFB !ELMORE !IDAHO !+000000632266!N!N!000000000000!S112!ELECTRIC SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !5!B!S!B! !B!20030601!B! ! !N!Z!A!N!J!2!001!B! !Z!N!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: MOUNTAIN HOME AFB, ELMORE County, IDAHO, 83648

State: Idaho Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to HONEYWELL INC for work described as: 200208!000087!5700!AC28 !366 CONS/CC !F0462698D0103 !A!N! !N!5Z0301 !20020328!20030327!001325240!001325240!139691877!N!HONEYWELL INC !101 COLUMBIA RD !MORRISTOWN !NJ!07960!54820!039!16!MOUNTAIN HOME AFB !ELMORE !IDAHO !+000000632266!N!N!000000000000!S112!ELECTRIC SERVICES !C9E!AL… Key points: 1. Contract awarded to Honeywell Inc. for electric services. 2. The contract value is $139,691,877. 3. Competition was full and open. 4. The contract duration is over 15 years, indicating a long-term need. 5. The sector is primarily utilities/infrastructure support.

Value Assessment

Rating: fair

The contract value of $139.7 million over 15 years suggests a significant investment. Without specific benchmarks for electric services at similar military installations, a precise value assessment is difficult. However, the long duration implies a stable, potentially cost-effective arrangement if managed well.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The fixed-price contract type further supports price certainty for the government.

Taxpayer Impact: The long-term nature of the contract suggests stable pricing for essential services, potentially avoiding price volatility associated with shorter-term agreements.

Public Impact

Ensures continuous power supply for critical Air Force operations at Mountain Home AFB. Supports the base's infrastructure and daily functions, impacting personnel and mission readiness. The long contract duration may indicate a stable operational environment for the base. Economic impact on the local Idaho region through Honeywell's operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (15+ years) could lead to price escalation or missed opportunities for better pricing.
Lack of specific performance metrics or detailed cost breakdown makes it hard to assess efficiency.
Reliance on a single contractor for a critical utility service.

Positive Signals

Full and open competition suggests a competitive bidding process.
Fixed-price contract provides cost certainty.
Long-term award indicates a stable and predictable need for services.

Sector Analysis

This contract falls within the utilities and infrastructure support sector, specifically electric services for a federal facility. Spending in this area is crucial for operational continuity. Benchmarks for such long-term, large-scale utility contracts at military bases are highly variable based on location and specific service requirements.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a structured procurement process. However, the long duration necessitates ongoing oversight to ensure continued value and performance from Honeywell Inc.

Related Government Programs

Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration may lead to price inflexibility.
Potential for missed cost savings through future competition.
Lack of detailed performance metrics in summary data.
Dependency on a single provider for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to HONEYWELL INC. 200208!000087!5700!AC28 !366 CONS/CC !F0462698D0103 !A!N! !N!5Z0301 !20020328!20030327!001325240!001325240!139691877!N!HONEYWELL INC !101 COLUMBIA RD !MORRISTOWN !NJ!07960!54820!039!16!MOUNTAIN HOME AFB !ELMORE !IDAHO !+000000632266!N!N!000000000000!S112!ELECTRIC SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !5!B!S!B! !B!20030601!B! ! !N!Z!A!N!J!2!001!B! !Z!N!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!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 $17.3 million.

What is the period of performance?

Start: 2002-03-28. End: 2017-08-01.

What is the average cost per year for these electric services compared to similar military installations?

The contract value is $139,691,877 over approximately 5605 days (about 15.3 years). This averages to roughly $9.1 million per year. Comparing this to similar installations requires access to detailed cost data for other military electric service contracts, which is not publicly available. Factors like local energy prices, infrastructure age, and specific service level agreements significantly influence costs, making direct comparisons challenging without granular data.

What are the risks associated with a 15-year contract for electric services?

A significant risk is potential price escalation over the long term, especially if energy markets become volatile or if the contract doesn't include robust price adjustment clauses. There's also a risk of technological obsolescence in service delivery or infrastructure, and the government might miss out on potentially better pricing or service innovations available through future competitive procurements.

How effective is a fixed-price contract for ensuring value in long-term utility services?

A fixed-price contract provides cost certainty for the government, protecting against unexpected cost increases for the contractor. For long-term utility services, its effectiveness depends on the initial pricing accuracy and the inclusion of mechanisms for fair price adjustments. If the initial price is well-negotiated and reflects anticipated costs, it can be effective. However, rigid fixed prices without adjustment clauses can become disadvantageous for either party over many years.

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

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F0462698D0103

IDV Type: IDC

Timeline