DoD Awards $139.7M for Diesel Engines and Components to Honeywell International Inc
Contract Overview
Contract Amount: $226,024,763 ($226.0M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2000-09-20
End Date: 2004-06-01
Contract Duration: 1,350 days
Daily Burn Rate: $167.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200012!2100!002967!AE07 !TACOM - WARREN !DAAE0700CN086 !A!*!* !20000920!20040304!009000050!139691877!139691877!N!99193!HONEYWELL INTERNATIONAL INC !111 S 34TH ST !PHOENIX !AZ!85034!55000!013!04!PHOENIX !MARICOPA !ARIZONA !0001!+000015190685!N!N!000000000000!2815!DIESEL ENGINES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!A !N!R!2!003!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $226.0 million to HONEYWELL INTERNATIONAL INC. for work described as: 200012!2100!002967!AE07 !TACOM - WARREN !DAAE0700CN086 !A!*!* !20000920!20040304!009000050!139691877!139691877!N!99193!HONEYWELL INTERNATIONAL INC !111 S 34TH ST !PHOENIX !AZ!85034!55000!013!04!PHOENIX !MAR… Key points: 1. Contract awarded to Honeywell International Inc. for diesel engines and components. 2. The contract value is $139,691,877 over a period of 1350 days. 3. This contract falls under the 'Diesel Engines and Components' product service code. 4. The awarding agency is the Department of Defense, specifically the Department of the Army. 5. Competition was full and open, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $139,691,877 for diesel engines and components appears reasonable given the duration and the nature of the components. Benchmarking against similar DoD contracts for engine parts would provide a more precise assessment.
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 competitive nature of the award suggests that taxpayer funds were likely used efficiently, as multiple companies vied for the contract, driving down costs.
Public Impact
Ensures continued availability of critical diesel engine components for military vehicles. Supports the operational readiness of the U.S. Army's fleet. Contributes to the defense industrial base by awarding contracts to established manufacturers. Potential for job creation and economic activity related to defense manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in cost-plus contracts if not managed tightly.
- Dependence on a single supplier for critical components could pose a supply chain risk.
- Long contract duration may not fully account for technological advancements in engine technology.
Positive Signals
- Full and open competition suggests a fair and competitive pricing environment.
- Award to a reputable contractor like Honeywell implies a level of quality and reliability.
- Contract supports essential military equipment, aligning with national security objectives.
Sector Analysis
This contract falls within the Defense sector, specifically for the procurement of diesel engines and components. Spending in this area is crucial for maintaining military vehicle readiness and operational capability. Benchmarks for similar component procurements vary widely based on specificity and volume.
Small Business Impact
While Honeywell International Inc. is a large corporation, the contract's full and open competition nature may have allowed for subcontracting opportunities for small businesses involved in component manufacturing or specialized services.
Oversight & Accountability
The Department of the Army's contracting officers are responsible for overseeing this contract to ensure compliance with terms, quality standards, and budget adherence. Regular performance reviews and audits are standard oversight mechanisms.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract type (Cost Plus Award Fee) requires diligent oversight to manage costs.
- Long contract duration (1350 days) may introduce risks related to obsolescence or changing requirements.
- Sole contractor for specific components could create supply chain vulnerabilities.
- Potential for scope creep if contract modifications are not managed effectively.
Tags
department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $226.0 million to HONEYWELL INTERNATIONAL INC.. 200012!2100!002967!AE07 !TACOM - WARREN !DAAE0700CN086 !A!*!* !20000920!20040304!009000050!139691877!139691877!N!99193!HONEYWELL INTERNATIONAL INC !111 S 34TH ST !PHOENIX !AZ!85034!55000!013!04!PHOENIX !MARICOPA !ARIZONA !0001!+000015190685!N!N!000000000000!2815!DIESEL ENGINES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!A !N!R!
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $226.0 million.
What is the period of performance?
Start: 2000-09-20. End: 2004-06-01.
What is the specific breakdown of the $139.7 million contract value across different diesel engine components and services?
The provided data indicates a total contract value of $139,691,877 for 'DIESEL ENGINES AND COMPONENTS'. However, a detailed breakdown of how this amount is allocated among specific components, parts, or related services is not available in this summary. Further analysis of the contract's statement of work or detailed financial reports would be necessary to ascertain this granular information.
What are the key performance indicators (KPIs) used to measure Honeywell's performance under this Cost Plus Award Fee contract?
Cost Plus Award Fee contracts typically tie a portion of the contractor's profit to achieving specific performance objectives. While the exact KPIs are not detailed here, they commonly include metrics related to delivery timeliness, quality of components, adherence to technical specifications, and overall program management effectiveness. The 'Award Fee' component suggests that performance exceeding baseline expectations would result in higher compensation.
How does the unit cost of these diesel engine components compare to commercial off-the-shelf (COTS) equivalents, considering the military-grade requirements?
Direct comparison to COTS equivalents is challenging without specific component details and volume discounts. Military-grade components often incorporate enhanced durability, stricter testing, and specialized materials, justifying a higher cost. However, the 'full and open competition' aspect suggests that pricing was vetted against market rates, implying it was competitive within the defense procurement context, though likely higher than standard commercial parts due to unique military specifications.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 111 S 34TH ST, PHOENIX, AZ, 85034
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-09-20
Current End Date: 2004-06-01
Potential End Date: 2004-06-01 12:06:00
Last Modified: 2017-03-31
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