Honeywell International Inc. awarded $188.4M for aviation and missile command equipment, with a firm fixed price contract

Contract Overview

Contract Amount: $10,340,678 ($10.3M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2001-08-17

End Date: 2010-09-15

Contract Duration: 3,316 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200111!002044!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2301C0200 !A!N!*!N! !20010817!20030731!188459929!188459929!139691877!N!HONEYWELL, INC DEFENSE AVIONI!9201 SAN MATEO BLVD !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000005050000!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A1C!OTHER AIRCRAFT EQUIPMENT !1AHC!OH-58 KIOWA (AHIP) !334220!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87113

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to HONEYWELL INTERNATIONAL INC. for work described as: 200111!002044!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2301C0200 !A!N!*!N! !20010817!20030731!188459929!188459929!139691877!N!HONEYWELL, INC DEFENSE AVIONI!9201 SAN MATEO BLVD !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNA… Key points: 1. Contract awarded for Radio & TV Comm Equipment, except airborne, with a firm fixed price structure. 2. The contract duration spans over 3300 days, indicating a long-term supply requirement. 3. Awarded by the Department of Defense, this contract supports aviation and missile command needs. 4. The contract was not competed, raising questions about potential price discovery and value. 5. Honeywell International Inc. is the sole contractor, suggesting a specialized or sole-source arrangement. 6. The contract value is substantial, requiring careful monitoring for performance and cost efficiency.

Value Assessment

Rating: fair

The contract value of $188.4 million over its extended period suggests a significant investment. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. The firm fixed-price nature provides cost certainty for the government, but the lack of competition could have led to a higher price than a competed contract might have achieved. Further analysis of the specific equipment and its market price would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reasons for this lack of competition are not detailed in the provided data. Sole-source awards can occur for various reasons, including unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. However, the absence of a competitive bidding process limits the government's ability to explore alternative solutions and potentially secure more favorable pricing.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing, which could potentially result in a higher overall cost for the goods or services procured.

Public Impact

The primary beneficiaries are the U.S. Army Aviation and Missile Command, receiving critical communication equipment. The contract delivers essential Radio & TV Communication Equipment, excluding airborne systems. The geographic impact is national, supporting defense operations across various locations. Workforce implications include potential employment at Honeywell and its subcontractors involved in manufacturing and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Long contract duration could mask inefficiencies or changes in market value.
Sole-source award raises concerns about the government's ability to secure best value.
Specific details on the equipment's necessity and alternatives are not provided.

Positive Signals

Firm fixed-price contract provides cost certainty to the government.
Honeywell International Inc. is a known entity in defense contracting.
The contract addresses a specific need within the Aviation and Missile Command.

Sector Analysis

This contract falls within the 'Radio & TV Comm Equipment, Except Airborne' category, which is part of the broader electronics manufacturing sector. The defense industry relies heavily on specialized communication equipment for operational effectiveness. While specific market size data for this niche is not provided, the overall defense electronics market is substantial. This contract represents a significant procurement within this segment, likely supporting critical command and control functions.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside provisions or subcontracting goals. Therefore, the direct impact on small businesses is unclear. Without a competitive process, opportunities for small businesses to participate as prime contractors or through subcontracting may have been limited. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of cost control. Transparency regarding the justification for the sole-source award and detailed performance metrics would enhance accountability. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Aviation Support Equipment
Missile Systems Components
Electronic Warfare Equipment

Risk Flags

Lack of Competition
Long Contract Duration
Sole-Source Award Justification Unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to HONEYWELL INTERNATIONAL INC.. 200111!002044!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2301C0200 !A!N!*!N! !20010817!20030731!188459929!188459929!139691877!N!HONEYWELL, INC DEFENSE AVIONI!9201 SAN MATEO BLVD !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000005050000!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A1C!OTHER AIRCRAFT EQUIPMENT !1AHC!OH-58 KIOWA (AHIP) !334220!*!*!3! ! ! !*!*!*!B!*!*!A!

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 $10.3 million.

What is the period of performance?

Start: 2001-08-17. End: 2010-09-15.

What specific types of Radio & TV Communication Equipment were procured under this contract, and what are their intended uses within the Aviation and Missile Command?

The provided data classifies the procurement under 'RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE' (NAICS 334220) and 'OTHER AIRCRAFT EQUIPMENT' (PSC A1C). While specific item details are not listed, this category typically includes ground-based communication systems, command and control consoles, data transmission equipment, and related accessories. These are crucial for maintaining situational awareness, coordinating operations, and ensuring secure communication channels for aviation and missile defense missions. The equipment likely supports ground control stations, mobile command centers, and logistical support units rather than being installed on aircraft or missiles themselves.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data explicitly states the contract was 'NOT COMPETED' and lists 'HONEYWELL, INC DEFENSE AVIONI' as the contractor. While the specific justification for this sole-source award is not detailed, common reasons include proprietary technology, unique capabilities possessed by only one vendor, urgent and compelling requirements where only one source can meet the timeline, or if the value of the contract falls below the threshold for mandatory competition. Without further documentation from the awarding agency (USA AVIATION AND MISSILE COMMAND), the precise rationale remains unknown. This lack of competition limits the government's ability to ensure it received the best possible price and value.

How does the contract's duration of over 3300 days (approximately 9 years) impact its overall value and risk assessment?

A contract duration of over 3300 days (approximately 9 years) is exceptionally long and significantly impacts both value and risk. For value, it suggests a sustained, long-term need for the specific equipment. However, such a long period increases the risk of price escalation if not adequately managed, potential obsolescence of technology, and the possibility that market prices for comparable goods could decrease over time. The firm fixed-price nature mitigates some cost risk for the government, but it also means the government is locked into that price for the duration, potentially missing out on savings if market conditions improve. Risk is also elevated due to the extended reliance on a single contractor, potentially reducing flexibility and increasing the impact of any performance issues.

What is the historical spending pattern for similar 'Radio & TV Comm Equipment, Except Airborne' contracts by the Department of Defense?

Historical spending on 'Radio & TV Comm Equipment, Except Airborne' (NAICS 334220) by the Department of Defense is substantial, reflecting the critical need for robust communication infrastructure. While this specific contract is for $188.4 million, DoD procures a wide range of communication equipment annually. Analyzing past spending would involve looking at multiple contracts across different fiscal years and agencies within DoD. Trends often show a shift towards more advanced digital and secure communication systems, with significant investments in interoperable technologies. Without access to a comprehensive historical spending database for this specific NAICS code within DoD, a precise comparison is difficult, but it is reasonable to assume consistent, significant investment in this area.

What is the track record of Honeywell International Inc. in fulfilling large defense contracts, particularly those involving communication equipment?

Honeywell International Inc. has a long and extensive track record as a major defense contractor, involved in a wide array of systems and components, including avionics, engines, and increasingly, advanced electronics and communication systems. They have historically secured numerous large contracts with the Department of Defense and other government agencies. While specific performance metrics for this particular contract are not detailed, Honeywell's general reputation is that of a capable, albeit sometimes costly, supplier. Their experience in complex defense programs suggests they possess the technical and logistical capabilities to manage such a contract, though the lack of competition here means performance and value are primarily assessed against the contract's terms rather than market alternatives.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 9201 SAN MATEO BLVD. NE, ALBUQUERQUE, NM, 01

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline