DoD's $293M Honeywell Contract for Aircraft Parts: Long Duration, Limited Competition
Contract Overview
Contract Amount: $293,004,971 ($293.0M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 1999-12-13
End Date: 2015-07-09
Contract Duration: 5,687 days
Daily Burn Rate: $51.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $293.0 million to HONEYWELL INTERNATIONAL INC. for work described as: Key points: 1. Significant contract value of $293 million over its life. 2. Sole-source award suggests limited competition and potential for higher prices. 3. Long contract duration (1999-2015) raises questions about sustained value and market evolution. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract's value of $293 million over 16 years is substantial. Without competitive benchmarks, it's difficult to assess if this price was optimal. The long duration may indicate a need for specialized parts, but also risks overpayment if market prices decreased.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as 'NOT COMPETED', indicating a sole-source or limited competition scenario. This method can lead to less price discovery and potentially higher costs for the government compared to full and open competition.
Taxpayer Impact: The lack of robust competition likely resulted in higher costs for taxpayers over the contract's lifespan.
Public Impact
Taxpayers funded a significant contract for aircraft parts over 16 years. The Department of the Air Force relied on a single vendor, potentially missing out on cost savings. The long-term nature of the contract might have impacted the availability of newer, more cost-effective technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
- No small business participation indicated
Positive Signals
- Firm fixed price contract type
- Awarded to a major aerospace manufacturer
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the aerospace and defense industry. Spending in this area is often driven by specific military requirements and long-term sustainment needs.
Small Business Impact
The data indicates no small business participation (sb: false). This suggests the contract was likely awarded to a large prime contractor, potentially bypassing opportunities for small businesses to contribute to the supply chain.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for the sole-source award and ensure fair pricing. The long duration also suggests a need for periodic reviews of contract performance and market conditions.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Long contract duration
- Lack of competition
- No small business participation
- Potential for outdated technology
- Limited price discovery
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $293.0 million to HONEYWELL INTERNATIONAL INC.. See the official description on USAspending.
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 Air Force).
What is the total obligated amount?
The obligated amount is $293.0 million.
What is the period of performance?
Start: 1999-12-13. End: 2015-07-09.
What was the specific justification for the sole-source award of this large aircraft parts contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the specific reason for 'NOT COMPETED' status would need to be detailed in the contract's justification and approval (J&A) document, which is not provided in the data. Understanding this justification is crucial for assessing the necessity of foregoing competition.
How did the long contract duration impact the government's ability to leverage technological advancements and cost reductions in aircraft parts?
A contract spanning from 1999 to 2015 (5687 days) is exceptionally long. This duration likely limited the Air Force's ability to adopt newer, potentially more efficient or cost-effective parts that emerged during that period. It also risks locking the government into potentially outdated specifications or higher prices if market competition or manufacturing costs evolved significantly.
What was the estimated taxpayer impact of awarding this contract without competition over its 16-year lifespan?
The taxpayer impact of awarding a $293 million contract without competition is likely negative, resulting in potentially higher costs. Sole-source contracts generally lack the price pressure inherent in competitive bidding. While a firm fixed price offers cost certainty, the absence of competition means the government may have paid a premium for these aircraft parts over the 16 years, compared to what could have been achieved through a competitive process.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary 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)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 13350 US HIGHWAY 19 N, CLEARWATER, FL, 33764
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1999-12-13
Current End Date: 2015-07-09
Potential End Date: 2015-07-09 00:00:00
Last Modified: 2015-11-10
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