DoD's $31.3M Honeywell Boiler Maintenance Contract Awarded via Full and Open Competition
Contract Overview
Contract Amount: $31,322,210 ($31.3M)
Contractor: Honeywell Inc
Awarding Agency: Department of Defense
Start Date: 2005-01-28
End Date: 2021-01-27
Contract Duration: 5,843 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HONEYWELL BOILER SERVICE AND MAINTENANCE.
Place of Performance
Location: FAIRCHILD AFB, SPOKANE County, WASHINGTON, 99011
Plain-Language Summary
Department of Defense obligated $31.3 million to HONEYWELL INC for work described as: HONEYWELL BOILER SERVICE AND MAINTENANCE. Key points: 1. Significant long-term contract for essential facility maintenance. 2. Sole provider, Honeywell Inc., raises potential for limited competition. 3. Risk of price escalation over the contract's 16-year duration. 4. Sector: Facilities maintenance and operations.
Value Assessment
Rating: fair
The contract value of $31.3M over 16 years averages approximately $1.96M annually. Benchmarking is difficult without specific service details, but this appears to be a substantial investment for boiler maintenance services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bids were considered. However, the sole source provider being Honeywell Inc. for their specific equipment may limit true price discovery in subsequent orders.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance. The long duration and sole provider aspect warrant scrutiny to ensure cost-effectiveness.
Public Impact
Ensures operational readiness of critical Air Force facilities. Supports essential services for military personnel and operations. Long-term commitment provides stability for maintenance provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole provider for specific equipment.
- Long contract duration.
- Potential for price creep over time.
Positive Signals
- Awarded via full and open competition.
- Essential service for facility operations.
Sector Analysis
This contract falls within the facilities maintenance and operations sector, which is crucial for government infrastructure. Spending benchmarks for such long-term, specialized service contracts can vary widely based on the complexity and scale of the facilities.
Small Business Impact
The contract was awarded to Honeywell Inc., a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The contract was awarded via full and open competition, indicating a degree of oversight in the initial award process. However, the long duration necessitates ongoing monitoring to ensure continued value and fair pricing.
Related Government Programs
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for price escalation over long duration.
- Sole provider for specific equipment.
- Limited competition for subsequent service needs.
- Lack of transparency in unit pricing.
Tags
department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.3 million to HONEYWELL INC. HONEYWELL BOILER SERVICE AND MAINTENANCE.
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 $31.3 million.
What is the period of performance?
Start: 2005-01-28. End: 2021-01-27.
What is the average annual cost for boiler maintenance services in similar large-scale government facilities?
Determining an exact average annual cost for similar government facilities is challenging due to variations in size, equipment complexity, climate, and service level agreements. However, contracts for large-scale HVAC and boiler maintenance can range from hundreds of thousands to several million dollars annually, depending on the scope. This Honeywell contract's average of $1.96M per year falls within this broad range but requires specific service details for a precise comparison.
What are the risks associated with a sole-source provider for specialized equipment maintenance over a 16-year period?
The primary risk is the potential for price gouging or unjustified price increases over the contract's long duration, as the government may have limited alternatives for servicing Honeywell equipment. This can lead to reduced value for taxpayer money. Additionally, reliance on a single provider could impact response times or service quality if the provider faces internal issues.
How effectively does full and open competition ensure cost-effectiveness for specialized equipment maintenance contracts?
Full and open competition is designed to foster a competitive environment that drives down prices and improves service quality. For specialized equipment like Honeywell boilers, its effectiveness depends on whether multiple qualified bidders can realistically compete. If only Honeywell or its authorized partners can perform the service, the initial competition might be robust, but subsequent pricing for modifications or extensions could be less competitive.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM 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
Financial Breakdown
Contract Ceiling: $40,791,598
Exercised Options: $36,160,576
Current Obligation: $31,322,210
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F0462698D0103
IDV Type: IDC
Timeline
Start Date: 2005-01-28
Current End Date: 2021-01-27
Potential End Date: 2021-01-27 00:00:00
Last Modified: 2020-11-10
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