Honeywell International Inc. awarded $33.4M for PIGA Float Assembly Repair, a sole-source contract

Contract Overview

Contract Amount: $33,364,262 ($33.4M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2006-12-11

End Date: 2016-12-31

Contract Duration: 3,673 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: PIGA FLOAT ASSEMBLY REPAIR

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to HONEYWELL INTERNATIONAL INC. for work described as: PIGA FLOAT ASSEMBLY REPAIR Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. Long contract duration of over 10 years suggests a sustained need for these repair services. 3. The contract type 'COST NO FEE' indicates that the government reimburses allowable costs without an additional fee, potentially leading to cost escalation. 4. The specific nature of 'PIGA Float Assembly Repair' suggests a specialized, potentially critical component within defense systems. 5. Lack of competition limits opportunities for other vendors to offer potentially more cost-effective solutions. 6. The absence of small business set-asides or subcontracting requirements may limit broader economic participation.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The 'COST NO FEE' contract type can incentivize cost increases rather than efficiencies. Comparing this to similar repair contracts for specialized defense equipment is challenging due to the sole-source nature and lack of publicly available cost breakdowns. The total value of over $33 million over a decade suggests significant recurring need, but the absence of competition prevents an assessment of whether this represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor possesses the necessary technical expertise, proprietary technology, or unique qualifications to perform the required services. The lack of competition means there were no other bidders to compare against, and the government did not benefit from a range of proposals and pricing strategies that would typically emerge from a competitive solicitation.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing the award, there is less assurance that the government secured the most economical price for these essential repair services.

Public Impact

The primary beneficiaries are likely entities within the Department of Defense that rely on the PIGA Float Assembly for operational readiness. The service delivered is the repair and maintenance of critical PIGA Float Assemblies, ensuring the functionality of specific defense equipment. The contract is geographically focused on FLORIDA, indicating a concentration of operations or maintenance facilities in that state. The contract supports specialized technical roles within Honeywell, contributing to employment in the defense maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially leads to higher costs for taxpayers.
Cost-plus contract type can incentivize higher spending without guaranteed efficiency gains.
Long contract duration may indicate a lack of market alternatives or a failure to foster competition over time.
Lack of small business involvement limits opportunities for smaller, potentially innovative firms.
Limited transparency on specific cost components due to the 'COST NO FEE' structure.

Positive Signals

Ensures continued availability of critical repair services for defense systems.
Honeywell's established expertise likely guarantees a high level of technical proficiency.
Long-term contract provides stability for both the government and the contractor.
Specific repair services address a unique need within the Defense Department's operational requirements.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technical requirements, and significant government investment. Contracts for repair and maintenance of complex systems, like the PIGA Float Assembly, are often awarded to original equipment manufacturers or specialized service providers. The market for such niche repair services can be limited, sometimes leading to sole-source awards. Benchmarking this contract's value is difficult without comparable sole-source repair contracts, but the overall defense maintenance market is substantial, with billions spent annually on sustainment and repair.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. The award to a large prime contractor like Honeywell suggests that the primary focus was on securing the specialized repair capability. This limits the direct economic benefit to the small business ecosystem for this specific contract, although Honeywell may engage small businesses indirectly through its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The 'COST NO FEE' structure requires careful monitoring of allowable costs to prevent overruns. Transparency is limited by the sole-source nature and the lack of detailed public cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Contract Management
Aerospace Repair Services
Sole Source Defense Contracts
Cost-Plus Contracts
PIGA Float Assembly Maintenance

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Long contract duration
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to HONEYWELL INTERNATIONAL INC.. PIGA FLOAT ASSEMBLY REPAIR

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 $33.4 million.

What is the period of performance?

Start: 2006-12-11. End: 2016-12-31.

What is the historical spending pattern for PIGA Float Assembly Repair contracts awarded to Honeywell International Inc. by the Department of Defense?

The provided data indicates a single definitive contract awarded to Honeywell International Inc. for 'PIGA FLOAT ASSEMBLY REPAIR' totaling $33,364,261.88, with a start date of 2006-12-11 and an end date of 2016-12-31. This represents a decade-long engagement for this specific service. Without access to broader contract databases or historical procurement records beyond this single entry, it's challenging to detail a more extensive historical spending pattern. However, the duration and value suggest a consistent and significant requirement for these repair services over that period, awarded on a sole-source basis.

How does the 'COST NO FEE' contract type typically impact contractor incentives and government oversight compared to fixed-price contracts?

The 'COST NO FEE' (Cost-Plus-Fixed-Fee or CPFF is a common variant, but 'Cost No Fee' implies reimbursement of costs without an additional fee) contract type reimburses the contractor for all allowable costs incurred, plus a pre-determined fee (if applicable, though 'no fee' suggests only costs are reimbursed). This structure incentivizes the contractor to incur costs, as their profit is not directly tied to cost savings. For the government, it necessitates rigorous oversight to ensure costs are reasonable, allocable, and allowable. Unlike fixed-price contracts, where the contractor bears the risk of cost overruns, the government assumes most of this risk. This can lead to higher overall costs for the government if not managed carefully, but it is often used for research, development, or services where the scope or cost is uncertain.

What are the potential risks associated with awarding a long-term, sole-source contract for specialized repair services?

Awarding a long-term, sole-source contract for specialized repair services carries several risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it can foster complacency, reducing the incentive for the contractor to innovate or improve efficiency over time. Thirdly, it creates vendor lock-in, making it difficult and potentially costly to switch providers if performance issues arise or if market conditions change. Lastly, it limits opportunities for other capable firms, including small businesses, to enter the market and potentially offer better value or more advanced solutions. The government's negotiating power is also diminished in a sole-source scenario.

Can the specific nature of 'PIGA Float Assembly Repair' be linked to particular defense platforms or systems?

The term 'PIGA Float Assembly' is highly specific and likely refers to a component within a particular defense system. While the exact platform is not disclosed in the provided data, 'PIGA' could potentially stand for 'Pilot's Integrated Gyroscopic Apparatus' or a similar avionics or navigation system component. Float assemblies are often used in systems requiring stable platforms or buoyancy. Given the context of a Department of Defense contract, this component is likely critical for the operation of aircraft, naval vessels, or ground-based systems requiring precise navigation or stabilization. Further investigation into defense system technical manuals or procurement descriptions would be needed to identify the specific platform.

What are the implications of the contract being awarded in Florida (ST: FL, SN: FLORIDA)?

The contract being awarded and performed in Florida (ST: FL, SN: FLORIDA) has several implications. It suggests that either Honeywell International Inc. has significant maintenance or repair facilities located in Florida, or that the defense assets requiring these repairs are primarily based or operated out of Florida. This geographic concentration can impact logistics, travel costs for personnel, and potentially create a localized economic impact through employment and local sourcing within Florida. It may also indicate a strategic placement of maintenance operations to support specific military installations or fleets operating in or from the southeastern United States.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 13350 US HWY 19 N, CLEARWATER, FL, 33764

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

Financial Breakdown

Contract Ceiling: $33,364,262

Exercised Options: $33,364,262

Current Obligation: $33,364,262

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline