Air Force awards $122.6M contract to Honeywell for aircraft secondary power support
Contract Overview
Contract Amount: $122,636,900 ($122.6M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2024-01-01
End Date: 2024-12-31
Contract Duration: 365 days
Daily Burn Rate: $336.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: ENTERPRISE PERFORMANCE BASED LOGISTICS CONTRACT FOR SECONDARY POWER SUPPORT FOR B-1, B-2, E-3, F-15, C-130, F-16, A-10, AND GROUND CARTS. PERFORMANCE AT HILL AFB IN SUPPORT OF 419 SCMS
Place of Performance
Location: LAS CRUCES, DONA ANA County, NEW MEXICO, 88007
Plain-Language Summary
Department of Defense obligated $122.6 million to HONEYWELL INTERNATIONAL INC. for work described as: ENTERPRISE PERFORMANCE BASED LOGISTICS CONTRACT FOR SECONDARY POWER SUPPORT FOR B-1, B-2, E-3, F-15, C-130, F-16, A-10, AND GROUND CARTS. PERFORMANCE AT HILL AFB IN SUPPORT OF 419 SCMS Key points: 1. Contract awarded to Honeywell International Inc. for critical aircraft power systems. 2. Supports multiple aircraft platforms including B-1, B-2, E-3, F-15, C-130, F-16, and A-10. 3. Performance-based logistics contract aims to ensure operational readiness and reduce downtime. 4. The contract is for one year, with a total value of $122.6 million.
Value Assessment
Rating: good
The contract value of $122.6 million for a one-year performance-based logistics contract for secondary power support appears reasonable given the scope of supporting multiple high-value aircraft platforms. Benchmarking against similar complex aerospace support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially higher costs for taxpayers. The justification for sole-source procurement should be thoroughly reviewed.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Ensures continued operational readiness for critical Air Force aircraft. Supports maintenance and sustainment of aging but vital aircraft fleets. Potential for improved efficiency and reduced maintenance costs through performance-based metrics. Impacts personnel at Hill AFB responsible for aircraft maintenance and logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
Positive Signals
- Performance-based approach incentivizes efficiency.
- Supports critical national defense assets.
- Long-standing relationship with incumbent may ensure smooth transition/operation.
Sector Analysis
The aerospace and defense sector relies heavily on specialized support contracts for maintaining complex weapon systems. Spending benchmarks for similar performance-based logistics contracts for aircraft components can vary significantly based on platform age, criticality, and required performance levels.
Small Business Impact
This contract was awarded to a large prime contractor, Honeywell International Inc. There is no indication of subcontracting opportunities for small businesses within the provided data, which warrants further investigation to ensure small business participation goals are met.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. Robust performance monitoring and auditing will be crucial to ensure the contractor meets performance metrics and that taxpayer funds are used efficiently, especially given the sole-source nature of the award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost creep due to economic price adjustments.
- Reliance on a single contractor for critical support.
- Ensuring adequate small business subcontracting opportunities.
Tags
aircraft-manufacturing, department-of-defense, nm, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.6 million to HONEYWELL INTERNATIONAL INC.. ENTERPRISE PERFORMANCE BASED LOGISTICS CONTRACT FOR SECONDARY POWER SUPPORT FOR B-1, B-2, E-3, F-15, C-130, F-16, A-10, AND GROUND CARTS. PERFORMANCE AT HILL AFB IN SUPPORT OF 419 SCMS
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 $122.6 million.
What is the period of performance?
Start: 2024-01-01. End: 2024-12-31.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems. The Air Force should provide documentation detailing this justification. To ensure fair pricing, mechanisms like economic price adjustments, historical cost analysis, and potentially independent government cost estimates should be employed and rigorously reviewed.
How will the performance metrics in this contract be measured, and what are the penalties or incentives for meeting or failing to meet these metrics?
Performance metrics are usually defined in the contract's Performance Work Statement (PWS) and can include factors like response time, repair turnaround time, parts availability, and system uptime. The contract should clearly outline the measurement methods and the associated incentives (e.g., award fees) or penalties (e.g., service level credits) for contractor performance against these metrics.
What is the projected long-term cost savings or operational benefit expected from this performance-based logistics contract compared to traditional sustainment models?
Performance-based logistics contracts aim to shift the focus from transactional part replacement to achieving desired operational outcomes, potentially leading to reduced total ownership costs. Expected benefits include improved aircraft availability, reduced unscheduled maintenance, optimized inventory, and potentially lower lifecycle costs through proactive maintenance and system improvements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 111 S 34TH ST, PHOENIX, AZ, 85034
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $122,636,900
Exercised Options: $122,636,900
Current Obligation: $122,636,900
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA118D001U
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2024-12-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2024-11-26
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