DoD's $61M Gyroscopic Accelerometer Repair Contract with Honeywell Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $61,051,387 ($61.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2018-05-14
End Date: 2023-10-31
Contract Duration: 1,996 days
Daily Burn Rate: $30.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PENDULOUS INTEGRATED GYROSCOPIC ACCELERMETER FLOAT REPAIR
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $61.1 million to HONEYWELL INTERNATIONAL INC. for work described as: PENDULOUS INTEGRATED GYROSCOPIC ACCELERMETER FLOAT REPAIR Key points: 1. Significant spending on specialized repair services for advanced equipment. 2. Sole-source award to Honeywell raises questions about price discovery and value. 3. Long contract duration (1996 days) may indicate potential for cost overruns. 4. High contract value suggests a critical need for the service.
Value Assessment
Rating: questionable
The contract value of $61M over five years for specialized repair services appears high, especially given the lack of competitive bidding. Benchmarking against similar specialized repair contracts is difficult without more data, but the sole-source nature raises concerns about whether the government achieved the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits the government's ability to ensure price reasonableness and potentially achieve cost savings through a competitive bidding process.
Taxpayer Impact: The lack of competition on this $61M contract means taxpayers may have paid more than necessary for the repair services.
Public Impact
Ensures operational readiness of critical Air Force assets by maintaining specialized gyroscopic accelerometers. Supports advanced aerospace technology through specialized maintenance and repair. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential service for defense operations
- Award to established contractor
Sector Analysis
This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' sector. Spending in this area is crucial for maintaining complex military hardware, but often involves specialized knowledge and limited contractor pools, making competitive sourcing challenging.
Small Business Impact
The contract was awarded to Honeywell International Inc., a large corporation. There is no indication that small businesses were involved in this sole-source award, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure the pricing is fair and reasonable and that the government is receiving adequate value for its investment. A review of the justification for the sole-source award is recommended.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited oversight visibility
- Long contract duration may mask inefficiencies
- No small business participation
Tags
other-electronic-and-precision-equipment, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.1 million to HONEYWELL INTERNATIONAL INC.. PENDULOUS INTEGRATED GYROSCOPIC ACCELERMETER FLOAT 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $61.1 million.
What is the period of performance?
Start: 2018-05-14. End: 2023-10-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. For this contract, the specific rationale needs to be examined to understand why competition was deemed impractical or impossible. Without this information, it's difficult to assess if the government truly exhausted all avenues for competitive sourcing and obtained the best possible value.
How does the per-unit repair cost compare to industry benchmarks for similar complex electronic component repairs, considering the sole-source nature?
Benchmarking the per-unit repair cost is challenging without specific data on the components and the nature of the repairs. However, given the sole-source award, it's probable that the costs are higher than they would be in a competitive environment. A thorough cost analysis by the agency, comparing historical data and available market research, would be necessary to determine if the pricing is reasonable despite the lack of competition.
What measures are in place to ensure the effectiveness and quality of repairs performed by Honeywell under this long-term, sole-source contract?
Effectiveness and quality are typically ensured through contract performance metrics, quality assurance surveillance plans (QASPs), and acceptance testing. For a sole-source contract, robust oversight is even more critical. The Air Force should have stringent inspection and acceptance procedures in place to verify that the repairs meet all technical specifications and performance requirements, ensuring the operational readiness of the equipment.
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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 13350 US HIGHWAY 19 N, CLEARWATER, FL, 33764
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: $88,523,253
Exercised Options: $61,900,410
Current Obligation: $61,051,387
Actual Outlays: $3,280,692
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-05-14
Current End Date: 2023-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-09-24
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