DoD Awards $93.8M EGI-M EMD Contract to Honeywell, Raising Competition Concerns
Contract Overview
Contract Amount: $93,832,647 ($93.8M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2020-04-21
End Date: 2024-04-20
Contract Duration: 1,460 days
Daily Burn Rate: $64.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EMBEDDED GLOBAL POSITIONING SYSTEM/INERTIAL NAVIGATION SYSTEM (EGI) - MODERNIZED (EGI-M) ENGINEERING, MANUFACTURING AND DEVELOPMENT (EMD) PHASE
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $93.8 million to HONEYWELL INTERNATIONAL INC. for work described as: EMBEDDED GLOBAL POSITIONING SYSTEM/INERTIAL NAVIGATION SYSTEM (EGI) - MODERNIZED (EGI-M) ENGINEERING, MANUFACTURING AND DEVELOPMENT (EMD) PHASE Key points: 1. Honeywell International Inc. secured a $93.8M contract for EGI-M EMD, a critical navigation system. 2. The contract was awarded on a sole-source basis, limiting competitive opportunities. 3. Potential risks include lack of price discovery and potential for cost overruns due to limited competition. 4. The sector is aerospace and defense, specifically navigation and guidance systems.
Value Assessment
Rating: questionable
The contract value of $93.8M for EMD phase is significant. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar advanced navigation system development contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition on this significant contract raises concerns about the efficient use of taxpayer funds.
Public Impact
Modernized GPS/INS systems are crucial for military operations, impacting mission success and safety. Sole-source awards can lead to reduced innovation and higher long-term sustainment costs. Transparency in sole-source justifications is vital for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Critical technology development
- Experienced contractor
Sector Analysis
The aerospace and defense sector, particularly navigation systems, often involves complex, high-value contracts. Benchmarks for EMD phases can vary widely based on technological sophistication and program scope.
Small Business Impact
This contract was awarded to Honeywell International Inc. and does not indicate any specific subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements effectively.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Limited price discovery
- Potential for cost overruns
- Lack of competitive innovation
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $93.8 million to HONEYWELL INTERNATIONAL INC.. EMBEDDED GLOBAL POSITIONING SYSTEM/INERTIAL NAVIGATION SYSTEM (EGI) - MODERNIZED (EGI-M) ENGINEERING, MANUFACTURING AND DEVELOPMENT (EMD) PHASE
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 $93.8 million.
What is the period of performance?
Start: 2020-04-21. End: 2024-04-20.
What is the justification for the sole-source award of the EGI-M EMD contract to Honeywell?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. A thorough review of the justification documentation is necessary to understand the specific rationale and assess its validity.
What are the potential long-term cost implications of awarding this contract without competition?
Awarding without competition can lead to higher initial development costs due to the absence of price pressure. Furthermore, it may set a precedent for future sole-source awards in the system's lifecycle, potentially increasing sustainment and upgrade costs over time if competition is not introduced later.
How will the effectiveness of the EGI-M system be validated given the lack of competitive prototyping?
Effectiveness will be validated through rigorous testing and evaluation phases outlined in the contract. This includes performance metrics, operational testing, and user feedback. Independent verification and validation by government test agencies will be crucial to ensure the system meets its intended operational capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA854018R0008
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Resideo Technologies, Inc.
Address: 13350 US HIGHWAY 19 NORTH, CLEARWATER, FL, 33764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $93,832,647
Exercised Options: $93,832,647
Current Obligation: $93,832,647
Actual Outlays: $5,323,375
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-04-21
Current End Date: 2024-04-20
Potential End Date: 2024-04-20 00:00:00
Last Modified: 2025-04-22
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