Honeywell International Inc. awarded $35.3M for Missile and Space Systems R&D, with a 2488-day duration

Contract Overview

Contract Amount: $35,329,087 ($35.3M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2005-10-07

End Date: 2012-07-30

Contract Duration: 2,488 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200606!000042!5700!FA9453!DET 8 AFRL/PKV8 !FA945305C0241 !A!N! !Y! ! !20051007!20070731!054332192!054332192!139691877!N!HONEYWELL INTERNATIONAL INC !13350 US HWY 19 N !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000001400000!N!N!000026395461!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!E! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.3 million to HONEYWELL INTERNATIONAL INC. for work described as: 200606!000042!5700!FA9453!DET 8 AFRL/PKV8 !FA945305C0241 !A!N! !Y! ! !20051007!20070731!054332192!054332192!139691877!N!HONEYWELL INTERNATIONAL INC !13350 US HWY 19 N !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINE… Key points: 1. Contract awarded to a single, large business prime contractor. 2. Significant contract duration of nearly 7 years suggests a long-term project. 3. Research and Development focus indicates investment in future capabilities. 4. Contract type is Cost Plus Fixed Fee, which can shift risk to the government. 5. Geographic location of contractor is in Florida. 6. The contract falls under the Missile and Space Systems category.

Value Assessment

Rating: fair

The awarded amount of $35.3 million for a nearly 7-year R&D contract for missile and space systems appears to be within a reasonable range for such complex and lengthy projects. However, without specific benchmarks for comparable R&D efforts in this niche, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where costs are uncertain, places a degree of cost risk on the government, necessitating robust oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, suggesting a potentially limited pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing compared to unrestricted full and open competition. The fact that only one award was made further supports the notion of limited competition.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of contractors had been able to bid. It also suggests fewer opportunities for innovative solutions from a wider market.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, through advancements in missile and space systems. The contract supports research and development in advanced technologies related to missile and space systems. The geographic impact is primarily centered around the contractor's location in Clearwater, Florida, potentially creating or sustaining high-skilled jobs. The workforce implications include employment for scientists, engineers, and technical staff involved in advanced R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
Limited competition may have resulted in a higher price than a fully open competition.
The long contract duration increases the risk of scope creep or evolving requirements.

Positive Signals

Award to a known large business contractor like Honeywell suggests a level of established capability.
The contract is for Research and Development, indicating investment in critical future defense capabilities.
The contract duration of nearly 7 years suggests a stable, long-term commitment to a specific technological area.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on Missile and Space Systems. This is a highly specialized and capital-intensive area within the aerospace and defense industry. Spending in this sector is driven by national security priorities and the need for technological superiority. Comparable spending benchmarks would typically be found within other large-scale defense R&D programs, often involving significant investment in advanced materials, propulsion, guidance, and control systems.

Small Business Impact

This contract was awarded to a large business prime contractor and does not appear to have a small business set-aside component. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, although Honeywell may engage small businesses as subcontractors for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract for R&D, rigorous oversight of expenditures, progress, and adherence to the Statement of Work is crucial. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Space Systems Development
Advanced Technology Research
Aerospace Engineering Services
Department of Defense R&D Spending

Risk Flags

Cost Plus Fixed Fee contract type
Limited competition awarded
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to HONEYWELL INTERNATIONAL INC.. 200606!000042!5700!FA9453!DET 8 AFRL/PKV8 !FA945305C0241 !A!N! !Y! ! !20051007!20070731!054332192!054332192!139691877!N!HONEYWELL INTERNATIONAL INC !13350 US HWY 19 N !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000001400000!N!N!000026395461!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !999

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 $35.3 million.

What is the period of performance?

Start: 2005-10-07. End: 2012-07-30.

What is Honeywell International Inc.'s track record with similar R&D contracts for the Department of Defense?

Honeywell International Inc. has a long history of contracting with the Department of Defense across various sectors, including aerospace, defense, and intelligence. They have been involved in numerous R&D programs, often focusing on advanced materials, avionics, propulsion systems, and space technologies. While specific details on past R&D contract performance require deeper analysis of historical contract data, Honeywell's status as a major defense contractor suggests a substantial portfolio of relevant experience. Their involvement in complex projects, including those for missile and space systems, indicates a capacity to handle technically challenging and long-duration research efforts. Evaluating past performance would involve reviewing metrics such as on-time delivery, cost performance, and technical success rates on comparable contracts.

How does the awarded amount compare to other R&D contracts for missile and space systems?

Comparing the $35.3 million award for this specific contract requires access to a broader dataset of similar R&D efforts. However, R&D contracts in the missile and space systems domain are typically substantial due to the complexity, long development cycles, and cutting-edge technology involved. Projects can range from tens of millions to billions of dollars, depending on the scope, phase (basic research vs. advanced development), and technological maturity. This particular award, spanning nearly seven years, suggests a significant, multi-year research initiative. Without specific comparable contract data points, it's difficult to definitively benchmark this award, but it aligns with the general scale expected for advanced defense R&D in this specialized field.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for Research and Development (R&D), center on cost control and potential for government overpayment. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. While the fee is fixed, the total cost is not. If costs escalate beyond initial estimates, the government bears the burden of these increased expenses. For R&D, where technical uncertainties and unforeseen challenges are common, this risk is amplified. Effective risk mitigation requires robust government oversight, detailed cost tracking, regular performance reviews, and clear definition of allowable costs to prevent contractor inefficiencies from driving up the final price.

What is the typical duration for R&D contracts in the missile and space systems sector?

R&D contracts in the missile and space systems sector often have long durations due to the inherent complexity, iterative nature of research, and the need for extensive testing and validation. Durations can easily span multiple years, from initial concept development through prototyping and advanced testing phases. A contract duration of 2488 days (approximately 6.8 years), as seen here, is not uncommon for significant R&D efforts in this field. Shorter durations might be seen for specific research tasks or feasibility studies, while major system development programs can extend for a decade or more. The extended timeline allows for exploration of new technologies, adaptation to evolving threats, and integration of complex subsystems.

How does the geographic location of the contractor (Florida) impact the contract's execution or oversight?

The geographic location of the contractor in Clearwater, Florida, primarily impacts the logistics of contract oversight and site visits. The contracting agency, likely the Department of the Air Force (given the data context), would assign personnel or utilize regional offices to monitor performance. While Florida has a significant aerospace and defense presence, the specific location itself doesn't inherently introduce unique execution risks unless it implies reliance on specialized local infrastructure or workforce that is scarce. Oversight might involve travel for government representatives to the contractor's facilities for reviews, inspections, and meetings. The distance from major DoD hubs could slightly increase travel costs for oversight personnel but is generally a manageable factor in modern contract management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 13350 US HWY 19 N, CLEARWATER, FL, 13

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline