DoD awards Honeywell $28.6M for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $28,590,559 ($28.6M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2017-06-01
Contract Duration: 3,166 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: .
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to HONEYWELL INTERNATIONAL INC. for work described as: . Key points: 1. Significant contract value for R&D services. 2. Honeywell International Inc. is a major defense contractor. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Spending falls within the R&D sector, specifically physical, engineering, and life sciences.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always yield the lowest price.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, which can have long-term benefits but also carries inherent financial risks.
Public Impact
Supports technological advancement in critical defense areas. Investment in R&D can lead to future innovations and economic growth. Contract duration of over 8 years suggests a long-term commitment to the research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases exposure to changing economic conditions.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Honeywell is a reputable contractor.
- Contract supports critical R&D.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but can be unpredictable in terms of outcomes and final costs.
Small Business Impact
The data indicates that small businesses were not involved in this contract, which is a missed opportunity for economic inclusion and potentially for accessing specialized innovation from smaller firms.
Oversight & Accountability
The Department of Defense and the Defense Contract Management Agency are responsible for oversight. The long duration and cost-plus nature of the contract necessitate rigorous monitoring to ensure efficiency and prevent waste.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No small business participation.
- Lack of specific R&D project details.
- Potential for cost overruns.
Tags
research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to HONEYWELL INTERNATIONAL INC.. .
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 $28.6 million.
What is the period of performance?
Start: 2008-09-30. End: 2017-06-01.
What specific R&D projects were undertaken, and what were the key deliverables?
The provided data does not specify the exact R&D projects or their deliverables. Further investigation into contract line item numbers (CLINs) and technical reports would be necessary to understand the specific research conducted and the expected outcomes. This information is crucial for assessing the true value and effectiveness of the $28.6 million investment.
How were cost overruns managed under the Cost Plus Fixed Fee structure?
The Cost Plus Fixed Fee (CPFF) contract type inherently carries a risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Effective oversight by the DoD and DCMA would involve stringent monitoring of expenditures, regular audits, and clear communication channels to manage and mitigate any potential cost increases beyond the initial estimates. The final cost relative to the initial estimate would be a key indicator of management success.
What is the long-term strategic value of this R&D investment for national security?
The strategic value hinges on the nature of the R&D. If the research pertains to critical defense technologies, advanced materials, or next-generation systems, the investment could yield significant long-term benefits by enhancing military capabilities, maintaining technological superiority, and potentially creating dual-use technologies with civilian applications. Without specific details on the research focus, assessing its strategic impact remains speculative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 13350 US HIGHWAY 19 NORTH, CLEARWATER, FL, 33764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $77,772,202
Exercised Options: $49,137,585
Current Obligation: $28,590,559
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2017-06-01
Potential End Date: 2017-06-01 00:00:00
Last Modified: 2018-09-17
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