DoD's $51.8M R&D contract for inertial measurement units awarded to Honeywell International Inc

Contract Overview

Contract Amount: $51,835,544 ($51.8M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-05

End Date: 2028-09-29

Contract Duration: 2,428 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STRATEGIC COMPACT INERTIAL MEASUREMENT UNIT (SCIMU)

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $51.8 million to HONEYWELL INTERNATIONAL INC. for work described as: STRATEGIC COMPACT INERTIAL MEASUREMENT UNIT (SCIMU) Key points: 1. This contract focuses on research and development, indicating a forward-looking investment in advanced technology. 2. The award to a single, established contractor suggests a reliance on specialized expertise for this critical component. 3. The contract duration of over 6 years points to a long-term need for the SCIMU technology. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code highlights the innovative nature of this procurement. 5. The geographic location in Florida may indicate specific testing or development facilities utilized by the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to the specialized nature of inertial measurement units and the lack of publicly available comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type means costs can fluctuate, making precise value assessment difficult without detailed cost breakdowns. However, the total award amount of over $51 million over approximately six years suggests a significant investment in developing or refining this technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive approach is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value and potentially lower prices through a robust bidding process.

Public Impact

The Department of Defense benefits from advancements in inertial measurement unit technology, crucial for navigation and guidance systems. This contract supports the development of the Strategic Compact Inertial Measurement Unit (SCIMU), enhancing military operational capabilities. The primary geographic impact is within Florida, where the contractor is located, potentially involving local research and development facilities. The contract supports specialized engineering and scientific roles within Honeywell International Inc., contributing to the high-tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The long duration of the contract may present challenges in adapting to rapidly evolving technological landscapes.
Reliance on a single contractor for specialized R&D could create future dependency.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contract is for research and development, indicating investment in future capabilities.
The contractor, Honeywell International Inc., is a well-established entity with a track record in aerospace and defense.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on the research and development of advanced components for military applications. The market for inertial measurement units (IMUs) is critical for defense, enabling precise navigation, stabilization, and guidance systems in aircraft, missiles, and other platforms. Spending in this area is driven by the need for continuous technological advancement to maintain a strategic advantage. Comparable spending benchmarks would typically involve other R&D contracts for similar high-precision components within the defense industry.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are expected to ensure that costs are reasonable and allocable. Transparency is facilitated through contract reporting mechanisms, and the Inspector General's office of the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Aerospace Components
Navigation Systems
Inertial Navigation Systems
Advanced Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Long-Term Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.8 million to HONEYWELL INTERNATIONAL INC.. STRATEGIC COMPACT INERTIAL MEASUREMENT UNIT (SCIMU)

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 $51.8 million.

What is the period of performance?

Start: 2022-02-05. End: 2028-09-29.

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

Honeywell International Inc. has a long-standing and extensive track record of performing research and development contracts for the Department of Defense, particularly in areas related to aerospace, avionics, and advanced materials. They are a major defense contractor with significant experience in developing and producing complex systems, including navigation and guidance components. While specific details on past SCIMU-related R&D contracts are not provided here, their broad portfolio suggests a strong capability to undertake such specialized development work. Past performance evaluations and contract histories would offer a more granular view of their success rates, adherence to schedule, and cost control on similar projects.

How does the $51.8 million award compare to other R&D contracts for inertial measurement units?

Directly comparing the $51.8 million award for the SCIMU R&D contract to other inertial measurement unit (IMU) R&D contracts is challenging without access to a comprehensive database of all such procurements. However, this figure represents a substantial investment, suggesting the SCIMU is a complex or highly advanced system requiring significant development effort. R&D contracts, by nature, can vary widely in cost depending on the scope, technological maturity, and duration. A contract of this magnitude indicates a critical need and potentially a novel approach or significant upgrade to existing IMU technology within the DoD. Further analysis would require benchmarking against other DoD R&D efforts in advanced sensor technology.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for research and development (R&D) revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee, which represents their profit. If the R&D effort encounters unforeseen technical challenges or scope creep, the allowable costs can increase significantly, potentially exceeding initial estimates. While the fixed fee provides the government with some cost certainty regarding profit, the overall project cost is less predictable than in fixed-price contracts. Effective oversight, robust cost accounting standards, and clear definition of project milestones are crucial to mitigate these risks and ensure value for taxpayer money.

What is the expected program effectiveness and impact of the SCIMU technology?

The expected program effectiveness of the Strategic Compact Inertial Measurement Unit (SCIMU) is to enhance the precision, reliability, and potentially reduce the size and weight of navigation and guidance systems for Department of Defense platforms. Improved IMU technology directly impacts mission success by ensuring more accurate targeting, safer flight operations, and more robust autonomous capabilities. The SCIMU is likely intended to replace or significantly upgrade existing systems, offering superior performance in challenging environments where GPS may be denied or unreliable. Its effectiveness will be measured by its ability to meet stringent performance specifications, its integration into various weapon systems, and its contribution to overall operational readiness and technological superiority.

How has historical spending on inertial measurement units by the DoD evolved?

Historical spending on inertial measurement units (IMUs) by the Department of Defense has likely shown a consistent and significant trend, driven by the perpetual need for advanced navigation and guidance capabilities across all military branches. Early spending would have focused on less sophisticated mechanical gyroscopes, evolving towards more advanced technologies like Ring Laser Gyros (RLGs) and Fiber Optic Gyros (FOGs), and now increasingly towards micro-electro-mechanical systems (MEMS) for smaller, more cost-effective applications. Spending patterns are influenced by technological advancements, the introduction of new platforms (aircraft, missiles, drones), and the strategic imperative to maintain accuracy and reliability, especially in contested electromagnetic environments. The total dollar amount spent annually would fluctuate based on major procurement cycles and R&D initiatives, but the underlying demand for high-performance IMUs remains a constant.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

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: $78,764,921

Exercised Options: $78,764,921

Current Obligation: $51,835,544

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $3,081,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline