DHS Coast Guard Awards $18.4M Energy Savings Contract to Honeywell Inc

Contract Overview

Contract Amount: $18,357,384 ($18.4M)

Contractor: Honeywell Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-11-30

End Date: 2021-02-01

Contract Duration: 5,177 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESPC (ENERGY SAVINGS) MLCPAC

Place of Performance

Location: OAKLAND, ALAMEDA County, CALIFORNIA, 94601

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.4 million to HONEYWELL INC for work described as: ESPC (ENERGY SAVINGS) MLCPAC Key points: 1. Contract awarded to a single, large incumbent vendor. 2. Significant contract duration of over 14 years. 3. No small business participation noted. 4. Focus on engineering services for energy savings.

Value Assessment

Rating: fair

The contract value of $18.4 million over 14 years suggests a substantial investment in energy efficiency. Benchmarking is difficult without specific performance metrics and comparable projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the long duration and incumbent status of Honeywell may have influenced pricing discovery.

Taxpayer Impact: Taxpayer funds are being utilized for energy efficiency improvements, which could lead to long-term cost savings for the government if performance targets are met.

Public Impact

Potential for reduced energy consumption and operational costs for the U.S. Coast Guard. Supports federal goals for energy efficiency and sustainability. Long-term commitment to a single vendor may limit flexibility for future technological advancements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration
No small business participation
Incumbent vendor

Positive Signals

Energy savings focus
Full and open competition

Sector Analysis

This contract falls under engineering services, specifically focused on energy savings. Spending in this sector is driven by federal mandates for efficiency and sustainability, with benchmarks varying widely based on project scope and technology.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that opportunities for small businesses in this specific energy savings project were either not pursued or not awarded.

Oversight & Accountability

The contract's long duration and delivery order structure require ongoing oversight to ensure performance, cost-effectiveness, and adherence to energy savings goals.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Long contract duration (over 14 years)
Potential for vendor lock-in
No small business participation
Lack of specific performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.4 million to HONEYWELL INC. ESPC (ENERGY SAVINGS) MLCPAC

Who is the contractor on this award?

The obligated recipient is HONEYWELL INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2006-11-30. End: 2021-02-01.

What are the specific energy-saving targets and projected cost reductions outlined in the contract, and how are they being measured?

The contract details should specify quantifiable energy reduction goals (e.g., percentage decrease in electricity or fuel consumption) and the methodology for tracking and verifying these savings. This information is crucial for assessing the contract's value and ensuring accountability for the $18.4 million investment.

What is the risk of vendor lock-in or technological obsolescence given the long contract duration and single vendor award?

A 14-year contract term with a single vendor carries a risk of vendor lock-in, potentially hindering the adoption of newer, more efficient technologies. Regular performance reviews and contract modifications should be in place to mitigate this risk and ensure the Coast Guard benefits from the latest advancements.

How effectively has Honeywell Inc. delivered on energy savings for similar contracts, and what is the benchmark for success in this engagement?

Assessing Honeywell's past performance on comparable energy savings contracts is vital. Establishing clear, measurable benchmarks for this specific project, tied to the $18.4 million award, will allow for objective evaluation of the contract's effectiveness and the realization of taxpayer value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 101 COLUMBIA ROAD, MORRISTOWN, NJ, 07960

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,378,686

Exercised Options: $18,357,384

Current Obligation: $18,357,384

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: DEAM3697EE73567

IDV Type: IDC

Timeline