DoD awards $26.5M for Advanced Multi-Purpose Displays to Honeywell, raising questions about competition
Contract Overview
Contract Amount: $26,454,658 ($26.5M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2013-05-23
End Date: 2016-05-29
Contract Duration: 1,102 days
Daily Burn Rate: $24.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 37 PRODUCTION OF THE ADVANCED MULTI-PURPOSE DISPLAYS (AMPD) IN SUPPORT OF THE ADVANCED MISSION&COMPUTERS (AMC&D) PROGRAM
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87113
Plain-Language Summary
Department of Defense obligated $26.5 million to HONEYWELL INTERNATIONAL INC. for work described as: LOT 37 PRODUCTION OF THE ADVANCED MULTI-PURPOSE DISPLAYS (AMPD) IN SUPPORT OF THE ADVANCED MISSION&COMPUTERS (AMC&D) PROGRAM Key points: 1. Honeywell International Inc. secured a $26.5 million contract for Advanced Multi-Purpose Displays. 2. The contract was awarded under a 'NOT COMPETED' category, indicating a lack of competitive bidding. 3. The procurement falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 4. The contract type is a Firm Fixed Price, which shifts cost risk to the contractor.
Value Assessment
Rating: questionable
The $26.5 million award for Advanced Multi-Purpose Displays lacks clear pricing benchmarks due to its non-competitive nature. Without competing offers, it's difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as 'NOT COMPETED,' suggesting a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these advanced displays.
Public Impact
Military personnel may receive advanced display technology crucial for mission success. The sole-source award could impact the development of a competitive market for similar defense systems. Taxpayers may be overpaying due to the absence of competitive bidding. The contract duration of 1102 days suggests a significant, long-term need for these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Firm Fixed Price contract shifts risk
- Supports critical defense programs
Sector Analysis
This contract falls within the Defense sector, specifically in the manufacturing of navigation and guidance systems. Spending in this area is often characterized by high R&D costs and specialized requirements, sometimes leading to less competition.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement is valid and that taxpayer funds are used efficiently.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding raises cost concerns.
- Potential for overpayment due to sole-source award.
- Limited transparency in the procurement process.
- No indication of small business participation.
- Contract awarded in 2013 with a 2016 end date, suggesting potential for contract modifications or extensions.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to HONEYWELL INTERNATIONAL INC.. LOT 37 PRODUCTION OF THE ADVANCED MULTI-PURPOSE DISPLAYS (AMPD) IN SUPPORT OF THE ADVANCED MISSION&COMPUTERS (AMC&D) PROGRAM
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 $26.5 million.
What is the period of performance?
Start: 2013-05-23. End: 2016-05-29.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies must demonstrate that only one source can meet the requirement, or that exceptional circumstances preclude competition. Without this justification, it's impossible to assess if the government received the best value and if taxpayer funds were used appropriately, especially when significant sums are involved.
How does the unit cost of these Advanced Multi-Purpose Displays compare to similar systems acquired competitively by the DoD or other agencies?
Benchmarking the unit cost against competitively procured, similar systems is essential for validating value. If this sole-source contract's unit price is significantly higher, it suggests potential overpayment and raises concerns about the effectiveness of the procurement process in securing fair market prices for critical defense components.
What is the long-term strategic impact of awarding critical display technology on a sole-source basis to a single vendor?
Sole-source awards, especially for critical technologies, can stifle innovation and create vendor lock-in, potentially hindering future competition and driving up long-term costs. It's important to assess if this award impacts the broader defense industrial base and the government's ability to source advanced systems competitively in the future.
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: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001912R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 9201 SAN MATEO BLVD. NE, ALBUQUERQUE, NM, 87113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,330,788
Exercised Options: $26,454,658
Current Obligation: $26,454,658
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-05-23
Current End Date: 2016-05-29
Potential End Date: 2016-05-29 00:00:00
Last Modified: 2017-05-22
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