DoD Awards $25.1M to Honeywell for Navigation Systems, Supporting Army and USMC
Contract Overview
Contract Amount: $25,132,296 ($25.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-10
End Date: 2026-01-06
Contract Duration: 880 days
Daily Burn Rate: $28.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER TO MEET MINIMUM OBLIGATION QUANTITY PER CONTRACT W15QKN-23-D-0039. THIS DELIVERY ORDER SUPPORTS THE ARMY AND USMC.
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $25.1 million to HONEYWELL INTERNATIONAL INC. for work described as: DELIVERY ORDER TO MEET MINIMUM OBLIGATION QUANTITY PER CONTRACT W15QKN-23-D-0039. THIS DELIVERY ORDER SUPPORTS THE ARMY AND USMC. Key points: 1. Significant award to a major defense contractor. 2. Focus on critical navigation and guidance systems. 3. Potential for follow-on work given contract duration. 4. Limited competition raises questions about price discovery.
Value Assessment
Rating: fair
The award amount of $25.1M for a 3-year period seems reasonable for specialized navigation systems. However, without more detailed cost breakdowns or comparisons to similar sole-source contracts, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to a higher cost for taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Ensures continued availability of critical navigation systems for Army and USMC operations. Supports advanced technology development in aeronautical and nautical systems. Potential impact on future defense procurement strategies for similar equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source awards
- Reliance on a single contractor for critical systems
Positive Signals
- Supports essential military functions
- Long-term contract provides stability
- Award to established defense contractor
Sector Analysis
The defense sector, particularly navigation and guidance systems, requires specialized manufacturing and R&D. Spending in this area is driven by technological advancements and operational needs, with significant government investment.
Small Business Impact
This contract was awarded to Honeywell International Inc., a large corporation, and does not appear to include specific provisions for small business participation. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The Department of Defense oversees this contract. Accountability will depend on performance metrics, milestone achievement, and adherence to the firm fixed price terms. Regular reporting and audits are expected.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for higher costs due to lack of competition.
- Dependence on a single contractor for critical technology.
- Limited visibility into cost justification.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to HONEYWELL INTERNATIONAL INC.. DELIVERY ORDER TO MEET MINIMUM OBLIGATION QUANTITY PER CONTRACT W15QKN-23-D-0039. THIS DELIVERY ORDER SUPPORTS THE ARMY AND USMC.
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 Army).
What is the total obligated amount?
The obligated amount is $25.1 million.
What is the period of performance?
Start: 2023-08-10. End: 2026-01-06.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. The price is usually determined through negotiation and comparison with historical data or market research, though transparency can be limited in non-competed contracts. Further documentation would be needed to confirm the specific rationale and pricing methodology used.
What are the risks associated with relying on a single supplier for these critical navigation systems?
Risks include potential supply chain disruptions, lack of competitive pressure to innovate or reduce costs, and vendor lock-in. If Honeywell faces production issues or decides to discontinue the product line, the military could face significant challenges in finding replacements, potentially impacting operational readiness and incurring higher costs.
How will the effectiveness of these navigation systems be measured and ensured throughout the contract period?
Effectiveness is typically measured through performance metrics outlined in the contract, such as reliability, accuracy, and compliance with technical specifications. The government will likely conduct testing, require performance reports, and monitor system performance in operational environments to ensure the systems meet the required standards and fulfill their intended purpose.
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: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Resideo Technologies, Inc.
Address: 13350 US HIGHWAY 19 NORTH, CLEARWATER, FL, 33764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,132,296
Exercised Options: $25,132,296
Current Obligation: $25,132,296
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,924,973
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN23D0039
IDV Type: IDC
Timeline
Start Date: 2023-08-10
Current End Date: 2026-01-06
Potential End Date: 2026-01-06 12:01:00
Last Modified: 2024-08-09
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