Honeywell International Inc. awarded $32.1M for 334 Talin 5000 INU units, a sole-source delivery order

Contract Overview

Contract Amount: $32,157,520 ($32.2M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-09

End Date: 2022-01-01

Contract Duration: 845 days

Daily Burn Rate: $38.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIRST DELIVERY ORDER OF A QTY OF 334 TALIN 5000 INU UNDER CONTRACT W56HZV19D0082

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to HONEYWELL INTERNATIONAL INC. for work described as: FIRST DELIVERY ORDER OF A QTY OF 334 TALIN 5000 INU UNDER CONTRACT W56HZV19D0082 Key points: 1. This contract represents a significant investment in specialized navigation and guidance systems. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and limited market engagement. 3. Performance risk appears moderate given the established nature of the technology and contractor. 4. The delivery order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting ongoing needs. 5. This procurement falls within the broader defense sector's focus on advanced sensor and navigation technology. 6. The fixed-price contract type aims to control costs, but the lack of competition may undermine this.

Value Assessment

Rating: fair

The awarded amount of $32.1 million for 334 units translates to approximately $96,844 per unit. Without specific benchmark data for the Talin 5000 INU, it is difficult to definitively assess value for money. However, given the specialized nature of navigation and guidance systems for defense applications, this price point may be within a reasonable range. The lack of competitive bidding, however, prevents a robust comparison to market rates and raises concerns about whether the government secured the best possible price.

Cost Per Unit: Approximately $96,844 per unit (Talin 5000 INU).

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order under a pre-existing IDIQ contract. The data does not provide justification for the sole-source award, such as a specific technological requirement or a lack of available alternatives. The absence of a competitive process means that multiple bidders were not considered, which limits the government's ability to leverage market forces to achieve optimal pricing and innovation.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the lack of competitive pressure to drive down costs. Without competition, there is less assurance that the price reflects true market value.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other Department of Defense entities requiring advanced navigation and guidance systems. The contract delivers 334 units of the Talin 5000 INU, a critical component for military operations. The geographic impact is primarily within Florida, where the contractor is located, and wherever these units are deployed by the Army. Workforce implications include the continued employment of skilled engineers and manufacturing personnel at Honeywell International Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding on this sole-source award raises concerns about potential overpricing.
Limited transparency into the justification for a sole-source award.
Potential for higher costs to taxpayers due to absence of market competition.
Dependence on a single contractor for critical navigation system components.

Positive Signals

Awarded under a firm-fixed-price contract, which helps to define cost expectations.
The delivery order is part of a larger IDIQ contract, suggesting a structured approach to fulfilling ongoing needs.
Honeywell International Inc. is an established defense contractor with a track record in complex systems.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, specifically NAICS code 334511. This industry is characterized by high technological sophistication and significant government procurement, particularly from the Department of Defense. Market size is substantial, driven by national security needs for advanced avionics and navigation. Comparable spending benchmarks would typically involve other contracts for similar high-precision military-grade navigation systems, often awarded through competitive processes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Honeywell actively engages small businesses for subcontracting roles, which is not detailed here. Further investigation into subcontracting plans would be necessary to assess the broader impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under an IDIQ, the parent contract likely has established oversight mechanisms. Transparency is limited by the sole-source nature and the absence of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Navigation Systems Procurement
Army Aviation and Missile Command Contracts
Honeywell International Inc. Defense Contracts
Navigation, Guidance, and Control Systems Manufacturing
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding the specific need for sole-sourcing.
Dependency on a single contractor for critical technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to HONEYWELL INTERNATIONAL INC.. FIRST DELIVERY ORDER OF A QTY OF 334 TALIN 5000 INU UNDER CONTRACT W56HZV19D0082

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 $32.2 million.

What is the period of performance?

Start: 2019-09-09. End: 2022-01-01.

What is the specific function and criticality of the Talin 5000 INU for Department of the Army operations?

The Talin 5000 INU (Inertial Navigation Unit) is a sophisticated system that provides highly accurate position, velocity, and attitude information to aircraft, vehicles, and other platforms. For the Department of the Army, such units are critical for enabling precise navigation in GPS-denied environments, enhancing situational awareness, and ensuring the successful execution of complex missions, including reconnaissance, targeting, and troop movement. Its reliability and accuracy directly impact operational effectiveness and safety, particularly in contested or austere operational theaters where conventional navigation aids may be unavailable or compromised. The '5000' designation likely indicates a specific performance tier or capability set within Honeywell's Talin product line.

What is the justification for awarding this delivery order on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of this delivery order. Typically, sole-source awards are made when only one responsible source is available to meet the government's requirements. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the requirement was previously established under a competitive IDIQ and only one vendor can fulfill it. Without the official justification (e.g., a Justification and Approval document), it is impossible to definitively state the reason. This lack of transparency is a key area for concern regarding value for money.

How does the per-unit cost of $96,844 compare to similar inertial navigation units in the defense market?

Benchmarking the per-unit cost of $96,844 for the Talin 5000 INU against similar defense market inertial navigation units is challenging without access to proprietary pricing data or specific contract awards for comparable systems. However, high-performance, military-grade inertial navigation systems can range significantly in price, from tens of thousands to hundreds of thousands of dollars, depending on accuracy, reliability, environmental hardening, and specific features. Given that the Talin 5000 is likely a sophisticated unit for demanding applications, this price point may be within the expected range for such technology. The absence of competition, however, prevents a definitive assessment of whether this represents a competitive market price.

What is Honeywell International Inc.'s track record with the Department of the Army for navigation systems?

Honeywell International Inc. has a long-standing and extensive track record as a major defense contractor, including significant work with the Department of the Army on various systems, including navigation and avionics. They are known for producing a wide range of aerospace and defense products. While this specific data point relates to a sole-source delivery order for the Talin 5000 INU, Honeywell has historically secured numerous competitive and sole-source contracts for similar technologies across different military branches. Their established presence and technical capabilities suggest a level of reliability, but also highlight the importance of ensuring fair pricing and competition where possible for future procurements.

What is the historical spending pattern for Talin 5000 INU or similar navigation systems by the Department of the Army?

The provided data only reflects a single delivery order ($32.1M) for 334 units of the Talin 5000 INU under contract W56HZV19D0082. To understand historical spending patterns, one would need to analyze the entire IDIQ contract (W56HZV19D0082) for all delivery orders issued, as well as search for other contracts awarded for the Talin 5000 INU or functionally equivalent systems by the Department of the Army and other agencies. Without this broader context, it's impossible to determine if this $32.1M represents a significant increase, decrease, or consistent level of spending for this specific system or its class.

What are the potential risks associated with relying on a sole-source provider for critical navigation components?

Relying on a sole-source provider for critical navigation components like the Talin 5000 INU presents several risks. Firstly, it can lead to higher costs for taxpayers due to the lack of competitive pressure to ensure the best possible price. Secondly, it creates a dependency on a single supplier, which can be problematic if the supplier experiences production issues, financial instability, or decides to discontinue the product line. Thirdly, it limits opportunities for technological innovation that might arise from competition among multiple vendors. Finally, it reduces the government's leverage in contract negotiations and can make it harder to adapt to evolving technological requirements or urgent operational needs if the sole source cannot scale or adapt quickly.

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: Honeywell International Inc (UEI: 139691877)

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: $32,157,520

Exercised Options: $32,157,520

Current Obligation: $32,157,520

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $296,209

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV19D0082

IDV Type: IDC

Timeline