DoD Awards $130M Honeywell Contract for TIGER Program Engine Revitalization Hardware

Contract Overview

Contract Amount: $129,505,514 ($129.5M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-29

End Date: 2025-07-31

Contract Duration: 1,128 days

Daily Burn Rate: $114.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM. DELIVERY ORDER YEAR 2, DELIVERY ORDER NUMBER 6 HARDWARE.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85034

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $129.5 million to HONEYWELL INTERNATIONAL INC. for work described as: TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM. DELIVERY ORDER YEAR 2, DELIVERY ORDER NUMBER 6 HARDWARE. Key points: 1. Significant award to Honeywell for critical military hardware. 2. Lack of competition raises concerns about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Focus on armored vehicle components highlights defense sector spending.

Value Assessment

Rating: questionable

The contract value of $129.5M for engine revitalization hardware is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives.

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 less favorable terms for the government.

Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for this critical hardware.

Public Impact

Ensures continued operational readiness for armored vehicles. Supports a major defense contractor and its supply chain. Highlights the ongoing investment in military modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This award falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Defense spending in this area is crucial for national security and often involves large, complex contracts.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. This award primarily benefits large prime contractors.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Robust justification for the lack of competition is essential.

Related Government Programs

Risk Flags

Tags

military-armored-vehicle-tank-and-tank-c, department-of-defense, az, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $129.5 million to HONEYWELL INTERNATIONAL INC.. TOTAL INTEGRATED ENGINE REVITALIZATION (TIGER) PROGRAM. DELIVERY ORDER YEAR 2, DELIVERY ORDER NUMBER 6 HARDWARE.

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 $129.5 million.

What is the period of performance?

Start: 2022-06-29. End: 2025-07-31.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without this specific justification, the lack of competition raises concerns about potential price inflation and missed opportunities for cost savings through competitive bidding.

How does the pricing compare to similar, previously competed contracts for engine revitalization hardware?

Benchmarking this $129.5 million contract against similar, competed contracts is challenging due to its sole-source nature. A thorough review would require access to historical pricing data for comparable systems and an analysis of the specific components and services included to identify any significant deviations that might indicate overpricing.

What measures are in place to ensure the effectiveness and value of this hardware over its lifecycle?

Effectiveness and lifecycle value are typically ensured through stringent performance specifications, testing protocols, and warranty provisions outlined in the contract. Oversight by the Department of the Army is critical to monitor delivery, quality, and adherence to technical requirements, ensuring the hardware meets operational needs and provides long-term utility.

Industry Classification

NAICS: ManufacturingOther Transportation Equipment ManufacturingMilitary Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

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: 111 S 34TH ST, PHOENIX, AZ, 85034

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: $129,505,514

Exercised Options: $129,505,514

Current Obligation: $129,505,514

Subaward Activity

Number of Subawards: 504

Total Subaward Amount: $63,799,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0062

IDV Type: IDC

Timeline

Start Date: 2022-06-29

Current End Date: 2025-07-31

Potential End Date: 2025-07-31 12:07:00

Last Modified: 2024-02-20

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