DoD's $10.3M Honeywell Fire Alarm System Contract: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $10,316,399 ($10.3M)
Contractor: Honeywell International Inc
Awarding Agency: Department of Defense
Start Date: 2006-08-09
End Date: 2011-09-30
Contract Duration: 1,878 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HONEYWELL DELTA-NET GRAPHIC FIRE ALARM SYSTEM.
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $10.3 million to HONEYWELL INTERNATIONAL INC for work described as: HONEYWELL DELTA-NET GRAPHIC FIRE ALARM SYSTEM. Key points: 1. The contract awarded to Honeywell International Inc. for fire alarm systems represents a significant investment in facility security. 2. Analysis of the contract's value proposition requires benchmarking against similar security system procurements. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a potentially complex procurement history. 4. Performance context is crucial, examining the system's reliability and effectiveness in safeguarding DoD assets. 5. The contract falls within the Security Systems Services sector, highlighting a specialized area of government contracting. 6. Assessing the per-unit cost of the fire alarm system components is key to understanding value for money.
Value Assessment
Rating: fair
The total award of $10.3 million over five years for a Honeywell Delta-Net Graphic Fire Alarm System requires careful evaluation. Without specific details on the system's components, installation scope, and maintenance included, a direct comparison to similar contracts is challenging. However, the duration of the contract (1878 days) suggests a substantial deployment. Benchmarking the per-unit cost of alarm panels, sensors, and monitoring services against industry standards and other government procurements would be necessary to definitively assess value. The fixed-price nature of the contract provides some cost certainty, but the initial pricing needs scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation type suggests that while the initial intent might have been broader competition, specific circumstances led to excluding certain sources or a more restricted bidding process. The number of bidders is not explicitly stated, but the designation implies that not all potential offerors were considered or allowed to participate. This could indicate a reliance on a specific technology or a prior relationship that influenced the procurement path, potentially limiting the range of competitive offers received.
Taxpayer Impact: This procurement method may have resulted in less aggressive pricing than a truly open competition, potentially costing taxpayers more than if a wider range of vendors had been able to bid.
Public Impact
The Department of Defense benefits from enhanced fire detection and alarm capabilities, crucial for protecting personnel and assets. The contract delivers security systems services, specifically focusing on advanced fire alarm technology. The geographic impact is concentrated in North Carolina, where the contract was administered. Workforce implications are likely related to the installation, maintenance, and monitoring of the fire alarm systems, potentially involving specialized technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' in the competition type raises questions about the breadth of market engagement and potential for missed cost savings.
- Lack of detailed performance metrics makes it difficult to assess the system's effectiveness and Honeywell's track record on this specific contract.
- The significant dollar amount warrants a closer look at the unit pricing and whether it aligns with market rates for similar systems.
Positive Signals
- The contract is with a well-established company, Honeywell International Inc., known for its security and automation products.
- The award is a Firm Fixed Price (FFP) contract, providing cost predictability for the government.
- The contract duration of over 1800 days indicates a long-term need and commitment to facility safety.
Sector Analysis
The procurement falls within the Security Systems Services sector, a niche within the broader facilities management and security industry. This sector is characterized by specialized technology, including alarm systems, monitoring, and integration services. The market size for government security systems is substantial, driven by the need to protect critical infrastructure and sensitive information. Honeywell is a major player in this space, offering a wide range of solutions. This contract represents a specific application of their fire alarm technology within a defense context, likely involving advanced features for large-scale facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Honeywell engaged small businesses as subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The 'NC' (North Carolina) designation suggests the contract was administered or performed in that state. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would involve performance reviews, adherence to contract terms, and potential recourse for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Facility Security Contracts
- Federal Fire Detection and Alarm System Procurements
- Honeywell International Inc. Government Contracts
- Security Systems Services Contracts
- North Carolina Federal Contracts
Risk Flags
- Limited Competition Indication
- Lack of Detailed Performance Data
- Potential for Higher Pricing Due to Excluded Sources
- Need for Unit Cost Benchmarking
Tags
department-of-defense, department-of-the-army, security-systems-services, fire-alarm-system, firm-fixed-price, limited-competition, north-carolina, honeywell-international-inc, large-contract, facility-security, 2006-contract, 2011-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to HONEYWELL INTERNATIONAL INC. HONEYWELL DELTA-NET GRAPHIC FIRE ALARM SYSTEM.
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 $10.3 million.
What is the period of performance?
Start: 2006-08-09. End: 2011-09-30.
What specific Honeywell Delta-Net Graphic Fire Alarm System components were included in this $10.3 million contract, and what was the breakdown of costs for hardware, installation, and ongoing mainten
The provided data does not specify the exact components of the Honeywell Delta-Net Graphic Fire Alarm System procured under this $10.3 million contract, nor does it detail the cost breakdown for hardware, installation, or maintenance. The award amount of $10,316,399.39 covers the entire contract period from August 9, 2006, to September 30, 2011 (1878 days). To understand the value, a detailed breakdown would be necessary, comparing the cost of individual components (e.g., control panels, detectors, notification appliances, software licenses) and services against prevailing market rates at the time of award. Without this granular data, assessing the reasonableness of the pricing for each element is not possible. The 'FIRM FIXED PRICE' (pt: FIRM FIXED PRICE) nature indicates a set price for the defined scope, but the scope's details are missing.
How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the final price and the range of solutions considered compared to a standard full and open competition?
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (ct: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES) suggests a deviation from a standard full and open competition. This typically means that while the solicitation was intended to be open, certain sources were excluded, possibly due to specific technical requirements, existing infrastructure compatibility, or prior contractual relationships. This exclusion can limit the number of potential bidders and the diversity of solutions offered. Consequently, the competitive pressure might be reduced, potentially leading to a higher final price than if all qualified vendors had been allowed to compete. It also raises questions about whether the exclusion was justified and if it truly served the government's best interest in obtaining the most cost-effective and suitable system.
What is the track record of Honeywell International Inc. in providing similar fire alarm systems to the Department of Defense or other federal agencies, and were there any performance issues on previo
Honeywell International Inc. is a large, established corporation with a significant history of providing various products and services, including security and life safety systems, to the U.S. government. While the provided data does not detail Honeywell's specific performance on this particular fire alarm system contract (awarded in 2006), their general track record in the federal space is extensive. To assess performance issues on previous contracts, one would need to consult contract performance reports (CPARs), agency-specific procurement histories, and potentially Inspector General reports related to Honeywell's government contracts. Without access to these detailed performance records, it's impossible to definitively state their track record or identify past issues on similar procurements. However, their continued presence as a major government contractor suggests a generally acceptable performance level over time.
Can the $10.3 million award be benchmarked against other federal contracts for similar security systems services to determine if it represents good value for money?
Benchmarking the $10.3 million award for the Honeywell fire alarm system against similar federal contracts is challenging without more specific details about the system's scope, features, and the services included (installation, maintenance, monitoring). The contract number (561621 - Security Systems Services except Locksmiths) provides a general category, but fire alarm systems can vary significantly in complexity and cost. To perform a robust benchmark, one would need to identify contracts with comparable award amounts, contract durations, system functionalities, and agency types. Factors like geographic location (North Carolina), the specific Honeywell Delta-Net model, and the 'exclusion of sources' procurement history also influence price. A preliminary assessment suggests the value is 'fair' due to the lack of detailed comparative data and the potentially limited competition.
What were the primary risks associated with this contract, and what mitigation strategies were likely in place given the duration and value?
Primary risks associated with this $10.3 million, five-year contract for a fire alarm system likely included: 1) <strong>Technical Obsolescence:</strong> Fire alarm technology evolves; ensuring the system remained current or supportable was a risk. 2) <strong>Performance Risk:</strong> Ensuring the system functioned reliably to detect fires and alert personnel is paramount. 3) <strong>Cost Overruns (less likely with FFP):</strong> While a Firm Fixed Price contract limits cost risk for the government, scope creep or unforeseen installation challenges could still pose issues. 4) <strong>Contractor Viability:</strong> Ensuring Honeywell remained a viable entity capable of fulfilling the contract terms. Mitigation strategies would typically involve: clear performance specifications, rigorous testing and acceptance protocols, defined maintenance and support requirements, regular progress reviews, and potentially contingency planning for system upgrades or replacements. The FFP structure itself mitigates direct cost overrun risk for the government.
How does the spending on this specific fire alarm system contract compare to the overall federal spending on security systems services (NAICS 561621)?
The total award for this Honeywell fire alarm system contract was approximately $10.3 million. To compare this to overall federal spending on Security Systems Services (NAICS 561621), one would need to access comprehensive federal procurement data (e.g., from FPDS or USAspending.gov) covering the period of this contract (2006-2011) and potentially broader timeframes. Federal spending in this category can fluctuate significantly based on agency needs, infrastructure projects, and national security priorities. A $10.3 million contract, while substantial for a single system, might represent a small fraction of the total annual federal expenditure on security systems services across all agencies. Without the aggregate spending data for NAICS 561621 during the relevant period, a precise comparison cannot be made, but it is likely a specific, albeit significant, component of a much larger overall federal investment in security.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9124706R0051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 501 S SHARON AMITY RD STE 100, CHARLOTTE, NC, 12
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,316,399
Exercised Options: $10,316,399
Current Obligation: $10,316,399
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-08-09
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2011-10-19
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