DoD's $26.5M Honeywell Energy Study Contract: A Decade of Engineering Services in South Carolina
Contract Overview
Contract Amount: $26,532,712 ($26.5M)
Contractor: Honeywell Inc
Awarding Agency: Department of Defense
Start Date: 2007-06-29
End Date: 2019-01-31
Contract Duration: 4,234 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENERGY CONTROL MEASURES STUDY
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207
Plain-Language Summary
Department of Defense obligated $26.5 million to HONEYWELL INC for work described as: ENERGY CONTROL MEASURES STUDY Key points: 1. The contract provided engineering services for energy control measures over a 12-year period. 2. Awarded to Honeywell Inc., a major player in building automation and energy management. 3. The contract was competed using full and open competition, suggesting a robust bidding process. 4. The duration of the contract (over 12 years) indicates a long-term need for these services. 5. The firm-fixed-price type suggests that cost risks were largely borne by the contractor. 6. The contract was awarded as a delivery order, implying it was part of a larger indefinite-delivery contract.
Value Assessment
Rating: fair
Benchmarking the value of this specific $26.5 million contract over 12 years is challenging without more granular data on the scope of 'energy control measures' and specific deliverables. However, the firm-fixed-price structure suggests a degree of cost certainty for the government. Comparing it to similar long-term, large-scale energy efficiency engineering studies would provide better context, but such data is not readily available. The extended duration might indicate either a highly specialized and complex project or a less efficient procurement process if the scope evolved significantly over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment that should theoretically lead to better pricing and value for the government. The data does not specify the number of bidders, which would provide further insight into the intensity of the competition. A high number of bidders typically correlates with more competitive pricing.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors vie for the best price and performance, potentially leading to cost savings and higher quality services.
Public Impact
The Department of Defense benefits from improved energy efficiency and control measures in its facilities. Engineering services were delivered to support the Army's operational and infrastructure needs. The contract's primary geographic impact was in South Carolina, where the services were likely performed. The contract supported specialized engineering and technical workforce roles within Honeywell Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 12-year duration raises questions about potential scope creep or the need for contract modifications over such an extended period.
- Lack of specific performance metrics makes it difficult to assess the ultimate effectiveness of the energy control measures implemented.
- The contract value is substantial, necessitating careful oversight to ensure continued value for money.
Positive Signals
- The use of full and open competition suggests a commitment to maximizing market participation and achieving competitive pricing.
- The firm-fixed-price contract type shifts cost risk to the contractor, providing budget predictability for the government.
- The long-term nature of the contract may indicate a sustained commitment to energy efficiency goals by the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing various specialized engineering disciplines. The market for energy management and efficiency services is significant, driven by government mandates, corporate sustainability goals, and rising energy costs. This contract represents a substantial investment by the Department of Defense in optimizing its energy consumption, aligning with broader trends in federal agencies focusing on energy security and environmental responsibility. Comparable spending benchmarks would typically involve analyzing other large-scale energy efficiency retrofits or studies across federal facilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation (Honeywell Inc.), it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's terms, which are not detailed here. The absence of small business participation flags suggests that the primary focus was on the capabilities of the prime contractor.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Army contracting and program management offices. As a delivery order under a potential larger IDIQ, oversight might be distributed. Transparency is generally facilitated through contract databases like FPDS, where basic award information is available. Specific accountability measures would be detailed in the contract itself, including performance standards and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Energy Management Programs
- Federal Energy Efficiency Initiatives
- Army Facilities Engineering Contracts
- Engineering and Architectural Services
- Building Automation Systems Contracts
Risk Flags
- Long contract duration may increase risk of obsolescence or scope creep.
- Lack of specific performance metrics hinders effectiveness assessment.
- Potential for cost overruns if not tightly managed over 12 years.
Tags
energy-services, engineering-services, department-of-defense, department-of-the-army, south-carolina, full-and-open-competition, firm-fixed-price, delivery-order, long-term-contract, honeywell-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to HONEYWELL INC. ENERGY CONTROL MEASURES STUDY
Who is the contractor on this award?
The obligated recipient is HONEYWELL 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 $26.5 million.
What is the period of performance?
Start: 2007-06-29. End: 2019-01-31.
What specific energy control measures were studied or implemented under this contract?
The provided data does not specify the exact nature of the 'energy control measures' studied or implemented. This could range from HVAC system upgrades and building envelope improvements to the integration of smart building technologies and renewable energy assessments. A detailed review of the contract statement of work (SOW) and any associated task orders would be necessary to understand the specific technical scope. Given the duration and the contractor (Honeywell, a leader in building automation), it likely involved comprehensive energy management strategies and potentially the implementation or upgrade of control systems within Department of Defense facilities.
How does the $26.5 million cost compare to similar long-term energy efficiency studies for federal agencies?
Directly comparing the $26.5 million cost over 12 years to similar federal energy efficiency studies is difficult without more specific benchmarks. The total value is substantial, reflecting a long-term commitment. However, the 'per-year' cost averages around $2.2 million, which needs to be evaluated against the scale and complexity of the facilities and the specific energy-saving goals. Factors like the number of facilities covered, the types of energy systems addressed, and the depth of the analysis (study vs. implementation) would heavily influence comparability. Large-scale energy savings performance contracts (ESPCs) often involve significant upfront investment, but they are typically performance-based, with payments tied to achieved savings, which is not explicitly stated here.
What was the number of bidders during the full and open competition phase?
The provided data indicates the contract was awarded under 'full and open competition' but does not specify the number of bids received. A high number of bidders would typically suggest robust competition, potentially leading to better pricing and innovation. Conversely, a low number of bidders, even under full and open competition, might indicate limited market capacity for the specific services required or potential barriers to entry. To fully assess the competitive dynamics, the number of proposals submitted and the number of bidders would need to be examined.
What is Honeywell Inc.'s track record with similar large-scale federal energy management contracts?
Honeywell Inc. is a major global corporation with extensive experience in building technologies, automation, and energy management solutions, including significant work with the federal government. They have a well-established track record in executing large-scale projects involving energy efficiency upgrades, facility modernization, and the implementation of advanced control systems across various federal agencies. Their involvement in this $26.5 million Department of Defense contract aligns with their core competencies. A deeper dive into their contract history would reveal specific project successes, challenges, and performance ratings on similar endeavors.
What are the potential risks associated with a 12-year contract duration for engineering services?
A 12-year contract duration presents several potential risks. Firstly, technology can rapidly evolve, potentially making initial solutions or studies outdated before the contract concludes. Secondly, the scope of work might need significant adjustments over such a long period due to changing requirements, facility usage, or energy policies, leading to contract modifications and potential cost increases. Thirdly, maintaining consistent oversight and performance management over a decade can be challenging for government personnel. Finally, there's a risk of contractor complacency or reduced focus if performance incentives are not robustly structured and monitored throughout the contract's life.
How does this contract align with the Department of Defense's broader energy security and sustainability goals?
This contract directly supports the Department of Defense's (DoD) strategic goals related to energy security and sustainability. The DoD is mandated to improve energy efficiency, reduce greenhouse gas emissions, and enhance energy resilience across its global operations. By investing in energy control measures and engineering studies, the DoD aims to optimize energy consumption in its facilities, lower operational costs, and decrease its reliance on volatile energy markets. Such contracts are crucial components of the DoD's efforts to meet federal energy mandates and contribute to national climate objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 101 COLUMBIA ROAD, MORRISTOWN, NJ, 07960
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,020,178
Exercised Options: $28,020,178
Current Obligation: $26,532,712
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698OR22644
IDV Type: IDC
Timeline
Start Date: 2007-06-29
Current End Date: 2019-01-31
Potential End Date: 2019-01-31 00:00:00
Last Modified: 2020-07-15
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