DoD Awards $168M to Honeywell for TIGER III PDO 16 ILSC, Lacking Competition
Contract Overview
Contract Amount: $168,104,400 ($168.1M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2025-08-22
End Date: 2028-09-30
Contract Duration: 1,135 days
Daily Burn Rate: $148.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TIGER III PDO 16 ILSC
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85034
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $168.1 million to HONEYWELL INTERNATIONAL INC. for work described as: TIGER III PDO 16 ILSC Key points: 1. Significant award to a single large contractor, Honeywell. 2. Lack of competition raises concerns about price discovery. 3. Long contract duration (2028) suggests potential for cost overruns. 4. Focus on military vehicle components indicates a defense sector specialization.
Value Assessment
Rating: questionable
The award amount of $168M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal. Benchmarking against similar military vehicle component contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This significantly impacts price discovery, as there was no market pressure to drive down costs. The government may not have received the best possible price.
Taxpayer Impact: The lack of competition for this large contract means taxpayers may be paying a premium for these military vehicle components, as the government did not leverage market forces to secure a lower price.
Public Impact
Taxpayers may be overpaying for critical military vehicle components due to the absence of competitive bidding. The long-term nature of the contract could lock the government into potentially inflated prices for years. Dependence on a single contractor for these components could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for cost overruns
- Sole-source award
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
This contract falls within the defense manufacturing sector, specifically for military armored vehicles and components. Spending in this area is driven by national security needs, and benchmarks can vary widely based on technological complexity and geopolitical factors.
Small Business Impact
The data indicates this contract was awarded to Honeywell International Inc., a large corporation. There is no indication of small business participation in this specific award, suggesting a lack of opportunity for smaller defense contractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. Regular reviews of contract modifications and progress reports are crucial for accountability.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Sole-source award
- Long contract duration
- Potential for price inflation
- Limited oversight visibility due to sole-source nature
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 $168.1 million to HONEYWELL INTERNATIONAL INC.. TIGER III PDO 16 ILSC
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 $168.1 million.
What is the period of performance?
Start: 2025-08-22. End: 2028-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without competitive bidding, the government must rely on detailed cost analysis and negotiation to ensure fair pricing. The contracting officer should have documented the rationale thoroughly and performed extensive market research to confirm no other sources could meet the requirement.
What are the potential risks associated with a sole-source contract of this magnitude and duration for critical defense components?
Sole-source contracts of this scale and duration carry risks such as inflated prices due to lack of competition, potential for contractor complacency, and supply chain vulnerabilities if the sole provider faces disruptions. The government also loses the opportunity to benefit from innovative solutions or cost efficiencies that might emerge from a competitive environment.
How will the Department of the Army ensure effective performance and value for money throughout the contract's extended period?
Effective oversight is paramount. The Army should implement robust performance metrics, conduct regular progress reviews, and maintain open communication with Honeywell. Contingency planning for potential supply chain issues or performance failures should also be in place. Periodic re-evaluation of the market may be warranted even within a sole-source framework.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military 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: Honeywell Safety Products USA, 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: $168,104,400
Exercised Options: $168,104,400
Current Obligation: $168,104,400
Subaward Activity
Number of Subawards: 73
Total Subaward Amount: $11,483,158
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: 2025-08-22
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 12:09:00
Last Modified: 2025-12-22
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