DoD awards Honeywell $16.7M for aircraft heating/pressurizing equipment, sole-source contract
Contract Overview
Contract Amount: $16,675,990 ($16.7M)
Contractor: Honeywell Aerospace Gmbh
Awarding Agency: Department of Defense
Start Date: 2006-03-23
End Date: 2008-09-21
Contract Duration: 913 days
Daily Burn Rate: $18.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200606!000101!5700!FA8505!WR-ALC/LFK !F0960303D0064 !A!N! !N!0012 ! !20060323!20070322!315667915!328976035!139691877!N!HONEYWELL AEROSPACE GMBH !FRANKFURTER STR 41-65 !RAUNHEIM !GM!* !00000! !GM!* !* !GERMANY !+000001686280!Y!N!000000000000!1660!AIRCRAFT AC, HEATING, AND PRESSURIZING EQUIPMENT !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!A!S! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!1G!Z!Y!Z!B!GM!N!L!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $16.7 million to HONEYWELL AEROSPACE GMBH for work described as: 200606!000101!5700!FA8505!WR-ALC/LFK !F0960303D0064 !A!N! !N!0012 ! !20060323!20070322!315667915!328976035!139691877!N!HONEYWELL AEROSPACE GMBH !FRANKFURTER STR 41-65 !RAUNHEIM !GM!* !00000! !GM!* !* … Key points: 1. Contract awarded to Honeywell Aerospace GmbH for aircraft environmental control systems. 2. Sole-source award raises concerns about price discovery and competition. 3. Significant taxpayer investment in specialized aerospace components. 4. Contract duration of 913 days suggests a substantial project scope.
Value Assessment
Rating: questionable
The contract value of $16.7M for aircraft environmental control systems is difficult to benchmark without specific unit cost data. However, the sole-source nature of the award suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the required aircraft components.
Public Impact
Ensures critical aircraft systems remain operational for defense missions. Supports specialized manufacturing capabilities within the aerospace sector. Potential for increased costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential defense procurement
- Supports established supplier
Sector Analysis
This contract falls within the aerospace and defense sector, specifically for aircraft components. Spending in this area is critical for national security but can be subject to higher costs due to specialized requirements and limited suppliers.
Small Business Impact
This contract was awarded to a large foreign-owned company (Honeywell Aerospace GmbH), indicating no direct benefit or opportunity for U.S. small businesses in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. Robust justification for the sole-source selection should be scrutinized.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price negotiation.
- Dependency on a single supplier.
- Limited opportunity for small business participation.
Tags
office-administrative-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to HONEYWELL AEROSPACE GMBH. 200606!000101!5700!FA8505!WR-ALC/LFK !F0960303D0064 !A!N! !N!0012 ! !20060323!20070322!315667915!328976035!139691877!N!HONEYWELL AEROSPACE GMBH !FRANKFURTER STR 41-65 !RAUNHEIM !GM!* !00000! !GM!* !* !GERMANY !+000001686280!Y!N!000000000000!1660!AIRCRAFT AC, HEATING, AND PRESSURIZING EQUIPMENT !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336413!E! !5!A!S! ! ! !999
Who is the contractor on this award?
The obligated recipient is HONEYWELL AEROSPACE GMBH.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2006-03-23. End: 2008-09-21.
What was the justification for awarding this contract sole-source?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the specific reason for not pursuing a competitive bid needs to be thoroughly documented and reviewed to ensure it aligns with procurement regulations and serves the best interest of the government.
How does the pricing compare to similar sole-source contracts for aircraft environmental control systems?
Benchmarking sole-source contracts is challenging due to the absence of competitive bids. However, a review of historical data for similar sole-source awards within the Department of Defense for comparable systems could provide some insight. If pricing appears significantly higher than historical averages or industry benchmarks for non-sole-source procurements, it would raise concerns about value for money.
What is the long-term impact of sole-source awards on the defense industrial base?
Sole-source awards, while sometimes necessary, can stifle innovation and competition within the defense industrial base over the long term. They may reduce the incentive for companies to develop more cost-effective solutions and can lead to a dependency on a single supplier, potentially increasing vulnerability and costs for future procurements.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: FRANKFURTER STRASSE 41-65, RAUNHEIM
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,675,990
Exercised Options: $15,675,990
Current Obligation: $16,675,990
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F0960303D0064
IDV Type: IDC
Timeline
Start Date: 2006-03-23
Current End Date: 2008-09-21
Potential End Date: 2008-09-21 00:00:00
Last Modified: 2013-03-14
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