GSA Awards $316.7M Honeywell Contract for Pegasys Interface, Extending to 2034

Contract Overview

Contract Amount: $316,766,338 ($316.8M)

Contractor: Honeywell International, Inc

Awarding Agency: General Services Administration

Start Date: 2021-04-01

End Date: 2034-12-31

Contract Duration: 5,022 days

Daily Burn Rate: $63.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW CONTRACT AWARD DOCUMENT TO MAKE THE CURRENT CONTRACT INTERFACEABLE WITH PEGASYS ONLY.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20901

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $316.8 million to HONEYWELL INTERNATIONAL, INC for work described as: NEW CONTRACT AWARD DOCUMENT TO MAKE THE CURRENT CONTRACT INTERFACEABLE WITH PEGASYS ONLY. Key points: 1. Significant contract value of $316.7 million. 2. Solely awarded to Honeywell International, Inc. 3. Long contract duration of over 13 years. 4. Focus on IT interface integration for Pegasys.

Value Assessment

Rating: fair

The contract value is substantial, but without specific benchmarks for interface development, assessing its value is difficult. The long duration suggests potential for cost overruns or scope creep if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of making a current contract interfaceable with Pegasys might have limited the pool of truly competitive bidders.

Taxpayer Impact: Taxpayers are impacted by the $316.7 million expenditure over 13 years. While competition was sought, the long-term commitment warrants scrutiny for cost-effectiveness.

Public Impact

Federal agencies relying on Pegasys will benefit from improved system integration. The long contract term may impact the adoption of newer, potentially more efficient technologies. Taxpayer funds are committed for over a decade, necessitating ongoing oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 13 years)
High total contract value
Sole awardee for a specific interface task

Positive Signals

Awarded under full and open competition
Clear objective for system interfaceability

Sector Analysis

This contract falls within Engineering Services, specifically related to IT system integration. Benchmarks for similar IT interface development contracts are scarce, making direct cost comparisons challenging. The value is high for a specialized integration task.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract. Oversight will be crucial given the long duration and significant value to ensure the interface is developed efficiently and effectively meets agency needs.

Related Government Programs

Engineering Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration
High total contract value
Potential for technological obsolescence
Limited visibility into specific performance metrics
Sole awardee for a specialized task

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $316.8 million to HONEYWELL INTERNATIONAL, INC. NEW CONTRACT AWARD DOCUMENT TO MAKE THE CURRENT CONTRACT INTERFACEABLE WITH PEGASYS ONLY.

Who is the contractor on this award?

The obligated recipient is HONEYWELL INTERNATIONAL, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $316.8 million.

What is the period of performance?

Start: 2021-04-01. End: 2034-12-31.

What is the specific functionality and expected benefit of making the current contract interfaceable with Pegasys?

The contract aims to enhance the interoperability of an existing system with Pegasys, likely a government-wide financial management system. This is expected to streamline data flow, improve reporting accuracy, and potentially reduce manual data entry and reconciliation efforts across agencies utilizing Pegasys. The precise benefits depend on the specific processes being integrated.

What are the risks associated with a 13-year contract for IT interface development?

The primary risks include technological obsolescence, where the developed interface may become outdated before the contract ends. There's also a risk of vendor lock-in, making it difficult to switch providers if performance issues arise. Scope creep and cost overruns are significant concerns over such a long period, especially if requirements evolve or are not clearly defined initially.

How will the effectiveness of this interface development be measured and ensured over its lifespan?

Effectiveness will likely be measured through performance metrics tied to system uptime, data accuracy, transaction processing speed, and user satisfaction. Regular reviews and milestone assessments by the GSA will be critical. The contract's firm-fixed-price nature provides some cost control, but ongoing monitoring of technical performance and adherence to evolving government IT standards will be essential.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell Safety Products USA, Inc.

Address: 1985 DOUGLAS DRIVE, GOLDEN VALLEY, MN, 55422

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $316,766,338

Exercised Options: $316,766,338

Current Obligation: $316,766,338

Actual Outlays: $4,054,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29035

IDV Type: IDC

Timeline