FAA awards $220M contract to Honeywell for Enroute Facilities Modernization, impacting commercial building construction
Contract Overview
Contract Amount: $220,166,703 ($220.2M)
Contractor: Honeywell International Inc
Awarding Agency: Department of Transportation
Start Date: 2019-07-26
End Date: 2028-06-30
Contract Duration: 3,262 days
Daily Burn Rate: $67.5K/day
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARCHITECTURE AND ENGINEERING SERVICES TO THE ENROUTE FACILITIES MODERNIZATION PROGRAM.
Place of Performance
Location: LEESBURG, LOUDOUN County, VIRGINIA, 20175
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $220.2 million to HONEYWELL INTERNATIONAL INC for work described as: ARCHITECTURE AND ENGINEERING SERVICES TO THE ENROUTE FACILITIES MODERNIZATION PROGRAM. Key points: 1. Contract value of $220.17M awarded to a single large business. 2. Competition method was 'COMPETED UNDER SAP', suggesting limited competition. 3. Risk of limited competition and potential price inflation exists. 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $220.17M appears reasonable for a long-term (2019-2028) architecture and engineering services program. Benchmarking against similar large-scale infrastructure modernization projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves limited competition. This method may not have achieved the best possible price discovery compared to full and open competition.
Taxpayer Impact: While competition was limited, the firm-fixed-price contract type helps control costs. The overall taxpayer impact depends on the efficiency and necessity of the modernization program.
Public Impact
Modernization of air traffic control facilities aims to improve safety and efficiency. Impacts the commercial building construction sector through service needs. Long-term contract provides stability for the awarded vendor and potential for job creation.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Limited competition due to SAP.
- No small business participation noted.
Positive Signals
- Firm fixed price contract.
- Long duration provides program stability.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, specifically related to infrastructure modernization. Spending benchmarks for similar large-scale A&E services for federal facilities would be relevant for a deeper analysis.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity for small business participation in a significant federal contract.
Oversight & Accountability
The Federal Aviation Administration (FAA) is responsible for oversight. The firm-fixed-price contract type provides some cost control, but ongoing monitoring of performance and adherence to scope is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Limited competition.
- No small business participation.
- Potential for vendor lock-in.
- Lack of transparency in SAP usage for large contract.
Tags
commercial-and-institutional-building-co, department-of-transportation, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $220.2 million to HONEYWELL INTERNATIONAL INC. ARCHITECTURE AND ENGINEERING SERVICES TO THE ENROUTE FACILITIES MODERNIZATION PROGRAM.
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $220.2 million.
What is the period of performance?
Start: 2019-07-26. End: 2028-06-30.
What was the rationale for using SAP for a contract of this magnitude, and what specific cost savings were realized compared to a full and open competition?
The rationale for using SAP for a contract of this magnitude is unclear and warrants further investigation. SAP is typically intended for smaller procurements. Understanding the specific justification and any cost savings claimed would be essential to assess value for money and adherence to procurement best practices.
Given the sole large business awardee, what are the potential risks associated with vendor lock-in and future pricing negotiations for follow-on work?
Awarding a large contract to a single entity, especially a large business, carries risks of vendor lock-in and potential price escalation in future negotiations. The government may have less leverage if the incumbent vendor is the only viable option for subsequent phases or related services.
How will the effectiveness of the Enroute Facilities Modernization Program be measured, and what key performance indicators (KPIs) are in place?
The effectiveness of the program will likely be measured by improvements in air traffic control reliability, safety incident reduction, and operational efficiency. Specific KPIs should be clearly defined in the contract, focusing on system uptime, modernization completion milestones, and integration success.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 345 INVERNECO DR S STE 240, ENGLEWOOD, CO, 80112
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: $220,166,703
Exercised Options: $220,166,703
Current Obligation: $220,166,703
Actual Outlays: $134,115,181
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 697DCK19D00008
IDV Type: IDC
Timeline
Start Date: 2019-07-26
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2026-01-23
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