DoD Awards Honeywell $196M for Aircraft Communication Equipment, Limited Competition
Contract Overview
Contract Amount: $451,319,264 ($451.3M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-25
End Date: 2007-01-22
Contract Duration: 272 days
Daily Burn Rate: $1.7M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200607!000110!5700!FA8626!ASC/LPK !FA862606C2065 !A!N! !N! ! !20060425!20070122!195908637!195908637!139691877!N!HONEYWELL INTL !13350 US HIGHWAY 19 NORTH !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000000398530!N!N!000121531465!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !C!N!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $451.3 million to HONEYWELL INTERNATIONAL INC. for work described as: 200607!000110!5700!FA8626!ASC/LPK !FA862606C2065 !A!N! !N! ! !20060425!20070122!195908637!195908637!139691877!N!HONEYWELL INTL !13350 US HIGHWAY 19 NORTH !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINE… Key points: 1. The contract value is substantial at $195.9 million. 2. Honeywell International Inc. is the sole awardee, indicating limited competition. 3. The primary risk is the lack of competitive pricing due to sole-source award. 4. The sector is Electronics and Communication Equipment, supporting defense operations.
Value Assessment
Rating: fair
The contract value of $195.9 million for communication equipment appears high without competitive benchmarking. The duration of 272 days also suggests a potentially rapid procurement, which can sometimes lead to less favorable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, awarded solely to Honeywell International Inc. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award raises concerns about whether the government achieved the best possible price for this equipment.
Public Impact
Taxpayers may be overpaying for critical aircraft communication equipment due to the absence of competitive bidding. The Department of Defense relies on this equipment, making its cost and availability crucial for national security. Future procurements of similar equipment could be impacted if competitive strategies are not pursued.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
This award falls within the Electronics and Communication Equipment sector, specifically for miscellaneous communication equipment. Defense spending in this area is critical for maintaining operational readiness and technological superiority.
Small Business Impact
There is no indication that small businesses were involved in this procurement, as it was a sole-source award to a large corporation, Honeywell International Inc.
Oversight & Accountability
The lack of competition raises questions about the effectiveness of oversight in ensuring a fair and reasonable price was obtained. Further review of the justification for the sole-source award is warranted.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- Limited transparency on procurement justification.
- No apparent small business participation.
Tags
aircraft-manufacturing, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $451.3 million to HONEYWELL INTERNATIONAL INC.. 200607!000110!5700!FA8626!ASC/LPK !FA862606C2065 !A!N! !N! ! !20060425!20070122!195908637!195908637!139691877!N!HONEYWELL INTL !13350 US HIGHWAY 19 NORTH !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000000398530!N!N!000121531465!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336411!E! !3! ! ! ! ! !999
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 Air Force).
What is the total obligated amount?
The obligated amount is $451.3 million.
What is the period of performance?
Start: 2006-04-25. End: 2007-01-22.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract's justification for other than full and open competition (JOFOC). This document should detail why competition was not feasible or not in the government's best interest, and whether any market research was conducted to identify potential alternative sources or solutions.
How does the unit cost of this communication equipment compare to similar systems procured competitively by the DoD or other agencies?
Without specific unit cost data and benchmarks for comparable communication equipment, a direct comparison is impossible. The total award value of $195.9 million over 272 days, with only one awardee, makes it difficult to assess value for money. Benchmarking against competitively awarded contracts for similar functionalities is essential for a robust assessment.
What is the long-term strategy for procuring this type of communication equipment, and will future procurements include competitive elements?
The data does not provide insight into the long-term procurement strategy. It is crucial for the DoD to outline plans for future acquisitions of this equipment, prioritizing competitive strategies to ensure cost-effectiveness and innovation. A sole-source award for a significant value suggests a potential gap in strategic sourcing or market analysis.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 13350 US HIGHWAY 19 NORTH, CLEARWATER, FL, 33764
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $460,896,735
Exercised Options: $460,896,735
Current Obligation: $451,319,264
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-04-25
Current End Date: 2007-01-22
Potential End Date: 2007-01-22 00:00:00
Last Modified: 2015-06-29
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