DoD's $39M R&D Contract for Unmanned Aircraft Systems Technology Shows Mixed Value and Limited Competition

Contract Overview

Contract Amount: $39,169,489 ($39.2M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2017-05-18

End Date: 2023-07-28

Contract Duration: 2,262 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST SHARING

Sector: R&D

Official Description: IGF::OT::IGF UNMANNED AIRCRAFT SYSTEMS IMPROVED PERFORMANCE TECHNOLOGY EN

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85034

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $39.2 million to HONEYWELL INTERNATIONAL INC. for work described as: IGF::OT::IGF UNMANNED AIRCRAFT SYSTEMS IMPROVED PERFORMANCE TECHNOLOGY EN Key points: 1. The contract's value proposition is fair, with a cost-sharing arrangement potentially mitigating some risk for the government. 2. Competition was limited, raising questions about whether the government secured the best possible pricing and innovation. 3. Performance risk appears moderate, given the research and development nature of the contract. 4. The contract falls within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' sector. 5. Spending on similar R&D efforts by the Department of Defense warrants further benchmarking. 6. The duration of the contract (over 6 years) suggests a significant, long-term investment in technology development.

Value Assessment

Rating: fair

The contract utilized a cost-sharing approach, which can be beneficial by aligning contractor incentives with government objectives and reducing upfront financial exposure. However, without detailed cost breakdowns or comparisons to similar R&D projects, a definitive assessment of value for money is challenging. The total award amount of $39.17 million over approximately six years suggests a substantial investment, but its effectiveness hinges on the successful development and integration of the unmanned aircraft systems technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and more innovative solutions. The absence of specific details on the bidding process limits a deeper analysis of the competitive dynamics.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lower prices.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, through the advancement of unmanned aircraft systems technology. The services delivered involve research and development aimed at improving the performance of UAS. The geographic impact is primarily within Arizona, where the contractor is located, but the technological advancements could have broader national security implications. Workforce implications may include specialized R&D roles for engineers and scientists involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics makes it difficult to ascertain if the best possible price was achieved.
The R&D nature of the contract introduces inherent uncertainty in outcomes and potential for cost overruns.
Cost-sharing details are not fully transparent, making it hard to assess the exact government financial risk.
The specific performance metrics and success criteria for the R&D are not publicly detailed.

Positive Signals

Awarded under full and open competition, maximizing potential offerors.
Cost-sharing arrangement can align contractor and government interests and mitigate financial risk.
Long contract duration suggests a commitment to developing critical technology.
Contractor is Honeywell International Inc., a well-established aerospace and defense company.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically focusing on advanced technologies for unmanned aircraft systems (UAS). The R&D market within the defense sector is substantial, driven by the need for technological superiority. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D efforts in aerospace and autonomous systems, which often represent significant investments due to the complexity and innovation required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The primary contractor, Honeywell International Inc., is a large corporation, and any subcontracting would likely be with other large or specialized firms within the aerospace and defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's established procurement and contract management processes. The Air Force is the specific agency involved. Accountability measures are inherent in the contract's performance requirements and the cost-sharing agreement. Transparency is facilitated through contract award databases, though detailed R&D progress reports are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Unmanned Aircraft Systems Research
Aerospace Technology Development
Defense Research and Development Contracts
Air Force Procurement
Advanced Technology Development Programs

Risk Flags

Limited competition analysis available.
Specific performance metrics and outcomes not detailed.
Cost-sharing details and government's exact financial exposure unclear.
Potential for R&D project delays or cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to HONEYWELL INTERNATIONAL INC.. IGF::OT::IGF UNMANNED AIRCRAFT SYSTEMS IMPROVED PERFORMANCE TECHNOLOGY EN

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 $39.2 million.

What is the period of performance?

Start: 2017-05-18. End: 2023-07-28.

What is the track record of Honeywell International Inc. in fulfilling similar R&D contracts for the Department of Defense?

Honeywell International Inc. has a long history of contracting with the Department of Defense across various sectors, including aerospace, avionics, and advanced materials. While specific details on past UAS R&D performance are not provided in this data snippet, Honeywell is a major defense contractor with extensive experience in complex technological development. Their track record generally includes successful delivery on large-scale projects, though like any large contractor, they may have faced challenges on specific programs. A comprehensive review would require examining past performance evaluations and contract histories for similar R&D efforts to assess their reliability and expertise in the specific domain of unmanned aircraft systems.

How does the $39.17 million award compare to other DoD R&D contracts for unmanned aircraft systems?

Benchmarking this $39.17 million award requires comparing it to similar R&D contracts for unmanned aircraft systems (UAS) within the Department of Defense (DoD). The total value over approximately six years suggests a moderate to significant investment for a specific technological advancement. However, the defense R&D landscape is vast, with contracts ranging from small, focused research grants to multi-billion dollar platform development programs. To provide a precise comparison, one would need to analyze the scope, duration, technological maturity, and specific objectives of other UAS R&D contracts. Factors like the phase of research (e.g., basic research vs. applied research vs. advanced technology development) significantly influence contract values. Without more granular data on comparable contracts, it's difficult to definitively state if this award is high, low, or average.

What are the primary risks associated with this specific R&D contract, and how are they being managed?

The primary risks associated with this R&D contract are inherent to the nature of research and development. These include technical risk (the technology may not perform as expected or be feasible), schedule risk (development may take longer than anticipated), and cost risk (development costs could exceed projections, even with cost-sharing). The contract's cost-sharing arrangement is a key risk mitigation strategy, aligning Honeywell's financial stake with the government's. Additionally, the contract's duration (over 6 years) suggests a phased approach, potentially allowing for milestones and reviews to manage progress and identify issues early. However, the specific technical challenges and performance metrics are not detailed, making a precise risk assessment difficult. The government's oversight and the contractor's internal project management are crucial for managing these risks.

What is the expected impact of this contract on the advancement of unmanned aircraft systems technology for the Air Force?

This contract is expected to contribute to the advancement of unmanned aircraft systems (UAS) technology for the Air Force by funding research and development aimed at improving performance. The specific nature of 'improved performance' is broad and could encompass enhancements in areas such as endurance, payload capacity, sensor capabilities, autonomy, communication, or survivability. Successful outcomes from this R&D effort could lead to more capable and effective UAS platforms, enhancing intelligence, surveillance, reconnaissance (ISR) capabilities, operational flexibility, and potentially reducing risk to manned aircraft. The long-term impact depends on the successful transition of developed technologies into operational systems.

How has federal spending on Unmanned Aircraft Systems (UAS) R&D evolved over the past decade, and where does this contract fit in?

Federal spending on Unmanned Aircraft Systems (UAS) R&D has generally seen a significant upward trend over the past decade, driven by increasing military applications and technological advancements. Agencies like the Department of Defense (DoD) are major investors, seeking to enhance ISR capabilities, operational effectiveness, and reduce risks to personnel. This $39.17 million contract, awarded in 2017 and ending in 2023, represents a specific investment within this broader trend. It falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' category. While this single contract's value is substantial for its specific scope, it is part of a much larger portfolio of UAS R&D spending by the DoD, which collectively amounts to billions of dollars annually across various programs and research areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International 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: $85,238,322

Exercised Options: $85,238,322

Current Obligation: $39,169,489

Subaward Activity

Number of Subawards: 101

Total Subaward Amount: $12,083,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865015D2504

IDV Type: IDC

Timeline