DoD's $25.2M contract for engine cold air research awarded to Honeywell International Inc

Contract Overview

Contract Amount: $25,230,222 ($25.2M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-18

End Date: 2026-01-30

Contract Duration: 2,600 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: R&D

Official Description: COLD AIR FROM ENGINES RESEARCH FUNDING

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85034

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to HONEYWELL INTERNATIONAL INC. for work described as: COLD AIR FROM ENGINES RESEARCH FUNDING Key points: 1. Contract focuses on advanced research and development in physical sciences. 2. Awarded by the Department of the Air Force, indicating a strategic defense interest. 3. The contract duration spans over 7 years, suggesting a long-term research objective. 4. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D services. 5. The contract type is a Delivery Order, implying it's part of a larger indefinite-delivery contract vehicle. 6. The base of the contractor, Honeywell International Inc., is in Arizona. 7. The contract value is substantial, reflecting the complexity and importance of the research.

Value Assessment

Rating: good

The contract value of $25.2 million for R&D in engine cold air research appears reasonable given the specialized nature of the work and the contractor's expertise. Benchmarking against similar R&D contracts in aerospace and defense would provide further context, but the pricing structure (COST NO FEE) suggests a focus on cost control and performance rather than profit maximization. The duration of the contract also allows for phased development and testing, which can lead to better value over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive innovation and ensure fair pricing. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality research outcomes.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advancements in engine technology. The research aims to improve engine performance and efficiency, potentially leading to enhanced military capabilities. The geographic impact is primarily within Arizona, where the contractor is based, potentially creating or sustaining high-skilled jobs. The workforce implications include employment for specialized researchers, engineers, and technicians within Honeywell.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in long-term R&D projects if not closely monitored.
Dependence on a single contractor for critical research may pose supply chain risks.
The specific outcomes and applicability of the research may not be fully realized until later stages.

Positive Signals

Award to a well-established contractor with a strong track record in aerospace.
The 'COST NO FEE' contract type incentivizes efficient resource utilization.
Long contract duration allows for thorough research and development cycles.
Full and open competition suggests a well-vetted and potentially innovative solution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to aerospace propulsion. The market for aerospace R&D is characterized by high barriers to entry due to specialized knowledge, significant capital investment, and stringent regulatory requirements. Comparable spending benchmarks would involve other government contracts for advanced engine technology or aerospace system development, which often represent substantial investments.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the specialized nature of advanced R&D in aerospace, it is likely that the prime contractor, Honeywell, will manage the project internally or subcontract to other large, specialized firms. The impact on the small business ecosystem is likely minimal unless specific R&D components are outsourced to small, innovative firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures would be tied to milestones and deliverables outlined in the contract. Transparency is facilitated through contract award databases, though detailed research progress reports are often considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Propulsion Systems Research
Aerospace Engineering Services
Defense Research and Development
Engine Technology Development
Air Force Research Laboratory Contracts

Risk Flags

Long-term R&D project with inherent technical uncertainty.
Potential for scope creep or evolving requirements over the contract duration.
Dependence on a single contractor for critical research outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to HONEYWELL INTERNATIONAL INC.. COLD AIR FROM ENGINES RESEARCH FUNDING

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 $25.2 million.

What is the period of performance?

Start: 2018-12-18. End: 2026-01-30.

What is Honeywell's track record with similar Department of Defense R&D contracts?

Honeywell International Inc. has a long and extensive history of contracting with the Department of Defense across various sectors, including aerospace, electronics, and advanced materials. They have consistently secured significant R&D contracts, particularly those related to aircraft systems, engines, and avionics. Their track record includes numerous successful projects that have contributed to military technological advancements. Specific to engine research, Honeywell has been a key player in developing and improving jet engines for decades. While this specific contract focuses on 'cold air' research, it aligns with their broader expertise in thermodynamics, aerodynamics, and propulsion systems. Past performance reviews and contract close-outs would provide detailed insights into their delivery, cost management, and innovation on previous DoD R&D efforts.

How does the value of this contract compare to other engine research initiatives?

The $25.2 million contract value for engine cold air research is a significant investment, but it falls within the typical range for specialized, multi-year R&D projects in the aerospace and defense industry. Large-scale engine development programs can cost hundreds of millions or even billions of dollars. However, this contract appears to be focused on a specific research area ('cold air' effects) rather than a complete engine design or overhaul. Comparing it to other contracts for fundamental research or component-level development within the DoD or NASA would provide a more accurate benchmark. The 'COST NO FEE' structure suggests that the government is primarily reimbursing direct costs plus a negotiated fee, which can influence the overall contract value compared to fixed-price contracts. The duration of over seven years also allows for a phased approach, spreading the cost over time.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this R&D contract include technical uncertainty, schedule delays, and potential cost overruns, although the 'COST NO FEE' structure aims to mitigate the latter. Technical risks are inherent in research, as the desired outcomes may not be achievable or may take longer than anticipated. Schedule risks can arise from unforeseen technical challenges, resource limitations, or changes in research priorities. While the contract is competitively awarded, there's also a risk of contractor performance not meeting expectations, leading to suboptimal results. Furthermore, the long duration increases the possibility of evolving technological landscapes or shifting strategic needs that could impact the relevance or application of the research findings.

What is the expected program effectiveness and impact of this research?

The expected program effectiveness hinges on the successful advancement of knowledge and technology related to engine performance in cold air environments. This research is likely intended to improve fuel efficiency, reduce emissions, enhance reliability, and potentially increase the operational envelope of aircraft engines in cold weather conditions. The impact could be significant for military aviation, enabling operations in Arctic regions or during winter campaigns with greater confidence and reduced logistical burdens. The effectiveness will be measured by the successful completion of research objectives, the validation of new concepts or technologies, and their eventual integration into future engine designs or operational procedures. The 'COST NO FEE' structure incentivizes efficient execution towards these goals.

What are the historical spending patterns for engine research within the Department of the Air Force?

The Department of the Air Force has consistently allocated substantial funding towards engine research and development throughout its history, recognizing the critical role of propulsion in air superiority and global reach. Historical spending patterns show significant investments in areas such as advanced materials, combustion efficiency, noise reduction, and performance enhancement across various engine types, from turbofans to experimental propulsion systems. These investments have often been made through a combination of large, multi-year development programs and smaller, targeted R&D contracts similar to this one, awarded via competitive processes. Funding levels can fluctuate based on strategic priorities, technological breakthroughs, and budget allocations, but engine R&D remains a core area of investment for maintaining a technological edge.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell Safety Products USA, 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: $25,230,222

Exercised Options: $25,230,222

Current Obligation: $25,230,222

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $2,070,326

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865017D2422

IDV Type: IDC

Timeline