Honeywell International Inc. awarded $13.2M for missile and space systems R&D, spanning over three years

Contract Overview

Contract Amount: $13,246,817 ($13.2M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-25

End Date: 2009-05-22

Contract Duration: 1,123 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200607!000507!5700!FA9453!DET 8 AFRL/PKV8 !FA945306C0097 !A!N! !Y! ! !20060425!20090522!054332192!054332192!139691877!N!HONEYWELL INTERNATIONAL INC !13350 US HWY 19 N !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000001527898!N!N!000008290977!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!E! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to HONEYWELL INTERNATIONAL INC. for work described as: 200607!000507!5700!FA9453!DET 8 AFRL/PKV8 !FA945306C0097 !A!N! !Y! ! !20060425!20090522!054332192!054332192!139691877!N!HONEYWELL INTERNATIONAL INC !13350 US HWY 19 N !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINE… Key points: 1. Contract focused on basic research in missile and space systems, indicating early-stage development. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Cost-plus-fixed-fee contract type may lead to cost overruns if not managed carefully. 4. Performance period of over three years suggests a long-term research objective. 5. Geographic location of contractor in Florida may imply regional economic impact. 6. Contract value of $13.2M falls within a moderate spending range for R&D projects.

Value Assessment

Rating: fair

The contract value of $13.2 million for a three-year research and development effort in missile and space systems appears moderate. Benchmarking against similar basic research contracts is challenging due to the specialized nature of the work. The cost-plus-fixed-fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if the scope is not tightly controlled or if unforeseen technical challenges arise. Without more detailed performance metrics or comparisons to industry standards for similar research, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While this indicates a competitive process was intended, the 'exclusion of sources' clause suggests specific criteria or limitations might have been applied, potentially narrowing the field of eligible bidders. The data indicates only one award was made, but the initial competition phase likely involved multiple interested parties. The level of competition, even with exclusions, should have driven price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation. However, the specific 'exclusion of sources' needs further examination to ensure it did not unduly limit competition and potentially inflate costs.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially NASA, through advancements in missile and space systems technology. The contract supports basic research, aiming to develop foundational knowledge and capabilities in advanced aerospace and defense technologies. The geographic impact is centered around the contractor's location in Clearwater, Florida, potentially creating or sustaining high-skilled jobs in the region. Workforce implications include the employment of scientists, engineers, and technical staff specializing in aerospace and defense research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not meticulously managed.
The 'exclusion of sources' in the competition type warrants further investigation to ensure maximum competition was achieved.
Basic research outcomes are inherently uncertain, making direct ROI difficult to predict.
Long performance periods can sometimes indicate a lack of clear, short-term objectives.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement.
Contract value is substantial, suggesting a significant investment in critical R&D areas.
Contractor, Honeywell International Inc., is a well-established entity in aerospace and defense.
Focus on basic research can lead to breakthrough innovations with long-term strategic value.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on 'Missile and Space Systems - Basic Research.' The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific endeavors. Spending in this area is crucial for national security and technological advancement. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of basic research, but this $13.2 million award represents a significant investment in foundational capabilities within the aerospace and defense sub-sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a large contract awarded to a major defense contractor, Honeywell International Inc., it is unlikely that significant subcontracting opportunities for small businesses were mandated or a primary focus of the award. The contract's nature in advanced R&D may also limit the types of small businesses that could effectively participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. The contract type (Cost Plus Fixed Fee) necessitates robust financial oversight to monitor expenditures and ensure costs remain within reasonable bounds relative to the research objectives. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is generally maintained through contract award databases, though specific research details might be sensitive.

Related Government Programs

Missile Defense Systems Research
Space Systems Development
Advanced Aerospace Technology Research
Department of Defense Basic Research Programs
Air Force Research Laboratory Contracts

Risk Flags

Cost-plus-fixed-fee contract type carries inherent cost escalation risks.
Potential for limited competition due to 'exclusion of sources' clause.
Uncertainty of outcomes in basic research makes direct ROI assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to HONEYWELL INTERNATIONAL INC.. 200607!000507!5700!FA9453!DET 8 AFRL/PKV8 !FA945306C0097 !A!N! !Y! ! !20060425!20090522!054332192!054332192!139691877!N!HONEYWELL INTERNATIONAL INC !13350 US HWY 19 N !CLEARWATER !FL!33764!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000001527898!N!N!000008290977!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541710!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 $13.2 million.

What is the period of performance?

Start: 2006-04-25. End: 2009-05-22.

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

Honeywell International Inc. has a long and extensive history of performing research and development contracts for the Department of Defense and other federal agencies. They are a major defense contractor with significant expertise in aerospace, avionics, and defense systems. While this specific contract focuses on basic research in missile and space systems, Honeywell's broader portfolio includes work on advanced materials, propulsion, guidance, navigation, and control systems, all relevant to this domain. Their track record generally indicates a capacity to handle complex R&D projects, though performance can vary based on specific contract requirements, funding levels, and management oversight. Reviewing past performance evaluations for similar CPFF R&D contracts would provide a more granular understanding of their reliability and effectiveness in this specific area.

How does the $13.2 million contract value compare to other basic research contracts in missile and space systems?

The $13.2 million contract value for this three-year basic research effort in missile and space systems is within a moderate range for such specialized R&D. Basic research contracts can vary significantly in value, from smaller, targeted grants to multi-year, multi-million dollar programs. Contracts focused on foundational science and early-stage technology development, like this one, often have lower initial values compared to development or production contracts. However, they are critical for long-term technological advancement. Without access to a comprehensive database of all comparable basic research contracts, it's difficult to provide an exact benchmark. Nonetheless, $13.2 million suggests a substantial commitment to exploring novel concepts in this critical defense area, likely involving a team of specialized researchers and engineers over an extended period.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for basic research, revolve around cost control and scope definition. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. For basic research, where the outcomes are inherently uncertain and the path to achieving objectives may be unclear, defining a fixed scope can be challenging. This uncertainty increases the risk that actual costs could significantly exceed initial estimates, even though the contractor's fee is fixed. If the government needs to direct the research in unforeseen ways or if technical challenges prove more costly to overcome than anticipated, the total contract cost can escalate. Robust oversight and clear milestone definitions are crucial to mitigate these risks and ensure the government receives value for its investment.

What does 'basic research' in missile and space systems entail in the context of this contract?

Basic research in missile and space systems, as indicated by this contract, focuses on the fundamental scientific principles and understanding that underpin future technological advancements. It is distinct from applied research or development, which aim to solve specific problems or create specific products. This contract likely involves theoretical studies, laboratory experiments, and the exploration of novel concepts related to areas such as advanced materials, propulsion theories, orbital mechanics, sensor technologies, or fundamental aspects of missile guidance and control. The goal is not to produce a deployable system but to expand the knowledge base, potentially leading to breakthroughs that could enable entirely new capabilities in missile and space technologies years or decades down the line.

What is the significance of the 'full and open competition after exclusion of sources' clause?

The clause 'full and open competition after exclusion of sources' indicates that the procurement process aimed for broad competition but included specific criteria that excluded certain potential offerors. This is often used when specific capabilities, security clearances, or past performance are critical prerequisites that only a subset of potential contractors can meet. While it still represents a competitive approach, it is less open than a 'full and open competition' without exclusions. The 'exclusion' part suggests that the agency identified specific requirements that narrowed the pool of eligible bidders from the outset. Taxpayers benefit from competition, but the exclusion clause warrants scrutiny to ensure it was justified and did not unduly restrict the number of viable competitors, potentially impacting price discovery and overall value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 13350 US HWY 19 N, CLEARWATER, FL, 13

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline