DoD's $24.7M R&D contract with Honeywell aims to enhance space-system memory performance

Contract Overview

Contract Amount: $24,716,667 ($24.7M)

Contractor: Honeywell International, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-06-18

End Date: 2020-04-19

Contract Duration: 306 days

Daily Burn Rate: $80.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS REQUIREMENT IS TO PERFORM RESEARCH AND DEVELOPMENT TO IMPROVE THE DENSITY, PERFORMANCE AND POWER CONSUMPTION OF FUTURE SPACE-SYSTEM MEMORY BY ADAPTING AND HARDENING ADVANCED STATE-OF-ART TECHNOLOGIES.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55441

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to HONEYWELL INTERNATIONAL, INC. for work described as: THIS REQUIREMENT IS TO PERFORM RESEARCH AND DEVELOPMENT TO IMPROVE THE DENSITY, PERFORMANCE AND POWER CONSUMPTION OF FUTURE SPACE-SYSTEM MEMORY BY ADAPTING AND HARDENING ADVANCED STATE-OF-ART TECHNOLOGIES. Key points: 1. Focuses on advancing space-system memory technology through R&D. 2. Contract awarded to a single, established prime contractor. 3. Performance period is relatively short, indicating a focused research phase. 4. The contract type suggests a balance between cost control and contractor incentive. 5. Research area is critical for future space mission capabilities. 6. Potential for significant improvements in space-system reliability and efficiency.

Value Assessment

Rating: fair

The contract value of $24.7 million for R&D in space-system memory is substantial, but a direct value-for-money assessment is difficult without specific performance metrics and comparable project costs. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not carefully managed, though it incentivizes the contractor to complete the work. Benchmarking against similar R&D efforts in advanced memory technologies for space applications would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 8 bidders, this suggests a healthy level of interest and competition for this specialized R&D requirement. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by selecting the most capable offeror at a reasonable price.

Public Impact

Benefits the Department of Defense by improving critical space-based communication and data processing capabilities. Delivers research and development services aimed at next-generation space systems. Geographic impact is national, supporting the U.S. space industrial base. Workforce implications include highly skilled R&D engineers and scientists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to manage costs effectively.
Short performance period may limit the scope of R&D achievable.
Reliance on a single prime contractor for execution.

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Focus on critical technology development for national security.
Involves a well-established contractor with experience in aerospace technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering for space applications. The market for space-system memory is a niche but critical segment of the broader aerospace and defense industry. Spending in this area is driven by the need for enhanced performance, radiation hardening, and miniaturization for increasingly complex space missions. Comparable spending benchmarks would likely be found in other advanced technology R&D contracts within the defense and intelligence communities.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Honeywell, is a large entity. The potential for small business involvement would likely be through subcontracting opportunities. The extent of small business participation will depend on Honeywell's subcontracting plan and the availability of specialized small businesses capable of contributing to advanced memory R&D.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is facilitated through contract award databases, though specific R&D progress details may be sensitive.

Related Government Programs

Advanced Space Technology Research
Next-Generation Memory Development
Department of Defense Research and Development Programs
Aerospace Engineering Services

Risk Flags

Cost Management Risk (CPFF)
Technical Feasibility Risk
Schedule Slippage Risk
Market Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to HONEYWELL INTERNATIONAL, INC.. THIS REQUIREMENT IS TO PERFORM RESEARCH AND DEVELOPMENT TO IMPROVE THE DENSITY, PERFORMANCE AND POWER CONSUMPTION OF FUTURE SPACE-SYSTEM MEMORY BY ADAPTING AND HARDENING ADVANCED STATE-OF-ART TECHNOLOGIES.

Who is the contractor on this award?

The obligated recipient is HONEYWELL INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2019-06-18. End: 2020-04-19.

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

Honeywell International, Inc. has a long history of performing complex R&D and manufacturing for the Department of Defense across various domains, including aerospace, electronics, and advanced materials. They have been involved in numerous contracts related to space systems, avionics, and critical components. While specific details on past memory R&D contracts would require deeper database analysis, Honeywell's established presence and extensive portfolio suggest a strong capability to undertake this type of advanced research. Their performance on prior DoD contracts, generally, has been mixed but often successful in delivering complex technological solutions, though like many large contractors, they have faced scrutiny on cost and schedule adherence in some instances.

How does the $24.7 million contract value compare to industry benchmarks for space-system memory R&D?

Benchmarking the $24.7 million contract value for space-system memory R&D is challenging without detailed project scope and specific technological advancements targeted. However, R&D in cutting-edge areas like radiation-hardened, high-density memory for space applications is inherently expensive due to the specialized expertise, materials, and testing required. Contracts of this magnitude are typical for significant technological leaps or foundational research in critical defense capabilities. Comparable projects might involve developing new semiconductor fabrication techniques, advanced packaging, or novel materials for extreme environments. The value reflects the high-risk, high-reward nature of pushing the boundaries of current technology for demanding space applications.

What are the primary risks associated with this research and development contract?

The primary risks associated with this R&D contract include technical risks, such as the possibility that the advanced technologies may not be adaptable or hardenable to the required specifications for space environments, or that performance and power consumption goals may not be met. Schedule risks exist due to the inherent uncertainties in research, potentially leading to delays. Cost risks are also present, particularly with a Cost Plus Fixed Fee structure, where unforeseen technical challenges could increase the effort required. Furthermore, market risks related to the obsolescence of developed technologies by the time they are ready for integration into future space systems could also be a concern.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of R&D?

The Cost Plus Fixed Fee (CPFF) contract type is often used for R&D efforts where the scope of work is not precisely defined at the outset, and there is a significant degree of uncertainty regarding the costs involved. It allows the contractor to incur costs deemed reasonable and necessary, plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their fee, as the fee is fixed regardless of the final cost. However, it requires robust government oversight to ensure costs are reasonable and allocable. For R&D, CPFF can be effective in encouraging innovation and exploration, but it necessitates careful monitoring to prevent cost overruns and ensure the government receives good value.

What is the historical spending trend for space-system memory R&D within the Department of Defense?

Historical spending trends for space-system memory R&D within the Department of Defense have generally shown consistent investment, driven by the evolving requirements of national security space missions. The DoD continuously seeks to enhance the capabilities, resilience, and longevity of its space assets, which necessitates advancements in onboard processing and data storage. While specific figures fluctuate annually based on strategic priorities and technological roadmaps, there has been a sustained focus on developing radiation-hardened, high-performance, and low-power memory solutions. This particular $24.7 million contract represents a segment of that ongoing investment, aimed at future-proofing critical space infrastructure.

What are the potential implications of this contract on future space system capabilities?

This contract has significant potential implications for future space system capabilities. By focusing on improving memory density, performance, and power consumption, the research aims to enable more sophisticated onboard processing, larger data storage capacities, and extended mission durations for satellites and other space assets. Enhanced memory performance can lead to faster data analysis in space, reduced reliance on ground communication bandwidth, and the ability to support more complex artificial intelligence and machine learning applications directly on the platform. Furthermore, improved power efficiency contributes to smaller, lighter spacecraft designs and reduced energy demands, which are critical constraints in space missions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA945317S0005

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell Safety Products USA, Inc.

Address: 12001 STATE HIGHWAY 55, MINNEAPOLIS, MN, 55441

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: $24,716,667

Exercised Options: $24,716,667

Current Obligation: $24,716,667

Actual Outlays: $7,285,509

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,115,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline