DoD's $48.3M R&D Contract with Honeywell Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $48,300,552 ($48.3M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-03
End Date: 2027-08-31
Contract Duration: 2,645 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SPARROW RFROG
Place of Performance
Location: GLENDALE, MARICOPA County, ARIZONA, 85308
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $48.3 million to HONEYWELL INTERNATIONAL INC. for work described as: SPARROW RFROG Key points: 1. The contract's Cost Plus Fixed Fee structure may incentivize cost overruns. 2. Full and open competition was utilized, but the specific price discovery mechanism needs review. 3. The R&D focus on physical, engineering, and life sciences is broad, potentially impacting specific value assessment. 4. Lack of small business participation is noted.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not closely managed. Benchmarking against similar R&D contracts in the physical, engineering, and life sciences sector is crucial to determine if the $48.3M award represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders were considered. However, the effectiveness of the price discovery process within this competitive framework requires further examination to ensure optimal pricing.
Taxpayer Impact: Taxpayer funds are being allocated to R&D, which has long-term potential benefits but requires careful oversight to ensure efficient use of resources.
Public Impact
Investment in advanced research and development by the Department of Defense. Potential for technological advancements with broad applications. Contract duration extends over several years, indicating a long-term project. Geographic concentration of the contract in Arizona.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Lack of small business participation
- Broad R&D scope
- Long contract duration
Positive Signals
- Full and open competition
- Awarded to a major defense contractor
- Focus on critical R&D areas
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences, excluding specialized areas like nanotechnology. Spending in this broad R&D category by the DoD is significant, aimed at maintaining technological superiority.
Small Business Impact
The contract indicates no small business participation. This suggests that the prime contractor, Honeywell, is handling the entire scope of work, potentially missing opportunities for innovation and economic impact that could be generated through subcontracting with small businesses.
Oversight & Accountability
The Department of the Air Force is the awarding agency, with the Department of Defense overseeing. The contract's long duration and CPFF structure necessitate robust oversight to manage costs and ensure deliverables meet R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee structure may lead to higher costs.
- Lack of small business participation.
- Broad R&D scope may obscure specific value.
- Long contract duration requires sustained oversight.
- Potential for cost overruns without strong controls.
Tags
research-and-development-in-the-physical, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.3 million to HONEYWELL INTERNATIONAL INC.. SPARROW RFROG
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 $48.3 million.
What is the period of performance?
Start: 2020-06-03. End: 2027-08-31.
What specific R&D objectives does this contract aim to achieve, and how will their successful completion be measured to ensure value for money?
The contract's scope is broadly defined as 'Research and Development in the Physical, Engineering, and Life Sciences.' Specific objectives and measurable outcomes are not detailed in the provided data. Effective oversight would require clear milestones, technical reviews, and performance metrics tied to the advancement of scientific knowledge or technological capabilities relevant to national defense.
Given the CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically include stringent cost accounting standards, regular audits, detailed progress reports, and potentially incentive clauses for cost savings or performance improvements. The effectiveness of these mechanisms depends on the diligence of the contracting officer and the transparency of the contractor's financial reporting.
How does the R&D conducted under this contract align with current and future Department of Defense strategic priorities, and what is the anticipated return on investment?
The alignment with strategic priorities is not explicitly stated. However, R&D in physical, engineering, and life sciences is generally foundational for advancements in areas like advanced materials, autonomous systems, and medical countermeasures. The return on investment is typically long-term, measured by enhanced military capabilities, reduced operational risks, or the development of dual-use technologies with commercial applications.
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: TWO STEP
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 19019 N 59TH AVE, GLENDALE, AZ, 85308
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,070,335
Exercised Options: $49,070,335
Current Obligation: $48,300,552
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-06-03
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2025-11-25
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