DoD's $12.36M B-1 Microelectronic Solutions Contract Awarded to Honeywell International Inc
Contract Overview
Contract Amount: $12,363,681 ($12.4M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2028-03-31
Contract Duration: 914 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR B-1 MSOGS.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85027
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to HONEYWELL INTERNATIONAL INC. for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR B-1 MSOGS. Key points: 1. Contract focuses on advanced microelectronic capability solutions for the B-1 bomber. 2. Honeywell International Inc. is the sole awardee. 3. The contract duration is 914 days. 4. This falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $12.36M for a nearly 3-year duration needs further analysis against similar microelectronics development contracts to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be part of a larger IDIQ or similar vehicle, which could influence price discovery.
Taxpayer Impact: The competitive award process aims to secure fair pricing, but the Cost Plus Fixed Fee structure requires diligent oversight to ensure taxpayer funds are used efficiently.
Public Impact
Enhances critical B-1 bomber microelectronic capabilities. Supports national defense technological advancement. Potential for follow-on contracts based on performance. Awardee is a major defense contractor with extensive experience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires close monitoring.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Addresses critical defense technology needs.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced microelectronics. Spending in this area is crucial for maintaining technological superiority but can be costly due to specialized R&D and manufacturing requirements.
Small Business Impact
The data indicates no small business participation in this specific award. Efforts to include small businesses in the defense supply chain, particularly in specialized areas like microelectronics, could be explored for future opportunities.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust government oversight to manage costs and ensure performance objectives are met. Regular audits and performance reviews are critical for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Potential for cost escalation in R&D intensive area.
- Reliance on a single large contractor.
Tags
engineering-services, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to HONEYWELL INTERNATIONAL INC.. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR B-1 MSOGS.
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 Microelectronics Activity).
What is the total obligated amount?
The obligated amount is $12.4 million.
What is the period of performance?
Start: 2025-09-29. End: 2028-03-31.
What is the benchmark cost for similar microelectronic capability solutions for defense platforms?
Benchmarking the $12.36M award for this 914-day contract requires detailed comparison with contracts for similar advanced microelectronic solutions on other defense platforms. Factors like complexity, specific technological requirements, and the maturity of the technology influence pricing. Without specific comparable data, assessing the precise value is challenging, but the Cost Plus Fixed Fee structure warrants close scrutiny for potential cost efficiencies.
What are the specific risks associated with a Cost Plus Fixed Fee contract for advanced microelectronics?
The primary risk with Cost Plus Fixed Fee (CPFF) contracts in advanced microelectronics is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If development proves more complex or expensive than anticipated, costs can escalate beyond initial projections. Effective risk mitigation requires stringent government oversight, clear performance metrics, and proactive management of the contractor's cost accounting and project execution.
How does this contract contribute to the overall effectiveness of the B-1 bomber?
This contract is intended to acquire progressive microelectronic capability solutions, which are vital for modernizing and maintaining the effectiveness of the B-1 bomber. Improved microelectronics can enhance system reliability, processing power, and potentially enable new functionalities, ensuring the aircraft remains a capable asset in the evolving threat landscape. The success of these solutions will directly impact the bomber's operational readiness and mission success.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 9201 SAN MATEO BLVD. NE, ALBUQUERQUE, NM, 87113
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: $12,363,681
Exercised Options: $12,363,681
Current Obligation: $12,363,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ072716D0008
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-09-29
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