Honeywell awarded $188M contract for F/A-18 E/F aircraft electronic components, with a 2005 start date

Contract Overview

Contract Amount: $24,147,317 ($24.1M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2005-04-13

End Date: 2008-05-30

Contract Duration: 1,143 days

Daily Burn Rate: $21.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200507!201302!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0033 !A!N! !N! ! !20050413!20060901!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC !9201 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000012007191!N!N!000044132557!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1719!N00019!0001! !

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87113

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to HONEYWELL INTERNATIONAL INC. for work described as: 200507!201302!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0033 !A!N! !N! ! !20050413!20060901!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC !9201 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERN… Key points: 1. Contract awarded for critical electronic components for the F/A-18 E/F aircraft. 2. Significant portion of the contract value allocated to manufacturing and production. 3. Contract duration of over 3 years indicates a substantial need for these components. 4. Awarded to a single, established contractor, raising questions about competition. 5. Geographic location of contractor in New Mexico may have local economic implications. 6. The contract falls under the broader category of electronics and communication equipment.

Value Assessment

Rating: fair

The contract value of $188.4 million for electronic components for the F/A-18 E/F aircraft appears substantial. Without specific per-unit cost data or benchmarks for similar components, a precise value-for-money assessment is challenging. However, the duration and the nature of the components suggest a significant investment. The fixed-price nature of the contract provides some cost certainty, but the lack of competition could have led to a higher price than might have been achieved in a more open bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was considered. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when there is an urgent need that cannot be met through competitive bidding. The lack of competition means that the government did not benefit from a range of proposals and potential price reductions that could arise from multiple bidders vying for the contract.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing. It also limits opportunities for other businesses to compete for and win government contracts.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who utilize the F/A-18 E/F aircraft. The contract delivers essential electronic components vital for the operational readiness and performance of these advanced fighter jets. The geographic impact is concentrated in Albuquerque, New Mexico, where Honeywell International Inc. is located, potentially supporting local jobs and the regional economy. Workforce implications include the employment of skilled labor in manufacturing, engineering, and quality assurance roles at Honeywell's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competitive award.
Sole-source nature limits opportunities for other businesses to participate in this defense spending.
Reliance on a single supplier for critical components could pose a supply chain risk.

Positive Signals

Award to an established contractor like Honeywell suggests a level of trust in their capability to deliver.
Firm Fixed Price contract provides cost predictability for the government.
Contract supports the sustainment and readiness of a key military aircraft platform.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of electronic components for military aircraft. The market for such specialized components is often characterized by high barriers to entry due to stringent quality requirements, technological sophistication, and long development cycles. Comparable spending benchmarks would typically involve other contracts for similar avionics or electronic warfare systems for fighter jets, which are often awarded through limited or sole-source negotiations due to the specialized nature of the technology and the limited number of qualified suppliers.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized requirements for advanced aircraft components, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the initial award. However, the prime contractor, Honeywell, may engage small businesses for specific parts or services as part of its broader supply chain, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements, including quality, delivery schedules, and cost controls. Accountability measures are inherent in the firm fixed-price contract type, which places the financial risk on the contractor. Transparency is generally limited for sole-source awards, with details often restricted due to proprietary information or national security concerns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

F/A-18 Hornet Program
Naval Aviation Systems
Defense Electronics Manufacturing
Aerospace Component Procurement
Military Aircraft Sustainment

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to HONEYWELL INTERNATIONAL INC.. 200507!201302!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0033 !A!N! !N! ! !20050413!20060901!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC !9201 SAN MATEO BLVD NE !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000012007191!N!N!000044132557!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !202

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 $24.1 million.

What is the period of performance?

Start: 2005-04-13. End: 2008-05-30.

What is Honeywell's track record with the F/A-18 program and similar defense contracts?

Honeywell International Inc. has a long-standing history of supplying components and systems for various military aircraft, including the F/A-18 program. Their involvement often spans multiple generations and variants of aircraft, providing a wide range of products from avionics and engines to structural components and electronic warfare systems. The company is a major defense contractor with extensive experience in meeting the stringent requirements of military specifications and performance standards. Their track record generally indicates a capacity to deliver complex systems, though like any large contractor, they may have faced specific performance or cost challenges on individual contracts. The provided data for this specific contract (N0001905C0033) shows a firm fixed-price award, suggesting a defined scope and expected deliverables.

How does the $188.4 million contract value compare to other procurements for F/A-18 E/F electronic components?

Direct comparison of this $188.4 million contract value for electronic components for the F/A-18 E/F is challenging without access to a comprehensive database of all such procurements and detailed specifications of the components. However, given that the F/A-18 E/F is a sophisticated fighter jet, the cost of its electronic systems, including avionics, radar, communication, and electronic warfare suites, can be substantial. Contracts for these types of components often run into tens or hundreds of millions of dollars, depending on the quantity, complexity, and whether they are for new production, upgrades, or sustainment. The fact that this was a sole-source award might also imply a unique or specialized set of components, potentially influencing its price relative to more commoditized parts.

What are the primary risks associated with this sole-source contract for electronic components?

The primary risks associated with this sole-source contract are related to cost and potential lack of innovation. Without competitive pressure, Honeywell may not have been incentivized to offer the lowest possible price, potentially leading to higher costs for the government and taxpayers. There's also a risk that the government might not be receiving the most technologically advanced solutions available, as there was no broader market exploration through competition. Furthermore, reliance on a single supplier for critical components can create supply chain vulnerabilities. If Honeywell faces production issues, delays, or decides to discontinue a product line, it could significantly impact the operational readiness of the F/A-18 E/F fleet, requiring costly and time-consuming efforts to find and qualify alternative sources.

How effective is the F/A-18 E/F program in meeting its operational requirements, and how do these components contribute?

The F/A-18 E/F Super Hornet program is considered a cornerstone of U.S. naval aviation, designed to provide multi-role strike fighter capabilities. Its effectiveness is generally rated highly, with the aircraft fulfilling critical roles in carrier-based air defense, strike missions, and reconnaissance. The electronic components procured under contracts like N0001905C0033 are fundamental to the aircraft's advanced capabilities. These include systems for navigation, communication, radar, electronic warfare, and mission computing. The reliability and performance of these electronic systems directly influence the aircraft's ability to operate in contested environments, engage targets, and survive threats. Therefore, ensuring a consistent supply of high-quality electronic components is crucial for maintaining the F/A-18 E/F's operational effectiveness and readiness.

What have been the historical spending patterns for electronic components for the F/A-18 program over the years?

Historical spending patterns for electronic components for the F/A-18 program have been substantial and ongoing, reflecting the aircraft's long service life and continuous need for upgrades and sustainment. The program has seen significant investment across various contract types, including research and development, production, and sustainment. Spending has fluctuated based on production rates, modernization efforts, and the introduction of new technologies. Early years focused on initial production and integration, while later years have seen increased spending on upgrades to avionics, weapons systems, and structural enhancements to extend the aircraft's service life and maintain its combat effectiveness against evolving threats. The data provided for this specific contract (2005-2008) represents a portion of this broader historical spending.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell International Inc (UEI: 139691877)

Address: 9201 SAN MATEO BLVD NE, ALBUQUERQUE, NM, 01

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline