DoD Awards $12.19M Non-Recurring Engineering Contract to Honeywell for AN/AV-3M Systems
Contract Overview
Contract Amount: $12,188,639 ($12.2M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-03
End Date: 2027-12-31
Contract Duration: 1,214 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NON-RECURRING ENGINEERING FOR ANAV-3M
Place of Performance
Location: CLEARWATER, PINELLAS County, FLORIDA, 33764
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $12.2 million to HONEYWELL INTERNATIONAL INC. for work described as: NON-RECURRING ENGINEERING FOR ANAV-3M Key points: 1. Significant investment in advanced navigation technology for the Navy. 2. Sole-source award to Honeywell raises questions about competition and potential cost savings. 3. Long-term contract duration (over 3 years) suggests a critical, ongoing need. 4. Focus on aeronautical and nautical systems highlights a specialized defense sector.
Value Assessment
Rating: questionable
The contract value of $12.19 million for non-recurring engineering is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar engineering services for specialized defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Honeywell International Inc. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this significant contract could lead to suboptimal pricing, impacting the efficient use of taxpayer funds.
Public Impact
Enhances critical navigation capabilities for naval aviation. Supports advanced technology development within the defense industrial base. Potential for increased operational effectiveness and safety for military personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Critical technology development
- Long-term commitment
- Supports established prime contractor
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing of navigation, guidance, and control systems for aircraft. Spending in this niche area is often characterized by high R&D costs and limited supplier options.
Small Business Impact
The data indicates this contract was awarded to a large business (Honeywell International Inc.) and does not show any specific set-asides or participation goals for small businesses. Therefore, the direct impact on small businesses appears minimal.
Oversight & Accountability
The Department of the Navy awarded this contract, with oversight expected through their established procurement and program management processes. The sole-source nature warrants close scrutiny to ensure value and necessity.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to lack of competition.
- Limited transparency on justification for sole-sourcing.
- Long contract duration may not reflect evolving technological needs.
- No indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to HONEYWELL INTERNATIONAL INC.. NON-RECURRING ENGINEERING FOR ANAV-3M
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 Navy).
What is the total obligated amount?
The obligated amount is $12.2 million.
What is the period of performance?
Start: 2024-09-03. End: 2027-12-31.
What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. The Department of Defense should have conducted a thorough price analysis, potentially using historical data, independent cost estimates, or benchmarking against similar sole-source procurements to validate the $12.19 million price.
What are the long-term implications of relying on a sole-source provider for this critical navigation technology?
Long-term reliance on a sole-source provider can stifle innovation and create vendor lock-in, potentially leading to escalating costs and reduced flexibility. It also poses a risk if the sole provider faces financial difficulties or strategic shifts. The Navy should consider strategies for future competition or technology insertion to mitigate these risks.
How does this investment in AN/AV-3M systems align with the Navy's broader modernization goals and technological roadmap?
This investment likely supports the Navy's objective to maintain technological superiority in navigation and guidance systems, crucial for operational effectiveness and safety. Understanding the specific capabilities the AN/AV-3M provides and its integration into the fleet's architecture would clarify its strategic importance and alignment with modernization efforts.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell Safety Products USA, Inc.
Address: 13350 US HIGHWAY 19 N, CLEARWATER, FL, 33764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,026,049
Exercised Options: $17,026,049
Current Obligation: $12,188,639
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $65,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: FA857620D0001
IDV Type: IDC
Timeline
Start Date: 2024-09-03
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-11
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